Transforming India's Power Landscape Greening the Grid (GTG) Program
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Transforming India’s Power Landscape
Greening the Grid (GTG) Program
A Joint Initiative of the U.S. Agency for International
Development (USAID) and Ministry of Power,
Government of India (GOI)
Final Report 2021
This Report is made possible by the support
of the American People through the United
States Agency for International Development
(USAID). The contents of this report 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.
Renewable Integration and Sustainable Energy Initiative (RISE) Contract Number AID-OAA-I-13-00018/AID-386-TO-17-00001 Disclaimer The contents of this report are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of United States Agency for International Development or the United States Government.
Table Of
CONTENTS
1 About Greening the Grid (GTG)
1. GTG Program Components
2. Results
3. Partners
4. People
9 Power system planning reforms
17 RISE - Grid Integration Pilots
1. Flexible power generation
2. Regional platform for reserve sharing
3. Battery energy storage system—transmission
4. Battery energy storage system—distribution
5. Automatic generation control—hydroelectric and solar
6. Dynamic reactive power compensation
33 India regulatory partnerships
39 US-India system operators partnership
43 RISE- Cross cutting initiatives
1. Gender mainstreaming
2. Private sector engagement
3. International awareness and outreach
Transforming India’s Power Landscape ABOUT GREENING THE GRID (GTG) The Greening the Grid (GTG) program was a partnership between the United States Agency for International Development (USAID) and the Ministry of Power (MoP), Government of India, under the U.S.-India Strategic Clean Energy Partnership (SCEP), one of the tracks under U.S.-India Climate and Clean Energy Agenda Partnership 2030. 1
Transforming India’s Power Landscape
2
Transforming India’s Power Landscape
USAID designed GTG to provide a flexible yet systems-based approach to support the efforts of India’s central and state governments
and the private sector to manage the large-scale integration of renewable energy into the electric grid. The five-year, $30 million GTG
program combined four intertwined components led by specialized partners to validate the key building blocks of grid flexibility and
inter-state power trade and create the enabling conditions to scale.
GTG PROGRAM COMPONENTS
The four components are listed below:
GTG-Renewable Integration and
Power system planning reforms
Sustainable Energy (RISE)
The Department of Energy’s National Renewable Implemented by Deloitte Consulting LLP
Energy Laboratory (NREL) and Lawrence (Deloitte), the GTG-RISE initiative included grid
Berkeley National Laboratory (LBNL) conducted integration pilots to demonstrate the success of
collaborative grid integration studies with India’s new technologies, methodologies, and pathways
key technical institutions at state and national to enable integration of larger amounts of
levels. NREL also provided capacity building of renewables into the grid at the state and regional
India’s power sector stakeholders, and supported level. As the secretariat and the coordination
grid integration pilots through modeling and hub for the overall GTG program, GTG-RISE
developed open source tools. took the lead in enabling coordination and joint
intervention opportunities across components.
US-India system operators
India regulatory partnerships
partnership
The National Association of Regulatory Utility US Energy Association (USEA) provided capacity
Commissioners (NARUC) partnered with the building workshops, bootcamps, executive
Central Electricity Regulatory Commission exchanges, peer reviews, and webinars for grid
(CERC) to exchange best practices and case system operators, state-level regulators, and utilities
studies on policies, regulations, and markets to learn international practices. USEA facilitated
in India. In addition, GTG-RISE through India’s relationships between the GOI and private sector
Forum of Regulators (FOR) supported 15 states and connected Indian stakeholders with experts
with market transaction settlement plans and 19 in the US at the Federal Energy Regulatory
states to finalize regulations to enable a well- Commission (FERC), US independent system
functioning real-time electricity market. operators, US Public Utilities Commissions, and
other US utilities.
3Transforming India’s Power Landscape
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.
Piyush Goyal
Former Union Minister of State (IC) for Power, Coal, New & Renewable Energy
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
P . K. Pujari
Chairperson, Central Electricity Regulatory Commission (CERC)
Photo Credit - U.S. Department of State
U.S. - India reinforced the commitment to climate change in 2021
4Transforming India’s Power Landscape
RESULTS
By the end of GTG, despite challenges posed due to the COVID-19 pandemic and ambitious goals, the results were striking:
06 15 Technical 15
Pilots Reports Released States
received regulatory support
on grid integration including
Grid integration pilots of national through the Forum of Regulators
National and regional Grid
relevance implemented (FOR)
Integration studies
Supported the
establishment of the
30+
South Asia Women in
03
Energy (SAWIE) forum
2000+ Private Sector
12
People trained Members
White Papers Released
on interstate RE trading and electric in various workshops, international engaged in program activities through
vehicles conferences, study tours, bootcamps, the Industry Advisory Council (IAC) national/international
and webinars
events organized
02
22.72 1000+
USD
International Conferences
01
and National Conference Million Investment Mobilized participants from
organized
25
investment mobilized by stakeholders based on pilot results
countries
40 228
18
+ white paper on
best practices in gender
Innovative Tools Institutions mainstreaming
and Methodologies capacitated
across national and state utilities, Policies & Regulations
developed, tested and/or adopted
GOI agencies and key institutions revised based on program inputs
5Transforming India’s Power Landscape
Key Highlights
Modelled India’s roadmap Successfully made Supported CERC launch
to 175 gigawatts (GW) 2,120-megawatt (MW) India’s groundbreaking
of renewable energy with coal capacity flexible, real-time electricity market
National and two Regional creating room for 375 MW (RTM) in June 2020 with
Grid Integration studies. of RE to enter the grid. day-ahead market (DAM)
reform implementation in
April 2022.
Supported15 states Demonstrated how system
Showcased the value of Modeled BESS to support
implement Scheduling, operators can balance real-
Battery Energy Storage distribution utilities in
Accounting, Metering and time fluctuations in supply
System (BESS) in the balancing supply and demand
Settlement of Transactions and demand using automatic
transmission sector. and expand electric vehicle
in Electricity (SAMAST) generation control and
(EV) infrastructure.
Framework dynamic reactive power
compensation.
Modeled Demand Side
Management (DSM) to flatten
the demand curve for a
Trained around 2000+ distribution utility to optimize
Mobilized $22.72 million in people in various workshops, peak power procurement
stakeholder investment with international conferences, and power supply network
pilot results. study tours, bootcamps, and planning.
webinars.
Supported CERC to redesign
Developed open-source Supported 11 states in
ancillary services (AS)
Supported POSOCO for tools (EVOLVE and EFFORT) drafting and finalizing 19 (18
market through international
National Open Access to help distribution utilities notified) DSM regulations
practice review; evaluation
Registry (NOAR)—an better understand impacts of and forecasting and
of alternatives; simulations
automated platform for emerging technologies and scheduling (F&S) regulations
and estimations of economic
real-time trades in power design optimized time-of-use for wind and solar
impact; and more.
markets. (TOU) tariffs. generators.
Mainstreamed women in
the energy sector through
South Asia Women in Energy
(SAWIE), a platform to
promote gender equality and
women leaders in energy
sector.
6Transforming India’s Power Landscape PARTNERS Government of India Partners Partner Utilities GTG Implementing Partners Private Sector Partners Institutional Partners 7
Transforming India’s Power Landscape
PEOPLE
GTG’s greatest asset has been its people. From the outset, assistance programs, as well as increased the capacity of local
the program attracted a talented pool of local technical stakeholder groups to sustain the work.
professionals. With a predominantly local team at GTG-RISE,
this “Indian look and feel” overcame many communication This market, sector, and institutional knowledge created a
and contextual barriers, enhancing the project’s ability very powerful and compelling platform to design, prioritize,
to deliver on its objectives. This approach also created a coordinate, and deliver technical assistance. The substantive
cadre of local talent able to identify and integrate relevant results achieved to date are in large part due to synergistic
international practices into localized executable technical local collaborations.
Photo Credit - GTG RISE
8Transforming India’s Power Landscape POWER SYSTEM PLANNING REFORMS 9
Transforming India’s Power Landscape
10Transforming India’s Power Landscape
The National Renewable Energy Lab (NREL), the lead for this
component,undertook collaborative studies with India’s key technical Reports published as part of GTG
institutions, built capacity of India’s power sector stakeholders, and
Integration Studies
supported pilot programs led by GTG-RISE through analysis and
modeling. • Study overview fact sheet
Grid integration studies • Advances in production cost modeling fact
Greening the Grid: Pathways To Integrate 175 Gigawatts of sheet
Renewable Energy into India’s Electric Grid Vol. I—National Study
and Vol. II—Regional Study, released by Piyush Goyal, Former • Vol. I—National Study full report
Minister of State (IC) for Power, Coal, New and Renewable • Vol. I—National Study Executive summary
Energy, and Mines, Government of India, in June 2017 formed
the cornerstone for the Greening the Grid program including • Vol. II—Regional Study full report
the pilots that followed. The ‘National Study’ informed
actions needed to help integrate 175 GW of RE by 2022. • State Chapters: Andhra Pradesh, Gujarat,
As a part of the study, NREL in collaboration with Lawrence Karnataka, Maharashtra, Rajasthan,Tamil
Berkley National Lab (LBNL) and Power System Operation Nadu,
Corporation Ltd (POSOCO) created a detailed production
cost model of the Indian power grid. Through this model, • Summary Fact Sheets, Southern region,
RE generation variability, least-cost scheduling and dispatch, Western region
effects of increasing the flexibility of thermal generation,
periods of stress, and RE curtailment were evaluated. Publicly available resource data for South Asia
region and links to all grid integration report and
The study was based on an inclusive consultation
process consisting of 12 meetings with technical review
related publications are available at: https://www.
committees comprising over 150 experts from central nrel.gov/analysis/india-renewable-integration-
agencies, state institutions, and the private sector. study.html.
Photo Credit - GTG RISE
Report release by Minister Goyal and officials for across India’s energy sector, June 2017
11Transforming India’s Power Landscape
An important highlight of the grid integration studies was the coal-powered plants need the ability to operate at less
collaboration with India’s power sector stakeholders. In addition than maximum capacity to flexibly generate electricity
to technical review committee meetings, NREL led collaboration in response to VRE and demand variability. Without
efforts with LBNL, POSOCO Central Electricity Authority (CEA), increased power generation flexibility, coal-powered
POWERGRID, and state load dispatch centers in Maharashtra, plants operate at maximum capacity or not at all—limiting
Gujarat, Tamil Nadu, Karnataka, Rajasthan, and Andhra Pradesh . the integration of RE sources that generate power at near
This included several consultations on the PLEXOS model of India, zero marginal cost during the day or when the wind blows.
relevant state-level models and training webinars on the model
details and capabilities.
• Challenge 2: Increase power grid balancing areas.
India’s power grid primarily operates at the state-level.
The grid integration study broke new ground—detailing With thirty states and union territories, grid control areas
specific regulatory framework gaps, grid stability issues, are fragmented—increasing complexity to schedule and
options for optimizing grid system dispatch, and sources balance power within relatively small boundaries.Without
of potential flexibility required to further integrate solar closer regional or national grid integration, system
and wind renewable energy sources—variable renewable operators cannot as efficiently balance power supply
energy (VRE)—into the power system.Two critical challenges and demand by sharing power reserves to manage grid
emerged from the study: reliability or accessing VRE and flexible generation sources.
• Challenge 1: Enable conventional thermal plants These challenges were addressed through grid integration
to flexibly generate electricity. India’s conventional pilots implemented under GTG-RISE initiative.
Photo Credit - GTG RISE Photo Credit - GTG RISE
Report Release on Tamil Nadu results of Greening the Grid, October 27, 2017 Report Release on Gujarat results of Greening the Grid, November 3, 2017
Photo Credit - GTG RISE Photo Credit - GTG RISE
Report Release on Rajasthan results of Greening the Grid, November 2, 2017 Report Release on Karnataka results of Greening the Grid, February 9, 2018
12Transforming India’s Power Landscape
Modeling Studies and support to Grid Integration Pilots
In addition, this GTG component analyzed solar parks, battery energy storage systems, and electric vehicles to support the
narrative on large-scale integration of renewable energy, as well as developed an open-source tool for net demand forecasting.
Further it supported grid integration pilot implemented under GTG-RISE.
Battery energy storage system (BESS) Pilot with BSES Rajdhani Power Limited
(BRPL)
PREPARING DISTRIBUTION
The goal of the modeling analysis was to understand the technical and economic value of UTILITIES FOR UTILITY-
SCALE STORAGE AND
BESS on BRPLs feeders and test the applications that might provide the greatest impact to ELECTRIC VEHICLES
the system. BRPL used this analysis to make a justification to their regulator on the need GREENING THE GRID (GTG)
A Novel Analytical Framework
A Partnership Between USAID and Ministry of Power, Government of India
to pilot certain applications. An output of this modeling was an open source framework
for distribution companies to assess the impact of distributed energy resources on their
system. A primary outcome was approval by DERC for BRPL to pursue a pilot on BESS in place of
other system upgrades. To find more information on the report, please visit https://www.nrel.
gov/docs/fy20osti/75973.pdf.
Photo from iStock 1177095707
JULY 2020
This report was produced by the National Renewable Energy Laboratory.
Net Demand Pilot with BSES Yamuna Power Limited (BYPL)
PREPARING DISTRIBUTION In collaboration with GTG-RISE and BYPL, NREL implemented the modeling study to
UTILITIES FOR THE FUTURE –
EVOLVING CUSTOMER
address a lack of understanding about RE contributions and challenges to the power grid.
CONSUMPTION IN The pilot was split into two technical analysis tracks as follows:
RENEWABLE RICH GRIDS:
GREENING THE GRID (GTG)
A Novel Analytical Framework
• The power procurement track investigated the contribution that utility-scale RE
procurement provides to distribution utilities. NREL assessed the contribution of RE
A Partnership Between USAID and Ministry of Power, Government of India
from both energy value and capacity value perspectives, and also shared the tools to
allow BYPL to perform similar analyses for future RE procurements.
•
The DER track focused on the challenges and opportunities caused by many small-scale
distributed renewable resource integrations in distribution systems and assessed the
Photo from iStock 578112520
net-load evolution that distribution utilities observe as these emerging technologies
APRIL 2021
make their way to the grid. Under the DER track, NREL developed an open-source tool,
This report was produced by the National Renewable Energy Laboratory.
EVOLVE (Evolution of Net-Load Variation from Emerging
Technologies), that provides a window for utilities to better
EVOLVE is an open source user-friendly dashboard that understand their future state, quantifying feeder-level
allows for easy scenario generation capabilities to foster impacts of integrating emerging technologies, such as solar
accelerated understanding of how the distribution network PVs, EVs, and BESSs.To find more information on the report,
is impacted, thus helping decision-making regarding please visit https://www.nrel.gov/docs/fy21osti/79069.pdf
whether further technical studies may be required.
and for open-source modeling tool EVOLVE please visit:
https://github.com/nrel/evolve
13Transforming India’s Power Landscape
Automated Demand Side Management (ADSM) pilot with BSES - BRPL
This was another collaboration between the GTG partners - NREL and GTG-RISE – with
PREPARING DISTRIBUTION
UTILITIES FOR THE FUTURE - BSES-BRPL on customers willingness and ability to allow for demand side management.
UNLOCKING DEMAND-SIDE
MANAGEMENT POTENTIAL
The data collected by BRPL and GTG-RISE allowed NREL to develop a model that helps
A Novel Analytical Framework
BRPL understand the potential of a DSM program to bring down system costs and shift
loads to off-peak periods of the day. The model considers the potential of time-varying
GREENING THE GRID (GTG)
A Partnership Between USAID and Ministry of Power, Government of India
rate structures by using sensitivity analysis on real survey data from BRPL’s customers. An
optimization framework was developed for various outcomes that BRPL can explore, such
as reducing peak demand. An open-source modeling tool called EFFORT (Effectiveness of
rate structures for enabling demand response) was developed to help model and design
optimized time-of-use (TOU) tariffs. To find more information on the report, please visit
Photo from iStock 508408184
https://www.gtg-india.com/wp-content/uploads/2021/07/79375.pdf
JULY 2021
This report was produced by the National Renewable Energy Laboratory.
Policy Briefs and Technical Report
As a part of GTG, NREL also collaborated with POSOCO to research timely technical topics and develop research and white
papers to support large-scale integration. These included:
Ramping in India’s power system co-authored with POSOCO
Ramping is one of the key attributes of flexible operation of existing generating resources. With implementation of national-
level security constrained economic dispatch (SCED), the national operator POSOCO observed occasional constraints in
ramping capability obtained from generators under SCED, which would be aggravated with more variable RE integration. This
paper focused on complexities of ramping with high shares of renewables in the Indian context. To find more information on
the report, please visit https://www.nrel.gov/docs/fy20osti/77639.pdf.
Technical report on gate closure co-authored with POSOCO
NREL collaborated with POSOCO to explore the concept of gate closure, the time at which market participants submit final
bids and offers for electricity. Gate closure is typically considered a minor feature of market design, but its implementation is
pivotal to how power markets operate under high RE penetration. This report analyzed global experiences with gate closure,
and then reviewed the unique benefits, challenges, and other considerations that impact the implementation of gate closure in
the Indian electricity market. To find more information on the report, please visit https://www.nrel.gov/docs/fy19osti/72665.
pdf
14Transforming India’s Power Landscape White paper on resource analysis of NP-Kunta solar park site The paper researched the resource variability analysis of the 250-MW NP Kunta solar plant site and compared the resource variability of a 250-MW solar plant at the NP Kunta site with a similarly sized plant at Bhadla solar plant site. The analysis shows the intertemporal variability of the NP Kunta solar plant site and also demonstrates the use of publicly available resource quality data, which can be utilized by various stakeholders to better understand the variability of any existing or potential RE site in India and possibly increase confidence in decisions or help understand the impacts that can be expected. The two sites analyzed show different levels of variability in terms of annual/monthly energy and generation during each time period.The sensitivity towards this variability could be different among different stakeholders which is an area for future work. To find more information on the paper, please visit https://www.nrel.gov/docs/fy20osti/77784.pdf. Regulatory analysis for enabling Automatic Generation Control (AGC) support from hydro and RE units. NREL produced a report examining the technical and regulatory needs to successfully integrate AGC into grid operations, with a special focus on wind and solar generators. The report detailed the challenges and pathways to increasing reliability of the whole grid by enabling wind and solar to play a large role in reliability through markets, regulations, and other mechanisms. To find more information on the paper, please visit https://www.nrel.gov/docs/fy19osti/73866.pdf. White paper and modeling studies In close collaboration with Ministry of Power, GTG-RISE initiative supported the development of two white papers for RE integration planning. These included: Electric Vehicle Charging Infrastructure and Impacts on Distribution Network. The white paper studied the growing impact of integrating EV onto the distribution grid. Similar in impact to integrating RE from a distribution management perspective, GTG-RISE modeled scenarios of further EV market share and determined how that would impact the grid. The paper also detailed the required changes to electricity pricing and tariff regulations for EV charging infrastructure and how DISCOMS could plan for and effectively distribute electricity to EV charging stations. Results from the paper informed GOI regulators on possible pathways, informed by international leading practices, for further consideration and adoption. To find more information on the paper, please visit https://www.gtg-india.com/wp-content/uploads/2020/07/EV-White-paper-Revised-13-07-2020.pdf Intra-state Trade of Renewable Energy. This white paper studied how inter-state RE exchange, which will play a critical role in creating more RE demand in India, resulting in higher RE capacity additions. RE power exchange between Indian states is currently at low levels. Increasing it requires policy and regulatory frameworks that support such exchanges. This white paper is developed with the aim of supporting a deep understanding of the issues that India must address to successfully promote inter-state exchange of RE power. To find more information on the paper, please visit www.gtg-india.com/wp-content/uploads/2021/02/RE-White-Paper- New-08-02-2021-revised.pdf. 15
Transforming India’s Power Landscape
RAMPING UP THE OPENING MARKETS, RESOURCE ANALYSIS
RAMPING CAPABILITY
DESIGNING WINDOWS, OF NP KUNTA
India’s Power System Transition
AND CLOSING GATES
India’s Power System Transition -
SOLAR PARK SITE
A White Paper
Insights on Gate Closure
GREENING THE GRID PROGRAM
GREENING THE GRID PROGRAM GREENING THE GRID PROGRAM A Joint Initiative by USAID/India and Ministry of Power
A Joint Initiative by USAID/India and Ministry of Power A Joint Initiative by USAID/India and Ministry of Power
Photo from iStock 516319153
Photo from iStock 538144351
Photo from iStock 1210372195
AUGUST 2019 SEPTEMBER 2020
SEPTEMBER 2020
This report was produced by the National Renewable Energy Laboratory. This white paper was produced by the National Renewable Energy Laboratory.
This report was produced by the National Renewable Energy Laboratory.
https://www.nrel.gov/docs/fy20osti/77639.pdf. https://www.nrel.gov/docs/fy19osti/72665.pdf https://www.nrel.gov/docs/fy20osti/77784.pdf.
ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
AND IMPACTS ON DISTRIBUTION NETWORK
GRID-FRIENDLY
RENEWABLE ENERGY
Solar and Wind Participation
in Automatic Generation Control Systems
GREENING THE GRID PROGRAM
A Joint Initiative by USAID/India and Ministry of Power
GREENING THE GRID (GTG) - RENEWABLE
INTEGRATION AND SUSTAINABLE ENERGY
(RISE) INITIATIVE
A PARTNERSHIP BETWEEN USAID AND
MINISTRY OF POWER, GOI
Disclaimer
The content of this white paper is made possible by the support of the American People through the United States Agency for International Development
JUNE 2019 (USAID). The contents of this document are the sole responsibility of Deloitte Consulting LLP., and do not necessarily reflect the views of USAID or the United
States Government. This document is prepared under Contract Number AID-386-TO-17-00001.
This report was produced by the National Renewable Energy Laboratory.
https://www.nrel.gov/docs/fy19osti/73866.pdf. https://www.gtg-india.com/wp-content/ www.gtg-india.com/wp-content/uploads/2021/02/
uploads/2020/07/EV-White-paper- RE-White-Paper-New-08-02-2021-revised.pdf.
Revised-13-07-2020.pdf
16Transforming India’s Power Landscape
RISE - GRID
INTEGRATION PILOTS
GTG-RISE, the central component of the GTG, was the heart and fulcrum of the program. Building
from the grid integration studies, it validated several innovative solutions and technologies through a
series of six grid integration pilots across the country, provided technical support to implement and
scale pilots, shared learnings and strengthened the capacity of stakeholders on new and advanced
technologies.
Flexible Power Generation Regional Platform for Battery Energy Storage System
Reserve Sharing - Transmission and Distribution
17Transforming India’s Power Landscape
Automatic Generation Control - Dynamic Reactive Power
Hydroelectric and Solar Compensation
18Transforming India’s Power Landscape
FLEXIBLE POWER GENERATION
Generation of energy from sources like wind and solar is variable and unpredictable
due to changing weather conditions. Large-scale integration of this variable RE
into the electricity grid necessitates changes in the functioning of existing power
generating capacity, which in India is largely coal-based, so that grid reliability
and stability are not compromised. India’s RE integration plans, thus, critically
hinge on its coal-based power plants having the flexibility to tune their generation
responsively to variable RE generation. The MOP and the CEA have taken
cognizance of this imperative and set an agenda for thermal units to operate
in tandem with RE generation. Ignoring such flexibility requirements can lead to
severe grid imbalance. Proactive attention and effort toward securing flexibility in
operations of coal-based power plants is thus an imperative.
Objective: GTG-RISE pilot was conceived to mitigate the operational
challenges that large-scale RE integration would pose for grid performance.
The overarching aim was to ascertain coal-based generation units’ technical
and commercial feasibility for faster ramp up/ramp down of operations
in response to variable RE and the technical minimums needed vis-a-vis
the existing operational procedures, equipment, processes, and practices.
The pilot also sought to identify the measures and interventions (including
retrofits and operational changes) needed and the cost of such interventions.
It also aimed to examine the compensation requirements due to cycling, conduct low-load test runs at select units, and
strategize on fleet-wide operations of utilities with coal-based units.
Activities: GTG-RISE conducted a four-year (2017–2020) pilot to identify the technical interventions and operational changes
needed to implement flexibility in coal-based plants. The pilot was undertaken at a total of four coal-fired units in partnership
with power utilities at national and state levels: at the national level with NTPC Ltd, which produces almost 74% of India’s
coal-based power generation and at the state level with Gujarat State Electricity Corporation Limited (GSECL).
Photo Credit - GTG RISE
Knowledge dissemination workshop on Coal Generation Flexing Practices to Support VRE Integration, Feb 18-19, 2019
19Transforming India’s Power Landscape
As India strides towards it RE goal of 175 GW by 2022, a major concern for thermal utilities and
grid operators is how to ensure grid stability in the face of huge RE penetration. GTG-RISE has
worked to find a solution to this problem...I appreciate the support and handholding USAID
has provided to us for flexible operations.
Ramesh Babu
Director-Operations, NTPC
The pilot leveraged best practices and international experience as it studied flexibility needs of coal-fired plants and the
techno-economic impact on plant equipment’s life. GTG-RISE carried out detailed technical feasibility studies at the four
pilot sites/ units to assess the units’ preparedness, including the technical interventions needed for flexibility and their cost
implications.
The studies were followed by low-load test runs, conducted based on the procedure developed by GTG-RISE in collaboration
with Bharat Heavy Electricals Limited (BHEL). During 2019–2020, a series of low-load test runs were conducted at NTPC’s
Mouda unit in Maharashtra and GSECL’s Ukai unit, with gradual reduction of technical minimum up to 40% while maintaining
all other operating parameters under stable conditions and without any supplementary oil firing support.The test runs gauged
the responsiveness of plant equipment when subjected to low loads on a sustained basis. Data from test runs was analyzed to
arrive at comprehensive recommendations about the specific changes needed in operational practices and procedures and the
retrofits/ upgrades required. The pilot also built the capacity of key plant personnel for flexibility operations; more than 500
plant engineers and officials were trained through trainings, knowledge dissemination workshops, and executive exchanges.
Results: The pilot’s studies and test runs have generated evidence to inform the development and implementation of a long-
term flexibilization roadmap for the county and boost integration of renewables. Importantly, the pilot has built a business
case for policy and regulatory changes to implement coal flexing on a larger scale in India.
Photo Credit - GTG RISE
GTG-RISE, BHEL and NTPC team during the test run at Mouda, Maharashtra, May 2019
20Transforming India’s Power Landscape
Our partnership with USAID’s GTG-RISE on flexible operation has given us the confidence
to balance our operations. Going forward, policy and compensation will play a critical role in
scaling up flexible operations.
H N Baxi
Executive Director cum MD (A), GSECL
Some of the pilot’s recommendations are already being adopted: NTPC is retrofitting Nitrogen sparging and blanketing system
across its country-wide thermal power plants to prevent longterm corrosion damage during flexible operations. Further, based
on the experience and learning from the flexibility study of Ukai TPS Unit # 6 (500 MW), GSECL has finalized the scope for
major renovation and modernization (R&M) at Ukai TPS Unit # 3 and # 5, covering the majority of requirements for flexible
operation. The scope covers the minimum technical load of 40% without oil support as well as control and instrumentation
(C&I) upgrade to facilitate flexible operation.
In what is a crucial testimony to the pilot’s success and part of its scalability efforts, GTG-RISE has also supported Karnataka
Power Corporation Limited (KPCL) to scale up its interventions and make its coal plants more flexible. Based on the project’s
inputs, KPCL is conducting similar studies at two of its units (BTPS Unit #2 500 MW and RTPS Unit #5 200 MW).
The flexibility pilots with NTPC and GSECL have also contributed to the broader objective of reducing greenhouse gas
emissions, with an estimated 24.25 MMtCO2e reduction at the pilot level and potential 714.83 MMtCO2e reduction by 2030.
Photo Credit - GTG RISE
Bootcamp Workshop on Coal Generation Flexing Operational Practices to Support VRE Integration at NTPC, August 2018
21Transforming India’s Power Landscape
The pilot has set standards for flexing coal-based plants in the country to balance the grid in the face of increasing variable
RE penetration. Its results have served to improve the capacity of participating Indian states to finance and manage growing
levels of grid-tied RE and establish new mechanisms to balance variable RE in the country.
GTG-RISE pilot has resulted in a comprehensive set of recommendations that can prove the building blocks for nationwide
rollout of flexible operations at coal power plants. In addition to NPTC and GSECL, the pilot also gave inputs and supported
CEA and CERC with the information needed to identify, address, and make changes in relevant policies, guidelines, and
regulations. The key recommendations emanating from the pilot have been captured in a summary report, titled ‘Transition
towards flexible operations in India’ (available at https://www.gtg-india.com/).
The pilot also provided inputs for the national roadmap for flexible operations being developed by a national committee
constituted by CEA. Some key findings in the regulatory consultation paper, including increased operations and maintenance
(O&M) cost due to life consumption on account of cyclic operation and higher cost from increased oil consumption due to
frequent start/stop, etc., featured in CEA’s report on coal flexibility, titled ‘Flexible operations of thermal plants for integration
of renewable generation’ (2019).The GTG-RISE pilot outcomes and learnings have also been captured in the ‘Recipe Book for
Flexibilization of Coal based Power Plants’ which is intended to serve as a guidebook for Power plant engineers intending to
operate their units flexibly.
Development of a fleet-wide strategy and a business case for policy and regulatory change is a major success of the pilot.
The detailed assessment of costs by GTG-RISE is crucial to designing appropriate regulations to compensate generation
units for the additional costs they incur. Accurate plant- and fleet-level estimates of flexing costs are also informing the
policy interventions being deliberated by MOP. The insights may also be considered in the design of a targeted government
assistance scheme for the commissioned coal-based power plants in the country.
2,120 MW Low-load (flexible)
test runs (up to 40%)
500+
capacity of India’s power plant officials
supported and procedures
energy utilities and engineers
developed for nationwide
supported for improved trained on flexible
scale-up
financial and operations generation
performance
~ USD
375
44 GW
10 million
mobilized for improved
MW
of RE curtailment
avoided due to
coal flexibility pilot
capacity of NTPC, India’s largest public sector operational performance by
power generation utility, adopted improved energy utilities interventions
operational performance recommendations
(Nitrogen blanketing and condenser throttling)
22Transforming India’s Power Landscape
REGIONAL PLATFORM FOR RESERVES SHARING
In collaboration with CERC and POSOCO, GTG-RISE identified two approaches to better
organize regional power markets to improve power-generation scheduling and dispatching to
accelerate RE integration:
1. Model benefits and provide technical assistance to enlarge power-grid
balancing areas from individual states to a regional or national market
for day-ahead (DAM) and real-time markets (RTM).
Objective: The objective of the pilot was to conduct a modelling study and assessment
of benefits for stakeholders participating in various models of revamped intra-day and
day ahead market operations that CERC had considered.
Activities: GTG-RISE assisted CERC in conducting simulations on scheduling
and dispatch in six states—Telangana, Andhra Pradesh, Maharashtra, Karnataka,
Chhattisgarh, and Madhya Pradesh—to determine the potential benefits of different market-integration models. The exercise
aimed to demonstrate the rationale for implementation of an enhanced system for intra-day trading. GTG-RISE also assisted
CERC in analyzing stakeholder comments on the staff papers issued on redesigning of intra-day markets, addressing stakeholder
concerns, drafting and finalizing the key amendments to various regulations, and preparing the statement of reasons for
implementing the RTM.
Results: Results showed that centralized DAM and RTM implementation could substantially reduce power procurement
costs for distribution companies (DISCOMS). The proposed mechanism would result in system cost savings of approximately INR
6,200 crore ($834 million) for a market-based mechanism in day-ahead market and savings of almost INR 2,900 crore ($390 million)
in RTM. The study also established that inter-state sharing of reserves, when dispatched on system marginal price, would
lead to substantial reduction of power procurement cost of DISCOMS. CERC finalized regulations and implemented RTM in
India in June 2020—a critical milestone in the history of the power sector in India. As of April 2021, RTM size reached 20%
of existing DAM trading volumes—indicating the engagement of generators, distribution utilities, and industrial consumers.
CERC is pushing forward on DAM reform with an April 2022 go-live. The GTG-RISE team also assisted CERC in drafting a
discussion paper on Market Based Economic Dispatch (MBED), analyzing stakeholder comments on it, and preparing an issue-
wise summary of the comments shared by stakeholders for further consideration by CERC.
India has already come out with regulations on the real time markets, which is expected to
become valid from April 1st, 2020. Draft regulations on ancillary services will follow soon. Any
such studies that apply to the Indian conditions is extremely useful for us to design the market
and inform all the stakeholders.This USAID’s GTG report is extremely useful and will help us in
developing other products in the market
P . K. Pujari
Chairperson, Central Electricity Regulatory Commission (CERC)
23Transforming India’s Power Landscape
2. Automate the open-access approval process and reduce the lead time to conclude power exchange trades
in the National Open Access Registry (NOAR).
Objective: The pilot provided framework guidelines for regional coordination and supported the adoption of open-access
technology solutions for sharing reserves.
Activities: Over the past four years, GTG-RISE initiative worked in close partnership with POSOCO and CERC to shape
the framework guidelines for regional coordination, evaluate market-based mechanisms to address real-time imbalances, and
evolve consensus on the way forward. GTG-RISE assisted the POSOCO to establish NOAR- IT-based system that will be
accessible to all stakeholders, including open access participants, trade intermediaries, national, regional, and state load dispatch
centers (LDCs), and regional power committees. NOAR will serve as a centralized electronic platform to automate short-
term open-access approval processes and enable the RTM to operate more flexibly. GTG-RISE worked in close partnership
with CERC to shape the framework guidelines for regional coordination, evaluate market-based mechanisms to address
real-time imbalances, and build consensus on the way forward. In collaboration with POSOCO, as-is processes and functional
requirements were documented with the National Load Dispatch Centre (where the NOAR IT system is hosted) and with
regional and state load dispatch centers. Moreover, CERC issued updated regulations supporting open access.
Results: Although the NOAR go-live is planned for September 2021, significant progress has been made on the interim
milestones planned from the start of the activity to the end of grant award in April 2021.The NOAR will grant short-term
open access approvals for inter-state transactions, marking a huge departure from the current practice of each state using
its own procedures for granting approvals for intra-state transactions. While a few state load dispatch centers (SLDCs), such
as those in Gujarat and Haryana, have already developed an in-house software to grant open access approvals, most states
still employ manual processes for open access approvals for intra-state transactions. Once the centralized IT-based NOAR is
implemented, the state-specific open access approval processes will need to be integrated with NOAR to arrive at a unified,
integrated system for short-term open access approvals. It is expected that after the piloted NOAR application goes live, there
will be a further requirement of integrating with NOAR the existing open access approval systems available at each SLDC.
With 33 SLDCs across the country covering all the states and union territories, this represents an immense opportunity for
the pilot to be scaled up across all states.
NOAR is 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 grids 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, Ministry of Power, Government of India
24Transforming India’s Power Landscape
AUTOMATIC GENERATION CONTROL—HYDROELECTRIC AND
SOLAR
With the high variability of RE generation, automatic generation control (AGC) is
required for generation units to change power output automatically in response
to system operator direction to balance real-time fluctuations in power supply
and demand. GTG-RISE designed this pilot in collaboration with POSOCO,
Karnataka Power Corporation Limited (KPCL), and Karnataka Power Transmission
Corporation Ltd (KPTCL), to demonstrate how AGC would work in hydroelectric
and solar plants before India implemented AGC nationally.
Objective: This pilot tested if minimal retrofitting could allow a power
system operator to control the power generation of two hydropower
plants and one solar plant remotely and automatically for the first time in
India.
Activities: USAID through GTG-RISE implemented two AGC pilots at
Sharavathi andVarahi hydroelectric power plants with support in partnership
with KPCL and KPTCL, and an AGC pilot at the NP Kunta solar park with support from NLDC and NTPC. Through grants
This is indeed an epochal moment for us.The AGC pilot at KPCL’s hydro plant will showcase
pathways to implement AGC and will give us critical data to inform rollout at national level. I
thank USAID for their partnership in taking forward these important pilots under its GTG-RISE
initiative.
Photo GTG-RISE
Mritunjay Kumar Narayan
Joint Secretary (Transmission), Ministry of Power
Photo Credit - GTG RISE
AGC Go Live at KPL’s Sharavathi hydro plant of Karnataka, December 2020
25Transforming India’s Power Landscape
Karnataka is leading in terms of RE integration. KPCL is one the first entrants into AGC, and it
is our privilege to be contributing to initiatives for energy security and environment.
Ponnuraj
Managing Director – KPCL
from USAID, GTG-RISE enhanced the existing software and hardware systems at the plants and dispatch centers to enable
the AGC demonstrations. As part of the pilot, GTG-RISE trained dispatch center and plant staff on international leading
practices and to operate the AGC software and hardware.
Results: AGC response from the hydro units successfully compensated for variable RE up to 100 MW from Sharavathi and
up to 36 MW from Varahi, demonstrating how secondary reserves enabled through AGC facilitate smooth grid operation in
the face of RE variation.The secondary reserves from AGC -Hydro also helped the system operator to minimize the deviation
settlement mechanism (DSM) charges linked with frequency. After the configuration, GTG-RISE tested each plant’s generation
response to AGC signals in near real time. AGC can be enabled at most hydro units in India by defining the proper compensation
for AGC participation under the secondary reserve markets. India’s hydro power generation stands at around 46,000 MW,
of which Southern India represents a huge opportunity with a number of hydro units where AGC can be implemented.
The response from hydro and solar under
AGC operations will enhance system
The AGC pilot has generated evidence to inform the
operation and also result in reduction
of RE curtailment and improve the grid development and implementation of a long-term
stability. The pilot outcome will also aid in ancillary services roadmap for the county and boost
the development of a scalable roadmap integration of renewables. Its comprehensive set of
for policy makers and regulators. recommendations can be the building blocks for a
nationwide rollout of AGC at hydro power plants.
Photo Credit - GTG RISE Photo Credit - GTG RISE
Grantee award to Andritz for implementation of AGC at Varahi hydro
Visit to Varahi hydro power plant for technical assessment, April 2019
power plant, March 2019
26Transforming India’s Power Landscape
BATTERY ENERGY STORAGE SYSTEM - TRANSMISSION
Battery Energy Storage System (BESS) is a technology that allows energy to be stored when
more energy is being generated than consumers demand and releases (or dispatches) it
when generation later decreases or demand increases.
Objective: This pilot tested potential use cases of deploying BESS for grid-balancing
—specifically supporting grid operators to manage RE transmission variability and
balance the grid in real time—when more RE is integrated into the power grid.
Activities: A test environment was created by providing technical assistance and
installing new hardware and software at the existing BESS facility at POWERGRID’s
400 kV substation in Puducherry, to test if BESS could provide energy with minimal
delay to balance the grid. A virtual event on December 21, 2020, marked the go-live
launch of the BESS pilot at the Puducherry site. Seven use cases with real-time grid
parameters were tested to collect data and analyze the potential of BESS to support
ancillary services—namely peak shaving, load following, renewable capacity firming,
voltage or reactive power support, renewable time shifting, and dynamic frequency Photo Credit - GTG RISE
response. Grid operators rely on ancillary services to support effective and reliable
transmission of electric power from generators to consumers.
Moreover, GTG-RISE also conducted a techno-economic feasibility study of BESS to provide ancillary services for the Southern
region of India in support to the CERC’s roadmap for operationalizing reserves.The study—Evaluation of battery energy storage
system for the Southern region— simulated the Southern region’s network data to derive the required frequency reserves and
modelled the BESS requirement for ancillary market operation. To find more information on the paper, please visit https://
www.gtg-india.com/wp-content/uploads/2021/04/Evaluation-of-Battery-Energy-Storage-System-BESS-in-Southern-India.pdf.
Results: The BESS pilot’s learning and use cases can serve as a guiding tool to enhance BESS deployment by system operators
and RE generators in India. For system operators in ancillary services operations, BESS can provide services such as frequency
regulations, voltage support, and black start. It should be noted that transacting these services will require a mature ancillary
market, with appropriate mechanisms to reward ancillary services providers
I strongly believe that collaborative efforts by respective agencies will help the power sector
grow progressively towards a transition, wherein the grid is more flexible, reliable, and efficient
to foster and enhance renewable energy integration. We are proud to partner with USAID on
this initiative and on our journey to a “high-performing, low-emission, energy-secure economy.
Mritunjay Kumar Narayan
Joint Secretary (Transmission), Ministry of Power
27Transforming India’s Power Landscape
India’s power systems are going for more efficient and better controls and processes to ensure
the consumer is served economically. By 2025, we may require battery energy storage, and the
USAID’s BESS pilot outcomes will add value to our understanding and appreciation for storage
systems’ integration to the grid.
K V S Baba
CMD, POSOCO
India’s CERC recently notified the draft Ancillary Service (AS) Regulation 2021 to provide a mechanism for deployment and
procurement of ancillary services in India. The draft regulation details the mechanism and estimation process for reserves,
eligibility, deployment, procurement, selection, dispatch, and payment for secondary reserve ancillary services (SRAS) and
tertiary reserve ancillary services (TRAS). Once implemented, the draft ancillary regulation will drive the deployment of large
grid-scale energy storage facilities for commercial operations. While implementation of the Ancillary Service Regulation will
certainly create market-side demand for BESS, the GTG-RISE BESS pilot will pave the way for multiple applications and use
cases that will bring down the overall cost for BESS in India, to make its use more economical. Outcomes from the pilot will
also help drive clear policy decisions and regulations to scaleup BESS so that India can harness its full potential. Key pilot
learnings have been captured in a detailed technical guidance note on the development of control logics for various BESS
applications, retrofit requirements (both hardware and software), and system architecture design. The guidance note will help
any entity interested in deploying grid-connected BESS to assess the investment required.
The BESS pilot and the study of BESS support to ancillary services for the Southern region provided inputs to CERC on
the draft Ancillary Service Regulation 2021, which was released for public comments in April 2021. The regulation makes a
provision allowing for energy storage and demand response resources to participate in providing ancillary services. While
implementation of the Ancillary Service Regulation will certainly create market-side demand for BESS, the GTG-RISE pilot
paves the way for multiple applications and use cases that will bring down the overall cost for BESS in India, to make its use
more economic.
Results from the Southern region study showed that by enabling BESS, primary support from conventional units can be limited to
331 MW instead of 3,274 MW—meaning that adding BESS capabilities can release 2,943 MW of power that can be used to meet
consumer demand. Moreover, the study showed that deploying a 1,200 MW BESS system for INR 1,100 crore a year could save INR
3,000 crore a year due to additional capacity made available—estimated savings almost three times the cost.
Photo Credit - GTG RISE Photo Credit - GTG RISE
USAID Awarded BESS Pilot Projects in partnership with PGCIL, January, 2019 GTG-RISE team at the Puducherry BESS pilot facility, June 2017
Image: GTG-RISE Image: GTG-RISE
28Transforming India’s Power Landscape
BATTERY ENERGY STORAGE SYSTEM - DISTRIBUTION
Integrating variable RE generation into the grid can challenge
distribution utilities due to high forecasting errors and the need
to quantify and ensure the availability of rapid response, flexible
balancing resources. In other words, how to prevent power surges
when wind gusts or clouds cover the sun.
Objective: This pilot examined the viability of deploying
batteries in DISCOMS to balance supply and demand within
their systems.
Activities: USAID through GTG-RISE collaborated with
BSES Rajdhani Power Limited (BRPL) to conduct a cost-
benefit analysis of BESS power distribution use cases and
prepare a business case for its deployment in the grid. GTG-
RISE collected and simulated data for one year, and studied
how BESS could provide ramping support, energy arbitrage
(peak-shaving), capacity deferral, loss reduction, and outage
management.
Results: The BRPL pilot study was the first of its kind in Photo Credit - GTG RISE
India and its modeling efforts demonstrated the potential
scope and value of BESS applications for distribution. The
framework GTG-RISE used to estimate BESS’s economic
benefits for BRPL can be replicated at other DISCOMs to
analyze the viability of BESS for their systems.The results from the GTG-RISE pilot catalyzed the World Bank to fund BESS value
assessments in the transmission and distribution network of four states (Gujarat, Madhya Pradesh,West Bengal, and Karnataka),
with the goal of designing public-private
partnership opportunities to deploy
battery storage in these states. Based A 20 MW / 40 MWh BESS provides annual benefits
on the pilot’s outcomes, BRPL proposes to the tune of INR 114 million (levelized) and was
to purchase and install a 20-MW 2-hour recommended as the optimum battery size to be
BESS project, which will be owned
and operated by the Solar Energy
deployed in BRPL’s network
Corporation of India (SECI) under a
Service Level Agreement (SLA) to be
signed between BRPL and SECI.
29Transforming India’s Power Landscape
The results from the RISE pilot catalyzed the World Bank to fund BESS value assessments in
the transmission and distribution network of four states
Photo Credit - GTG RISE Photo Credit - GTG RISE
Roundtable Workshop on Business Case Analysis for Battery Energy Storage
Roundtable Workshop on for Battery Energy Storage System (BESS), Nov 30, 2018
System (BESS) deployment in BRPL Distribution Network, Dec 11, 2019
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