GTG Newsletter

Greening the Grid (GTG)Newsletter Vol 1, Jul - Sep, 2017Report Release on Pathways to About GTGIntegrate 175 Gigawatts of Renewable ProgramEnergy into India’s Electricity Grid USAID’s Greening the Grid (GTG) is a fiveShri Piyush Goyal, Honorable Minister of State (IC) for Power, Coal, New and Renewable Energy, and year program implemented in partnershipMines, Government of India, released the national study on “Pathways to Integrate 175 Gigawatts with India’s Ministry of Power (MOP) underof Renewable Energy into India’s Electric Grid” in New Delhi on June 29th, 2017. The report the U.S.-India Partnership to Advancejointly prepared by the National Renewable Energy Laboratory (NREL), Power System Operation Clean Energy Deployment (PACE-D).ThisCorporation (POSOCO) and Lawrence Berkeley National Laboratory (LBNL) is conducted over program aims to support the Governmenta year modeling exercise. It evaluates the operation of India’s power grid in 2022 with 175 GW of of India’s (GOI) efforts to manage large-scalerenewable energy (RE) to identify potential cost and operational concerns and actions that will be integration of RE into the grid.The programneeded to efficiently integrate the targeted levels of wind and solar generation.This study has been combines three components which interactconducted under the Greening the Grid program, an initiative co-led by India’s Ministry of Power and with each other.These include:the U.S.Agency for International Development (USAID). 1. Power system planning reforms andThe report resolves many questions about how India’s electricity grid can manage the variability and targeted analysis for large RE parks anduncertainty of adding large amounts of renewable energy into the grid.The results demonstrate that RE integration pilots implemented by U.S.power system balancing with 100 GW solar and 60 GW wind is achievable at 15-minute operational Department of Energy (DOE) laboratoriestimescales with minimal reduction in renewable energy output. India’s current coal-dominated powersystem has the inherent flexibility to accommodate the variability associated with the targeted 2. Renewable Integration and Sustainablerenewable energy capacities. 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 ppaarrttnneerrsshhiipp)) Connect with us: GreeningthegridIndia/ GTG_IndiaSome of the key operational impacts that came out of the report were: (1) large-scale benefits of Greening the Gridfuel savings and reduced emissions due to increased renewable energy production; (2) fast-ramping www.gtg-india.com (Under design)infrastructure (such as natural gas turbines) is not necessary to maintain grid balance; and (3) in post-175 GW clean energy scenario, coal plants operating at only half their capacity will pave the way fora new tariff structure that moves away from focusing on energy delivery and instead compensatesplants for performance that achieves flexibility goals.The study also evaluates the value of strategies to better integrate renewable energy and demonstrates the importance of policy and market planningThe results were based on a number of key assumptions including perfect transmission planning existing within each state but not necessarily oncorridors between states; compliance of all coal plants with the Central Electricity Regulatory Commission (CERC) regulation that coal plants be ableto operate at 55 percent of rated capacity; and a perfect load forecast. Input data, assumptions and study results were validated extensively by morethan 150 technical experts from central agencies including the Central Electricity Authority (CEA), Power Grid Corporation of India Ltd. (PGCIL), andNational Thermal Power Corporation Limited (NTPC); state institutions including grid operators, power system planners, renewable energy nodalagencies and distribution utilities; and the private sector, including renewable energy developers, thermal plant operators, utilities, research institutions,market operators and industry representatives. To find more information on the report, please visit https://www.nrel.gov/analysis/india-renewable-integration-study.html

Quotes from the Report Release It is time for the people of India to get ready and embrace the change with a ‘New Mindset’ of a ‘New Grid’ for a ‘New India’, which is ready to integrate large amount of renewable energy. It is appropriate time following on Honorable Prime Minister’s meeting with the U.S. President under a robust and focused U.S.-India Energy Partnership.The ministry is extremely appreciative of the continued engagement and support from USAID and congratulates all the stakeholders including POSOCO, NREL, LBNL on the achievement of this outcome. Combined and collaborative efforts such as these are labour and data intensive and detailed and often go unsung but are critical to creating the backbone for a reliable grid --Shri Piyush Goyal, Honorable Minister of State (IC) for Power, Coal, New and Renewable Energy, and Mines, India . USAID has a long-standing collaboration with the Government of India in the area of energy. Energy is a key determinant of growth and India needs sustainable energy sources to continue to grow at 7-8 percent annually. Introducing renewable energy solutions into established energy systems often requires changes to well-established policy, institutions, and market structures.This study will prove to be helpful in scaling up renewable energy in India effectively and sustainably - Michael Satin, Director of USAID/India Greening the Grid initiative offers a toolkit for information and guidance materials to support emerging economies like India in defining and implementing grid integration roadmaps for renewable energy. It also sets a platform for deliberations on strategies for Indo-U.S. co-operation towards energy security and strengthening energy linkages between the two countries. I am sure the learning that has come out of this will be applicable to a lot of emerging economies who are going on a path of bringing in more renewables into the system - Shri P.K. Pujari, Secretary of Power, Ministry of Power In 2014, when it was announced, we in the division of operation and management, were very anxious and concerned whether we will be able to make this 175 GW target a reality.This report answers many of our questions.The study has actually given us a lot of confidence.This is just the beginning.We are geared up to make the report’s recommendations a reality. I am sure that the dream that you Mr Minister have seen for 2022 will become a reality - Ms Jyoti Arora, Joint Secretary, Ministry of Power It is really a great occasion in many respects.The fear that we were having for the large integration of renewable sources is no more there. I congratulate USAID and POSOCO for steering this study and giving us the comfort that there is no cause to worry. - Shri R.K.Verma, Chairperson, Central Electricity AuthorityPress and Media Coverage14 Online News11 TV 7 NewsChannel Newspaper2 Vol 1, Jul - Sep, 2017 - Greening the Grid (GTG) Newsletter

Grid Integration PilotsCentral to GTG, is the design, implementation, and scaling of a series of prioritized innovation pilots that support the integration of RE into the grid. As part ofthe GTG-RISE Initiative, successful deployment and scale-up of these pilot solutions will offer new market opportunities for innovative technologies, solutionsand services.The pilots will be supported by other GTG components such as integration studies and analytical support by NREL and capacity building of keystakeholders through partnerships with United States Energy Association (USEA) and National Association of Regulatory Utility Commissioners (NARUC). Inconsultation with key GOI stakeholders, RISE has identified six grid integration pilots. Each of these pilots, tests the validity of a critical approach to reducebarriers to integrating RE into the power grid at scale.These pilots shall be designed and implemented with technical assistance (TA) and grant support underGTG-RISE.These grid integration pilots are as follows: GTG-RISE Grid Integration Pilots studies under GTG have revealed the criticality and net-load forecasting. of thermal based units in India for providing1) Battery Energy Storage System (BESS): balancing support through flexing.This pilot shall be Stakeholders: A DISCOM (under discussions), CEATo be implemented in collaboration with the undertaken with a central sector power generation and Forum of Regulators (FOR)Central Transmission Utility, the facility will test the utility and a state sector power generation utilitytechno-economic effectiveness of grid connected to identify and implement strategies for achieving 6) Regional platform for reserves sharing:BESS in providing balancing energy services, other high ramp rates and low technical minimums in This pilot shall test and implement a platform andancillary services, deferring network upgrades, order to identify scalable measures for adoption mechanisms for day-ahead and intra-day sharing ofcapacity firming of Variable Renewable Energy across the coal fleets in the country. reserves between utilities in a region as a test case(VRE) generators, peak shaving, etc.This pilot for adoption of regulations enabling operation ofwill also contribute to interconnection standards Stakeholders: Gujarat State Energy Corporation larger balancing areas to enable more effective REfor grid connecting BESS and for estimating the Limited (GSECL), NTPC and CERC. integration.The outcome of the pilot shall providesystemic value of storage in the Indian power the framework guidelines for regional coordinationsystem, necessary to devise policies and regulations 4) Automatic Generation Control (AGC): and adoption of commercial mechanisms forsupporting deployment of BESS. A pilot on evaluating AGC in providing secondary sharing of reserves. response in Southern India would provideStakeholders: PGCIL, POSOCO and Puducherry insights for the planned adoption of AGC for Stakeholders: State level utilities and Load DespatchElectricity Department (PED). ancillary market operation.The pilot shall cover Centers in Southern Region, Southern Regional Power conventional and renewable power plants and Committee (SRPC) and FOR2) Dynamic Compensation for Large will identify both technical requirements as wellSolar Park Integration: To be undertaken as compensation mechanisms for the generation In addition to the above mentioned six pilots, GTGin partnership with a state transmission utility, units which participate in AGC secondary reserve has already initiated a grid integration pilot whichthe pilot shall involve detailed system studies to market. is as follows:evaluate integration of a large solar park and toidentify specific dynamic compensation measures Stakeholders: Karnataka Power Corporation Limited 7) Automated Demand Side Managementincluding design enhancements to inverters and (KPCL), Karnataka State Load Despatch Center (SLDC), (ADSM) Pilot: The focus of the first pilot underdeployment of grid level compensation such as Southern Regional Load Despatch Centre (SRLDC), GTG is to test a new resource to balance theSTATCOMs.The outcome of the pilot shall be Wind and Solar Developers power grid as the proportion of RE increases,to provide insights on development of guidelines and to address the power quality issues relatedand enhancements to standards for dynamic 5) Real-time monitoring of rooftop solar to the integration of rooftop solar systems oncompensation and inverter specifications with Photo Voltaic (PV) and net-load forecasting the distribution network.This public-privatereference to reactive power control and power for distribution companies (DISCOMs): The partnership between USAID/India, Innovari (a U.S.quality aspects. pilot shall test efficacy of smart meters for real-time ADSM developer) and the Bangalore Electricity monitoring of distributed rooftop solar PV generation Supply Company Limited (BESCOM) will supportStakeholders: Rajasthan Vidyut Prasaran Nigam and assist a DISCOM in design and implementation of the deployment of 5 megawatt (MW) ADSM pilot.Limited (RVPNL), Rajasthan State Load Dispatch Centre improved tools for net-load forecasting.The outcome(SLDC), Rajasthan Renewable Energy Corporation of this pilot shall provide guidelines on metering, Stakeholders: BESCOM, Karnataka PowerLimited (RRECL), Solar Developers, and PGCIL. communication and forecasting of roof top solar PV Transmission Corporation Limited (KPTCL), SRLDC, Innovari3) Flexible Power Generation: Integration Battery Energy Dynamic 3 Storage System Compensation 2 (BESS) for LargeAutomated Demand Solar ParkSide Management Integration(ADSM) Pilot *Regional Flexible Power 3 1 Puducherryplatform Generation 2 Rajasthanfor reserves 3 3 Gujarat, Haryana,Telanganasharing 6 4 Karnataka 4 5 Bengaluru Real-time Automatic 57 1 6 Southern Region monitoring of Generation 7 Bengaluru rooftop solar PV and Control (AGC) net-load forecasting for DISCOMs* This public private partnership is a direct engagement between USAID/ India, States covered under the pilot for “Regional Platform forInnovari and BESCOM under a separate mechanism under GTG Reserves Sharing” Vol 1, Jul - Sep, 2017 - Greening the Grid (GTG) Newsletter 3

Events U.S. Study Tour (February 20-24, 2017): A senior delegation of policy makers and regulators from the centre and states visited U.S. and met with utilities and system operators in Western U.S.The visit show cased three case studies including (a) Xcel energy operating Public Service Company (PSCo) in Colorado, which has been practicing in a Joint Dispatch Service with utilities in the region, (b) PacifiCorp, which has recently joined an Energy Imbalance Market (EIM) to try and enlarge its balancing footprint to accommodate higher levels of RE penetration and (c) California ISO, which operates a full-fledged market with day-ahead and intra-day scheduling, dispatch and settlements.The delegation included representation from Central Ministry of Power, Central Electricity Regulatory Commission (CERC), Gujarat Electricity Regulatory Commission (GERC), USAID and GTG-RISE.The tour was organized by NARUC. U.S. Study Tour (May 08-12, 2017): A senior delegation of policy makers and regulators from the centre and states visited U.S. and met with utilities and system operators in Western U.S.The visit show cased three case studies including a) Xcel energy operating Public Service Company in Colorado b) PacifiCorp, which has recently joined an Energy Imbalance Market to try and enlarge its balancing footprint to accommodate higher levels of RE penetration c) California ISO, which operates a full-fledged market with day-ahead and intraday scheduling, dispatch and settlements. d) Portland Gas and Electric, which is preparing itself for participation in the EIM by October 2017. e) Electric Reliability Council of Texas (ERCOT) f) Public Utility Commission, California, and g) Public Utility Commission, Oregano.The Indian delegation included representation from CERC, POSOCO, Karnataka State Load Despatch Centre (SLDC),Tamilnadu SLDC, DEA, USAID and GTG-RISE.The tour was orgonized by USEA. AGC Pilot workshop (Aug 3, 2017): USAID’s GTG-RISE Initiative, in partnership with POSOCO, Karnataka Power Transmission Corporation Limited (KPTCL) and Karnataka Power Corporation Limited (KPCL), organized a workshop on “Automatic Generation Control (AGC) Pilot - Southern Region” in Bengaluru on August 3, 2017. More than 50 participants representing key stakeholders from KPCL, KPTCL, Karnataka Electricity Regulatory Commission (KERC) and Southern Regional Load Despatch Centre (SRLDC) participated and deliberated on evaluating AGC in providing secondary response in Southern India.The workshop provided insights for the planned adoption of AGC for ancillary market operation in the country. GTG-RISE pilot to be implemented over 2 years will cover both conventional and renewable power plants and will identify the technical requirements as well as compensation mechanism for the generating units to participate in AGC secondary reserve. Upcoming EventFirst International Conference on “Large Scale Grid Integration of Renewable Energy” (September 6-8, 2017) at Hotel Vivanta by Taj, Sector2, Dwarka, New Delhi: The conference, jointly organized by the United State Agency for International Development (USAID) and the Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Government, will bring together Indian stakeholders and international expertsto share their learning and discuss interventions in the Indian context to enable integration of large scale renewable energy. Numerous international expertsfrom the United States, Germany and other countries will be sharing their experiences and knowledge.The conference is being organized under the bilateralagreement of USAID and GiZ with Ministry of Power and the Ministry of New and Renewable Energy (MNRE), Government of India.For more information refer http://regridintegrationindia.org/DisclaimerThis Newsletter is made possible by the support of the American People through the United States Agency for International Development (USAID).The contentsof this newsletter are the sole responsibility of Deloitte Consulting LLP., and do not necessarily reflect the views of USAID or the United States Government.Thisbrochure was prepared under Contract Number AID-386-TO-17-00001.EDITORIAL TEAM CONTACTBhoopinder Singh Bali Monali Zeya HazraEmail: [email protected] Senior Clean Energy Specialist USAID/IndiaADDRESS Email: [email protected]/India Renewable Integration and Sustainable Energy (RISE) Initiative Shubhranshu PatnaikDeloitte Consulting India Projects (DCIP) LLC Chief of Party14-H, 14th Floor, Hansalaya Building; 15, Barakhamba Road, New Delhi - 110001. USAID GTG-RISE Initiativewww.gtg-india.com Email: [email protected] Vol 1, Jul - Sep, 2017 - Greening the Grid (GTG) Newsletter