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Implementation Opportunities and Challenges for Renewable Energy Resources

based Smart Micro Grids in India

Article in Journal of Green Engineering · May 2020

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 Journal of Green Engineering (JGE)
Volume-10, Issue-3, March 2020

Implementation Opportunities and

Challenges for Renewable Energy
Resources based Smart Micro Grids in India
1,
* Mande Praveen and 2G. V. Sivakrishna Rao

1
Department of Electrical Electronics and Communication Engineering, Gandhi
Institute of Technology and Management (Deemed to be University),
Visakhapatnam, 530045, Andhra Pradesh, India.
E-mail: [email protected]
2
Department of Electrical and Electronics Engineering, Andhra University College
of Engineering, Andhra University, Visakhapatnam-530003, Andhra Pradesh, India.
E-mail: [email protected]

Abstract

The current interest of many cities in India is to become smarter and

technically advanced, which would eventually alter the electricity
consumption patterns. On the other side, the existed centralized electric grid
system may not be a reliable source in meeting such altered patterns.
Demand-based supply would become very difficult in the conventional
electric grid. It is believed that smart grid systems are the best option to serve
such loads by allowing distributed energy generation. But, developing smart
grid systems is not an easy task, where they involve the amalgamation of
power technologies with information and communication technologies. In
this study, we tried providing an overview of the smart grid infrastructure
and the functionalities. The scope for smart grid systems in the Indian
context is studied. The role of renewable energy sources and their potential in
India is also discussed. Apart from this, various opportunities for
implementing smart grids in India, along with the challenges, are explored.

Keywords: Smart grids, Microgrids, Electric utility, Smart grids,

Renewable energy.

Journal of Green Engineering, Vol. 10_3, 853–867.

© 2020 Alpha Publishers. All rights reserved
854 Mande Praveen et al

1 Introduction

Energy is vital for any nation to have development, and this is because of
the energy-intensive nature of the applications that modern society has seen
[1]. The energy is available in many forms, and utilizing it in a required form
needs the technology. In earlier days, many of us have seen the energy
utilization process, that is filled with hotness, smoky, and indistinct lighting.
As the industrialization and technological advancements begin, the process
of energy utilization also changed [2]. The energy sector transformed to a
greater level with the invention of the electric bulb. With that, electrification
using the alternating current has become the tradition [2]. Many power
generation systems have elevated and lead to the development of the
centralized electric grid. In countries like India, the situation of the electric
grid is still centralized. No much difference and changes have seen in the
Indian electric power grid.
The role and duties of energy generation, transmission, and distribution
are still following the conventional mechanism in many areas or grid zones
of India. However, the rapid growth in the consumption patterns and demand
variation, as well as the strive towards green energy generation, this process
of centralization has taken a shift to decentralization. Many technical issues
can be addressed by this shift; these include the energy loss minimization,
grid outage detection, enhancing grid stability, accessibility in energy supply
[2].
In the current centralized grid concept, most of the power generation in
India is comes from fossil fuel sources such as coal, diesel, natural gas [3].
Apart from this, India is most dependent on oil in other activities such as
transportation, industrial energy needs, etc.
The oil dependence (mostly imported from other countries) has resulted
in a decrease in the economy. If we see the statistics, India stands in the
seventh position in the economic race with the nominal gross domestic
product [4]. As per the International Monetary Fund-World Economic
Outlook, India is in the third position in the Purchasing Power Parity. The
current target in India is to achieve energy independence, where the
microgrid and smart grid development using the available resources in India
would benefit. Say, for example, shifting to the electric vehicles would limit
oil consumption, and this will come true if Indian energy sectors start
producing renewable electricity.
Many developed countries in Europe are shifting towards onsite power
generation, developing the concept of microgrid, nano-grids, and smart grids.
It is obvious for us to create such systems in India and to have a
transformation in the energy sector as well as to see a big change in the
energy-dependent sectors [4].
 Implementation Opportunities and Challenges for Renewable Energy Resources
based Smart Micro Grids in India 855

The objective of this paper is: the first objective is to provide an overview
of smart grid systems in the Indian context, infrastructure, and
functionalities. The second objective is to explore the scope for renewable-
based smart grid systems in India. The third objective is to study the various
implementation opportunities and to explore multiple challenges in smart
grid implementation.

2 Smart Grid Systems

Smart grid systems are an intelligent version of the conventional electric

grid systems. The functional differences between the smart grid and other
systems are presented in Table 1. The operation of the smart grid system is
more of an automation.

Table 1. The compassion of the smart grid with microgrid and conventional grid
systems
Functional Smart Microgrid Conventional
parameter grid grid
Reliability High Medium Low
Security High Intermediate Very low
Renewable Possible Possible Possible but
integration with lot of
difficult
Monitoring and Easy and Easy and Not easy
control fast moderate
Emergency Very High Low
response high
Electric vehicle Yes Yes Possible but
integration with few
changes
Energy storage Yes Yes Yes
options
Fairness in energy Very High Low
trade high
Interoperability Yes Yes Difficult
Power quality Yes, but Yes, but Yes, but very
issues little moderate high
Operational High High Medium
efficiency

In a way, when compared to the traditional electric grid, the smart grid
systems can make decisions related to energy transmission and distribution.
Apart from this, they can also store the energy and regulate it as per the need
856 Mande Praveen et al

[4-9]. One more important feature of the smart grid system is

communication. They can able to communicate between the network of
energy producers and consumers, and related responses can be made easily
and quickly. These systems enhance the electrical system performance by
improving the reliability, efficiency, and availability.
In many situations, the availability of the generation system is not 100%,
in one recent study, the availability factor of the solar photovoltaic plant is
evaluated, which is 96 to 98% [26]. In this situation, if the load demand is
very high, the generation system fails to meet the load, to avoid such
systems, if a network energy producer is there, then smart grid systems can
take decisions on compensating the demand by shifting to another source.
Apart from this, they are capable of handling many computing-related
services. The decision making and monitory of the system become much
easier when the communication technologies are better integrated with the
electrical power system. In the smart grid, the trading of electricity becomes
much simpler and easier [4-9]. It is also believed that smart grid systems
improve the business values of the electricity sector and allows the
bidirectional energy flows. The overview of the smart grid system is shown
in Figure 1. This shows the clear view of the smart grid system indicating all
the sources of energy (Fossil fuel and renewables), energy consumer network
(residential, industrial, etc.), communication layers (Ethernet, signal cables,
and alert systems, etc.) [6].

Figure 1 Overview of the smart grid system [5]

 Implementation Opportunities and Challenges for Renewable Energy Resources
based Smart Micro Grids in India 857

2.1 Smart Grid Infrastructure

Smart grid infrastructure generally refers to the design of the smart grid.
It is not easy to design such a complicated system. The typical electric grid
consists of the following [7, 8]:
 Power generation systems
 Electricity transmission systems
 Electricity distribution systems
 Energy storage options
 Consumers or the end-users.

In a smart grid, at every stage (preferably the above mentioned five

stages), the energy values with the time step are monitored on a real-time
basis. For monitoring such a huge system (having a network with multiple
stakeholders), we need a real-time system with computing capabilities. In the
smart grid infrastructure, the role of power line communication and
information flow is essential. Hence, as shown in Figure 2 (a) [7], a wide
area multi-tier network should be essential. This infrastructure can be able to
connect the homer area network with the power distributors/generators and
the operators through a means of the internet system. With this infrastructure,
the power consumption patterns of the users at home are network is
continuously monitored considering their dynamic variation nature. The
architecture is shown in Figure 2. (b) [7], enables the bidirectional flow of
energy from the consumers to the grid (when excess electricity is available
with the consumers), and grid to consumers (whenever electricity is
consumption is high, and generation is less at the consumer side power
plants). For example, by having prior knowledge of the end-users energy
consumption, the dynamic control of real-time power generation can be
controlled [4-9]. Meanwhile, the end-user can visualize the real-time power
usage of the home and can obtain the real-time cost of the power supplied
from the power provider. In a smart grid, electricity can also be returned to
the grid by users. In these situations, the smart grid elements, as mentioned
previously, must share every information; when involved, stakeholders
increase the control would be very difficult.
858 Mande Praveen et al

Figure 2 (a) Architecture of the smart grid with a multi-tier network [7]; (b) smart
grid infrastructure for the data and power flow [7]

In Figure 3, the controller which can be capable of handling the smart

grid function is shown [7].

Figure 3 Smart grid infrastructure using based on SDN controller [7]

 Implementation Opportunities and Challenges for Renewable Energy Resources
based Smart Micro Grids in India 859

2.2 Smart Grid Functionalities

Smart grid systems have numerous functionalities when compared to

conventional electric grid systems. Here, in this section such functionalities
are listed and briefly described below [4-9];
 The reliability of the electric grid is improved.
 The security of the electric grid is improved when compared to
the conventional one.
 Operational efficiency improvement of the electric grid can be
achieved.
 The deployment of multiple renewable and non-renewable
sources will become easier.
 It allows the integration of distributed resources and helps in
boosting the generation capabilities of the energy system at any
time, making the system available for energy consumers.
 The functionality of demand response and demand-side resources
management is possible.
 It allows us to deploy advanced metering techniques.
 It helps in boosting the energy trade with fair monitory regulation
and allows the distribution automation in the system.
 It is easy to deploy and integrate many consumer devices and
other smart and intelligent assets.
 Timely scheduling and advanced electricity storage options are
possible.
 Easy to enable the charging facilities to hybrid electric vehicles.
 Provide a wide range of control and monitory authority over the
system with timely information tracking provision.

3 Renewable Energy Sources in India and Role in Smart

Grids

In this section, the role of renewable energy in smart grid development,

focusing on the Indian context is discussed. Various renewable energy
sources such as solar energy, wind energy, biomass, hydropower, and
hydrogen fuel cells are focused, and their potential availability in India is
studied. Year-wise installations in India are shown in Table 2.
860 Mande Praveen et al

Table 2. Year-wise power plant installation capacities in India [10,11]

Installation Energy sources (GWh)
period
Solar Wind Biomass Large Small Others
hydro hydro
2014-15 4600 28214 14944 129244 8060 414
2015-16 7450 28604 16681 121377 8355 269
2016-17 12086 46011 14159 122313 7673 213
2017-18 25871 52666 15252 126134 5056 358

3.1 Solar Energy

India is blessed abundantly with solar energy. Being a tropical nation, the
amount of solar radiation reached on to the horizontal plane of Indian cities is
quite high and more suitable for energy harnessing using photovoltaic or
solar thermal technologies[12-16]. Depending upon the energy harnessing
system installation site, the average daily energy that can be harnessed from
the sun radiation is around 4–7 kWh/sq. m. Not all locations in India might
lie with the mentioned average; there exists a variation due to seasonality and
other influential factors. India receives bright sunshine hours, and the number
is approximated to around 1500–2000 per annum18. The average
temperature recorded would be around 25 to 27.5 °C17, but the maximum
temperatures would go around 48-50 °C, and this makes most of the places
suitable for solar thermal energy harnessing. This available potential can be
harnessed, and on the other side, the targeted 20 GW of Solar Power by 2022
could also be possible [12-16]. The year-wise installed capacity of the solar
energy system is given in Table 2.
With the current potential, India has gone to stage to explore different
solar energy harnessing ways such conventional photovoltaic installations
[27], building-integrated installation [19], building applied installations [19],
roof-integrated [20] or attached installation, façade installations [21], and
floating solar installation [22].
Depending upon the location, one such installation option can be
selected, and solar energy can be harnessed effectively. The current practice
of harnessing solar energy is more suitable for smart grid or microgrid
energy systems

3.2 Wind Energy

Apart from solar energy, India is also blessed with wind energy potential.
The wind is one of the clean and green energy sources. With the current
developed technology, the energy can be harnessed with greater efficiency
 Implementation Opportunities and Challenges for Renewable Energy Resources
based Smart Micro Grids in India 861

ranging from 35 to 45%. As per the recent statics, the wind potential is very
high in India. The practical wind energy system capacity factor is estimated
for a commercial wind turbine installed at 80 m height is around 25%. For
harnessing wind energy, very limited land is required. Currently, the
potential for wind energy systems is around 253 GW. As per the Ministry of
New and Renewable Energy, India’s wind energy installations reached the
fifth position at the global level with an installed capacity of 11087 MW [12-
16]. There are various types of wind energy systems that include; horizontal
axis wind energy systems, vertical axis wind energy systems (two blades,
three blades), convergent and divergent systems. In recent years a new
concept called the Invelox wind energy system has shown greater
efficiencies in harnessing wind power. For wind power data, one can refer to
the National Wind Resource Assessment Programme (NWRAP), National
Institute of Wind Energy (NIWE), located in Chennai city, Southern India.
Under the NWRAP, a total of 794 wind monitoring stations are installed at
different locations in India [12-16]. These systems are capable of monitoring
the wind speeds at a wide range of heights, starting from 20 m to 120 m. The
current installed capacity of the wind energy systems is given in Table 2.

3.3 Biomass Energy

The scope for biomass energy in India is huge, and this is due to the
agricultural background of the nation. Countries like India are developed
based on agricultural resources, and they mostly influenced by the economy
due to agro products and related outcomes. In India, numerous biomass
resources are available, which can be used for biogas generation, biofuel
production, etc. These sources include rice husk, jute waste, cotton seeds,
straw, coconut shells, and other agro waste. Apart from this, the use of waste
plastic oil and ethanol is becoming popular these days [28,29]. In India, 90%
of rural areas still depend on the bioresources for energy needs. This is also
possible in many urban areas. Currently, around 15 % of urban areas are still
using biomass as a fuel for their energy needs. The current estimated
potential of bioresources due to agricultural activity in India is around 350
million tons/year.
If this amount of bioresource is used in the energy conversion process,
around 200 million tons of energy is possible. States like Andhra Pradesh,
Bihar, Gujarat, Karnataka, Punjab, Tamil Nadu, Uttar Pradesh are in the race
for biomass energy systems development [12-16, 23, 24]. The current
installed capacity of the biomass energy systems is shown in Table 2.
862 Mande Praveen et al

3.4 Hydropower

Hydropower is one of the predominant sources of electricity in India, and

the potential for hydropower is quite high. The current estimated potential of
hydropower in India is around 20,000 MW as per the MNRE statistics.
Currently, India has a lot of installations categorized into large hydro, micro-
hydro, and mini-hydro. The first installation in India was at Sidrapong in
1897. The installed capacity is around 130 KW. In the later years, numerous
developments happened in the hydropower. These include 200 kW at
Shivasamundram in Mysore, 40 kW at Bhoorisingh in Chamba, 3000 kW at
Galogi in Mussoorie, 50 kW in Jubbal, and 1750 kW at Chhaba in Shimla
[12-16, 25]. In the current situation, India has installation capacities whose
range is greater than 25 MW. Recent installations as per the year wise are
shown in Table 2.

3.5 Hydrogen Fuel Cells

Hydrogen fuel cells are the recent developments in renewable energy

systems. These are highly efficient systems when compared to other
renewables. The potential for hydrogen production is very high in India.
Say, for example, hydrogen can be produced by means of water electrolysis,
bioenergy systems, etc. The produced hydrogen energy can be used for fuel
in hydrogen-based vehicles. In some situations, fuel cell-based electric
vehicles need hydrogen as input to drive the system. In India, with the
growing use of hydrogen in industries, in the transportation sector, the scope
of converting excess energy into useful hydrogen is very high. In microgrid
and smart grid, if any excess energy is possible, the energy can be stored in
the form of hydrogen gas and can be used to variety applications [21,22].

4 Implementation Opportunities

Opportunities for implementing smart grids in India are very high due to
the current policies established by various ministries that are related to smart
grid technologies. The opportunities are listed below:
 Energy access is very limited in most of the places in India; this
is more obvious in rural areas.
 Indian's electric power system is mostly mechanized, and the
scope for digitalization is very high. On the other side, the
current smart city mission in India1 and make in India concepts
are in favor of smart grid developments.
 Implementation Opportunities and Challenges for Renewable Energy Resources
based Smart Micro Grids in India 863

 To meet the energy demand requirements and to provide energy

access to everyone, India is trying to shift from the centralized
power generation facility to a distributed or decentralized power
generation network.
 In the current national grid or the electrical power network,
privacy and security concerns are very high. There are
considerable opportunities to improve them, and the smart grid
implementation in replacement with traditional facilities can
provide improvements.
 Shifting to smart grids provide faster response in tackling the
issues in an emergency. Many are opting to have a quick
response in solving the energy issues. It is believed that smart
grids provide faster responses in addressing the problem with a
better solution.
 The digital India movement and Swatch Bharat movement's
motive is to have systems that serve the needs of humanity in
more environmentally friendly. We believe the smart grid
integration with renewable is huge scope in India.
 India has enough energy resources, for example, all kinds of
renewable resources, which can help in promoting the distributed
concept of energy generation with smart grid features.
 Funding and subsidies related issues are quite less in India for
such project development. In the implementation of renewable
energy-based smart grids, the MNRE and other associated
organizations are providing subsidies and capital with certain
terms and conditions.

5 Challenges

Even though the opportunities for smart grid implementation in India are
very high, there exist a few challenges, and these include:
 The first and foremost is the lack of enough governance in
executing such projects within the timeline as taken up.
 Lack of skilled workforce to operate and maintain smart grid
systems effectively.
864 Mande Praveen et al

 Lack of data monitoring systems allows us to identify the issues

that prevail during operation and maintenance.
 Even though the capital subsidy and other supports on energy
tariff rates are provided, but still, the projects are not financially
viable.
 Policy issues related to such project development. Not all the
states and central has similar policies in India. This variation in
the policies limits the progress of such projects.
 Cybersecurity issues are more common.
 Lack of awareness and strong opinion on the benefits of
implementing smart grids.

6 Conclusions

This paper focused on the smart grid systems in India. A brief discussion
on the smart grid systems, their infrastructure, and functionality are carried
out. On the other side, the role of renewable energy systems focusing on the
Indian context is discussed. The potential availability of various renewable
energy options for smart grid integration is explored. Lastly, the
implementation opportunities for smart grids in India are explored and listed.
However, it is not always easy to implement such projects in a developing
nation. Hence, the possible challenges for smart grid development in India
are also explored and listed. Finally, we believe this piece of work would be
useful for the researchers and academicians working towards smart and
micro related research.

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 Implementation Opportunities and Challenges for Renewable Energy Resources
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Biographies

Mande Praveen received his B.Tech degree and M.Tech degree in Electrical
and Electronics Engineering. Curently, he is working as Assistant Professor
and his area of interests includes renewable energy, smart grids and micro
grids.

G. V. Sivakrishna Rao received his B.Tech, M.Tech, and PhD degrees in

Electrical and Electronics Engineering. Curently, he is working as Professor
and his area of interests includes Power Systems, renewable energy, smart
grids and micro grids

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