Greening the Grid (GTG) Newsletter - gtg-india.com · its generation when asked by the system...

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Connect with us: GreeningthegridIndia/ GTG_India Greening the Grid www.gtg-india.com USAID’s Greening the Grid (GTG) is a five- year program implemented in partnership with India’s Ministry of Power (MOP) under the USAID’s ASIA EDGE (Enhancing Development and Growth through Energy) Initiative. 1 The program aims to support the Government of India’s (GOI) efforts to manage the large-scale integration of RE into the grid and combines the following three components which interact with each other. 1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories 2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE 3. Peer-to-Peer exchanges between U.S.- India system operators (System Operator Partnership) and regulators (India Regulatory Partnership) About GTG Program On June 1, 2020, India introduced the real-time market (RTM) for power trading, paving the way for a more efficient electricity market and smooth integration of renewable energy. With the launch of RTM, electricity distribution companies (DISCOMs) will now be able to purchase millions of units of power in spot markets just an hour before delivery, a process as simple as booking a cab online just an hour before travelling. Establishment of RTM is a landmark initiative by the Central Electricity Regulatory Commission (CERC), India’s central regulator, to drive the country’s shift from primarily long-term generation contracts to shorter-term contracts and electricity spot markets. As per estimates by power exchanges in the country, around 20 billion units of power would be traded through RTM each year. On the first day of RTM’s launch on June 1, a staggering 3.41 MU of power was traded on the platform. CERC amended three regulations (the Indian Electricity Grid Code Regulations, Power Market Regulations, and Open Access in Inter-State Transmission Regulations) to introduce the RTM framework. The RTM platform is widely used across the world to promote market efficiencies and integrate renewable energy, which is variable by nature and requires access to flexible, shorter-term market options to balance supply and demand. CERC regards RTM’s introduction as a critical step toward establishing a more reliant electricity network in the country and the South Asian region. With RTM’s introduction, DISCOMs will not need to rely solely on day-ahead scheduling for meeting their demand. The RTM platform will enable DISCOMs to make up for errors in demand estimates and unpredictable generation patterns with increasing renewable penetration, saving them from the huge penalties incurred earlier for overdrawing from the grid in case of shortage. Similarly, the sellers across the region get wider access to more efficient and real-time power market. This will translate to savings and better resource utilization by both DISCOMs and generation plants. USAID’s GTG-RISE continues to provide advisory and analytical support to CERC on power market redesign initiatives. About GTG Program Vol 6, Feb 2020 – Sep 2020 USAID’s Greening the Grid (GTG) is a five- year program implemented in partnership with India’s Ministry of Power (MOP) under the USAID’s ASIA EDGE (Enhancing Development and Growth through Energy) Initiative. 1 The program aims to support the Government of India’s (GOI) efforts to manage the large-scale integration of RE into the grid and combines the following three components which interact with each other. 1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories 2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE 3. Peer-to-Peer exchanges between U.S.- India system operators (System Operator Partnership) and regulators (India Regulatory Partnership) 1 USAID’s Asia EDGE initiative aims to enhance the economic and energy security of Asian countries by promoting a more affordable and reliable energy system that is also more globally accessible by focusing on four key areas; Regional Energy Trade and Integration, Increased Deployment of Advanced Energy Systems, Utility Modernization and adoption of Transparent and Best Value Procurement practices. Government of India launches real-time electricity trading, a huge step toward robust grid and efficient power market Greening the Grid (GTG) Newsletter Greening the Grid (GTG) Newsletter

Transcript of Greening the Grid (GTG) Newsletter - gtg-india.com · its generation when asked by the system...

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Connect with us:GreeningthegridIndia/

GTG_India

Greening the Grid

www.gtg-india.com

USAID’s Greening the Grid (GTG) is a five-year program implemented in partnership with India’s Ministry of Power (MOP) under the USAID’s ASIA EDGE (Enhancing Development and Growth through Energy) Initiative.1 The program aims to support the Government of India’s (GOI) efforts to manage the large-scale integration of RE into the grid and combines the following three components which interact with each other.

1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories

2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE

3. Peer-to-Peer exchanges between U.S.-India system operators (System Operator Partnership) and regulators (India Regulatory Partnership)

About GTG Program

On June 1, 2020, India introduced the real-time market (RTM) for power trading, paving the way for a more efficient electricity market and smooth integration of renewable energy. With the launch of RTM, electricity distribution companies (DISCOMs) will now be able to purchase millions of units of power in spot markets just an hour before delivery, a process as simple as booking a cab online just an hour before travelling. Establishment of RTM is a landmark initiative by the Central Electricity Regulatory Commission (CERC), India’s central regulator, to drive the country’s shift from primarily long-term generation contracts to shorter-term contracts and electricity spot markets. As per estimates by power exchanges in the country, around 20 billion units of power would be traded through RTM each year. On the first day of RTM’s launch on June 1, a staggering 3.41 MU of power was traded on the platform.

CERC amended three regulations (the Indian Electricity Grid Code Regulations, Power Market Regulations, and Open Access in Inter-State Transmission Regulations) to introduce the RTM framework. The RTM platform is widely used across the world to promote market efficiencies and integrate renewable energy, which is variable by nature and requires access to flexible, shorter-term market options to balance supply and demand. CERC regards RTM’s introduction as a critical step toward establishing a more reliant electricity network in the country and the South Asian region. With RTM’s introduction, DISCOMs will not need to rely solely on day-ahead scheduling for meeting their demand. The RTM platform will enable DISCOMs to make up for errors in demand estimates and unpredictable generation patterns with increasing renewable penetration, saving them from the huge penalties incurred earlier for overdrawing from the grid in case of shortage. Similarly, the sellers across the region get wider access to more efficient and real-time power market. This will translate to savings and better resource utilization by both DISCOMs and generation plants.

USAID’s GTG-RISE continues to provide advisory and analytical support to CERC on power market redesign initiatives.

About GTG Program

Vol 6, Feb 2020 – Sep 2020

USAID’s Greening the Grid (GTG) is a five-year program implemented in partnership with India’s Ministry of Power (MOP) under the USAID’s ASIA EDGE (Enhancing Development and Growth through Energy) Initiative.1 The program aims to support the Government of India’s (GOI) efforts to manage the large-scale integration of RE into the grid and combines the following three components which interact with each other.

1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories

2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE

3. Peer-to-Peer exchanges between U.S.-India system operators (System Operator Partnership) and regulators (India Regulatory Partnership)

1 USAID’s Asia EDGE initiative aims to enhance the economic and energy security of Asian countries by promoting a more affordable and reliable energy system that is also more globally accessible by focusing on four key areas; Regional Energy Trade and Integration, Increased Deployment of Advanced Energy Systems, Utility Modernization and adoption of Transparent and Best Value Procurement practices.

Government of India launches real-time electricity trading, a huge step toward robust grid and efficient power market

Greening the Grid (GTG) NewsletterGreening the Grid (GTG) Newsletter

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Gujarat made its first successful move to achieve greater load flexibility at its coal-based plant to boost integration of renewables. With support from USAID, Gujarat’s state power generation utility successfully operated its 500 MW Ukai unit at only 40 per cent (200 MW) of its capacity during a recently conducted low load test run. This is the first time that the Gujarat State Electricity Corporation Limited (GSECL) has been able to run its Unit to the lowest possible load points while still maintaining all the other operating parameters under stable conditions and without any supplementary oil firing support. These test run results will enable GSECL to further optimize its operating costs and customize its load under future flexible operating conditions.

In future, these low load test runs will allow the utility to identify their ability and adaptability to reduce its generation when asked by the system operator for integrating more renewable energy and remain synchronized with the power grid. The test runs are the building blocks to the adoption of the nationwide roadmap for flexible operations of coal-power plants, which is a key strategy to meet India’s ambitious target of 175 GW RE addition by 2022. The capability of GSECL to operate its plant flexibly i.e. reduce generation to minimal level and ramp up (generate more when required in short duration) will also help Gujarat meet its target of achieving 30 GW of RE installation by 2022. The low load test run was conducted, under a pilot implemented under GTG –RISE initiative, in partnership with GSECL and Bharat Heavy Electricals Limited (BHEL), which is the Original Equipment Manufacturer. Every coal-plant has its own vintage, plant specifications and thermodynamic characteristics and to lower the plant load it requires a detailed procedure with the list of actions that should be taken in the event of faults or potential dangers. The test runs carried out at Ukai unit followed the low load/ramp procedures developed by GTG-RISE & BHEL, which would serve as the guiding tool while developing and implementing a long-term flexibilization road map for the county.

Over the past three (3) years, USAID through its GTG–RISE project has undertaken a techno-economic feasibility study of flexible operation of GSECL’s coal plants, produced a business case for policy and regulatory incentives for flexible operations, trained the plant operators and are developing GSECL’s fleet wide strategy. Flexible operation of coal powered plants support generating utilities to adapt to the energy transition, which is a key parameter under modern utilities pillar of Asia EDGE initiative.

The results from USAID’s pilot on flexible operation of coal-based power plant implemented in partnership with Central generating utility, NTPC Ltd. and state utility in Gujarat is now being adopted by the state utility in Karnataka i.e. Karnataka Power Corporation Limited (KPCL). The state generator approached USAID to replicate the work on coal flexibility and learn from the experiences of the pilot undertaken as a part of GTG-RISE initiative. Over the past three (3) years, USAID through the GTG-RISE project successfully undertook techno-economic feasibility studies, conducted multiple operator trainings and capacity-building workshops, and supported NTPC and GSECL in conducting low load test runs, up to 40 percent in their select units. Now, USAID is partnering with KPCL to support its efforts in making its coal power plants more flexible.

Government of Karnataka replicating USAID’s work on coal flexibility to support RE integration in the state

“Today with all the support of USAID’s GTG Program and BHEL, we have successfully achieved the milestone of conducting low load test run. Our long partnership with USAID through GTG enhanced GSECL’s confidence to carry out these test runs. The outcomes of test run would enable GSECL to plan its fleet wide strategy for 5000 MW of its coal -based thermal units towards flexible operations to support renewable integration.”

B A Gandhi Executive Engineer (Efficiency), GSECL

Gujarat successfully operates its coal plant at 40% load in a first to support integration of renewable energy

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India’s power sector is witnessing a slew of reforms aimed at shaping a robust energy landscape for the country. Real-time management of demand-supply variation — to better respond to energy requirements and to e nable large-scale integration of renewable energy — is a key area of focus. The recent launch of the real-time market (RTM) platform for power trading is a landmark move in this direction. In a close follow up, the development of the National Open Access Registry (NOAR) has also been initiated. The NOAR development kicked off with a virtual signing ceremony, held on July 31, 2020, where Power System Operation Corporation (POSOCO) and the USAID announced the selection of a systems integrator for NOAR development. A consortium led by PricewaterhouseCoopers (PwC) has been selected through competitive bidding for the development, implementation, and operationalization of a fully functional NOAR.

NOAR is regarded as the pivotal infrastructure needed to support smooth and dynamic real-time electricity market administration in the country. As India’s long-standing partner in the reform agenda, USAID has been supporting POSOCO for development of NOAR activity through its Greening the Grid-Renewable Integration and Sustainable Energy (GTG-RISE) initiative as a pilot on regional coordination and market redesign. GTG-RISE is a key Asia EDGE (Enhancing development and Growth through Energy) initiative implemented by Deloitte Consulting. Over the past three years, USAID’s GTG-RISE initiative has worked in close partnership with POSOCO and the Central Electricity Regulatory Commission (CERC) to shape framework guidelines for regional coordination, evaluate market-based mechanisms to address real-time imbalances, and evolve consensus on the way forward. NOAR’s initiation is an outcome of this effort. “At present with India’s rapid stride in power sector reforms, automation of power systems is essential and recent achievements including real time market will go a long way in this journey. Today’s momentous event — the kickoff of NOAR development — is the result of excellent teamwork by the Ministry of Power, POSOCO, CERC, and USAID’s GTG initiative said K.V.S. Baba, CMD, POSOCO. The sentiment echoed in the words of Karen Klimwoski, Deputy Mission Director (Acting), USAID/India: “Today’s ceremony marks the achievement of another significant milestone under the India-U.S. strategic energy partnership. The NOAR will go a long way in modernizing power systems and building a resilient and self-reliant power sector in India.”

NOAR is conceptualized as a centralized electronic platform to automate the short-term open access approval processes in the electricity market. Currently, state distribution entities do not very actively tap into reserves lying with other states/regions despite day-ahead and intra-day market mechanisms being available at power exchanges in India. NOAR will enable open access to realize its full potential through an integrated IT-based system that is accessible to all stakeholders, with functionalities for maintaining a centralized repository of information related to open access, inter-state corridor availability, interim approvals, and NOCs. This will greatly reduce the response time for open access approvals and enable the intra-day market to operate much more flexibly. Elaborating on the NOAR, Sanoj Kumar Jha, Secretary, CERC, stated: “NOAR is a major and long-awaited initiative, and that makes today’s signing ceremony an important occasion for all of us. The IT-based system will make things very easy for all stakeholders and avoid unnecessary litigations and hassles. I laud the leadership of Mr Baba and acknowledge the contributions of USAID to make NOAR possible.”

The development of NOAR is expected to complete in a year’s time and the system to go live in 2021. The enthusiasm and anticipation for NOAR was reiterated by all stakeholders present. In his address, Ghanshyam Prasad, Joint Secretary, Ministry of Power, Government of India, remarked on NOAR being “ a huge step in India’s ongoing journey of power market reforms. It will improve ease of doing business and most importantly will bring transparency in the system. Expeditious development and implementation of NOAR in what is one of the world’s largest synchronous power grid will be a moment of great pride for all stakeholders. I wish POSOCO the best and thank USAID for their support in all aspects of power market reforms .”

“NOAR is a major and long-awaited initiative, and that makes today’s signing ceremony an important occasion for all of us. The IT-based system will make things very easy for all stakeholders and avoid unnecessary litigations and hassles”

Sanoj Kumar Jha Secretary, CERC

Moving toward a more flexible, transparent power market

“Expeditious development and implementation of NOAR in what is one of the world’s largest synchronous power grid will be a moment of great pride for all stakeholders. I wish POSOCO the best and thank USAID for their support in all aspects of power market reforms .”

Ghanshyam Prasad Joint Secretary, MOP, GOI

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During this pandemic situation of COVID-19, USAID‘s GTG-RISE initiative has conducted a series of webinars to promote discussion and knowledge sharing on themes of crucial relevance to integration of renewable energy into the grid. The webinar series is aimed to create awareness and build capacities in developing countries of Asia by providing access to general trends and share case studies, best practices, and lessons from India. The summary of the proceedings from such webinars are shared below.

GTG Webinar Series

Recently, the Bihar Electricity Regulatory Commission (BERC), notified regulations on “Intra State Availability Based Tariff and Deviation Settlement Mechanism (DSM)”. This step is in line with national priorities. These regulations lay down a commercial mechanism for settling any deviations in withdrawal and injection of electricity by the intra-state buyers and sellers, from their original schedules (allotment to buy or sell electricity). The regulations will support integration of renewable energy by penalizing the generators and the distribution companies for realizing inaccuracies in their forecast of generation and load respectively. The regulations will discourage the market participants to correct their demand-supply positions by leaning on the grid and instead improve forecasting of generation and load.

The DSM was first introduced by the CERC for inter-state transactions with a mandate to replicate a similar framework at the intra-state level. With the notification, Bihar has become one of the frontrunner states in implementing DSM. USAID/s GTG-RISE, provided technical assistance to the BERC for formalizing the regulations, particularly through public consultations and finalization of the draft.

The GTG-RISE initiative is supporting 14 states through Forum of Regulators (FOR) in development of DSM and Forecasting & Scheduling (F&S) regulations and Scheduling, Accounting, Metering and Settlement of Transactions in Electricity (SAMAST). This aims to help bringing uniformity of forecasting, scheduling, accounting and commercial settlement procedures at state and regional level, which is critical for integration and management of renewable energy into the grid in the country.

The second webinar conducted on February 27, 2020, focused on the theme ‘Commercial impacts – flexible operations of thermal power stations’. More than 100 energy sector professionals from India, U.S., Sri Lanka, and Hong Kong took part in the online discussion.

The webinar began with an in-depth presentation by Anjan Kumar Sinha, Senior Adviser at GTG-RISE covering a wide range of topics, including flexible operation requirements, flexible operation potential in India, physical and tariff impact, operation and maintenance costs, and the regulatory interventions required to enable flexible operation of thermal power stations.

The webinar also featured an interactive session that enabled real-time dialogue among key stakeholders, including, among others, CERC, Central Electricity Authority (CEA), Ceylon Electricity Board, Power System Operation Corporation Limited (POSOCO), National Thermal Power Corporation Limited (NTPC), Tata Power, Sterlite Power, Indian Energy Exchanges (IEX), General Electric (GE), Fluence Energy, Indian Institute of Technology (IIT), World Bank, think tanks, researchers, and consultants. The deliberations focussed on issues related to flexible operation, including retrofit options and their cost, impact on emissions at the unit/system level, environmental costs, flue-gas desulfurization (FGD) scenario, operational challenges, and preparedness of states for flexible operations of thermal power stations.

Commercial Impact - Flexible Operations of Thermal Power Stations

Bihar state formalizes regulations to foster grid discipline and support renewable energy integration

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USAID organized a virtual side event for the year’s Asia Clean Energy Forum (ACEF), one of Asia’s leading clean energy events held each June. The virtual side event was focused on the theme “Cross Border Power Trade and Future Energy Markets”. Its purpose was to facilitate discussion and insight sharing on the barriers and opportunities to promote bilateral and multilateral power trade and develop power markets in South East and South Asia. More than 300 energy experts from 33 countries representing USAID; International Energy Agency (IEA); United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP); CERC; Indian Energy Exchange Limited (IEX); South Asia Regional Initiative for Energy Integration (SARI/EI) program; GTG-RISE initiative, and other stakeholders from Asia and worldwide joined the discussion.

The tone for discussion was set by Michael Satin, Director, Clean Energy and Environment Office in USAID/India, who in his opening address highlighted the critical role cross-border electricity trade can play to secure reliable, affordable, and clean power for the people of Asia. The webinar commenced with presentation of three case studies—by Randi Kristiansen (IEA), Rajiv Ratna Panda (SARI/EI), and Anish Mandal (GTG-RISE)—that gave insights on overcoming political, institutional, and technical barriers to power trade and regional power markets in Asia; approaches to increase bilateral and multilateral power trade; and designing of power markets to enable large scale renewable energy (RE) integration.

The insightful presentations set the context for an detailed panel discussion, featuring reputed energy sector stakeholders who deliberated on the lessons learned in South East and South Asia and the path ahead. The eminent panel comprised Dr. S.K. Chatterjee, Chief of Regulatory Affairs, CERC Govt of India; Matthew Wittenstein, Chief of Section, Energy Connectivity, UN ESCAP; Rajesh Mediratta, Director, IEX; Peerapat Vithayasrichareon, System Integration of Renewables, IEA; and Shubhranshu Patnaik, Senior Advisor, GTG-RISE and Partner, Power & Utilities Consulting, Deloitte India.

The panelists brought to play their vast experience in the power sector as they discussed the imperatives and opportunities for increased bilateral and multilateral power trade in Asia and for developing and harnessing RE. Robust infrastructure, supportive regulatory and institutional mechanisms, and political consensus were recognized as critical enablers for regional power trade. Real time markets will play a major role in driving multilateral trade by allowing voluntary participation, discovery of real market prices, and balancing of renewables intermittencies. The recent introduction of real-time electricity market by the Central Electricity Regulatory Commission was lauded as a major step toward an efficient power market not only for the country but also for South Asia. Speaking about the far-reaching initiative, Dr. Chatterjee (CERC) expressed confidence that the “real-time market will lead to improved efficiency and economy of power generation and distribution companies and help integrate renewables.” He also emphasized on the need for learning from international experiences but developing indigenous market designs that address the unique constraints of a country and the needs and expectations of its stakeholders.

The huge potential cross-border multilateral trade holds for increasing the share of RE was well recognized, as also the role it can play to lower prices and ensure affordable and reliable power and economic benefit for all. Crucially, preparing regional markets for RE would require concerted effort toward elimination of out-of-market incentives to ensure fair pricing for RE, progressing towards dispatchability of renewables, and valuing flexibility were key aspects highlighted by Mr. Patnaik.

The webinar ended with a brief address by Scott Bartos, Senior Energy Advisor at USAID Regional Development Mission for Asia, who communicated the need for all stakeholders, including the private sector, to come together, invest in, and deploy innovative technology solutions to catalyze Asia’s energy sector and leverage its huge RE resources.

“Real-time market will lead to improved efficiency and economy of power generation and distribution companies and help integrate mainstream with renewables.”

Dr. S.K. Chatterjee Chief of Regulatory Affairs, CERC

ACEF Side Event: Cross Border Power Trade and Future Energy Markets

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On April 27, 2020, GTG-RISE successfully conducted its third webinar, exploring the theme ‘Minimum load/ramp test procedures for coal-based thermal power plants (TPPs)’. The webinar’s objective was to create awareness about successful low load test run procedures among key stakeholders. More than 300 energy sector professionals from across the world, including India, U.S., U.K, Canada, Denmark, Singapore, Hongkong, Bangladesh, and Maldives, participated in the discussion.

The webinar provided a platform to share experiences from the low load test run conducted at various coal-fired power plant units of the NTPC and the GSECL. These test runs were conducted as a part of pilot implemented under GTG-RISE initiative which is implementing a series of innovative pilots to validate technology and solution to support large-scale integration of renewable energy. Senior officials from Government of India pilot partners, NTPC and GSECL, joined the webinar to share their experiences and insights.

Based on successful demonstration at pilot sites, the GTG-RISE project has, with technical support from Bharat Heavy Electricals Limited (BHEL), developed a report “minimum load/ramp test procedure for coal-based TPPs”. The report was released by Michael Satin, Director of the Clean Energy and Environment Office in USAID/India, during the webinar, who also delivered the opening remarks. The document is expected to serve as a guiding tool for other utilities wishing to undertake test runs at their facility. The public release of the document was followed by a deep dive presentation by Anjan Kumar Sinha, Senior Advisor at GTG-RISE. The presentation, introduced the webinar participants to technical challenges and details of the test runs conducted under the pilot.

The webinar’s success can be gauged from the wide range of stakeholders it brought together. Several esteemed institutions and organizations were represented, including CERC, CEA, Ceylon Electricity Board, Danish Energy Agency, GIZ, POSOCO, Tata Power, Sterlite Power, Adani Power, Odisha Power Generation Corporation Limited, Indian Institute of Technology (IIT), ABB, BHEL, NTPC, and GSECL, in addition to think tanks, researchers, and consultants.

Public release and knowledge sharing session on Minimum Load/Ramp Test Procedures for coal based Thermal Power Plants (TPPs)

USAID’s GTG-RISE initiative conducted the fourth issue of its webinar series on May 12, 2020. The webinar invited diverse stakeholders for a knowledge sharing session on the theme ‘Deploying cost-effective Battery Energy Storage Systems (BESS) into the Indian grid’. BESS is a technology for storing electric charge on specially developed batteries to enable utilization of the stored energy at a later time. The theme’s crucial importance is evident from the overwhelming response the webinar received that included 1,100+ participants representing 650+ organizations from 68 countries.

The webinar provided a platform to share insights from a pilot on grid-connected BESS that GTG-RISE is implementing in collaboration with India’s largest transmission utility, the Power Grid Corporation of India Limited (PGCIL). The pilot is evaluating the techno-economic effectiveness of BESS for providing several applications and grid support services at the transmission level. Its results will lead to recommendations on policies and regulations supporting deployment of BESS in the country.

In his opening remarks at the webinar, Mr. Aniruddha Kumar, Joint Secretary (Hydro), Ministry of Power, underlined the critical need for developing the regulatory and market framework around BESS. “India has taken a low-carbon path to meet its growing power need. This necessitates smooth large-scale renewable energy integration, grid stabilization,

Deploying Cost-Effective Battery Energy Storage Systems into the Indian Grid

Mr. Aniruddha KumarJoint Secretary (Hydro), Ministry of Power

“India has taken a low-carbon path to meet its growing power need. This necessitates smooth large-scale renewable energy integration, grid stabilization, and immense

energy storage. We must identify the revenue interest and provide potential investors the clarity and confidence to set up huge storage.”

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Accelerating the integration of renewable energy into grid and off-grid energy systems is a major objective of the Government of India (GoI) to bolster energy security, reduce oil imports, and improve air quality. India’s commitment to clean energy represents a huge opportunity and necessitates a robust, evidence-based understanding of the possible approaches ahead. In this context and on the side-lines of the U.S. India Strategic Energy Partnership (SEP) Ministerial, a virtual event was organized under USAID’s Greening the Grid (GTG) program on integration of electric vehicles and utility scale storage in the Indian distribution network. GTG is a joint energy program between USAID and the Ministry of Power, Government of India.

The webinar, held on July 13, 2020, marked the public release of two documents of seminal importance to India’s transitioning energy sector. Calling the event timely, Michael Satin, Director of the Clean Energy and Environment Office in USAID/India, remarked on it being a “profound moment in U.S.-India relationship and the development of clean energy technologies. USAID is proud to partner with the Government of India on its journey to a high-performing, low emission, energy-secure economy.” The enthusiasm about India’s journey forward reflected in the words of Ghanshyam Prasad, Joint Secretary, Ministry of Power, GoI, who in his keynote address noted: “India is making major strides to promote renewables. There is recognition that all elements —operational, planning, regulatory, and policy perspectives —will need to be aligned to ensure deployment of advanced technologies such EVs and battery storage.”

The two documents released at the webinar analyze the impact of new technologies, such as solar photovoltaics (PV), battery energy storage systems (BESS), and EVs, on the distribution network. The first report, titled ‘Preparing distribution utilities for utility-scale storage and electric vehicles – A novel analytical framework’, has been developed by the National Renewable Energy Laboratory (NREL), U.S., in collaboration with BSES Rajdhani Power Limited (BRPL) as a part of the GTG program. The report presents power distribution system impact analysis framework to evaluate the impact of PV, BESS, and EVs on utilities. The second document is a white paper on ‘Electric Vehicle Charging Infrastructure and Impacts on Distribution Network’, developed under GTG-RISE initiative, central component of GTG program, in collaboration with BRPL. The white paper analyzes the key considerations for setting up EV charging infrastructure and presents an extensive review of the international experience and a prioritization framework for laying out charging infrastructure for a distribution utility. Lauding the critical effort, Amal Sinha, CEO, BRPL, said the two reports “will guide utilities in preparing for the future.”

The documents’ release was followed by presentations and a high-level panel discussion. The panel comprised eminent energy sector experts: Ghanshyam Prasad, Joint Secretary, Ministry of Power, GoI; Adarsh Nagarajan, Group Manager, NREL, U.S.; Abhishek Ranjan, AVP, System Operation & Head – Renewable and DSM Initiatives, BSES Rajdhani Power Limited (BRPL); and Vibhu Kaushik, Director of Transmission & Distribution Business Strategy, AMSE, Southern California Edison (SCE), U.S. The discussion was moderated by Shubhranshu Patnaik, Senior Adviser, GTG-RISE, and Partner, Power and Utilities, Deloitte India.

The enriching presentations and discussion reiterated the excitement and hope about clean energy technologies. The significance of the event is evident from the wide participation by a range of stakeholders, including senior government functionaries, development partners, implementing agencies, thought leaders, and energy experts from India and the U.S.

Examining the imperatives for India’s transitioning energy sector

“India is making major strides to promote renewables… There is recognition that all elements —operational, planning, regulatory, and policy perspectives —will need to be aligned to ensure deployment of advanced technologies such EVs and battery storage.”

Ghanshyam Prasad Joint Secretary, MOP, GOI

All the webinar’s proceedings and presentation can be accessed on www.gtg-india.com

and immense energy storage. We must identify the revenue interest and provide potential investors the clarity and confidence to set up huge storage,” he said.

The webinar saw senior technical advisors from the GTG-RISE program explore these aspects through their in-depth presentations on BESS and its value in supporting ancillary services to manage grids with high levels of renewables. A host of issues were discussed, including how storage projects can be designed cost-effectively, the best markets and applications for return on investment, how storage operations could be run effectively and safely, the latest standards for storage system safety, and optimal strategies for negotiating battery system contracts.

GTG-RISE is spearheading evidence building on grid-connected BESS in India, and its sharing of insights is a vital knowledge building effort. Commending the program’s initiatives, Michael Satin, Director of the Clean Energy and Environment Office in USAID/India, noted in his opening address: “The GTG program is a technical laboratory of sorts. The issues that is it studying and the technical capacity it is building, have the potential to drive a technological revolution that can transform the power landscape.”

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Other Events

GTG-RISE Initiative deliberated its perspective on ‘India’s experiences and challenges in Electrification of Public Transportation’ during the India Smart Utility Week 2020. In lieu of rapid urbanization and growing automobile markets in the world resulting in high oil import bills and increasing air pollution, India aims for a swift transition towards introducing electric vehicles into its transportation fleet. While India plans to achieve these objectives, utilities and key stakeholders need to be prepared to address the bottlenecks that are likely to arise. Mr. Anish Mandal from GTG-RISE shared the findings on various enablers which are important in understanding the role a particular regulator / government / utility can play in encouraging the deployment of EV charging infrastructure.

GTG-RISE Initiative presented learnings from its ongoing pilot on ‘Grid Support Applications through BESS for enhancing Renewable Energy integration’ during the India Smart Utility Week (ISUW2020). The pilot on energy storage is supporting the Power Grid Corporation of India Limited (PGCIL) to demonstrate techno-commercial feasibility of different use cases and also providing various ancillary services for Grid Connected BESS in Indian context. Mr Satish Kumar Singh from GTG-RISE shared the findings to enhance the understanding of utilities on key challenges and opportunities it poses while implementing grid connected BESS and enable large scale integration of RE into the grid.

Electric Vehicle Charging Infrastructure and Impacts on Distribution Network-India Smart Utility Week 2020

Grid Support Applications through Battery Energy Storage Systems (BESS) for enhancing Renewable Energy integration – India Smart Utility Week 2020

On May 21, Industry Advisory Council (IAC) established under USISPF in partnership with USAID’s GTG-RISE initiative organized a webinar in partnership with HSA Advocates on the theme: ‘Deconstructing the proposed amendments to the Electricity Act of 2003’. The aim of the webinar was to explain to stakeholders the Draft Electricity (Amendment) Bill 2020 that the Ministry of Power had issued on April 17, 2020; the ‘draft bill’ proposes to amend/introduce certain provisions in the Electricity Act, 2003.

Speakers at the webinar included Hemant Sahai, Founding Partner at HSA Advocates; Rakesh Nath, Former Chairman of Central Electricity Authority (CEA); Parag Sharma, Founder and Chief Executive Officer, O2 Power; and Rohit Modi, Chief Executive Officer, SB Energy. The webinar was moderated by Shubhranshu Patnaik, Senior Advisor at USAID’S GTG-RISE initiative and Partner with Deloitte India.

Discussions explored the crucial nuances of the Draft Electricity (Amendment) Bill 2020 and its likely impact on the generation, transmission, and distribution segments of the power sector. Participants examined some key takeaways from the draft bill and discussed its possible impact on electricity sector segments and subsequent creation of new investment opportunities for the private sector.

Deconstructing the proposed amendments to the Electricity Act, 2003

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On June 25, the IAC under USISPF convened a virtual roundtable discussion with the Ministry of Power (MoP), Government of India (GoI), to discuss the adverse impact of the COVID-19 pandemic on liquidity in the power sector and the mitigating measures needed to resolve the acute liquidity crisis for power sector companies across the value chain.

The virtual roundtable was attended by senior leadership from the MoP, including Vivek Kumar Dewangan, Joint Secretary, and Mritunjay Kumar Narayan, Joint Secretary. The other key participants included Michael Satin, Director, Clean Energy and Environment Office in USAID/India; Hemant Sahai, Founding Partner at Hemant Sahai Advocates (HSA Advocates); and Nathan Halat, Energy Unit Chief, U.S. State Department. The meeting also saw participation by other senior representatives from the GoI, United States Government (USG), and corporate leaders from member companies such as GE, SB Energy, O2 Power, ReNew Power, Tata Power, Hindustan Powerprojects, Manikaran Power, BRPL, BYPL, HIS Markit, Cummins, ICF Consulting, OSI India, Avaada, AES India, UL, and Vibrant Energy.

Informing participants about the measures being taken, Vivek Kumar Dewangan mentioned that the GoI had recently announced an INR 90,000 crore liquidity package for power distribution companies (DISCOMs) faced with an unprecedented cash flow problem due to COVID-19. The liquidity infusion to DISCOMs will be provided against receivables, and loans given against state guarantees for “the exclusive purpose of discharging liabilities of DISCOMs to power generation companies (GENCOs)”. As per MoP’s calculations, this infusion will allow state utilities to pay dues until March 31, 2020 . The first tranche of INR 45,000 crore will be made available by the end of July 2020, and utilities will be able to avail the loans via non-banking financial companies — Power Finance Corporation (PFC) and Rural Electrification Corporation Ltd (REC) — against state guarantees.

During the discussion, MoP officials highlighted the criticality of the private industry in the development, innovation, and sustainability of the power sector of India. The panel discussed the current situation and the opportunities ahead. Michael Satin from USAID/India spoke about the support U.S. development finance institutions could provide for the fiscal health of the power sector in India as well as to bring more innovation in the country. The participants welcomed this move to bolster liquidity in the market and allow for an increased role of the private sector.

Roundtable with the Ministry of Power on the COVID-19 relief package for the power sector

Industry Advisory Council (IAC) is a joint initiative of USAID and USISPF. It is supported by USAID under its Greening the Grid (GTG) program.

India has set ambitious renewable energy (RE) targets for itself. Prime Minister Narendra Modi has set a target of 175 gigawatts (GW) of renewable capacity by the year 2022 and 450 GW by 2030. This presents a huge investment potential in the country’s renewable sector, expected to the tune of about US$ 30 billion every year for the next decade.

It is in this context that IAC under USISPF organized a virtual event on April 15 to deliberate on the COVID-19 pandemic’s impact on the RE sector in India, the supportive actions taken by the Ministry of New and Renewable Energy (MNRE), GoI, and the opportunities for growth of RE. The webinar witnessed attendance by an impressive line-up of RE sector stakeholders and experts, including Anand Kumar, Secretary, MNRE; Sumant Sinha, Founder and CEO, ReNew Power; and Georges Antoun, Chief Commercial Officer, First Solar. More than 250 participants from the renewables and grid integration sector, including senior representatives from the GoI, the United States Government, and the corporate sector, participated in the event.

Several pertinent aspects were discussed at the webinar, including disruptions in the global supply chain due to COVID-19, low commodity prices and impact on RE development, and the global energy market’s outlook. In his keynote address, Anand Kumar highlighted the various opportunities that may result from the amendments proposed in the Electricity Act, 2003; the development of the Alternate Investment Fund (AIF) with Indian Renewable Energy Development Agency Limited (IREDA); and other efforts GoI is making to shape India as a RE technology manufacturing hub.

Investment opportunities in India’s renewable energy sector

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The Central Electricity Regulatory Commission (CERC) had, in August 2019, proposed several amendments to create the necessary framework for implementing the real-time market (RTM) for power trading in India. Following this crucial development, IAC under USISPF organized a webinar with POWERGEN (Clarion Energy) on April 28, 2020, to discuss the implementation framework for RTM.

The webinar — themed ‘Introduction to real-time electricity market’ — was attended by key power sector stakeholders and experts, including P.K. Agarwal, Director - Market Operations and CISO, Power System Operation Corporation (POSOCO); Abhishek Ranjan, Additional Vice President, BSES Rajdhani Pvt. Ltd; Arun Kumar, Chief Executive Officer, Kreate Energy; and Anish Mandal, Director - Consulting, Deloitte and the GTG-RISE program.

Deliberations saw the speakers discuss concerns from the perspective of different business operations, such as utilities, system operators, and market operators. The panel discussion covered a wide range of pertinent issues, including day closures, price mechanism, the National Open Access Registry (NOAR), real-time transaction ratios, system communications, and other related frameworks.

An introduction to real-time electricity markets

Gender-responsive clean energy is widely acknowledged as a crucial lever for women’s empowerment and economic advancement. Translation of this recognition into concrete action has a huge transformative potential for the millions of rural women in South Asia who do not have access to clean energy and the opportunities it can bring for them as consumers and entrepreneurs. Some key aspects of this issue were tackled in a webinar the South Asia Women in Energy (SAWIE) platform hosted on May 15, 2020, on the theme ‘Women in Energy: Best Practices in Clean Cooking across South Asia’. The webinar enabled a rich exchange of information and insights on improving access to and uptake of clean cooking. The webinar presented insights from a WB initiative that had reached 2 million women in Bangladesh with clean cooking stoves. It underscored the need for winning the trust of women and the importance of person-to-person networks and engagement with local entrepreneurs.

Key stakeholders from the energy sector — women leaders from the sector, senior representatives from the Government of India, program implementers, and subject matter experts — joined the webinar to share experiences and perspectives on promoting clean cooking technologies. Michael Satin, Director of the Clean Energy and Environment Office in USAID/India, moderated the discussion and highlighted the imperative to make clean cooking technologies accessible to women across South Asia. Anand Kumar, Secretary at the Government of India’s Ministry of Culture (formerly, Secretary, Ministry of New & Renewable Energy), reiterated this imperative in his keynote address. SAWIE is a joint initiative of the USAID and the U.S.-India Strategic Partnership Forum (USISPF), aimed at promoting women’s empowerment and gender sensitization in the energy sector in South Asia region. USAID is supporting the SAWIE platform through its GTG-RISE initiative.

Women in Energy: Best Practices in Clean Cooking across South Asia

Image Source: WB-IDCOL program, Bangladesh

While gender equality has made numerous big and small gains in many industries, the power sector remains disconcertingly male dominated. As nations prepare to seize the opportunities of energy transformation, creation of a gender-responsive clean energy ecosystem with growing opportunities for women to formally participate at all levels in the energy sector will be pivotal. This area of critical relevance to the growth journey of India and the South Asia region was discussed at length in a virtual event, held on July 15, 2020, with the theme ‘Role of gender in international energy engagements’. The high-level dialogue was conducted on the side-lines of the U.S. India Strategic Energy Partnership (SEP) Ministerial. The event was organized by South Asia Women in Energy (SAWIE), a joint initiative of USAID and the U.S.-India Strategic Partnership Forum (USISPF).

Women leaders representing energy sector joined the deliberation, alongside development partners, implementing agencies, and other energy sector experts, to discuss simple and creative ways to bridge the gender divide in energy. The webinar also marked the release of a knowledge paper ‘Bridging the Gender Diversity Gap in the Energy and Industrial Sector: Best Practices in Gender Mainstreaming’. In addition to the rich insights it generated, the webinar also enabled a reaffirming of resolve by key stakeholders to take the gender dialogue forward.

Role of Gender in International Energy Engagements

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Upcoming Events

Workshop on Transition towards coal based flexible power generation in India, October 2020

Public Release and Knowledge Sharing Session White Paper on Renewable Energy – October 2020

Automatic Generation Control Pilot Go -Live for Hydro unit in Karnataka – October 2020

BESS Pilot Go -Live in Puducherry – December 2020

“The U.S. Government has had a long-standing engagement with India. As we work to address the energy problems of both countries, we will continue to push for ensuring more women in the power sector.”

Elizabeth UrbanasDeputy Assistant Secretary, U.S. Department of Energy

SAWIE, a joint initiative of U.S. Agency for International Development (USAID) and the U.S.-India Strategic Partnership Forum (USISPF), aims to promote women’s empowerment and gender sensitization in the energy sector in South Asia region.

This commitment was reiterated in the keynote address by the Chief Guest, Elizabeth Urbanas, Deputy Assistant Secretary (DAS), U.S. Department of Energy (DOE): “The U.S. Government has had a long-standing engagement with India. As we work to address the energy problems of both countries, we will continue to push for ensuring more women in the power sector.”

Powerful solutions to this end were also suggested by women leaders in the esteemed panel: Vaishali Nigam Sinha, Chief CSR, Sustainability & Communications Officer, ReNew Power, Chairperson SAWIE; Meagan Fallone, CEO, Barefoot College International; Kathleen Alana McGinty, Vice-President, Global Government Relations, Johnson Controls; and Nishi Vasudeva, Former CMD, HPCL.

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USAID/India Renewable Integration and Sustainable Energy (RISE) InitiativeDeloitte Consulting India Project503-504, Fifth Floor, DLF Place Mall Office Block, Saket, New Delhi - 110017Tel: +91-11-4045-0737/38www.gtg-india.com

Bhoopinder Singh BaliEmail: [email protected]

EDITORIAL TEAM

ADDRESS

CONTACTMonali Zeya HazraSenior Clean Energy SpecialistUSAID/IndiaEmail: [email protected]

Tushar SudChief of PartyUSAID GTG-RISE InitiativeEmail: [email protected]

Disclaimer This Newsletter is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this newsletter are the sole responsibility of Deloitte Consulting LLP., and do not necessarily reflect the views of USAID or the United States Government. This newsletter is prepared under Contract Number AID-386-TO-17-00001.