Centre invites smart-grid project proposals

As part of the National Smart Grid Mission roll out, the Centre has invited all State governments to submit proposals for at least two projects each. The proposals should include nominations for smart cities.

According to Reji Kumar Pillai, President of India Smart Grid Forum – a body comprising the power ministry and the industry – the decision was taken a meeting chaired by the Union power secretary in Delhi, on August 10, in the presence of all State-level power officials. Pillai was in the city in connection with the CII energy conclave. The Centre will bear one-third of the project costs. The rest are to be borne by the States. The project, if implemented, will reduce distribution losses and equipment failure.

Reji said, every year thousands of distribution transformers catch fire across the country due to demand overload. In a smart grid, each consumer will be connected by a smart metre that sends out real-time consumption data to the control room, preventing such situations.

Regulators will decide a higher tariff for peak hours of electricity usage in each of the smart-grid project areas. This is to discourage consumers from wasteful energy consumption practices during peak hours.

In a parallel initiative, consumers may voluntarily opt for ‘smart appliances scheme’ that will enable electricity distributors to switch off energy-guzzling appliances automatically during peak-demand period. Those who opt for such schemes will be supplied electricity at a discounted tariff.

The Centre has already approved 14 pilot smart grid projects as part of the National Smart Grid Mission roll out plan. Only six States – Assam, Haryana, Himachal Pradesh, Punjab and West Bengal – awarded projects to respective contractors.

The BJP government in Maharashtra scrapped the previous NCP-Congress government’s decision to set up pilot project at Baramati. The bids submitted for pilots in Tripura and Kerala were found three times costlier than estimated costs. The projects will now be auctioned again.

Telengana did not find a contractor in the last two rounds of bidding and is now preparing for re-tendering after change of certain clauses. Gujarat identified a contractor but the award has been delayed. Meanwhile, Power Grid Corporation (PGCIL) is preparing to award the country’s first technology trial for grid connected energy storage. The project, expected to be awarded in a month, entails construction of three capacities - using three different technologies – for storing 1 MW of electricity each.

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