Working Group 8

Working Group Name : Pilots and Business Models

Chair Person : Sujeet Mishra, Ministry of Railways

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Introduction:

There are 73 power distribution utilities in India which had accumulated a total loss of more than INR 70,000 crores in 2010-11. Planning Commission has set up multiple groups to come up with alternative business models to run the distribution business. Distribution Franchise (DF), Public-Private-Partnership (PPP) and other such models have been proposed with the ultimate aim of achieving zero power cuts, reducing aggregate technical and distribution losses and making distribution tariffs affordable to the consumers. While the best business model for distribution companies in India would take a few years time to experiment and arrive at the right option, it is imperative to test / implement technology advancements (smart grid related), which in turn would aid in efficient operations of the distribution grid in the near to medium term. Smart grid technology pilots also require substantial funding if they are to be tried out in a scale that makes most sense and to give confidence to the utilities and consumers that if implemented in full-scale would benefit all stakeholders. Thus, if the Smart grid technology pilots are to succeed, there has to be a viable business model that is beneficial to distribution utilities, consumers as well as solution providers.

Objective

  • The primary objectives of WG8 are:
    ? Observe and study the list of smart grid technology pilots that will be undertaken in India and recommend the most appropriate options and models for the distribution companies, including recommendations on appropriate timeframe for investments
    ?To evaluate different business models for different technology pilots and recommend the most appropriate model(s).
    ?To identify metrics for respective pilots and assist in their validation/monitoring.
    ?Examine end-to-end planning and models, with a focus on capacity building for the success of projects and programs; identify any gaps in capacity building with recommendations to overcome these.
    ?Based on the above, facilitate the evolution of appropriate business models for achieving goals of smart grids.

Scope

  • Study various smart grid pilot initiatives across the globe (developed as well as emerging economies) and list out the ones that are most relevant to Indian context.
  • Review the draft RFP circulated by ISGTF and come up with additional points / ideas on smart grid pilot initiatives
  • Prioritize the smart grid initiatives that give best returns / benefits for all stakeholders (utilities, consumers and solution providers)
  • Study various business models for different smart grid pilot initiatives, which shall include:
    ?funding and benefits sharing options
    ?comparison of various models (pros and cons)
    ?recommendation of the most appropriate business model for each smart grid pilot initiative
  • Examine human and other resource capacity requirements for successful pilot and broader deployments.
  • Work with other ISGF WGs wherever necessary, for understanding the costs involved and technology details of executing pilots
  • Work with consumers/consumer forums and other stakeholders to articulate SG benefits
  • Work for assessing and developing training and capacity building initiatives for smart grids.

* Note: For the present time, Capacity Building has been added to the ToR for this WG. This is especially the case since projects (ongoing and proposed), pilots, etc. all have capacity building as a major need, and, of all the WGs, this group is best suited to this task.

Members

S.no. Organisation
1Ministry of Railways
2CEA
3Reliance
6Fluentgrid India(Formerly Phoenix IT Solutions Ltd.)
7SAP
8JnJ Powercom Systems Ltd
9Grid20/20
10MSEDCL
11ABB
12Dassault Systems
13Intel Technology India Pvt Limited
14ERNET India
15GTL Limited
16UGVCL
17TPDDL
18Renesas Electronics (India Branc)
20GERMI
21Bentley Systems India Private Limited
22Microsoft
23OPower
24UHBVN
25Melange Systems Pvt Ltd
26Omron Automation
27KEPCO KDN Co Ltd
28AutoGrid India Pvt Ltd