India is poised to be the 3rd largest smart grid market globally over next couple of years, and the market in India is expected to cross 7000 million USD over next five years. In this process, there will be a lot of opportunities for Norwegian companies.
Indian smart grids today
India lays an important focus on managing its generated electricity and smart grids has been identified as one of drivers to achieve the optimum utilization of generated electricity. Indian Grid is plagued with issues such as high AT&C losses (avg. 23 % national average), low power quality Index and reliability issues. It is estimated that theft cost of electricity in India is close to $ 16 Bn Per Year. To overcome these challenges India needs to develop a robust grid which is responsive to human behavior, helps in demand mitigation & load management and accurate in measurement of consumption and supply. With 300 GW of national grid capacity to be management along with 100 smart cities being developed under National Smart City Mission (read more), smart grids shall form the backbone of such city infrastructure.
India is poised to be 3rd largest smart grid market globally over next couple of years. The smart grid market in India is expected to cross 7000 million USD over next five years and Indian Government has launched the National Smart Grid Mission to bring about this transformation. As phase I of smart grid mission, 14 pilot projects were run by ministry of power and have been largely successful both at transmission and distribution level with active participation from Utilities, state bodies and private and public sector (read the current status of these projects). The Government targets to achieve 12 % AT&C loss by 2022 and 10 % by 2027 and has earmarked $ 12 Billion USD for loss reduction projects and the smart grid roadmap.
Few segments of smart grid wherein Norwegian players can find a huge market:
- Baseline data generation:
Indian government realizes the need for developing reliable baseline data to develop effective milestones and targets. Companies offering solution in metering, GIS mapping, feeder segregation, data collection to set a baseline for smart grid efforts have huge market potential. Further Indian government has committed $ 8 billion fund for these activities.
- Advanced Metering Infrastructure:
National Tariff policy mandates smart meters for all consumers consuming above 500 units by 2017 (for 200 units by 2019). This translates to need for 200 million smart meters and a market size of 2 billion USD. Companies such as Tiny Mesh have a huge market potential in this domain. The notification and technical specification of smart meters is approved by Central Electricity Authority, India.
- Energy storage:
With 100 GW of solar capacity and 60 GW of wind planned by 2022, storage solutions are the need of hour to manage this intermittent supply of electricity and integrate with thermal supply. Tenders for setting renewable projects with storage solutions are underway and demonstration projects are encouraged through subsidy and fiscal incentives provided by Ministry of New and renewable energy.
- Mini & Micro Grids:
With 100 % rural electrification target by 2017 , the smart grid roapmap targets microgrids in 1000 villages/industrial parks/commercial hubs by 2017 and 10,000 villages/industrial parks/commercial hubs by 2022, which can island from the main grid during peak hours or grid disturbances. National Policy for Renewable Energy based Micro and Mini Grids.
- Solutions in Outage Management System (OMS),
Peak Load Management (PLM),
Distributed Management System (DMS),
Power Quality (PQ),
Distributed Generation (DG)
- Smart meters, grid automation management, communication infrastructure, IT systems and hardware; home area network and system integration and Cyber security lead the smart grid initiatives of Indian Government.
- Smart Mobility:
Indian government has committed to achieve 100% electric vehicle nation by 2030. The National Electric Mobility Mission Plan 2020 is a stepping stone towards it and aims to have 6-7 million electric vehicles till 2020.
In order to facilitate Norwegian companies in unlocking this huge potential, Innovation Norway India and India Smart Grid Forum (ISGF) are planning to organize a round table Indo- Norwegian business meet to showcase Norwegian offering and understand the Indian requirements directly from Utility heads. The event is tentatively schedule in 3rd week of November. NCE smart Halden shall be coordinating this on behalf of Norwegian players and shall be leading the Norwegian Delegation. We encourage other Norwegian companies to participate in the business event and script a success story in Indian Smart Grid Market.
For a successful Integration in Indian Market, contact:
Market Advisor, Innovation Norway in New Delhi