Q-Role of IT in restructured power system

Ans- IT provides wide range of solutions to increase the efficiency and productivity of power sector like setting up distribution network, distribution load management and meter data management. But in
Indian power sector, operation and distribution processes are manual, insufficient commercial focus, inadequate control, lack of transparency and reliable information this result high loss to power sector.
Indian power sector is using stand-alone system for limited operational requirements or as a tool to solve specific problem without a long-term strategy. Most distribution utilities in India are still lacking in
most basic requirements i.e. consumers and assets databases that result into direct revenue losses. Most utilities maintain manual records of consumers in the form of registers especially, in rural areas
that make the complete process time consuming. Using of electromechanical meters, manual reading of meters and bill preparation, inadequate bill collection facilities result in overall delay in revenue
collection and that lead to losses in power sector companies. IT is widely acknowledged to be crucial for efficient operation and management of all industrial systems. This is true of the power utilities,
which need to handle a large amount of information for their efficient operation.

IT Strategy and Plans

A structured and comprehensive IT strategy and plan will help the distribution utilities to derive the benefits from information technology. The IT strategy and plans will need to consider several aspects.
Refer table 1.
The IT applications have been divided into the following four categories:

• Prerequisites – To be established first to allow implementation of subsequent IT applications

• Short-term – Quick wins
• Medium-term – High return
• Advanced applications

SMART Grid Vision of India: A smart grid is the integration of information and communications technology into electric transmission and distribution networks. The smart grid delivers electricity to
consumers using two-way digital technology to enable the more efficient management of consumers’ end uses of electricity as well as the more efficient use of the grid to identify and correct supply
demand-imbalances instantaneously and detect faults in a ‘self-healing’ process that improves service quality, enhances reliability, and reduces costs. The emerging vision of the smart grid encompasses a
broad set of applications, including software, hardware, and technologies that enable utilities to integrate, interface with, and intelligently control innovations. Some of the enabling technologies that
make smart grid deployments possible include: Meters, Storage devices, Distributed generation, Renewable energy, Energy efficiency, Home area networks, Demand response, IT and back office
computing, Security, Integrated communications systems, Superconductive transmission lines. (Figure 1)
Figure 1. SMART GRID Architecture
Geographic Information System (GIS): GIS applications are many; power companies can collect and store a large amount of data that can be readily accessed and analyzed. Strength of GIS is integrating
data and preparing it for analysis or modeling apart from tying together data from various sources makes it an important tool for the planning and decision making. User can display legend of all layers
displayed on the map. This legend will be represented by the symbol of each layer with colour and the name of the layers in a list. System will display coordinate of the current mouse position and the
coordinate value will change with the movement of mouse pointer over the map area. User can see co-ordinate only when the mouse pointer is inside the map area. GIS provides a wide range of solutions
encompassing the entire business value chain in the power distribution sector from setting up distribution network and load management to customer information, assets management, billing and
customer services. Digital system provides timely, accurate and easier way of acquiring information, which is very vital in taking prompt and accurate decisions.

Advanced applications: The advanced applications can be built only after establishing a strong foundation in the preceding phases. For instance, mobile field force solution can be built only after
establishing a system for management of field service orders (and customer and service databases even earlier). E-business solutions such as customer self-service and e-procurement require the CIS, SCM
(Supply Chain Management), etc., to be in place. Integrated Billing System For Large C and I Customers, Enterprise resource planning (ERP), Oracle ERP, SAP Utilities, SOA (Service-Oriented Architecture),
AMR (Automated Meter Reading), Wireless Technologies-GSM / GPRS based and CDMA based technologies, Power Line Communication System (PLC). The typical portfolio application is shown in table 2.
Integrated metering, billing and collection systems: The objective is to integrate billing, payment and collection to eliminate scope for tampering and manipulation and thus, improve collection. Payments
are currently made in person in most of the places. Only in few places payments can be made online or through ATM. IT can be used for making electronic payments including direct debit payments.

Energy accounting system to conduct energy audit: At present, meters are installed at 33 kV feeders and at some places on 11 kV feeders. Meters are not installed at distribution transformers (DT) level.
Total energy input to a circle is known accurately but not the total energy sold, because of many customers are unmetered. As such energy losses at different stages are unknown. Energy accounting has
started at some places but with inaccurate data. Due to lack of information, the control is ineffective and the responsibility cannot be fixed. It is necessary to know energy input and energy sold at various
stages of sub-transmission and distribution to identify areas of high losses. Moreover, information on loading, voltage and consumption at different levels can be used for network management and
reduction in outages. For this purpose, meters with real time communication, facility should be installed at 33 kV feeders, 11kV feeders and 11 kV /0.4 kV DTs. Non-metered customers are to be separated
and supplied power from different transformers. Map customers to respective DT’s and build communication channels to transfer data from the meters to the central meter reading control system.

Remote reading is preferred over download facility through handheld device. It provides real time pictures while handheld device can give only snapshots. This information can be used for network
management and in distribution automation.

Complaint handling: At present, consumers find very hard to lodge their complaints. The customers usually have to go to the substation for supply related complaints and the concerned offices for the bill
related complaints. Power utilities can have call centers with IVR for outages and bill related complaints.

Distribution sector: In India, distribution business is characterized by manual and complicated processes, inadequate controls, lack of commercial focus, limited transparency and lack of reliable
information. As a result, the operations are highly inefficient with substantial revenue leakages and poor customer orientation. The use of IT has been low and in pockets. The several standalone
applications have limited ability to effectively interface and integrate with other applications or with potential applications to be deployed in future. Although the level of deployment of IT varies
significantly across the utilities, the key applications have been in multi-level aggregation of data or large scale data processing. Advance countries are using IT tools to gain in term of productivity,
efficiency, reliability etc. It has been observed that Indian power companies are lagging behind due to not proper implementation of information technology. Other countries which have Aggregate
Technical and Commercial losses in single digit figure their IT play central role in their business. A huge investment required to attain global standard which is not feasible at one go. Therefore, it is needed
to adopt phase approach in IT implementation. IT is one of the pillars to achieve this future successfully. For quite a few years, utility in the developed countries have been leveraging the IT for obtaining
significant benefits. The Indian sector too has introduced IT solutions but the approach has been piece meal with standalone applications deployed for a limited operational requirement. IT has been used
only as a tool to address a specific issue or two at a time without holistic approach. It has led to limited integration of systems, underutilization of resources, absence of standard database, high cost of
maintenance, inadequate interface and integration with other applications. These issues have adversely affected the return from IT investments. Incoherent technology strategy leads to situations where
incompatible options are selected and large sums of money are wasted in attempt to integrate them .There is plenty of room for IT application within the power sector in India. There is a need to look at
the global practices in IT adoption in the power sector so that India can benefit from them.

Conclusion

With the reforms and restructuring of power sector the way the power distribution business is done has changed. Stiff competition from private and public sector, fundamental changes in pricing and
tariff structures, growing environmental concerns are the challenges before Indian power sector. The use of IT tools can make significant differences in overcoming these challenges and bringing about
efficiency in the power distribution.
Application of IT has enormous potential to transform distribution business given the current use of IT by distribution organizations in India compared to adoption of IT by global distribution utilities In
global utilities, information technology plays a central role in a best of class distribution utility as the platform for execution of business processes and the information base for decision making at
operational and strategic levels. A huge investments will be required to attain global standards but given the financial position of utilities in India, this much investment is not feasible at one go. Therefore,
they need to adopt a phased approach towards IT implementation. The investment in IT should be driven by business needs and payback periods. This requires holistic long-term strategy for the adoption
of IT. However, it should be remembered use of IT is not a panacea but a palliative. IT acts as only transformation agent and enables business processes to deliver better performance.
What is power system restructure

power System Restructuring refers to the changing the way of commercialization of the existing power system to a completely new way to bring more transparency and competition in the power sector to
get customers a cost effective and better power supply.
Conventional Power System Structure
The conventional power system industry operates in a vertical structure i.e. Generation, Transmission, Distribution owned or monopolized by the power companies which are regulated through
government only.
all the three entities are controlled and regulated by the government.
earlier power sector was regulated by the government so customers were imposed a set of regulations to follow, they don’t have any options.
however, the monopolized structure could not provide the customers efficient services and cost effective such as in other sectors like telephone, gas, transportation.

later soon the power sector decided to restructure the power system in order to provide efficient power and cost effective to the customers.

A competition was established for the customers to choose suppliers out of various available options and if they are not willing to continue, they have the option of shifting to the other power supplier.

Unbundling Genertaion, Transmission and Distribution

In order to bring in the competition utilities companies were required to unbundle their structure into individual Generation, transmission, distribution,

Now in the new system private players can come into the competition and generate their own power and sell it to the customers in this way there is no more a monopoly of the government generation.

The main idea behind bringing the private players in the market is to provide the cheaper and cost effective power to the consumers specifically to low and medium business. the process of unbundling is
also called as Deregulation.

Benefits of Deregulation in power system

Significant benefits of deregulating power industry includes

Cheaper electricity: in a competitive environment the more is the cheaper product the more is the profit, so to get more profits the utility company’s tends to reduce their cost of their services in this way
consumer gets benefited.
Multiple options: Consumer has the option has to shift from one generator to another if they didn’t like their services or the cost is relatively high, in this way consumer don’t have to depend on single
generator. this also allows generators to maintain the markets standards.
Customer Centric service: consumers will get better services in a deregulated market as compared to monopolized market.
Innovation: due to the lack of competition electric utilities do not had a room for improvement they didn’t had the reason to innovate their current system but in deregulated system to be in the market
competent companies have to innovate and attract the customer towards them.
Components of Restructured power system
the main components of the deregulated system includes GENCO’s (generation company’s), PX (Power exchange), SC (Scheduling coordinates), ISO (independent system operator), AS (ancillary service),
RSP (retail service provider), DISCO’s (distribution company’s).

GENCO: Generation company are those owns the generators and thus are the producers of electricity.
DISCO: Distribution company distribute the power to the consumers generated by the GENCO.
PX: this is a market place where business takes place between companies and consumers such as small industries and medium loads consumers. contracts between the parties made on the points such as
quality, availability, duration of the product and its price, this market place is also called as spot price pool.
PX market place permits different participants to sell and buy the energy and other services in a quantitative ways based on quantity and price.
RSP: this includes retailers, brokers, load aggregator, co-generator, these are the negotiators that makes purchase happens of electric power to the consumers.
SC: these generates trading between generators and consumers as an intermediate between ISO, retailers and customers. SC submits balanced schedule and provides settlements ready data to ISO. SC
provides ISO customer load behavior data and ISO decides whether congestion can happen or not.
ISO: ISO guarantees the independent operation of the grid, ISO is an independent body and ensures a fair and non discriminatory access to transmission services and ancillary services. ISO is independent
of transmission owners and generators and end users. ISO matches the demand with supply to ensure reliability. ISO should have control over the operation of interconnected transmission facilities within
its region.
TRANSCO: these are the company that provides services for transmission of power for long distances.
AS: these are the services that supports transmission of power from resources to loads. these includes the infrastructure that are needed for reliable power transmission and are important assets of power
system.

Ancillary services
To improve economic viability and efficiency of power network, restructuring of power sector has been promoted. Unbundling of generation, transmission and distribution services has provided the option
to the customers to choose those services that they need and pay for the services that they use. Unbundling has encouraged the competition among suppliers, and many private players have entered into
market thereby lowering the costs of these services. All over the past years, the electric utilities were vertically integrated, owning and operating the whole chain of electricity from generation through
transmission to distribution and supply. An ancillary service was therefore an integral part of electric supply, and was not dealt separately. Since the deregulation/restructuring of the electricity supply
industry, the resources required for reliable operation have been treated as an ancillary service that the system operator has to obtain from other industry participants.

In a deregulated power system, the system operator often has no direct control over individual power stations – and has to purchase these services from other service providers. Ancillary services are
support services in power system or grid operation, which facilitate basic function of generation, transmission and distribution of electricity by ensuring reliable delivery of power at stable frequency and
voltage alongwith security of grid. Now, ancillary services are an indispensible part of the electricity industry.

Ancillary services

Ancillary services are all those activities on interconnected grid that are necessary to support transmission of power while maintaining reliable operation and ensuring required degree of quality and safety.
As per Indian electricity grid code, ancillary services are services necessary to support power system or grid operation in maintaining power quality, reliability and security of the grid. Ancillary services may
include scheduling and dispatch, frequency regulation, voltage control, generation reserves etc. General classification of ancillary services is:

Frequency Controlled Ancillary Services

Network Controlled Ancillary Services
Frequency controlled ancillary services:

These are used to maintain frequency within the desired range by balancing load and generation in real time. Three levels of control are generally used to achieve frequency controlled ancillary services i)
primary frequency control requires response period of 5 to 10 seconds, ii) secondary response requires response period of 10 seconds to 10 minutes and iii) tertiary frequency control requires response
period of 10 to 30 minutes.

Network controlled ancillary services:

These are required to maintain network parameters within permissible range. They are further classified as:

a) Power flow control ancillary services:- These are used to control the flow on interconnectors within the limits.
b) Voltage controlled Ancillary services :- These are used to maintain system voltage within desired range, three levels of control are required for voltage controlled ancillary services – they are primary,
secondary and tertiary voltage control.
c) System restart ancillary services :- These help in restarting system post blackout situations. These are required to backup capacity of system and capacity required to return to normal operation after
major or partial blackout. So, system restart ancillary services are the services reserved for contingency situations – in which there has been a whole or partial system blackout and the electrical system
must be restarted.
Classification of Ancillary services can also be based on common approach of how and when frequently these services are required by the system operator.

Services required for routine operation

Services required to prevent an outage from becoming catastrophe
Services to restore system after blackout.

Needs for ancillary services

Consider Fig. 1 in which all generators, loads and interchanges are connected to the same bus. Frequency remains constant when generation is balanced by load, but in practice there are fluctuations in
load, inaccurate control of generation, sudden outages of interconnectors and generators. Imbalance between load and generation cause frequency variation. Generators operate within narrow range of
frequencies, protection system comes into action when frequency is too low or high, and the system operator must maintain frequency within limits. Local imbalance in an interconnected system causes
change in tie line flows. Inadvertent flow overloads tie lines, protection system acting can cause imbalance. Frequency deviations have to be corrected quickly so that system can withstand further
problems and weakening of system. Balancing services are needed to handle imbalances occurring at different time. Regulation service provided by generating units should handle rapid fluctuations in
load, unintended variations in generation, should maintain frequency close to normal, interchange at desired values. Thus, ancillary services are either related to generation load balancing issues or
network related issues.

Fig. 1: Load generation interaction in power system network…

Functions of ancillary services

As per Electric Power Research Institute (EPRI) functions of ancillary services can be broadly given as i) Regulation :- Use of generation or load power to maintain minute to minute generation load balance
within control area. ii) Load following :- This service refers to load generation balance towards end of scheduling period. iii) Operating reserve :- It’s provision of unloaded generation capacity that is
synchronised to the grid and can immediately respond to correct for generation load imbalances, caused by generation and /or transmission outages that is fully available for few minutes. iv) Reactive
power and voltage control support:- Injection or absorption of reactive power from generators or capacitors to maintain system voltage within required ranges. v) System black start capability:- Ability of
generation unit to proceed from shutdown condition to operating condition without assistance from the grid – and then to energise the grid to help the other unit start after blackout occurs. vi) Network
stability services from generation sources:- Use of special equipments example dynamic braking resistances to maintain secure transmission.

Ancillary services for India

The following factors are driving forces for development and need for ancillary services in Indian power sector. i) Multiple buyers and sellers for power in power market, ii) Power market is under
restructuring process, iii) Lack of adequate reserves, iv) Loose power pools, v) Absence of tight frequency control, vi) Lack of adequate primary, secondary and tertiary response, vi) Frequent unplanned
load shedding and vii) Consistent shortages during peak hours.

Issues with growth of ancillary services

i) Stranded generation capacity :- The various reasons for stranded generation capacity are inadequate evacuation infrastructure, changing loading methodology from natural to surge impedance, inability
of distributed companies to buy expensive power, absence of funding to purchase capacities in need. All possible generation capacities should be mainstreamed in order to reduce power cuts in country. ii)
Variation in availability of renewable power into the grid :- The three key impacts of RES on ancillary services are: first variability and uncertainty increases ancillary services requirement, affecting
scheduling and pricing, secondly impacts vary depending on system condition, thus it’s more difficult to predict and thirdly allowing renewable to participate in markets can offer more liquidity and
challenges. iii) Peaking power requirements:- consistent shortages during peak hours due to supply demand gap. iv) Network issues related with contingency, destabilisation can be caused due to thermal
overload, transient instability, and voltage instability. iv) Identification and providing effective solution: – Determining which ancillary services are needed, to what extent ancillary services are required to
maintain system reliability, whether suppliers services can be metered and billed cost effectively. Who will pay for ancillary services and to whom? What will be the provisions for payment?
Obtaining ancillary services

Two approaches can be followed to obtain or procure these ancillary services: i) Compulsory provision and ii) Market for ancillary services. The choice is influenced by type of service, nature of power
system, history of power system.

Compulsory provision:- This ensures minimum deviation, system security and quality of power supply. Service provider has to meet some obligations.
Market for ancillary services:- They are long-term contracts, spot market and combination of both spot and long-term contracts. Long-term contract: For services where quantity needed does not change
and availability depends on equipment characteristics, for example: black start capability, inter trip scheme, frequency regulation. Spot market: Needs change over the course of day, price changes because
of interaction with energy market, for example: reserves. Market-based ancillary services are economically more efficient than compulsory provision, so buys only amount of service needed, only
participants that find it profitable provide services, opens up opportunities for innovative solutions.

Beneficiaries due to ancillary services

Promotion and growth of ancillary services provide opportunities for generating units towards helping consumers meet higher demand and obtaining monetary incentives, utilisation of fragmented
stranded capacity thus harnessing undispatched generation and optimisation, helping hand towards higher renewable power penetration thus complementing intermittency, can meet the peak power
requirements leading towards better and stable system.

Steps for overcoming the issues faced in providing ancillary services

Regulation on market design and procurement mechanism, policy framework for provision of ancillary services, regulation on tariffs for power procurement aspects, price pooling and affordability,
distribution generation sources are important resources for various kinds of ancillary services, free governor mode operation can be mechanism to provide frequency controlled ancillary service and
promoting energy storage solutions.

Conclusion

This article highlighted the issues and importance of provision of ancillary services for power sector. Due to diverse nature and requirements of Indian power sector, ancillary services are required to
enhance the reliability and quality of power system network.

Network controlled ancillary services Generators, Capacitors, Inductors, Synchronous condensers, FACTS controllers, Distributed energy resources
Frequency controlled ancillary services Governors, Automatic generation and control, Rapid loading unit, Rapid deloading unit, Demand side management
System restart ancillary services Generators, Distributed energy resources.