Power
Gas
Water
Plus
Distribution Automation
Role of ERP in CGD
MCC Improves Billing Process
Views of MoP’s B.N. Sharma . . . . . . . . . 6
23
34
46
Smart meter deployment . . . . . . . . . . . . 16 CGD operators’ perspective . . . . . . . . . . 28 JUSCO’s grievance redressal system . . 48
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Asset Integrity Management
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Benefits for CGD operators
Andhra Pradesh’s Mee-seva system
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Volume No. 4
EDITORIAL Nandita Sardana Kochhar (Senior Editor) Saikat Sarkar (Associate Copy Editor) Raka Sarkhel (Senior Sub-Editor) EDITORIAL OPERATIONS Mudita Mehta Shyama Warner RESEARCH Senior Analysts Farhan Ahmed, Tapas Bhowmik, Anchal Mittal Analysts Meera Bhalla, Neha Bhatnagar, Nikita Chhabra, Reya Ramdev, Adita Sehgal, Mandvi Singh Associate Shruti Goel, Jaspreet Kaur Anand, Pallavi Chahal, Aakash Choithani, Kritika Gautam, Shashank Shanker, Shambhavi Sharan, Yashi Tandon BUSINESS DEVELOPMENT Raman Dev Narang DESIGN Joybroto Dass Jaison Jose ADMINISTRATION Jose James CIRCULATION Sumita Kanjilal PRINTING/PROCESSING IPP Ltd. OFFICE B-17, Qutab Institutional Area, New Delhi 110 016, India Phone +91-11-4103 4600-01 Fax +91-11-2653 1196 Email: info@indiainfrastructure.com Website: www.indiainfrastructure.com
Issue No. 1
Editorial
Smart Utilities PUBLISHING Alok Brara
●
I
ndia lacks a comprehensive urban information system to facilitate citizen-involved planning for the efficient provision of civic services. One of the basic issues is limited availability of accurate and reliable information on infrastructure facilities and the consumer base. The cen-
tral government has been focusing on monitoring projects and assessing service quality through the JNNURM and other related programmes. While significant headway has been made and information on different civic service parameters has been sourced, the quality of data is an issue. The good news is that a number of municipal agencies have used these government programmes to take IT-based initiatives to facilitate their decision-making process, evaluate their performance, and improve service delivery. Prior to the launch of the JNNURM, only four cities had implemented e-governance modules. The number of cities with an e-governance system has now increased to 37. Web-based modules for grievance redressal, consumer management, project monitoring, documentation services and revenue management have been implemented by municipal agencies. Large metropolitan cities have strengthened their ICT infrastructure and are offering management information services, efficient billing and collection services, and complaint redressal systems. Small cities are also making efforts to restructure their consumer application process, and improve accountability and transparency. This issue of Smart Utilities reviews the IT initiatives taken by major cities such as Ahmedabad and Chandigarh as well as smaller ones like Jamshedpur and Guntur. The Andhra Pradesh government’s “Mee-Seva System” initiative to improve the provision of civic services across departments has also been highlighted. These steps mark a paradigm shift in focus from asset creation to service delivery. Steady urbanisation, increasing pressure on existing infrastructure and the growing demand for civic services will drive municipal agencies to identify critical areas of intervention and set realistic targets. The role of IT in mapping utility services will increase going forward. However, the poor financial health of utilities and shortage of skilled manpower will pose challenges in the widespread deployment of IT solutions in the short to medium term.
Pictures courtesy: shutterstock images
January-March 2014 | Smart Utilities
1
Contents Power
Small Steps Progress of smart grid pilot projects
Asset Integrity Management
Streamlining Services
Benefits for CGD operators
Andhra Pradesh’s Mee-seva system
Scope for ERP: Integrating information and processes in the ........ 34 CGD segment
Gearing up: Pilot projects and capacity building............................... 4
Increasing competition: Market restructuring promotes................. 36
for smart grid deployment
growth in US natural gas distribution segment
Views of B.N. Sharma: “The smart grid action plan is aimed at ...... 6
Key statistics ................................................................................ 39
100 per cent electrification by 2017” Small steps: Progress of smart grid pilot projects ........................... 8 Smart grid development: ISGF’s initiatives.................................... 10
Water
Beyond R-APDRP: Recommendations of MoP and ISGF ................ 14 Smart meter deployment: Consumer and utility gains ................... 16 Reducing losses: Technology options for power ........................... 18 distribution utilities Taking off: Smart grid market in Southeast Asia............................. 20 Distribution automation: Rationalising network ............................. 23 management costs Key statistics ................................................................................ 24
Performance check: PAS project evaluates progress .................... 41 in service delivery Streamlining services: Andhra Pradesh’s Mee-seva...................... 42 system to improve governance Complaint redressal: AMC launches a comprehensive system ........ 44 to address civic issues The MIS advantage: MCC improves water billing process ............. 46 Customer first: JUSCO strengthens grievance redressal................. 48 mechanism through Sahyog Kendra
Gas
On a fast track: GMC expedites application processing.................. 50 through the citizen service centre
Crucial role: IT deployment in CGD operations .............................. 26
Investing in technology: Maynilad’s initiatives to improve.............. 52
Gas outlook: CGD operators’ perspective ...................................... 28
water supply
Asset integrity management: Benefits for CGD operators.............. 32
Key statistics ................................................................................ 55
2
Smart Utilities | January-March 2014
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Power
Gearing Up Pilot projects and capacity building for smart grid deployment
W
ith the release of the Smart Grid
Various functionalities could be added to those
• A phased introduction of transformer monitor-
Vision and Roadmap for India, the
under the R-APDRP. The India Smart Grid Forum
ing systems, beginning with real-time moni-
Ministry of Power has set the agenda
recently submitted a white paper on this issue to
toring of all distribution transformers in
for a phased roll-out of smart grid technologies.
the Power Finance Corporation, as part of the lat-
Importantly, this will facilitate the process that
ter’s efforts to chart the future course of the R-
• A phased extension of the R-APDRP’s key
was initiated with the allocation of 14 pilot pro-
APDRP. The recommendations in this regard sug-
functionalities such as billing and CRM, asset
jects in the power distribution segment. The
gest the next set of projects that could be under-
mapping, consumer indexing, AMR for feed-
pilot projects, based on automated metering
taken after successful completion of the R-APDRP.
infrastructure (AMI), will test key functionalities
R-APDRP-covered towns
ers and transformers, etc. • Implementing the distribution management
such as demand response, peak load manage-
Some of the key areas suggested to build on the
system, covering the power distribution net-
ment and outage management. One of them at
R-APDRP include:
work up to the 11 kV voltage level
Puducherry has already taken off, and prelimi-
• Changes in the business process to make
• Introducing outage management systems
nary results show enhanced capabilities in areas
extensive use of the real-time digital network to
(OMS) and integrating them with CRM, ERP
such as fault detection, load management, and
reflect the dynamic nature of the power distrib-
and asset management systems.
billing and collection.
ution network. Enterprise resource planning (ERP) should be used to integrate the automat-
It has also been suggested that extension of the R-
Most of the pilot projects could be completed by
ed processes implemented under the R-APDRP
APDRP’s scope should be coordinated with other
mid-2015. By then, the industry has to prepare
• Integrated ERP with business analytics for key
national or state-level programmes that are under
for the next level of technology transition. Exten-
areas such as assessment of the residual asset
way. Thus, newly electrified villages and house-
sion of the ongoing Restructured Accelerated
life, predictive maintenance, network planning
holds, under rural electrification schemes, could
Power Development and Reforms Programme
and theft control
be integrated with R-APDRP data centres. Further,
(R-APDRP) is a route to build up capabilities.
• Load forecasting in power distribution, to be
automation solutions such as those in billing and
Also, the existing base of automated meter read-
undertaken based on data generated from IT-
collection could be utliised for a combination of
ing (AMR) systems, so far limited to industrial
based energy monitoring systems, for each
utility services related to water, gas, etc. Similarly,
consumers, could be built upon for an AMI-
consumer segment
discoms could utilise digital mapping carried out
based framework. As yet, technology deployment is at an early stage, and will have to be
• Introduction of fault current limiters and fault
by town planning authorities to obviate the issue of delayed approvals at a later stage.
current controllers
refined through experience as well as research and development (R&D).
Major cost components of AMI
Building on the R-APDRP
types to AMRs and prepaid meters. A transition End-point hardware: 45
to AMI, regarded as the building block for the smart grid framework, could be best managed
work under the R-APDRP, such as the establishment of baseline data, an energy accounting system, and strengthening/upgradation of the subtransmission network, sets the basis for deploying advanced solutions. These projects could be leveraged for the technology transformation envisaged under a smart grid framework. 4
Smart Utilities | January-March 2014
The installed base of energy metering systems in utilities varies from the basic manual reading
R-APDRP projects are expected to be concluded by the end of the Twelfth Plan period. The ground-
Transition to AMI
Communication hardware: 20
IT implementation: 9
from the existing base of AMR systems, which have been so far used mainly for high tension (industrial consumers) connections. For wider
Installation: 15 Project management: 11
Source: Power Line conference on Smart Grid
adoption of smart meters, the Central Electricity Authority recently finalised the specifications for single-phase smart meters.
Power The proposed AMI projects have to factor in not
towards the technology development process.
been an improvement in the quality of power
only hardware costs (major share), but also other
Regulators need to move apace. The Maharashtra
supply. Further, transformer-wise energy audit-
components such as communication, software,
Electricity Regulatory Commission has constitut-
ing is being conducted to check network losses.
data management and equipment maintenance.
ed the Smart Grid Coordination Committee to pro-
As such, the business case for smart meter
mote state-specific smart grid initiatives. This is a
In four states, Karnataka, Kerala, Maharashtra and
deployment also faces the issue of low per capi-
first-of-its-kind step by a state electricity regula-
Gujarat, request for proposals (RfP) have been
ta power consumption. In terms of technology,
tory commission (SERC). There is a need for
issued and bid evaluation is under way for smart
the smart meter deployment process faces the
greater regulatory involvement for smart grid
grid pilots. RfPs will be soon issued for projects
challenges of interoperability, choice of commu-
investments, especially for deliberating on issues
in Andhra Pradesh, Himachal Pradesh, Punjab
nication technology, data security and meeting
related to the tariff mechanism, demand response
and West Bengal. The bidding experience of utili-
technical standards.
systems, grid security and stability concerns, etc.
ties indicates some of the challenges facing this
Even after addressing all issues, consumer
As things stand, steps taken by the regulators
Company Limited’s tender for the smart grid pilot
engagement could be the deciding factor in smart
include the restricted free governor mode of
project, meter manufacturers did not participate
meter deployment, as is evident from the experi-
operation, grid integration of renewable energy
as lead bidders. The utility also found that Indian
ence of utilities worldwide. In the Indian context,
and automatic demand management. Some of
companies had limited expertise, while the
technology providers and utilities have to ensure
the key ongoing initiatives include drafting spec-
imported technology solutions offered by select
that consumers are aware of the proposed bene-
ifications for smart meters, formulation of tech-
players were not tested for Indian conditions. In
fits from the metering solutions such as
nical standards for the grid connectivity of
Maharashtra, where the RfP was issued in October
energy/cost savings and minimum load shedding.
renewable energy and introducing regulations for
2013, the last date for bidding had to be extend-
operational standards. As the industry moves
ed to end- February 2014 due to muted response.
Policy and regulations
ahead in deploying a smart grid framework, reg-
Besides market-related challenges, there are
There is significant scope for providing policy
ulators will have to be sensitised about upcom-
issues related to last-mile connectivity, technolo-
support for the smart grid framework. It covers
ing technologies and their cost-benefit analysis.
gy integration, scalability and ageing assets. Also,
industry. For instance, in Uttar Gujarat Vij
the technologies are at an evolution stage and are
areas of technical standards, equipment and technology, infrastructure base, cyber security,
Pilot projects
costs, and research and development (R&D),
The ongoing pilot projects are being keenly
among others. Also, the policies have to be in
watched by all stakeholders, not only for the fea-
The way ahead
sync with the dynamic nature of technologies. It
sibility of technologies, but also to gauge the
The trajectory for future smart grid technology
is in this context that recent policy steps such as
market developments around these projects. Both
deployment is not well defined. Despite poten-
the preparation of the smart grid road map and
the utilities and technology providers have to con-
tial, critical aspects such as return on invest-
finalisation of single-phase smart meters hold
tribute and share the risks/benefits. Regulators’
ments and the tariff impact of future projects
significance. Also important have been the steps
response is not clear, though two upcoming pro-
remain unclear. Thus, the experience gained
initiated towards implementing rooftop solar
jects (in Gujarat and Maharashtra) have already
from pilot projects, the cost of equipment and
projects and net metering in select states.
received consent from their respective SERC.
technology, indigenisation and R&D progress
Other key initiatives currently under way include
Of the 14 projects allotted in the distribution
the setting up of the smart grid test bed at the
segment, the Puducherry project has made the
Policymakers will play a key role in driving smart
Central Power Research Institute. The project
most significant progress. The project, imple-
grid deployment. There are plans to launch a
received a grant from the US Trade and Develop-
mented by Powergrid, has deployed systems
smart grid mission, on the lines of the eight mis-
ment Agency in 2013. The power ministry is
such as AMI, OMS, virtual demand response,
sions under the National Action Plan on Climate
providing a Rs 100 million funding for setting up
power quality management, the smart street
Change. The first set of smart grid standards
a smart grid knowledge centre with Power Grid
lighting system, and net metering. The prelimi-
could be developed by end-2014. Further, state-
Corporation of India Limited.
nary results are promising. The Puducherry elec-
specific smart grid road maps are under consid-
tricity department has started billing consumers
eration as a follow-up to the national-level road
on the basis of net metering, while there has
map formulated recently. â–
prone to obsolescence with global innovations.
will influence the investor outlook.
These developments highlight the policy intent
January-March 2014 | Smart Utilities
5
Power
Views of B.N. Sharma “The smart grid action plan is aimed at 100 per cent electrification by 2017” The need to reduce the power deficit and distribution losses, and increasing renewable energy generation are driving the adoption of smart grid technologies in the country. B.N. Sharma, joint secretary, Ministry of Power (MoP), spoke about the drivers for smart grid adoption, the road map for their future deployment and the associated challenges at a recent Power Line conference on “Smart Grids in India”…
tured Accelerated Power Development and Reforms Programme (R-APDRP) for developing an IT-enabled distribution segment in 1,400 towns with a certain population norm. In the northeast, towns with a minimum population of 10,000 are being covered while for other areas the criterion is 30,000. For these towns, energy accounting and auditing is being undertaken to diagnose faulty systems. Once such systems are identified, the next step is treatment through system upgradation, system improvement and system strengthening. As of January 31, 2014, 450 of the 1,400 towns had been declared as “golive”. Further, several towns that have taken energy accounting and energy auditing measures are following up with administrative initiatives. The lessons learnt from the R-APDRP have been a starting point for the development of smart grids. The MoP has also prepared a paper, “Post RAPDRP Strategy”, which highlights the measures to be taken if a town is declared go live. These include the steps to be taken by electricity managers for preparing the road map for developing the town into a smart city. Building on the RAPDRP initiative, the next step is transformation of the power distribution system into an information-driven process involving monitoring and control of medium- and low-voltage networks through smart grid networks.
O
ver the past decade, the global electric-
electric vehicles. Smarter automation and IT
The main focus of smart grid development
ity generation, transmission and distrib-
systems are required to manage a grid which
involves reducing aggregate technical and
ution landscape has changed signifi-
handles intermittent supply from renewables and
commercial (AT&C) losses and bringing them
cantly. In the traditional grid, there were relative-
electric vehicles on the consumption side. As
at par with the benchmark losses of the best
ly few points of power generation and millions of
compared to the traditional grid, the smart grid
utilities around the globe, ensuring there are no
points of power consumption. The modern grid
is cost effective, responsive and better engi-
power cuts, converting blackouts into brown-
has several points of power generation as well
neered for reliability.
outs and managing and reducing the peak demand. Other important initiatives are har-
due to rapid proliferation of distributed and renewable generation. There are more consump-
Drivers for smart grid deployment
nessing the high renewable power potential by
tion points owing to new load points such as
The MoP is currently implementing the Restruc-
integrating renewables and distributed genera-
6
Smart Utilities | January-March 2014
Power tion into the grid efficiently, and promoting
metering infrastructure need to be rolled out for
ing the state-specific needs. Along with this,
rooftop solar PV generation.
all consumers. The action plan also covers the
finalisation of the framework for cyber security
involvement of IT and communication infrastruc-
assessment, audit and certification of power util-
All stakeholders including utilities, customers,
ture under the National Optical Fibre Network
ities, policies supporting dynamic tariffs and
governments and regulators have an important
project, under which 250,000 village panchayats
variable tariffs including demand response pro-
role in driving smart grid development. For util-
are planned to be connected through optic fibre
grammes also need to be undertaken to support
ities, smart grids offer the benefits of AT&C loss
cables. Development of microgrids, rooftop
smart grid deployment in India.
reduction, improved peak load and asset man-
solar integration, PV integration, deployment of
agement, lower power purchase costs, renew-
wide area management systems and phasor
Challenges and the way forward
able integration and increased grid visibility.
management unit installation are targeted to be
Smart grid implementation involves several
Consumers’ appreciation for smart grids depen-
undertaken by 2017.
challenges in terms of technology, prepared-
ds on the quality and quantity of the power sup-
ness, skill, regulatory awareness and knowledge
plied to them. Hence, steps such as ensuring
From the policy perspective, new tariff mecha-
related to cyber security of networks. These
that there are brownouts instead of blackouts,
nisms need to be planned for driving energy effi-
challenges can be overcome with the help of all
home automation and shifting loads from peak to
ciency programmes for lighting and installing
stakeholders. The country is moving ahead in
off peak hours would enable consumers to
HVAC networks in metros and state capitals.
terms of deploying indigenous technology.
become “prosumers”.
Further cost-benefit analysis of smart grid pro-
However, the regulatory framework needs to be
jects needs to be undertaken with inputs from
put in place for dynamic pricing mechanisms
For the government and regulators, development
the 14 pilot projects. The assessment of direct
such as time-of-use and critical peak pricing.
of smart grids would involve designing innovative
and indirect benefits to consumers and other
This would support the interest of smart grid
dynamic tariff and regulatory mechanisms. To this
stakeholders would help in finalisation of the
functionalities like demand response and
end, the MoP has constituted an interministerial
framework for smart grid development and
demand side management. The MoP is aiming
group, the India Smart Grid Task Force (ISGTF), to
launch of the National Smart Grid Mission.
at a scenario of no power cuts by converting
evolve a road map for integration of smart grids in
blackouts to brownouts. This would be undertak-
India. It has shortlisted 14 distribution utilities
Therefore, the achievement of these goals effec-
en through load curtailment by providing func-
across the country for undertaking smart grid pro-
tively constitutes the road map for the develop-
tionalities like remote connect disconnect and
jects in the distribution segment. These pilots are
ment of smart cities. The policy support required
load limiting. The states are putting in their best
aimed at integrating consumer operations and
would largely entail formulation of effective out-
efforts to showcase smart grid technology and
asset management in distribution, and increasing
reach programmes for consumer sensitisation
its cost benefit analysis through the successful
efficiency and reliability. The results of these
and engagement. Going forward, development of
deployment of pilots. The power ministry is
pilots would enable the ministry to take a consid-
state- and utility-specific road maps need to be
working together with the Ministry of New and
ered view on smart grids and develop a strategy to
incorporated with management and capacity
Renewable Energy for successful deployment of
deploy smart grids in the country. Another group,
building programmes. This would help in meet-
renewable energy solutions in rural India.
the India Smart Grid Forum (ISGF), which is a PPP (public-private partnership) initiative, has been established to expedite the development of smart grid technology.
Smart grid road map The action plan, as envisaged in the smart grid road map, involves the achievement of 100 per cent electrification by 2017. Programmes would need to be initiated to reduce AT&C losses below 10 per cent by 2027 and transmission losses to under 3.5 per cent by 2022. Further, indigenous low-cost smart meters and advanced
Going forward, development of state- and utility-specific road maps need to be incorporated with management and capacity building programmes. This would help in meeting the state-specific needs.
All stakeholders as well as the MoP are cooperating to improve the capacity of discoms. Under the R-APDRP, some states have emerged as fast moving, while others are lagging behind. Madhya Pradesh, Gujarat, Maharashtra, Andhra Pradesh, Himachal, Uttakhand and Karnataka have emerged as the fast moving states. The power ministry’s efforts are, therefore, mainly focused on the laggard states – Haryana, Punjab, Chandigarh, Goa and Kerala. The efforts are now concentrated on capacity building based on the needs specific to these states. ■ January-March 2014 | Smart Utilities
7
Power
Small Steps
helps in identifying and balancing the load of overloaded transformers.
Progress of smart grid pilot projects
T
The concept of street light automation was also tried in the project area. This involved automatic switching on and off of street lights depend-
he future trajectory of smart grid deploy-
executed by Power Grid Corporation of India
ing on luminance and traffic conditions. The
ment in the country largely depends on
Limited (Powergrid) in partnership with the state
on-off control was calculated according to the
the lessons from the 14 pilot projects
electricity department and 60 research organisa-
sunrise and sunset times. After physical obser-
which are being implemented across the states.
tions. The project covers over 87,000 customers,
vation, dimming of light intensity was carried
These projects were selected by the Ministry of
of which the residential segment accounts for
out remotely towards late night. The initiative
Power (MoP) in October 2012 and involve an
about 80 per cent. The average annual energy
resulted in around 57 per cent power savings as
aggregate investment of Rs 3.73 billion, half of
consumption of the town is 367 MUs.
consumption reduced from 100 units to 43 units per day. Currently, PED is testing out a
which will be funded by the ministry and the remaining by the utility.
As of February 2014, around 1,400 smart meters
grid-interactive rooftop scheme with technical
(provided free by companies like Larsen &
assistance from Auroville Consulting, which
All these projects will be implementing advanced
Toubro, Tata Consultancy Services, Wipro and
will pave the way for a solar energy policy for
metering infrastructure (AMI) solutions. Some
Dassault Systems) had been installed in the pro-
Puducherry. According to the results of a case
functionalities that are proposed to be tested as
ject area. Overall, 2,500 smart meters will be
study on net metering in the project area, the
part of these pilot projects are peak load manage-
installed in a phased manner. Besides, five data
average electricity consumption of a household
ment, load forecasting, asset management, out-
concentrator units (DCUs), one distribution
is between 300 kWh and 450 kWh a month,
age management, renewable energy integration,
transformer energy meter and a meter data man-
which is equivalent to the monthly solar power
power quality management, microgrids, aggre-
agement system have also been installed. An
output of a 3 kW solar power plant (depending
gate technical and commercial (AT&C) loss
interim smart grid control centre was established
on the season), implying a prosumption index
reduction and time-of-use (ToU) pricing.
in the Puducherry Electricity Department (PED)
of almost 100 per cent.
in October 2012.
Gujarat
So far, the progress on these projects has been rather slow with the Puducherry project having
PED has started billing consumers on the basis
UGVCL is implementing smart grid projects at
made the maximum headway. Recently,
of online metering data from smart meters and
Naroda and Deesa in Gujarat. Naroda is a pure-
Chamundeshwari Electricity Supply Corpo-
several cases of tampering are being detected.
ly urban pocket with a variety of consumers,
ration Limited
awarded the contract for its
Further, distribution transformer-wise energy
whereas Deesa is an agricultural area charac-
smart grid pilot project implementation to con-
accounting/audit is being carried out, which
terised by high AT&C losses. The pilot projects
sortium led by Enzen Global Solutions Private Limited. Meanwhile, bids for selecting smart grid implementation agencies (SGIAs) have been invited by several utilities including Uttar Gujarat Vij Company Limited (UGVCL) and Maharashtra State Electricity Distribution Company Limited (MSEDCL). Smart Utilities presents a brief account of pilot projects being undertaken at Puducherry, Gujarat and Maharashtra‌
Puducherry The pilot project at Puducherry Division 1 is being 8
Smart Utilities | January-March 2014
Power in these two areas will cover around 20,524 and
model (SGMM) assessment; AMI for residential,
DR is proposed to be implemented with home
18,898 consumers respectively. The total an-
commercial and industrial consumers; integrated
automation for 10-15 select industrial, commer-
nual energy consumption of the two towns is
supervisory control and data acquisition, distribu-
cial and residential consumers. To implement
around 1,700 MUs.
tion management system and outage manage-
DR, devices such as interactive display systems,
ment system; integrated visualisation and analyt-
smart plugs and smart meters would be installed
ics; and demand response (DR).
at the consumers’ premises.
tion layer, ToU implementation, launch of a web
The SGMM assessment will provide the utility’s
MSEDCL notified the RfP on October 28, 2013
portal for consumers to respond to demand-side
current state of smart grid maturity as per eight
with the last date for bid submission as
management (DSM) initiatives, monitoring of
notified SGMM domains. This information can
November 22, 2013. However, due to a luke-
power theft, and integration of new technologies
be used for developing a future smart grid road
warm response from bidders, the bid submis-
with existing applications under e-Urja and the
map by identifying the “as-is” state, business
sion deadline was extended three times, the final
Restructured Accelerated Power Development
priorities and the gaps for each domain.
one being March 10, 2014. The utility received
In Naroda, the pilot project would entail installation of smart meters, laying of the communica-
four bids which are currently under technical
and Reforms Programme. AMI will enable remote connection/disconnec-
evaluation. The project is expected to be award-
Meanwhile in Deesa, besides installation of
tion of customers, monitoring of power con-
ed by end-April 2014.
smart meters and laying of the communication
sumption patterns, tamper detection, load cur-
network, monitoring of power quality and DTR
tailment and access to historical data. With the
Issues and challenges
overusage is also proposed to be undertaken.
help of AMI and real-time data analytics, MSED-
Since smart grids are a relatively nascent con-
The cost of implementing pilot projects as per
CL will use consumption patterns to suggest
cept in the Indian power sector, utilities are fa-
the detailed project report (DPR) works out to
energy conservation measures at the consumer
cing several challenges in the implementation of
around Rs 550.6 billion while the cost approved
level and will ensure better demand forecasting
pilot projects. For instance, UGVCL is facing an
by the MoP stood at Rs 487.8 billion. The utility
and management.
escalation of 1-1.5 times in the actual project
has also received in-principle approval from the
cost proposed in the DPR due to forex fluctua-
Gujarat Electricity Regulatory Commission for
The specifications of smart meters proposed by
implementation of dynamic tariffs and inclusion
the utility are radio frequency mesh communi-
of project cost in capex.
cation with ZigBee open protocol having
Some other common issues being faced by the
tions and rise in input costs.
MSEDCL stack at the 2.4 GHz delicensed fre-
utilities are limited participation of meter manu-
UGVCL floated a request for proposal (RfP) for
quency band, prepaid as well as post-paid
facturers as lead bidders, limited expertise of
selecting the SGIA in September 2013. The util-
facility, remote connect/disconnect features,
Indian companies in the smart grid space,
ity received six bids for the tender and post
and remote configuration of the meter. In case
absence of technology testing, interoperability
technical evaluation, five consortiums were
of missed readings, the DCUs will be used for
and last mile connectivity concerns, unavailabili-
shortlisted for demonstrating their AMI connec-
reading smart meters on site and transmitting
ty of smart meters as per specifications, and
tivity solutions. The demonstration is likely to
the data to a central system.
problems in integration with existing applications.
the price bids of successful bidders will be
The integration of existing systems with the
The initial experience in Puducherry highlights
opened. The utility expects to award the final
new smart grid systems will involve data acqui-
the need for regulatory changes for DR and DSM,
contract by June 2014.
sition from remote terminal units remote termi-
net metering arrangement for integration of
nal units (RTUs) at substations, feeder RTUs/
renewable energy, and requirement of standards
Maharashtra
ring main units and time synchronisation of
for smart meters and DCUs for interoperability. ■
MSEDCL is implementing a pilot project in
these devices as well as continuous real-time
Based on presentations by
Baramati town, which has 25,629 consumers. The
data storage and data processing. Further, ana-
Avinash Haware, Deputy General
cost of the pilot project is estimated at Rs 282
lytics for load forecasting and load research,
Manager, MSEDCL; S.A. Patel, Executive
million which has been approved by the MoP. The
ToU modelling, outages, energy accounting
Engineer, UGVCL; and Manish Tiwari, Chief
functionalities proposed to be evaluated as part of
and loss modelling are also proposed to be
Manager, Smart Grid, Powergrid, at a
the pilot project include smart grid maturity
covered under this pilot project.
be completed in two months following which
Power Line conference January-March 2014 | Smart Utilities
9
Power
Smart Grid Development ISGF’s initiatives
S
et up in 2010, the India Smart Grid Forum
inflection point, offering benefits to utilities and
Institute (CPRI) in collaboration with the MoP.
(ISGF) is a public-private partnership bet-
consumers. Post the launch of the NSGM in India,
The US Trade and Development Agency had pro-
ween the Ministry of Power (MoP) and
a key initiative that will be taken up by the ISGF
vided a grant of $692,000 to CPRI in 2013 for
industry stakeholders for accelerating the devel-
would be the formulation of a comprehensive
this initiative. The test bed, which will consist of
opment of smart grids. The main objective of the
research and development (R&D) road map for
an integrated interoperability laboratory and a
forum is to help the power sector deploy smart
the power sector. In the Tenth Plan period, the
smart grid technology demonstration centre, will
grid technologies in an efficient, cost-effective,
R&D budget was Rs 36 billion as against the actu-
allow CPRI to research and perform controlled
innovative and scalable manner by bringing tog-
al amount spent, which was only Rs 230 million.
evaluations of integrated smart grid technolo-
ether all key stakeholders and enabling technolo-
Although the latest numbers for the Eleventh Plan
gies. Currently, bids for appointing a consultant
gies. While it has played an instrumental role in
are not available, the actual amount spent on R&D
for preparation of the detailed project report for
drafting the soon-to-be-launched National Smart
is likely to be small. Thus, considering the fast-
this initiative have been solicited. The selected
Grid Mission (NSGM), the forum has been active-
paced activities on the smart grid front and the
consultant would be responsible for implemen-
ly working on a number of initiatives including
Restructured Accelerated Power Development and
tation of the initiative as well.
capacity building, promotion of enabling tech-
Reforms Programme (R-APDRP), which has given
nologies and customer reach programmes.
a push to technology companies to enter the dis-
Smart Grid Development Center: The ISGF has
tribution domain, there is a need for a compre-
set up the Smart Grid Development Center
hensive R&D road map for the power sector.
(SGDC) as its fully owned subsidiary company.
A look at some of the recent initiatives of the smart grid forum‌
The SGDC offers a comprehensive suite of serTest bed at the CPRI: Another key initiative of the
vices in the smart grid domain. These include
R&D road map for the power sector: Globally,
ISGF would be setting up a state-of-the-art smart
developing capacity building programmes for
several smart grid technologies are fast reaching
grid test bed at the Central Power Research
utilities and industry, organising conferences
10
Smart Utilities | January-March 2014
Transmission in India 2014 and Distribution in India 2014 India Infrastructure Research (a sister division of PowerLine magazine) is currently developing and will soon release the “Transmission in India 2014” and “Distribution in India 2014” reports. The sixth edition of the Transmission in India report will have three sections. Section A will provide a macro analysis of the transmission sector in India with chapters such as: z
Executive Summary
z
High Capacity Transmission Corridors
z
Network Size and Growth
z
Integration of Renewable Energy
z
Recent Developments
z
Capital Expenditure
z
Progress on the National Grid
z
Equipment Requirements and Projections
z
Interstate Comparison
z
Key Contracts and Orders
z
Private Sector Participation
z
Technology Trends
z
Regulatory Framework
z
Future Outlook
z
Transmission Tariffs
Section B will provide a detailed analysis of transmission companies through company profiles (3 central transmission companies, 23 state transmission companies and 12+ private/Joint Venture transmission companies). Each profile will include key facts about the company, transmission network details (capacity, line length, substations and capacitors), transmission losses, expenditure, planned projects, key contact, etc. Section C will provide analysis of transmission projects in the pipeline by scope, capacity, cost, location, current status and expected completion date. The sixth edition of the Distribution in India report will have two sections. Section A will provide an overall analysis and overview of the power distribution sector in India with chapters such as: z
Executive Summary
z
Capital Expenditure of Discoms
z
Sector Size and Growth
z
Equipment Requirement Projections
z
Recent Developments
z
Update on R-APDRP
z
Inter-Discom Comparison
z
Update on the Distribution Franchise Model
z
Discom Finances and Restructuring Package
z
Technology Trends
z
Tariff Trends
z
Smart Grids
z
Power Purchase Costs and Competitive Bidding
z
Future Outlook
new
Section B will provide a detailed analysis of power distribution segment with profiles of over 50 distribution companies by state. Each profile will include operational area, current infrastructure, operating and financial performance, trend in AT&C losses, and future plans including projects and capex, etc. Each report is priced at Rs 54,000 (plus 12.36 per cent service tax) for a Site Licence and Rs 81,000 (plus 12.36 per cent service tax) for an Enterprise Licence. There is a 10 per cent discount on purchase of both reports. The two reports together will cost Rs 97,200 (plus 12.36 per cent service tax) for a Site Licence and Rs 145,800 (plus 12.36 per cent service tax) for an Enterprise Licence. The reports along with the presentations in PDF format will be ready in the first week of April 2014.
To order a copy, please send a cheque or draft payable to “India Infrastructure Publishing Pvt. Ltd.” and mail to:
Contact details: Meha Anand
Farheen Anjum
Tel: +91 11 41688614, 41034600, 41034601 Mobile: +91 9953572299 meha.anand@indiainfrastructure.com
Tel: +91 11 46012963, 41034600, 41034601 Mobile: +91 8750107851 farheen.anjum@indiainfrastructure.com
India Infrastructure Publishing Pvt. Ltd. B-17, Qutab Institutional Area, New Delhi - 110 016, India Fax: +91 11 2653 1196
s
ort
rep
Power and exhibitions, undertaking R&D, conducting
cise for analysing energy usage information for
and Technology Promotion Society, and The
consumer outreach programmes, providing
consumers of Maharashtra State Electricity Distri-
Energy and Resources Institute for estimating the
advisory services to ISGF members, utilities and
bution Company Limited for implementation of
rooftop solar power potential in Chandigarh.
regulatory commissions, and assisting the state
green button standards. The ISGF plans to initiate
Mapping of around 30,000 buildings in Chandi-
governments and utilities in the preparation of
discussions with the Power Finance Corporation,
garh was carried out under this study and subse-
state-and utility-specific smart grid road maps.
the nodal agency for implementing the R-APDRP,
quently the roof area available for installation of
for rolling out this initiative in all utilities that are
photovoltaic (PV) panels was estimated. With
currently implementing the R-APDRP.
the formal launch of the Web-GIS tool, residents
Development of microgrids: Another key initiative
would be able to ascertain the viability, capacity
that the forum is actively involved in is the development of microgrids for improving access to
GIS maps: The ISGF has taken the initiative to
and investment required in a rooftop solar PV
power. This is essentially proposed to be taken
develop geographic information system (GIS)
plant at their homes. This initiative is proposed
up for three consumer categories: villages and
maps. The forum has been in dialogue with util-
to be undertaken in other solar cities as well and
rural habitations, industrial parks and commercial
ities for updating GIS maps (which index all con-
with the help of R-APDRP maps, the process can
hubs, and large institutional buildings with cap-
sumers on digital maps) to enable these to be
be completed in a short time.
tive generation facilities. For this, the forum plans
used by infrastructure planners. Other initiatives: Other initiatives under way
to undertake demonstration projects. All utilities are currently undertaking digital
include the setting up of a smart grid knowl-
Electric mobility: India launched the National
mapping of their entire distribution systems,
edge centre. This is proposed to be established
Electric Mobility Mission Plan (NEMMP) in
consumers and assets. The digitised maps can
in collaboration with Power Grid Corporation of
2012 with a target of 6 million electric vehicles
be used by other infrastructure planners and
India Limited at Manesar with funding support
(4 million two-wheelers and 2 million four-
agencies in the same city, especially Tier II ones
of Rs 100 million from the MoP. The ISGF is
wheelers) by 2020. However, the interaction
where such information is not available. Leve-
also setting up a Center of Excellence for Cyber
between the Ministry of Heavy Industries, which
raging GIS maps for other infrastructure devel-
Security at the International Institute of Informa-
has launched this mission, and the MoP and
opment projects could also be a major source of
tion Technology, Bengaluru, in collaboration
distribution utilities has been limited. One of
income for distribution utilities. However, utili-
with the Data Security Council of India. This is
the major components of the NSGM is to work
ties will need to make an effort to update these
being set up with a grant from the World Bank
closely with the NEMMP for developing poli-
maps on a real-time basis whenever new con-
and is expected to be commissioned by end-
cies and programmes for appropriate vehicle-
sumers are added or new assets are installed in
March 2014.
charging infrastructure at public places, petrol
the distribution system. The ISGF has been conducting webinars to dis-
pumps, highways, residential colonies, etc. A major innovation has been the launch of a
seminate information on the new technologies
Green button format: The ISGF has submitted an
first-of-its-kind cloud-based open source web-
being deployed globally by utilities, including
approach paper to the ministry for capturing
GIS tool by the Ministry of New and Renewable
conservation voltage reduction for lowering
R-APDRP data in a green button format. Currently,
Energy, Chandigarh Renewal Energy, Science
demand; energy storage systems; and solid state
advanced metering infrastructure deployment in the country is being undertaken by various equipment vendors and software suppliers. Green button formats are helpful in standardising the data interfaces and providing these to consumers through utility websites. By providing the energy usage information to consumers in a standardised data format, the energy usage information of consumers across discoms can be made available in a single format, which would, in turn, be useful to utilities and consumers. In 2013, the ISGF in association with IIT Bombay undertook an exer12
Smart Utilities | January-March 2014
The forum has been in dialogue with utilities for updating GIS maps, which index all consumers on digital maps, to enable these to be used by infrastructure planners.
transformers (which are only 1 per cent of the weight of conventional transformers and can take AC and DC power as input). The ISGF has also launched an IEEEE-Low Voltage DC (LVDC) Forum. With a large number of devices moving to DC, the LVDC India Forum plans to undertake work for the development of standards for low voltage DC-powered systems. â– Based on an address by Reji Kumar Pillai, President, ISGF, at a Power Line conference
13
th Annual Conference on
Smart Utilities
September 2014, New Delhi Target Audience The conference is targeted at: IT officials/managers in generation, transmission and distribution, Top- and middle-level operation managers in power utilities, Managers of power plants (public/private/captive), Consultancy organisations engaged by utilities, Providers of basic power technology, equipment, products and services, Marketers of IT-based products and services like SCADA, GIS and metering, Marketers of enterprise software solutions like ERP, CRM and billing systems, Communication/Connectivity solution providers, Data centre solution providers, IT hardware manufacturers, Outsourcing firms, Sector regulators and policymakers, HR and training consultants, Energy managers and auditors, Energy traders, Other professionals involved with the power sector, etc.
Previous Participants This conference elicits strong participation from all central and state-level utilities, and the state electricity boards and their successor units (gencos, transcos and discoms). Participating utilities in our previous conferences included: Ajmer Discom, APCPDCL, APEPDCL, AP Genco, APNPDCL, APSPDCL, AP Transco, Assam Electricity Grid, BESCOM, BSES, CESC, CESCO, Chhattisgarh Discom, Delhi Transco, DGVCL, DVVNL, DHVBN, DPSC, DVC, Essar Power, Gescom, GETCO, GRIDCO, GSECL, GUVNL, HESCOM, HPGCL, HPPCL, HVPN, IPGCL, Jaipur Discom, JUSCO, KESCO, KPTCL, KSEB, Maha Discom, Mahagenco, MSETCL, MGVCL, Mescom, MPPKVVCL, MP Genco, NDMC, Neepco, NESCO, NHDC, NHPC, NTPC, OPGC, OPTCL, PGVCL, Powergrid, POSOCO, PSPCL, PTCUL, PVVNL, Reliance Energy, RRVVNL, Tata Power, Torrent Power, THDC, TNEB, UGVCL, UJVNL, UHBVN, UPPTCL, Uttarakhand Power Corporation, WBSEDCL, WBSETCL and Western Region Transmission Maharashtra. Other eminent players who regularly participate in the event include: ABB, Accenture, Alstom, Avantha Power & Infrastructure, Barco, BHEL, Blue Star, Check Point, Click Software, CLP, CMC, El Sewedy Electrometer, Energy Infratech, ESDS, Fedders Lloyd, Ferranti, Fox Solutions, GE, Genus, GMR, HCL, HP, Hitachi Data Systems, Honeywell, HUAWEI, IBM, IFS, Infosys, Intergraph, Infotech Enterprises, Itron, Lanco Infratech, L&T Infotech, L&T, Leena PowerTech, Microsoft, Nish Automation, Oracle, OSI PFC, Phoenix IT Solutions, PowerOne Data Inc., PTC, Ramco, REC, Red Hat, RIL, Reliance Infrastructure, Sai Computers, SAP, SAS, Schneider Electric, Siemens, Secure Meters, Steag Energy Services, Tata Power Delhi Distribution, TCS and Wipro.
Previous Sponsors
Call us for sponsorship opportunities and registration: Kanan Kumar, Conference Cell, India Infrastructure Publishing Pvt. Ltd., B-17, Qutab Institutional Area, New Delhi-110016. Tel: 011-41034615, 9891210461 Fax: 011-26531196, 46038149. E-mail: conferencecell@indiainfrastructure.com
Power
Beyond R-APDRP Recommendations of MoP and ISGF
W
ments stood at about Rs 4 billion. The highest share of funds under the R-APDRP (Rs 400 billion) has been earmarked for projects under Part B. As of February 2014, a total of about Rs 310 billion had been sanctioned for Part B projects while Rs 41.1 billion had been disbursed. The
hile the Restructured Accelerated
Rs 3.6 billion project to improve its power distri-
coverage of Part B projects has been extended to
Power Development and Reforms Pro-
bution services in Ernakulam, Fort Kochi, Thrikka-
towns with AT&C losses below 15 per cent and
gramme (R-APDRP) is still under way,
kara, Tripunithura, Vypeen, Kalamassery, Aluva
to those of religious or tourist importance
and Angamaly under the R-APDRP.
regardless of their AT&C loss levels.
the ministry directed the India Smart Grid Forum
Projects under Part A (IT) are currently under
The MoP has also approved 14 smart grid pro-
(ISGF) to prepare the post-R-APDRP strategy. In
implementation in almost all states except
jects under Part C of the R-APDRP. These projects
response, the ISGF published a white paper in
Odisha, which was recently included in the
will be implemented in Haryana, Mysore, Tripura,
December 2013, exploring the possible extension
scheme. A total of 1,398 towns across 29 states/
Kerala, Puducherry, Gujarat, Andhra Pradesh,
of the functionality of the distribution system in
union territories (UTs) are being covered under
Assam, Maharashtra, Chhattisgarh, Himachal
the post-R-APDRP scenario. In January 2014, the
this part. Recently, the ministry also extended the
Pradesh, Punjab, West Bengal and Rajasthan at a
MoP and the Power Finance Corporation (PFC)
deadline for Part A (IT) of the programme by two
total investment of about Rs 3.5 billion, of which
circulated a visionary document titled “Beyond R-
years considering the slow rate of adoption.
50 per cent will be funded by the MoP.
APDRP” and invited suggestions and comments
However, it has also announced the provision for
from various stakeholders on the same. While the
heavy penalties in the case of any further delays
Post R-APDRP
R-APDRP was primarily a technical programme,
and refused to extend the deadline any further.
The ISGF has defined the post R-APDRP sce-
the Ministry of Power (MoP) has started considering a post-R-APDRP scenario. In November 2013,
post-R-APDRP plans will include the installation of more advanced smart grid applications.
nario as “the scenario in which the IT and autoAs of January 2014, the verification of baseline
mation systems envisaged under Part A have
aggregate technical and commercial (AT&C)
been successfully implemented and baseline
losses by the Third Party Independent Evaluating
data framework is established; and AT&C losses
Agency for Energy Accounting had been com-
are measured accurately”. The post-R-APDRP
pleted in 1,373 towns and validation of losses
vision aims at greater technological advance-
was completed in 1,169 towns. A total of 419
ments for large-scale adoption of smart grid sys-
towns in Andhra Pradesh, Chhattisgarh, Gujarat,
tems and higher automation.
Himachal Pradesh, Karnataka, Maharashtra, The knowledge and expertise gained by the
Madhya Pradesh, Uttar Pradesh, Uttarakhand and
As per studies conducted by the MoP and the
utilities while implementing the R-APDRP will
West Bengal were declared “go live”. Following
ISGF, the post-R-APDRP scenario should include:
facilitate the shift towards smart grids in the
this, all commercial business operations in
• Automation of business processes: Auto-
country. However, this requires modification in
these towns are currently being processed
mated business processes through enterprise
the current R-APDRP scheme and state-level
through IT systems, and energy audit reports as
resource planning will help utilities stream-
policies as well as regulations.
well as other management information system
line operations and ensure improved regula-
(MIS) reports are generated through IT systems.
tory compliance in aspects such as timely
Status
audit and submission of accounts. This will
As of February 2014, a total of Rs 380 billion of
Supervisory control and data acquisition (SCADA)
provide updated baseline data on the current
funds had been sanctioned under the R-APDRP,
and demand management systems (DMS) are
level of AT&C losses of discoms and, there-
while only Rs 68.2 billion was disbursed to the
important tools for power utilities to monitor and
fore, help in determining the loss reduction
utilities. In terms of physical progress, the state
control their distribution networks. As of February
targets. It will also be useful in tariff determi-
utilities of Gujarat, West Bengal, Andhra Pradesh,
2014, 72 towns across 19 states/UTs were being
nation by state electricity regulatory commis-
Karnataka and Maharashtra are at advanced stages
covered under Part A (SCADA) with a total sanc-
sions in the case of failure of discoms to file
vis-à-vis other utilities. Kerala recently launched a
tioned cost of about Rs 16 billion. The disburse-
their petitions. The integrated business
14
Smart Utilities | January-March 2014
Power Post-R-APDRP scenario Phase I (2014-16)
Phase II (2017-19)
Phase III (2020-22)
Shifting focus from developing products to improving
Extending the functionality of R-APDRP
processes and services
systems to support installation of smart
Merging the post-R-APDRP scenario with other initiatives such as: – RGGVY
Clearly defining and tracking key performance indicators
grid systems
– Jawaharlal Nehru National Solar Mission
Ensuring effective utilisation, maintenance, upgrades and
Synchronising developments under Part A
– National Mission on Electric Mobility
operations of installed systems
and Part B
– National Knowledge Mission
Merging the post-R-APDRP scenario with the Smart Grid
Undertaking pilots to leverage
Offering discoms’ digital infrastructure for other smart city
Road Map and Vision for India Project, the National
R-APDRP assets to other infrastructure
services for additional revenue generation
Optical Fibre Network project and the RGGVY
services providers (water, gas,
Extracting lessons from smart grid pilot projects
house tax, etc.)
Source: ISGF
process automation solutions developed
also be deployed for the effective implemen-
manpower at the discom level is required for not
under the R-APDRP have adequate provisions
tation of DSM systems.
only implementing highly technical systems
• Transformer monitoring systems: To manage
under the R-APDRP but also for their O&M. This
network losses, utilities need to introduce dis-
requires various levels of training and workshop
• Extending the scope of Part A: More towns
tribution transformer metering in a phased
sessions for employees. The ISGF is preparing a
should be added under Part A (IT and
manner to monitor all 33/11 kV (66/11 kV)
detailed document on the various types of train-
SCADA/DMS) by expanding the criteria to
substations for collecting real-time data. In ad-
ing for different levels of employees on the
achieve greater AT&C loss reduction. As per
dition, a strong communication network should
request of the MoP. It will also prepare the con-
be set up for all 33 kV and 66 kV substations.
tent for various training modules in coordination
to integrate ERP solutions in the post-RAPDRP scenario.
the assessment of the ISGF, all district headquarters, towns with a population of more than
• FCLs and FCCs: There is a need to adopt fault
5,000, fast emerging industrial towns like
current limiters (FCLs) and fault current con-
Gurgaon and Noida should be included in the
trollers (FCCs) to improve the insulation and
To implement the post-R-APDRP in a phased
post-R-APDRP programme for IT and SCADA/
useful life of equipment. These devices are
manner, the ISGF has proposed a road map for
DMS implementation.
capable of controlling fault currents to the lev-
2014-22. However, the ISGF has stated that
els at which conventional protection equip-
there is a requirement for a discom-specific road
ment can operate safely.
map for the same. The ISGF’s study highlights
• Load forecasting: For better network and
power purchase planning, there is a strong
with other agencies.
case for incorporating load forecasting mech-
• Condition monitoring: For critical network
the requirement for coordination among various
anisms which are supported by IT-based ener-
assets such as transformers and switchgear,
national-level programmes like the Rajeev
gy monitoring systems. Data available from R-
overhead lines and cables, real-time condition
Gandhi Grameen Vidyutikaran Yojana (RGGVY)
APDRP systems should be used for short-,
monitoring can help minimise network down-
and the Rooftop PV and Small Solar Power
medium- and long-term forecasting of load
time and rationalise operation and maintenance
Generation Programme to incorporate strategies
for every category of consumers at various
(O&M) costs. With the help of low-cost sen-
for strengthening the power distribution network.
time intervals and across seasons.
sors and monitoring devices, and penetration
Along with this, state-specific policies and reg-
• Prepaid metering: Of late, many utilities have
of communication technologies (even in
ulations are required for the successful imple-
introduced prepaid metering to improve rev-
remote areas), condition-based monitoring can
mentation of the programme.
enue collection. However, prepaid metering
be implemented in the distribution network.
systems involve high costs. Hence, their
• Implementation of HAN at the LT level: A home
Although the current R-APDRP is facing sever-
commercial viability needs to be considered
network or home area network (HAN) is a smart
al challenges, it provides a strong opportunity
while taking up such projects.
solution, which facilitates communication and
to transform the distribution network, which is
interoperability among smart electrical devices
considered to be the weakest link in the power
installed inside or in the vicinity of homes.
value chain. The actual layout of the post-
• DSM: Utilities need to undertake demand-
side management (DSM) for all consumer
R-APDRP will depend on the key lessons from
categories. In addition, smart meters and effective communication technologies should
Apart from these, the development of skilled
current projects. ■ January-March 2014 | Smart Utilities
15
Power
Smart Meter Deployment Consumer and utility gains
S
mart meters facilitate collection, measurement and analysis of energy usage through a two-way communication sys-
tem between the discom and the consumer. It is one of the key components of automated metering infrastructure and its adoption across utilities is of paramount importance to facilitate the transition to a smart grid-enabled network. In the Indian context, this technological intervention assumes greater significance owing to the need for reducing high network losses and improving system efficiency. Essentially, a smart meter automates most, metering-centred activities. Successful functioning of a smart metering mechanism is
the smart meter functional specifications (only
for demand-side management for consumers
dependent on the interoperability of several
for low-cost single-phase meters) in December
with loads of up to 1 kW. For both these cate-
devices such as an in-home display screen, a
2012. As per these specifications, smart meters
gories of consumers, bidirectional data flow has
smart meter and a meter data collection arrange-
should follow the IS 13779 and IS 15884 stan-
been made optional.
ment. These are linked via a communication net-
dards as defined by the Bureau of Indian
work (WAN, LAN, NAN, etc.) that enables flow of
Standards. Also, discoms have been given the
Meters serving the purpose of both import and
data pertaining to energy usage. The choice of
option to choose their communication technol-
export of electricity (bidirectional flow of data)
communication technology is contingent on
ogy. Other functionalities that are optional
are intended to enable future integration of
several factors such as availability, terrain and
include prepayment services and setting up in-
renewable sources with the grid. For connec-
population density. Widely used communication
home display facilities.
tions served through conventional generation, an
technologies for smart meters include radio fre-
on/off switch is mandatory only for consumers
quency mesh-based communication systems,
Further, the installation of switches has been
power line communication and GPRS.
made compulsory only for consumers with
with loads of more than 1 kW.
sanctioned loads of over 1 kW. This mandate
Benefits
CEA smart meter specifications
helps reduce unnecessary expenditure on the
One of the primary benefits of installing a smart
The Central Electricity Authority (CEA) released
part of the discoms as there is very little scope
meter is that it helps in reducing incidents of network overload through partial load curtailment (brownouts), thus ensuring continuous power
Smart metering architecture
supply. This is done through a remote on/off switch. Moreover, disconnection of services in
In-home display
HAN
Smarat meter
LAN/ NAN
MDC
WAN
case of meter tampering, non-payment of bills and other instances can also be done. Further, backed by a comprehensive analytical framework,
Source: Secure Meters
16
Smart Utilities | January-March 2014
the utility can recognise patterns of overloading (implying power theft) and may take necessary
Power action, including disconnection, in order to pre-
Functionality specifications for smart meters
vent such occurrences. Smart meters help in reducing aggregate technical and commercial (AT&C) losses. Electricity theft contributes significantly to utilities’ AT&C losses. Smart meters eliminate such occur-
Basic smart meter requirements including two-way communication
Connect/Disconnect switch in both Bidirectional phase and nuetral elements energy measurement
Category I
X
X
Category II Category III
rences as they automate the meter readings
Category IV
(leading to zero human error), randomly analyse
Source: CEA
X X
these energy usage data samples and based on this, send alerts to the concerned authorities in
Deployment of smart meters requires significant
consumers have access to the benefits of the
cases involving abnormal events such as an
participation by consumer groups during both the
scheme from the start. Further, a case study-
unexpected spike in user load.
planning and implementation phases. Consumers
based approach could be adopted for informing
need to be educated about the benefits of smart
consumers about instances where this technolo-
These meters also improve electricity demand
meters and the expected gains demonstrated to
gy has been successfully implemented.
management. They allow greater consumer par-
them through web portals, etc. in order to increase
ticipation by providing in-home display of tariff
their willingness to pay for these. Lack of con-
The way forward
rates, consumption patterns, etc., thus offering
sumer engagement may result in negative public
The implementation of projects under the cen-
an opportunity to optimise energy consumption.
sentiment. There may be concerns over the pro-
trally sponsored Restructured Accelerated
Moreover, smart meters can be used to reduce
ject cost, the health and safety aspects of the
Power Development and Reforms Programme
peak energy demand, thus ensuring better grid
technology used (radio frequency emissions, fire,
will facilitate the creation of a robust IT back-
stability. This may be done through implement-
etc.), and the strength of the privacy framework.
bone for the distribution network, thereby paving
ing innovative tariff structures such as peak load
the way for the installation of advanced applicaIn order to ensure a smooth transition to smart
tions such as smart meters. Further, the Rajiv
meters, consultations must be carried out
Gandhi Grameen Vidyutikaran Yojana, through
Challenges
among all the concerned stakeholders, including
which rural electricity distribution infrastructure
Although smart meters offer many benefits, there
government and regulatory bodies, discoms,
is being constructed across the country, can
are several implementation challenges as well.
consumer groups and equipment manufacturers.
potentially serve as a tool for adopting a bot-
First, these entail substantial capex, which can
This would keep all entities informed about the
tom-up approach towards the implementation of
be recovered only by increasing consumer tar-
others’ needs, thereby facilitating the formula-
IT-based applications, especially for industrial
iffs, which often leads to civic unrest. In addition,
tion of a best-fit model. In addition, the utility
facilities located in rural areas.
the low per capita consumption in the country
must conduct skill enhancing programmes so
(less than 900 units) offers a poor business case
that once the system is operational, time and
The functional specifications defined by the CEA
for recovering the initial capex.
effort are not wasted in understanding and
for smart meters augur well for network-wide
implementing it. This would help ensure that
implementation of smart meters. These specifi-
pricing and time-of-use tariffs.
cations also pertain to smart meter deployments
Another major challenge for smart meter installations is the absence of advanced technologies in the distribution infrastructure. These are necessary for providing a robust IT backbone for easing the installation of advanced systems such as smart meters. Other shortcomings include choosing the right communication technology, bridging the interoperability gaps between different devices, privacy-related concerns, and accessing skilled manpower to handle smart meter operations.
One of the primary benefits of installing a smart meter is that it helps in reducing incidents of network overload through partial load curtailment.
for upcoming renewable energy capacity (including solar rooftop panels), which should provide a fillip to renewable energy investments. Going forward, the combined efforts of all stakeholders, especially end-users, are a must for the success of the smart metering initiative. â– Based on a presentation by Sunil Singhvi, Vice-President, Secure Meters Limited, at a Power Line conference January-March 2014 | Smart Utilities
17
Power
Reducing Losses Technology options for power distribution utilities organising, displaying and analysing real-time or near-real-time information pertaining to the functioning of the distribution network. DMS accesses real-time data and provides all the information on a single console at the control centre in an integrated manner. It helps in improving the reliability and quality of service by reducing outages, minimising outage time and maintaining appropriate frequency and voltage levels. DMS can lead to several benefits in the form of reduced load shedding as well as easier identification and correction of faults, translating into annual cost savings of up to Rs 58 million
T
for a typical utility. he prevalence of high aggregate techni-
entails equipping the substation with intelligent
cal and commercial (AT&C) losses is
electronic devices, and control and automation
Geographic information system
one of the major problems faced by
capabilities in order to allow remote users to con-
The development of a georeferenced consumer
power distribution utilities in the country. The
trol the functioning of the substation. GSAS sig-
and network database has become a necessity for
key reasons for these losses are electricity theft
nificantly reduces the manpower requirement for
power distribution applications like customer
and network losses.
managing the substation. GSAS deployment
information system, asset management, billing
involves replacement of old equipment and con-
system, energy audit and load flow studies. GIS
To address these issues and reduce losses, dis-
trol devices with supervisory control and data
plays an important role in mapping consumer and
tribution utilities are taking several initiatives.
acquisition (SCADA)-compatible equipment. This
electrical assets on a geographical base map.
These include elimination of human intervention
enables centralised control and monitoring of
Using GIS, the entire electrical network can be
in system operation and consumer data collec-
substations, which reduces installation and main-
overlaid on a satellite image or a vector base map,
tion, regular updation of the consumer and asset
tenance costs, diminishes the chances of manual
with a facility for zooming, resizing and scrolling.
database, and undertaking of proper energy
errors and improves equipment reliability. It also
audits and accounting. In addition, smart grid
enables utilities to expand their network in remote
Since GIS acts as a centralised repository for all
solutions like substation automation, distribution
locations. A typical utility with a customer base of
electrical and non-electrical assets, it helps in
management system (DMS), geographic infor-
1 million and AT&C losses of over 30 per cent
network operation and connection management,
mation systems (GIS), outage management sys-
can yield benefits of up to Rs 430 million per
reduces the time for energisation of new con-
tem (OMS), advanced metering infrastructure
annum through substation automation. These sav-
nections, and facilitates network planning and
(AMI), and field force automation (FFA) can go a
ings accrue through the redeployment of man-
identification of fault areas. Further, GIS serves
long way in reducing AT&C losses, optimising
power in strategic functions, controlled load
as a base for several other technological inter-
operations and ensuring customer satisfaction.
shedding, reduction in electricity overdrawal from
ventions and applications to support commer-
the grid, and reduction in the time required for
cial, operational and network functions.
Grid substation automation system
fault detection and correction. Establishing a robust GIS includes conducting
One of the measures being undertaken by the utilities is automation of their substations through the
Distribution management system
global positioning system (GPS) surveys of
grid substation automation system (GSAS). This
DMS is an IT system capable of collecting,
electrical consumers and network assets; digi-
18
Smart Utilities | January-March 2014
Power capex due to advanced analysis logics.
tising electrical network assets including substa-
usage based on the price at the time of use. AMI
tions, feeders, transformers and poles; undertak-
deployment entails several benefits for utilities,
ing GIS mapping, indexing and codification of
which may translate into a loss reduction of up to
Field force automation
electrical consumers and network assets with
Rs 186.2 million for a typical utility. The benefits
FFA is another smart technique being increas-
defined electrical relationships; and establishing
of AMI include better theft detection, reduction in
ingly deployed by utilities to improve their oper-
interoperability and data portability.
capex as network planning can be improved with
ational performance and enhance customer sat-
accurate load and voltage modelling using AMI
isfaction. FFA involves the use of technology,
Outage management system
data, reduction in losses through load balancing
typically hand-held personal digital assistants,
OMS allows utilities to manage unscheduled and
and improved network modelling, and improve-
wireless devices, tablets or mobile phones to
scheduled outages and ensures reliable opera-
ment in service restoration time.
capture field sales or service information in real time. The captured data is transferred immedi-
tion of the grid. OMS integrates with call centres to provide timely, accurate and customer-specif-
Business analytics
ately to back-end systems like enterprise
ic outage information, as well as with SCADA
Business analytics is emerging as a potential
resource planning, customer relationship man-
systems for real-time confirmed switching and
tool to reduce losses. Utilities are now working
agement or accounting systems through wire-
breaker operations. These systems track, group
to become more proactive in decision-making
less connectivity. This instant capture of infor-
and display outages to safely and efficiently
and adjusting their strategies based on reason-
mation reduces time delays, avoids manual
manage service restoration activities. Distribu-
able predictive views into the future by deploy-
double-entry data errors and enhances field
tion utilities can thereby conveniently make the
ing business analytics methods, which allows
force productivity. A typical utility can achieve
customer aware of the reason for outage and
them to tackle problems more efficiently. The
cost savings of up to Rs 72.9 million per annum
estimated time of restoration. Also, it enables
deployment of efficient analytics techniques
through FFA. Some of the benefits derived are
utilities to be prepared for all planned shutdowns
can help a typical utility to achieve annual cost
optimisation of manpower, a reduction in com-
for preventive maintenance. This translates into a
savings of up to Rs 104.5 million. One of the
plaint handling time and improvement in plan-
reduction in the mean time to repair for each
key benefits is an increase in revenues due to
ning and scheduling.
customer and the total number of complaints.
commercial loss reduction owing to better detection of power diversion through advanced
Summing up
Advanced metering infrastructure
logics and correlated data. Moreover, the utility
The distribution segment is considered to be one
AMI is an important component of any smart grid
can reduce its transformer losses by using
of the weakest links in the power sector owing to
initiative. It facilitates automated, two-way com-
advanced analytics to deploy appropriately
mounting AT&C losses and the associated fiscal
munication between a smart utility meter and a
sized transformers. Some of the other advan-
implications. The ill-health of this segment sig-
utility. It provides distribution utilities with real-
tages are a reduction in transformer outages
nificantly affects the generation and transmis-
time data on power consumption and allows cus-
with proactive transformer replacements using
sion segments as well. Therefore, it is imperative
tomers to make informed choices about energy
transformer life-cycle management and lower
for distribution utilities to reduce losses and improve their operational and financial perfor-
Loss reduction activities and cost benefits Technique Substation automation system
mance through the deployment of the aforemen-
Cost savings (Rs million per annum) 390-430
Distribution management system
58
Geographic information system
42
tioned smart technologies. Although the initial cost of some of these technologies can be quite high, the benefits that accrue to the utility in the long run can ensure favourable returns on investments. Overall, these measures have the poten-
Advanced metering infrastructure
186
tial to not only improve utilities’ performance but
Business analytics
105
also ensure consumer satisfaction and lead to
Field force automation
73
Note: For a typical utility with a customer base of 1 million and AT&C losses in excess of 30 per cent. Source: Tata Power Delhi Distribution Limited
healthy expansion of the segment. â– Based on a presentation by Parveen Verma, Head, Outage Management, Tata Power Delhi Distribution Limited, at a Power Line conference January-March 2014 | Smart Utilities
19
Power
Taking Off
and Malaysian PSI Incontrol. According to global growth consulting firm Frost & Sullivan, together these companies hold 65-70 per cent
Smart grid market in Southeast Asia
W
of the market share. Another 20-25 per cent is held by Malaysia’s Comintel, and US-based companies Mitsubishi Electric Automation, Echelon and Silver Spring Networks.
ith a growing population and the
has the best infrastructure to support the imple-
associated increase in the rate of
mentation of smart grid technologies. On the
urbanisation and industrialisation as
smart grid front, distribution grid management,
The following sections summarise the planned
well as the growing role of renewable energy,
demand response and advanced metering infra-
and completed smart grid initiatives in key
Southeast Asian countries are facing grid chal-
structure (AMI) are key initiatives. Another
Southeast Asian countries...
lenges that can be best addressed through smart
emerging area of smart technology implementa-
grid technologies. To meet the growing demand,
tion is electric vehicle (EV) charging infrastruc-
Singapore
it has become necessary to utilise the generated
ture, wherein the charging systems can be made
According to Frost & Sullivan, Singapore’s smart
power efficiently by reducing transmission and
bidirectional with the ability to transfer charge
grid market (in revenue terms) stood at $2.9 mil-
distribution losses. Further, objectives like reli-
from the vehicle to the grid.
lion in 2012. This market is likely to grow to
able power supply, energy security, seamless
$163.5 million by 2018, implying a CAGR of 95.8
integration of intermittent renewable power, and
Overall, the smart grid market in Southeast Asia
per cent. The Singapore power grid, which is one
an efficient ASEAN (Association of Southeast
is estimated to be $25 million in revenue terms.
of the most reliable networks in the world, has a
Asian Nations) power grid, which is under devel-
This would cross $300 million in the next five
supervisory control and data acquisition
opment, have led Southeast Asian countries to
years, implying a compound annual growth rate
(SCADA)-based intelligent generation and trans-
invest in smart grid projects that will be scaled
(CAGR) of about 50 per cent. Currently, the mar-
mission network in place, which facilitates two-
up in the coming years.
ket is dominated by five key players – the US’s
way communication and detects power disrup-
General Electric, Singapore’s ST Electronics Pte
tions. The country is now looking at initiatives that
Limited, Ireland-based Accenture, Swiss ABB
will help consumers manage their energy con-
Among the countries in this region, Singapore
20
Smart Utilities | January-March 2014
Power sumption and costs, reduce wastage, and reduce
research grants totalling $10 million to six
will be scaled up to include asset management,
peak loads to optimise system efficiency.
research teams for projects on smart grid tech-
mobile workforce management systems, sub-
nologies for areas like energy analytics, storage,
station automation, automated networks cover-
In this regard, an intelligent energy system (IES)
condition monitoring and control systems under
ing major cities, development of renewable
pilot was launched by the Energy Market Authority
the Energy Innovation Programme Office.
energy and energy storage, AMI deployment, and applications for electric transportation,
(EMA), a statutory board under the Ministry of Trade and Industry, Singapore, in 2010. The IES
Thailand
community lighting, and bundled services such
pilot, which is being undertaken in two phases,
As per Frost & Sullivan, the smart grid market in
as common billing. In Phase III, steps will be
seeks to test and evaluate new applications and
Thailand is expected to grow from $16.7 million
taken to establish nationwide automated elec-
technologies around a smart grid. The first phase,
in 2012 to $105.3 million in 2018, recording a
tricity networks, large renewable energy inte-
which has been completed, involved develop-
CAGR of 35.9 per cent. In Thailand, the state-
gration, EVs supporting intelligent two-way
ment of enabling infrastructure in the form of AMI
owned Metropolitan Electricity Authority (MEA),
power supply, etc.
and wireless communication networks. The sec-
which supplies electricity in the Bangkok region,
ond phase, which is in progress, involves testing
and the Electricity Generating Authority of
Further, EGAT has issued its plan for communi-
of various applications for 4,500 commercial,
Thailand (EGAT), which owns and manages the
cation improvement. The utility has also set up a
industrial and household customers. The pilot
majority of the country’s electricity generation
smart grid work group which has identified new
programme entails an investment of $30 million
capacity as well as the transmission network,
technologies like digitalised substations, wide
and has been funded by the Singapore govern-
have implemented SCADA. The MEA has also
area monitoring systems (WAMS), the special
ment and Singapore Power.
been using an energy management system
protection scheme (SPS) and automatic fault
(EMS) to analyse power flow and contingency on
analysis (AFA) for deployment. State-owned PTT
The EMA has also embarked on a microgrid test-
the supply side. Further, the MEA is undertaking
Public Company Limited has expressed interest
bed project in the jetty area of Pulau Ubin, an
substation automation gradually. On the distri-
in developing EV charging stations.
island northeast of Singapore. The test-bed aims
bution side, a distribution management system
to assess the reliability of electricity supply with-
(DMS) is also installed. About 8,000 units of
Vietnam
in a microgrid infrastructure using intermittent
automatic meter readers have already been pro-
In Vietnam, the smart grid market is very small
renewable energy sources. A Singapore-based
cured for time-of-use (ToU) customers and
with a few projects at the proposal stage. The
consortium comprising Daily Life Renewable
another 23,000 such meters will be installed by
Ministry of Industry and Trade (MOIT) has devel-
Energy Pte Limited and OKH Holdings Pte
the MEA next year.
oped the Roadmap of Smart Grid Development
Limited has been appointed to design, build, own and operate the microgrid infrastructure.
in Vietnam, which was approved in October With an aim to achieve 100 per cent smart grid
2012. As per this, smart grid initiatives will be
penetration by 2026, the Energy Policy and
taken in three phases till 2022 and will cover the
Another programme driving smart grid invest-
Planning Office (EPPO) under the Ministry of
implementation of SCADA, DMS, AMI and ToU
ments in Singapore is the EV test-bed, which
Energy, Thailand, is preparing a plan for smart
meters; technical standardisation for deployment
was introduced in 2011 by the EMA along with
grid application. State-owned companies like
of smart grids; and evaluation of other smart
the Land Transport Authority. The test-bed will
EGAT, the Provincial Electricity Authority (PEA)
technologies like information and communica-
help understand the optimal way to operate and
and the MEA require the EPPO’s endorsement
tion technology infrastructure for the distribution
deploy charging infrastructure; consumer behav-
for their investments. Besides, the PEA, which
grid, the demand response programme, and
iour in terms of charging; robustness of EV bat-
is responsible for generation, procurement and
geographic information system substations.
tery systems; and general performance of EVs in
distribution in 74 provinces, has come up with
Smart grid programmes at the initial stages of
Singapore road conditions. Currently, there are
its smart grid road map till 2026 entailing an
implementation in Vietnam include installation
89 registered EVs under the test-bed, 58 normal
investment of $3.7 billion. In Phase I (till
of ToU meters; and installation of 10,000 elec-
charging stations and three quick charging sta-
2016), planned pilot projects include micro-
tronic meters by 2017, which is being imple-
tions. Robert Bosch (SEA) Pte Limited has been
grids, smart meter infrastructure, smart offices,
mented by EVN Central power Cooperation.
appointed for project implementation.
EMS and real-time power trading. These pilots
These also include the deployment of SCADA/
will be undertaken in cities like Phuket and
EMS, and EV charging infrastructure in cities
Pattaya. In Phase II (2017-21), these projects
including Cua Lo, Sam Son, Haiphong, Hanoi
In July 2013, the EMA announced the award of
January-March 2014 | Smart Utilities
21
Power sumer empowerment initiatives.
and Ho Chi Minh. Under another programme,
AMI, bidirectional communication, improved
1,100 smart meters have been installed by the
billing, remote connection management, dynam-
Hanoi Power Corporation and the Ho Chi Minh
ic voltage/VAR control, demand management,
The Philippines
Power Corporation for undertaking load research.
and consumer power management. In addition,
The National Grid Corporation of the Philippines
The programme is being implemented by the
the focus will be on reducing carbon emissions,
(NGCP), the country’s transmission system
Vietnam Electricity Corporation, the country’s
increasing renewable energy generation, facilitat-
operator, has deployed EMS, SCADA and AMR.
largest power company, and the Electricity
ing energy storage, operation of EVs, and energy
Distribution utilities including MERALCO,
Regulatory Authority of Vietnam.
efficient street lighting.
BENECO, VECO and the Davao Light & Power Company have deployed SCADA and AMR at the
Indonesia
Meanwhile, Masers Energy Malaysia Sdn Bhd is
pilot level, customer information systems, and
In Indonesia, the government-owned distribution
set to develop its $72 billion first Smart Grid City
automated mapping/facilities management at
company PT Perusahaan Listrik Negara (PT PLN)
and Green Special Economic Zone project in
the pilot stage. The market operator, Philippine
has initiated several projects. These include the
Melaka. An MoU has been signed with South
Electricity Market Corporation, has deployed a
installation of automatic meter readers for com-
Korea’s C&M Global Company for the project.
market management system. The government
mercial and industrial consumers, which has
Silver Spring Networks, Inc., a networking plat-
plans to invest in electrical chargers that can
been under way since 2007. A prepaid meter
form and solutions provider for smart energy
charge 100,000 electric tricycles by 2018.
installation drive has been undertaken since
networks, has also entered into an agreement
Distribution utility Meralco proposes to install
2009 and so far, about 500,000 such meters
with Masers Energy Malaysia, a fully owned sub-
15,000 smart meters by 2015. Meralco and
have been installed. The country is now embark-
sidiary of Masers Energy, Inc., to provide smart
NGCP are deploying smart meters with two-way
ing on an AMI pilot programme, under which
infrastructure benefits to Malaysia. The first
communication and demand response on a trial
10,000 smart meters will be installed for identi-
smart grid city, Melaka, will incorporate green
basis. Further, in a bid to modernise the coun-
fied customers. Further, a smart microgrid pilot
and cleaner technologies for efficient energy
try’s power grid, the Department of Energy has
project is being implemented in Sumba. Another
storage, energy recovery, and EV infrastructure.
set up a committee that will come up with a
smart city project is likely to be undertaken for
The project will explore the capacity of smart
smart grid road map, which will propose a long-
Jakarta city. The government has also approved
grids to integrate renewable energy sources into
term strategy till 2030.
a scheme for smart grid development.
the network. It will involve advanced metering, distribution automation, and smart grid con-
Key challenges
Malaysia
While smart grid initiatives are a necessity
According to Frost & Sullivan, the Malaysian
in today’s world, there are challenges in
smart grid market is expected to grow from
implementing these projects on a large
$2.4 million to $61.8 million. Tenaga
scale. High investment costs; low electric-
Nasional Berhad (TNB), the country’s power
ity tariffs; and the lack of firm official poli-
utility, has introduced smart grid demonstra-
cies on smart grids, communication and
tion projects in three cities – Bayan Lepas
compatibility among different utilities,
representing industrial customers, Bukit
coordination among stakeholders, public
Bintang representing commercial customers
awareness, and expertise are often cited as
and Medini representing general customers.
major hurdles to smart grid implementa-
The projects aim to reduce the country’s
tion. As the entire smart grid is based on IT
dependence on coal and natural gas and
and communication systems, ensuring
increase renewable energy generation to
security is a major concern given the in-
4,000 MW by 2020. By 2015, 5,000 smart
creased risk of cyberattacks. Despite these
meters are expected to be installed in the
challenges, smart grid implementation in
country. These projects are a part of TNB’s
Southeast Asian countries is expected to
25-Year Electricity Technology Roadmap,
take place at a fast pace given the growing
which was formulated in 2009. Further,
power demand and the increasing role of
steps will be taken to roll out smart meters,
renewable energy. ■
22
Smart Utilities | January-March 2014
Power
Distribution Automation Rationalising network management costs
in 2010-11, to monitor and control the 11 kV network. It has helped reduce downtime of the 11 kV network through online identification of faults and restoration of power supply through automated switching. The system has also helped in the selection of optimum feeder configuration, there-
C
entralised automation sys-
network. This was aimed at minimis-
by reducing technical losses. The second phase
tems play a key role in man-
ing the network downtime, which is
of distribution automation is being implemented.
aging the operational costs of
largely attributed to transformers in
power distribution utilities. These
the low tension network. The expecta-
System integration
systems, based on information and
tions are that MIDAS will be able to
To realise the full potential of distribution
reduce downtime by 85-90 per cent.
automation systems, utilities have to integrate
utilities minimise human interference in opera-
BYPL tested MIDAS at the 11 kV level in over 20
stand-alone IT-based applications and solutions.
tions, improve network asset performance and
transformers. It has already been deployed on
Examples of successful deployment of IT solu-
maintenance, and provide centralised control and
BYPL’s 25 substations. For BYPL, the next step
tions show that key systems such as ERP, OMS
visibility for the top management. Only a few util-
will be to integrate MIDAS with other IT-based
and GIS are integrated to ensure end-to-end
ities have introduced these systems so far. The
platforms – enterprise resource planning (ERP),
automation of operations. In this context, OMS is
experience and the benefits realised can encour-
the geographic information system (GIS) and the
a key IT-based solution which has been utilised
age others to adopt them.
outage management system (OMS).
for ensuring an integrated approach to network
MIDAS
GSAS
One of Delhi’s power distribution companies,
Tata Power Delhi Distribution Limited (TPDDL), a
OMS helps utilities manage outages through an
BSES Yamuna Power Limited (BYPL) has devel-
joint venture between Tata Power Company
integrated platform of various systems and
oped and introduced the Modular Integrated
Limited and the Delhi government, has deployed
processes related to power supply. For instance,
Distribution Automation System (MIDAS) for its
the Grid Station Automation System (GSAS) on
SCADA and DMS integration enables improved
licensed power distribution area. MIDAS con-
its network. GSAS serves as a tool to collect and
response to outages in the case of an event
tributes towards comprehensive monitoring of
analyse data collected through the supervisory
associated with SCADA-monitored devices. Its
BYPL’s distribution network. This includes func-
control and data acquisition (SCADA) system,
integration with GIS provides a list of affected
tions such as condition monitoring of key assets
perform remote relay maintenance, monitor
customers while an integrated ERP and cus-
like transformers, energy meter data and fault
equipment condition through data analysis, etc.
tomer relationship management system ensures
communication technologies, help
and outage management.
updated customer records.
detection. Through data analytics, the system enables predictive monitoring of assets to identify
The centralised control and monitoring of grid
and fix the faults in a timely and efficient manner.
stations, enabled by GSAS, has helped TPDDL
The evolving smart grid framework in the power
optimise human resource deployment. GSAS
sector, for which pilot projects are being imple-
A key tool in MIDAS is the Smart Substation
and the SCADA-based energy management sys-
mented, is likely to accelerate the adoption of
Management System (SSMS), which has com-
tem have led to significant improvements in reli-
integrated solutions for automation in the distrib-
ponents such as feeder remote terminal units,
ability of power supply as all load management
ution segment. A total of 14 smart grid pilot pro-
sensors, fault passage indicators, modems and a
decisions are based on the real-time information
jects based on automated metering infrastructure
web-based application to gather and display
from the systems. Efficient load management
(AMI) are under way. The combination of AMI and
substation data. The key features of SSMS are
has also resulted in savings by minimising grid
distribution automation solutions is expected to
condition monitoring, meter data management,
overdrawal. As of 2012-13, all 61 grid substa-
provide significant scope in key functionalities of
predictive maintenance, and automatic notifica-
tions in the company’s network were automated
load profiling, asset management, and integration
tion, among others.
and unmanned. GSAS fits in TPDDL’s overall dis-
of distributed generation sources in power supply.
tribution automation plan, which is being imple-
Further, integrated AMI and distribution automa-
MIDAS was specifically designed for the 11
mented in a phased manner. The first phase of the
tion systems can strengthen the business case for
kV/415 V distribution substation level on BYPL’s
distribution automation system was implemented
upcoming smart grid projects in the country. ■ January-March 2014 | Smart Utilities
23
Power
Key Statistics Energy sale by discoms
(MUs)
Utility
2008-09
Uttar Gujarat Vij Company Limited
10,910
12,213
9,103
10,415
Bangalore Electricity Supply Company Limited
16,310
17,252
18,736
21,030
8.8
Southern Power Distribution Company of Andhra Pradesh Limited
12,048
13,697
14,441
16,388
10.8
Eastern Power Distribution Company of Andhra Pradesh Limited
Madhya Gujarat Vij Company Limited
2009-10
2010-11
2011-12
CAGR (%)
13,438
16,030
13.7
10,366
11,726
8.8
5,400
5,759
6,534
6,825
8.1
Maharashtra State Electricity Distribution Company Limited
58,171
63,941
–
80,132
11.3
Jaipur Vidyut Vitran Nigam Limited
10,423
12,486
13,951
15,234
13.5
Hubli Electricity Supply Company Limited
5,529
5,858
6,680
7,675
11.6
Mangalore Electricity Supply Company Limited
2,732
2,860
3,171
3,570
9.3
Jodhpur Vidyut Vitran Nigam Limited
8,052
9,586
10,721
12,024
14.3 9.5
Central Power Distribution Company of Andhra Pradesh Limited
24,040
26,641
–
31,597
Dakshin Gujarat Vij Company Limited
8,305
8,959
9,049
10,481
8.1
Uttarakhand Power Corporation Limited
5,646
6,249
7,251
8,016
12.4
Northern Power Distribution Company of Andhra Pradesh Limited
8,828
9,432
–
10,244
5.1
Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited
8,331
9,219
10,558
12,226
13.6
Ajmer Vidyut Vitran Nigam Limited
7,914
8,558
9,777
10,646
10.4
Uttar Haryana Bijli Vitaran Nigam
9,900
11,699
11,566
12,944
9.3
Southern Electricity Supply Company of Orissa Limited
1,136
1,188
1,323
2,721
33.8
Chamundeshwari Electricity Supply Corporation Limited
3,417
3,548
–
4,652
10.8
Gulbarga Electricity Supply Company Limited
4,246
4,292
4,672
5,441
8.6
Paschim Gujarat Vij Company Limited
12,450
13,513
13,723
16,190
9.2
Kerala State Electricity Board
12,878
14,025
14,548
15,981
7.5
Dakshin Haryana Bijli Vitran Nigam
10,196
12,094
12,673
13,669
10.3
Punjab State Power Corporation Limited
32,627
32,698
35,463
33,806
1.2
7,036
7,546
–
–
–
Tamil Nadu Generation and Distribution Company Limited
53,065
57,776
60,357
59,752
4.0
Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company
6,016
6,410
7,231
8,178
10.8
West Bengal State Electricity Distribution Company Limited
17,577
19,677
–
18,791
2.3
Paschimanchal Vidyut Vitran Nigam Limited
12,531
13,008
–
–
(100.0)
North Eastern Electricity Supply Company of Odisha Limited
2,973
3,175
3,436
3,302
3.6
Purvanchal Vidyut Vitran Nigam Limited
9,011
9,597
–
–
–
869
495
569
624
(10.4)
Central Electricity Supply Utility of Orissa
3,384
3,775
–
4,470
9.7
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited
6,589
6,943
7,824
7,531
4.6
Chhattisgarh State Power Distribution Company Limited
9,945
11,311
12,140
13,177
9.8
Madhyanchal Vidyut Vitran Nigam Limited
Tripura State Electricity Corporation Limited
Jammu and Kasmir Power Development Department
3,539
3,833
–
4,267
6.4
Kanpur Electricity Supply Company Limited
1,867
1,867
1,887
2,126
4.4
Himachal Pradesh State Electricity Board
6,959
7,098
–
6,918
(0.2)
Jharkhand State Electricity Board
5,009
5,789
–
7,195
12.8
Dakshinanchal Vidyut Vitran Nigam Limited
8,782
8,851
–
–
–
Meghalaya Power Distribution Corporation Limited
1,045
979
1,105
1,075
0.9
Assam Power Distribution Company Limited
–
3,575
–
3,970
–
Bihar State Electricity Board
5,325
6,067
6,139
6,196
5.2
Western Electricity Supply Company of Orissa Limited
4,238
4,090
3,979
3,775
(3.8)
Source: Distribution utilities
24
Smart Utilities | January-March 2014
Power
Key Statistics Status of smart grid pilot projects Utility
Project location
Consultant
Update
Andhra Pradesh Central Power Distribution
Jeedimetla Industrial
Central Power
Technical specification for the tender is completed. The project would be
Company Limited
Area
Research Institute
awarded by June 2014.
Assam Power Distribution Company Limited
Guwahati
Medhaj Techno
Last date for submission of request for proposal (RfP) is April, 21, 2014.
Concept
The project would be awarded by June 2014.
–
In March 2014, CESCOM awarded the pilot project to a consortium led by
Chamundeshwari Electricity Supply
Additional City Area
Corporation Limited (CESCOM)
Division, Mysore
Enzen Global Solutions Private Limited, The project cost is Rs 325.6 million. Of this, 50 per cent fund will be provided by the government, Rs 85.2 million will be invested by Enzen Global and the remaining by the utility.
Chhattisgarh State Power Distribution
Siltara - Urla area of
Power Grid Corporation
Powergrid appointed as consultant. The detailed project report (DPR) is being
Company Limited
Raipur District
of India Limited (Powergrid)
revised due to a change in the project site to Raipur.
Puducherry Electricity Department
Puducherry
Powergrid
The RfP is ready but has to be finalised by the Puducherry Electricity Department. The state government is testing a grid-interactive rooftop scheme with technical assistance from Auroville Consulting.
Himachal Pradesh State Electricity
KalaAmb
Powergrid
The utility is working on RfP preparation.
Vishwakarma
Powergrid
The DPR has been prepared. The draft RfP has been prepared and submitted
Board Limited Jaipur Vidyut Vitaran Nigam Limited
Industrial Area, Jaipur, Kerala State Electricity Board
Kerala
for internal approval. –
The tender has been issued for selection of the smart grid implementation agency. The project would be awarded by end-May 2014.
Maharashtra State Electricity
Baramati
–
Distribution Company Limited
Bids for implementation of project have been received and the project would be awarded by end April 2014.
Punjab State Power Corporation Limited
Amritsar
–
Commercial part of the RfP is under board approval.
Tripura State Electricity Corporation Limited
Agartala
Powergrid
The tender is expected to be floated in May 2014.
Uttar Gujarat Vij Company Limited
Naroda, Sabarmati
–
Five consortiums have been shortlisted for proof of concept (PoC) of
and Deesa, Palanpur
advanced metering infrastructure connectivity solutions with 300 meters each. The PoC is to be completed in two months, after which price bids of successful players in the PoC will be opened.
Source: India Smart Grid Forum
January-March 2014 | Smart Utilities
25
Gas
Crucial Role
their pipeline networks are spreading across large distances. SCADA has helped utilities such as GAIL Gas Limited, Indraprastha Gas Limited (IGL)
IT deployment in CGD operations
A
and Mahanagar Gas Limited (MGL) by combining the monitored data with demand, environmental, physical and gas composition data across the
s city gas distribution (CGD) operators
SCADA
focus on managing large distribution
Supervisory control and data acquisition
areas, the adoption of IT services in order
(SCADA) is a computer-based solution that
ERP
to improve the service delivery mechanism and
helps in monitoring operations at various points
An enterprise resource planning (ERP) system is
minimise service disruptions in gas flow assumes
in the complex network of pipelines used for
a completely integrated business management
importance. Prevention of service disruption and
transporting natural gas from production sources
system incorporating all the functional areas of
damage to gas transmission and distribution
to the end-consumers.
an organisation including finance, production
pipelines is crucial for the smooth and efficient
enterprise for business decision support.
and sales. The system integrates external and
functioning of CGD systems. A growing number of
SCADA helps in monitoring and controlling natur-
internal information across the organisation. The
CGD operators have been adopting new technol-
al gas flows through the pipeline by supplying the
various phases of ERP implementation include
ogies to ensure safe, convenient and reliable nat-
required data regarding gas flow to centralised gas
pre-evaluation screening, package evaluation,
ural gas supply to customers in both the domes-
control stations. These centralised gas stations
project planning, gap analysis, re-engineering,
tic and commercial sectors.
assimilate and manage the data provided by
customisation, training the implementation
SCADA and compressor stations. The data main-
team, testing and operation.
The country’s CGD system (comprising piped
ly comprises the flow rate through the pipeline,
natural gas [PNG] and compressed natural gas
operational status, and pressure and temperature
Implementation of ERP solutions by CGD oper-
[CNG]) involves a complex pipeline network,
readings. It can be used to assess the status of the
ators would facilitate business process integra-
which is prone to disruptions and damage as
entire pipeline network at any point of time.
tion and streamline information for expediting
large sections of pipelines lie in remote areas
the decision-making process. Moreover, these
where assigning significant manpower for mon-
The SCADA system is connected with the
solutions can be implemented within budgeted
itoring purposes is not practically feasible. The
pipeline network through various components
costs and schedules. ERP solutions help in
key challenges faced by CGD operators include
such as the human-machine interface, supervi-
achieving improved inventory management, sav-
those related to asset safety, network capacity
sory (computer) systems, remote terminal units,
ing on transportation expenditures, increasing
management and expansion, and ensuring
programmable logic controllers and communi-
sales and reducing day sales outstanding. CGD
uninterrupted gas supplies. Also, due to the
cations infrastructure. With the help of SCADA,
operators which have implemented ERP solu-
exposure of CGD network operators to financial
inconsistencies in gas flows are reported at the
tions include GAIL Gas Limited (GGL), GSPC
risks owing to fuel price volatility, there is a
time of occurrence, which allows the operator to
Gas Company Limited, Gujarat Gas Company
need for these utilities to be able to access
immediately take corrective measures.
Limited and Assam Gas Limited.
Various CGD operators are now increasingly con-
Advanced metering
necting their SCADA systems to the internet, as
Meanwhile, smart metering has emerged as an
real-time financial information for responding to contingencies. Going forward, expansion of the CGD market
important tool for cost savings for both gas sup-
would involve several challenges – ensuring
pliers and consumers across the globe. How-
higher asset utilisation, mitigating operational
ever, most gas utilities in India are still at a
risks and uncertainties, and providing efficient
nascent stage in terms of deploying smart mete-
consumer services. Consequently, appropriate IT
ring technology, with only a few firms opting for
initiatives will help enhance efficiencies and meet
a comprehensive roll-out.
customer expectations. The following are some of the key technology solutions implemented by
Smart metering solutions help in accurate billing
key CGD operators in India.
as they do away with the need for physical meters.
26
Smart Utilities | January-March 2014
Gas Gas utilities in India such as GAIL utilise metering
in locating assets, helping in quick decision-mak-
AIM
solutions like turbine gas meters (used to mea-
ing, enhancing customer services and optimising
Asset integrity management (AIM) provides end-
sure gas flows and large gas volumes) and rotary
business processes. CGD operators such as GGL
to-end support to an enterprise, covering the life
positive displacement meters (for measuring gas
and MGL have implemented GIS to improve the
of an asset, involving planning and design, con-
mixtures) and diaphragm gas meters (for measur-
efficiency of their CGD operations.
struction, commissioning, O&M, and mainte-
ing gas usage). Meanwhile, GSM-based metering
nance and decommissioning. As CGD assets are
facilities implemented by Central UP Gas Limited
OMS and field operations
exposed to various unforeseen damage originat-
primarily for industrial users ensure high efficien-
An outage management system (OMS) is a com-
ing from internal risks such as pipeline leakages
cy without any lag. Also, the Coriolis flow meters
puter-based solution used by gas distribution
and failure of pressure valves/gas flow regulators
used for monitoring CNG sales result in low oper-
utilities to discover, locate and resolve outages
as well as external risks like natural calamities
ation costs and high measurement accuracy.
in an effective manner.
and ground digging, the use of AIM is crucial for
Moreover, the ultrasonic flow meters used by
the O&M of pipelines. For effective AIM, CGD
MGL and GAIL involve lower maintenance costs
CGD operators implement OMS to be able to
operators need to maintain an asset register
as they do not involve any moving parts.
rapidly respond to outages and restore gas sup-
(providing information on all the relevant assets
plies. Emergency situations require CGD firms to
of an enterprise); and prepare a capital manage-
In light of the advantages offered by smart meter-
integrate OMS with trouble call management
ment programme using information on depreci-
ing systems, some progress has been made with
processes and implement procedures for quick
ation and the net value provided by the asset
regard to their implementation at the pilot level in
despatch of warehouse equipment to the site
register as well as a work management system,
select utilities. Nonetheless, infrastructural devel-
during contingencies. Implementation of an effi-
which stipulates the various maintenance and
opment and capacity building issues need to be
cient OMS requires the utilities to maintain a
inspection schedules.
addressed before the large-scale adoption of
vehicular fleet (such as cars and trucks) with
these metering projects.
global positioning system and appropriate com-
In India, MGL has adopted a holistic approach
munication devices such as radio/mobile
towards AIM. The company’s core asset integrity
GIS
phones and accurate maps, in addition to setting
approach includes undertaking quantitative risk
The geographic information system (GIS) is
up of call centres.
assessments, hazard and operability studies, integrity audits and competency assessments.
designed to capture, store, analyse, manage and present all types of geographically referenced
Automated remote measuring devices with data
data. GIS is used for the CGD business in pro-
links to a central site can help in measuring and
CIS and web-enabled services
cesses ranging from planning and engineering to
reporting outages. Moreover, safe and efficient
The customer information system (CIS) is a key
operations and maintenance (O&M) of the net-
field operations necessitate gas distribution utili-
part of the overall utility management information
work. It is used for enhancing customer service,
ties to be equipped with audio-visual equipment
system. CIS consists of customer information,
supporting engineering and operations functions,
for providing safety training to personnel and
meter reading data, customer invoices, payment
increasing network reliability and reducing costs
developing safety manuals, practices and proce-
and receipt modules, connections, disconnec-
as well as for sourcing information related to the
dures. Equipment maintenance manuals are also
tions and reconnections, cash control and report-
material used for piping, pipeline diameter and
needed for utilities to plan life cycle maintenance.
ing, report modules by account type, receivable
operating pressure. GIS can help manage issues
In addition, information on outages needs to be
sub-ledger, customer security deposits and cus-
related to gas leaks, corrosion, excavation dam-
collected through investigation and processes
tomer project risk deposits. These parameters are
age and unplanned outages. Further, it enhances
related to asset management automation.
critical for the firm’s revenue realisation.
OMS integrated with GIS and other systems pro-
In order to engage customers, CGD utilities are
vides a simple, cost-efficient and risk-free way
now undertaking field-level research through
A well-integrated GIS enables gas utilities to
to track outages in the gas distribution system.
various surveys to assess their requirements. As
share information on pipeline mains, services and
Although the use of this web application in the
an increasing number of CGD operators opt for the
cathodic sections instantly across the organisa-
CGD segment is limited at present, the system is
above-mentioned technology solutions to im-
tion, thereby helping in devising safety systems
expected to attract the interest of Indian gas util-
prove their operations, the efficiency of the seg-
such as cathodic protection for new pipelines or
ities going forward.
ment is set to improve in the near future.
the efficacy of the CGD business by facilitating its integration with other business systems.
January-March 2014 | Smart Utilities
27
Gas
Gas Outlook
the process of awarding CGD licences after a hiatus of three years. It issued a much-needed policy amendment in June 2013, revising the
CGD operators’ perspective
T
he city gas distribution (CGD) segment
bidding criteria for laying, building, operating or expanding the CGD network. supply sources, the scenario is likely to improve.
It was specified that the weightage of network tariffs and compression charges in the bid eval-
accounts for about 10 per cent of the country’s total gas consumption. Although
However, over the past two years, the segment
uation process would be increased to 70 per
the segment witnessed high growth rates follow-
has faced several challenges. The country’s
cent and 30 per cent respectively from 40 per
ing the establishment of the Petroleum and
declining domestic gas production, especially
cent and 10 per cent previously. In addition, the
Natural Gas Regulatory Board (PNGRB) in 2003, it
from the Krishna-Godavari-D6 block, had
variation in the proposed network tariff and the
has registered a slowdown in the past two years.
reduced gas availability for CGD operators,
compression charge between two consecutive
The CGD segment recorded a growth of 64 per
thereby increasing their reliance on expensive
years should not exceed 10 per cent. While no
cent in 2010 as compared to 2009. In 2011, it
liquefied natural gas (LNG) imports. The seg-
weightage has been given to the parameters
witnessed 47.5 per cent growth and the total
ment also suffered on account of being accord-
related to the inch km of pipeline to be laid and
pipeline network length stood at 26,550 km. The
ed lower priority than the power and fertiliser
the number of domestic connections to be pro-
growth in the segment declined to as low as 0.6
sectors for gas allocation. Moreover, since most
vided, the PNGRB will specify the minimum
per cent in 2012.
of the current capacities of LNG terminals were
work programme for both these parameters in
already contracted, private players and new
the first five years of operation.
At present, the country’s CGD network of 26,696
entrants faced challenges in catering to their
km is spread unevenly. It covers the states of
customers in the absence of an alternative
A change in the bidding criteria has led to the
Gujarat, Maharashtra and Rajasthan in the west;
source of gas. In addition, the regulatory uncer-
resumption of award of licences for the third bid-
Delhi, Haryana and Uttar Pradesh in the north;
tainty related to the bidding process for the CGD
ding round. Also, efforts have been made to
Tripura and West Bengal in the east; Madhya
network disincentivised investors.
resume the CGD licensing process for the fourth bidding round (which was cancelled in
Pradesh in central India; and Andhra Pradesh in the south. With natural gas pipeline infrastruc-
However, from mid-2013 CGD activities have
November 2011). In October 2013, the PNGRB
ture connecting the southern and eastern parts to
gained momentum with the PNGRB reinitiating
invited bids for 14 geographical areas (GAs).
28
Smart Utilities | January-March 2014
Gas The regulator also plans to complete issuing
ward revision in prices. CNG prices in Gujarat
on tariff fixation, there are uncertainties with
licences for the remaining six GAs that were
have come down from Rs 60-Rs 70 per kg to
regard to bidding processes, which may impact
awarded under the third bidding round.
Rs 44-Rs 47 per kg. However, CGD operators
last mile connectivity.
should not entirely depend on domestic gas and In another positive development for the CGD
must ensure that regasified liquefied natual gas
One of the major operational challenges faced by
segment, the government has recently notified
(R-LNG) continues to remain a viable option for
GSPC is ensuring public safety. The current regu-
that the compressed natural gas (CNG) and
meeting the segment’s demand. This will help
lation stipulates that gas cylinders should be
piped natural gas (PNG) requirements of existing
in the expansion of business opportunities in
retested in order to detect wear and tear, and leak-
CGD companies should be met through domes-
the CGD space.
ages once every five years. However, there is a very low level of awareness among consumers
tic gas sources. Moreover, policy guidelines for new CGD entities are expected to be issued
The need of the hour for the CGD market is to
about safety regulations. Therefore, there is an
soon. The petroleum ministry has also clarified
increase its acceptability of LNG as a gas sourc-
urgent need for all stakeholders including oil mar-
that deemed authorised entities do not require
ing option. In fact, most players are already con-
keting companies, transport agencies issuing fit-
authorisation from the PNGRB for setting up CNG
sidering operating CGD systems on R-LNG as
ness certificates for cylinders and CGD operators
stations and laying spur lines in their GAs.
domestic gas is no longer a credible source,
to work together to ensure safe operations.
which was the case a couple of years ago. Smart Utilities presents the views of senior offi-
Consequently, there is a growing focus on LNG
cials from key CGD companies on the recent
and most of the existing LNG players are ramp-
developments and challenges in the segment
ing up their capacities while new players are try-
and the road ahead…
ing to operationalise their facilities.
Raman Chaddha, Chief Operating Officer, GAIL Gas Limited The CGD space has gained
P.P.G. Sarma, Chief Executive Officer, GSPC Gas
Meanwhile, the lack of clarity on downstream
significant momentum over the last few years, dri-
regulations could impact the expansion plans of
ven primarily by factors such as huge demand for
existing operators or the planned initiatives of
transportation and domestic usage, expansion of
There are 2.5 million domes-
new entrants. However, over the past few
gas transmission networks, attractive economics
tic gas consumers in India,
months, the segment has witnessed some posi-
of natural gas vis-à-vis other fuels like petrol,
of which Gujarat accounts for 50 per cent with
tive developments on the regulatory front, such
diesel and liquefied petroleum gas (LPG).
seven CGD players operating in the state. Further,
as expediting approvals and initiating new bid-
of the total 1,000 CNG stations in India, 70 per
ding rounds, which will facilitate development of
There are several lucrative markets in India that
cent are located in Gujarat. The rapid develop-
the downstream gas segment. These develop-
are still awaiting CGD coverage. This can be
ment of the state’s CGD network was facilitated by
ments are expected to reduce the gap between
ascertained from the fact that 61 of the 111
the availability of adequate infrastructure and its
midstream (gas transmission) and downstream
Indian cities with a population of more than
proximity to gas supply sources.
(end-consumer) connectivity. In order to ensure
400,000 are located close to gas sources. Of
timely project implementation, there is a need to
these 61 cites, 28 already have CGD networks
According to GSPC, though the market has
align project-related activities including produc-
and the remaining constitute potential CGD mar-
shown reasonable interest in consuming high-
tion, transmission, distribution and consump-
kets. The PNGRB also plans to extend the
priced gas. If the recommendations of the Ran-
tion. Although the regulator has provided clarity
pipeline network to over 200 cities, which would
garajan Committee are accepted, domestic gas will be priced at around $8.4 per million metric British thermal units (mmBtu). Therefore, as domestic and imported gas prices move towards convergence, a higher level of acceptability for LNG imports is expected. The new scheme for 100 per cent domestic gas allocation for CNG and PNG has led to a down-
“The new scheme for 100 per cent domestic gas allocation for CNG and PNG has led to a downward revision in prices.”
drive further growth in the segment. In terms of the recent initiatives launched by the PNGRB, the 100 per cent domestic gas allocation scheme for CNG and PNG operators has helped GAIL Gas to tackle its capacity utilisation issues. Earlier, the company was supplying CNG at Rs 70 per kg in Tier II cities and hence faced issues related to capacity utilisation, which has January-March 2014 | Smart Utilities
29
Gas “The increase in domestic gas prices to $8.4 per mmBtu would incentivise investments and increase production in the long run.”
ing public safety. The current safety rules were formulated in 1947. According to these rules, gas cylinders are required to be tested and then refilled. However, these regulations are not appropriate for CNG cylinders as they are installed in cars where they cannot be inspected. Meanwhile, the weak gas supply scenario has increased the importance of extensive infrastruc-
“There is an urgent need to address the issue of escalating gas prices to ensure that gas remains competitive as compared to other fuels.”
ture. There is a need to develop large LNG import now improved by 80 per cent.
and regasification capacities at existing and upcoming terminals. However, infrastructure
around 96 per cent. • There exists a significant potential for convert-
Domestic gas prices are expected to double to
(LNG and/or transmission pipeline network)
$8.4 per mmBtu with effect from April 2014.
alone cannot guarantee successful CGD opera-
• New technologies such as those implemented
While this would incentivise investments and
tions, there is also a need for creating an enthu-
in the European and American markets can be
increase production in the long run, the power
siastic market.
introduced for natural gas vehicles in India as
and fertiliser sectors will be negatively impacted. However, with regard to CGD, the price hike is likely to be beneficial as it can help unlock higher domestic gas volumes for the segment.
ing two-wheelers to CNG mode.
well. For instance, LNG can be used as fuel in
Narendra Kumar, Managing Director, IGL
heavy duty vehicles (trucks), railway locomotives and buses.
Indraprastha Gas Limited
Meanwhile, the recent government policy to
However, with implementation of the new gas
(IGL), the leading CGD oper-
allocate 100 per cent gas to meet the CNG and
tariff ($8.4 per mmBtu), PNG prices will far
ator in India, caters to the world’s largest fleet of
PNG demand in the domestic market will not
exceed those of the subsidised LPG, resulting
CNG-based passenger buses. There are a number
only improve the sustainability prospect of the
in customer unwillingness to shift from LPG to
of areas that present significant growth opportuni-
CGD segment but also provide a boost to seg-
PNG. In addition, there is still lack of clarity on
ties for the CGD segment. PNGRB’s “Vision 2030,
ment expansion. However, the expected increase
the September 2013 order pertaining to the
Natural Gas Infrastructure in India” report envis-
in the price of domestic gas to $8.4 per mmBtu
setting up of CNG stations (the new ruling does
ages that the share of natural gas in India’s ener-
from April 2014 would adversely impact the
not offer clarity about compression charges,
gy mix would increase from 10 per cent at present
competitiveness of CNG as compared to sub-
marketing margins, etc.).
to 20 per cent in 2025 and 30 per cent in 2030.
sidised diesel, and of PNG as compared to sub-
While the allocation of domestic gas to all CGD
The report also projects that the demand for nat-
networks is a positive move, the immediate chal-
ural gas would increase at a compound annual
In terms of the challenges being faced by the
lenge of introducing uniform gas pricing for the
growth rate of 6.8 per cent from 242.6 mmscmd
segment, gas sourcing and gas market eco-
segment still exists. Implementation of pooled
in 2012-13 to 746 million standard cubic metres
nomics are key areas of concern. There is an
gas pricing across the country is not a viable
per day (mmscmd) in 2029-30 and the CGD
urgent need to address the issue of escalating
option, but this can be initiated in different areas.
segment’s contribution to this demand volume
gas prices to ensure that gas remains competi-
An example of such a model is the Taj Trapezium
is expected to increase from 6 per cent at pre-
tive as compared to other fuels.
Zone, where gas prices are uniform. Thus, the
sent to 11 per cent by 2029-30.
sidised domestic LPG.
solution lies in introducing a uniform pricing
In addition, the scarcity of land for setting up CNG
mechanism, which will ensure sustainability of
There are several characteristics of the Indian
stations, excessive road restoration activities
the CGD business.
transport market that translate into lucrative
leading to third-party damages and limited avail-
growth opportunities for the CGD segment.
ability of agencies for CNG cylinder testing are
There is also a need to encourage the develop-
These are as follows:
some of the infrastructural constraints limiting
ment of green corridors to incentivise CNG use
• India still has a low vehicular usage level of
CGD growth. Other issues that need to be dealt
by heavy vehicles plying on the highways. The PNGRB also needs to amend regulations regard30
Smart Utilities | January-March 2014
around 117 vehicles per 1,000 persons. • The dependence on petrol and diesel is still
with include regulatory uncertainty, shortage of skilled manpower and vendor development.
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Pipeline Infrastructure
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Company Profiles
This report is indispensable for any organisation involved in the gas sector – natural gas producers, natural gas buyers, transporters, distributors, LNG suppliers, potential LNG buyers, pipeline operators, city gas distributors, policy-makers, government agencies, regulatory agencies, power plant operators, fertiliser manufacturers, steel manufacturers, other industrial users, ports and shipping businesses, financial institutions, research organisations, industry analysts, service providers, financiers, consulting and legal firms, etc. The report is priced at Rs 48,000 (plus 12.36 per cent service tax) for a Site Licence and Rs 72,000 (plus 12.36 per cent service tax) for an Enterprise Licence. The report is available along with a presentation in PDF format.
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Gas
Asset Integrity Management Benefits for CGD operators
T
rity. AIM helps operators in ensuring high returns on assets, optimising infrastructure investments and minimising the costs incurred on asset maintenance while adhering to the standards related to health, safety and the environment.
he primary objective of effective asset
These include conducting periodic surveys to
While asset integrity is typically maintained till
integrity management (AIM), which is
assess the operations of the asset, mapping the
its commissioning, the focus on this aspect
also known as process safety, is to main-
entire asset network of an enterprise using tech-
tends to generally decline thereafter due to sev-
tain the asset in a fit-to-serve condition, while
nologies like the geographic information system
eral other factors. These include ageing of the
extending its life in the most reliable, safe and
(GIS), monitoring the functioning of the asset
asset, turnover of skilled staff, change in process
cost-effective manner.
using computer-based systems like supervisory
conditions, inadequate O&M practices and the
control and data acquisition (SCADA) and the out-
need to reduce operational expenditure.
The asset integrity process provides end-to-end
age management system, and other practices
support to an enterprise, covering the life of an
depending on the needs of the enterprise.
The effective implementation of AIM solutions
commissioning, operations and maintenance
AIM for CGD entities
• Integrity management: This includes identify-
(O&M), and decommissioning. At the initial
The functioning of physical assets is one of the
ing the weaker sections of an asset, collection
stage, AIM ensures that facilities are designed and
major factors determining the operational suc-
of required data, risk assessment, and an
built in accordance with the standards and meet
cess of utilities in the city gas distribution (CGD)
the specified operational requirements. At a later
segment. For instance, on an average, building
• Performance management: Under performance
stage of the asset life cycle, it ensures that appro-
the pipeline network alone constitutes around 60
management, key leading and lagging indica-
priate work processes are followed for asset main-
per cent of the total project cost incurred by a
tors are identified. Leading indicators help an
tenance and inspection. Various hardware- and
CGD operator. Moreover, since most of the
organisation to take adequate measures in time
software-driven practices are used by the man-
assets involve high investments and have a long
to avoid operational issues in the future. On the
agers of enterprises for taking timely decisions
life cycle, it becomes imperative for operators to
other hand, while lagging indicators cannot
regarding the asset’s integrity across its life cycle.
adopt a holistic approach towards asset integ-
influence future performance, they provide key
involves the incorporation of six components:
asset – planning and designing, construction,
32
Smart Utilities | January-March 2014
action plan to mitigate risks.
Gas lessons that help an organisation to take a dif-
Advantages of AIM
ferent course of action in the future. • Management of change: An asset undergoes
several changes during its life cycle. Therefore, an appropriate plan is needed to manage the potential risks that may emerge due to such changes. • Quality control: It includes adhering to quality
control standards to ensure safety and security. • Communication: Under the communication
Provides a holistic approach to documenting the state of operational assets Assesses specific operating, managing and capital costs, by type Documents life expectancy of the asset Reduces costs by eliminating maintenance delays and duplication of work Helps in meeting regulatory and reporting requirements related to operations Improves the financial performance of the gas utility by enhancing asset utilisation Improves workforce productivity by identifying the best technique to deal with a fault in the functioning of the asset Improves the technical performance of the network by enhancing planned maintenance
plan, it is ensured that all actions taken by
Increases organisational efficiency through improved and optimised business processes
the organisation are communicated to the
Ensures greater operational safety
various stakeholders.
Critical aspects in successful implementation of AIM
The development of an effective AIM model
agement plan ensures that the resources used in AIM solutions are adequate and competent.
Asset integrity manages the entire asset base
nologies. Therefore, in order to ensure ade-
and ensures efficiency in operations, which
quate return on these investments, it is essen-
While the importance of AIM is widely acknow-
allows CGD operators to focus on their
tial for CGD operators to train their workforce.
ledged, greater awareness needs to be created
business goals. However, the success of AIM
Further, monitoring and reviewing asset integri-
among various industry stakeholders. The
critically depends on certain aspects. First, it is
ty performance are as important as developing
downstream regulator, the Petroleum and
imperative that the objectives of AIM are clear-
and implementing integrity plans and systems.
Natural Gas Regulatory Board, has issued noti-
ly communicated. Similarly, the flow of integri-
This involves the evaluation of key performance
fications with regard to asset integrity for
ty information and decisions needs to be
indicators (KPIs) like instances of gas leakages
pipeline operators and CGD entities.
understood.
and network damage, gas supply failure, and
• Resource management: The resource man-
Case study – Mahanagar Gas Limited Mahanagar Gas Limited (MGL), which operates in Maharashtra, has adopted a holistic approach towards AIM and provides an example for the successful implementation of asset integrity processes in its operations. The company’s core asset integrity approach includes undertaking quantitative risk assessments, hazard and operability studies, integrity audits and competency assessments. For instance, with regard to the aforementioned “management of change” component, MGL operates through an online module. It includes the scope of operational as well as non-operational changes. Moreover, there is a preset approval matrix for typical deviations. This helps in avoiding lengthy processes to incorporate such changes. The module also undertakes risk assessment and cross-functional team review. MGL’s integrity audit approach entails online audit reporting and action tracking. This includes risk audit of major installations such as district regulating skids (DRS), metering regulating skids (MRS) and compressed natural gas (CNG) stations. In addition, the online module tracks the emergency preparedness audit and safety-critical elements performance audit. MGL uses GIS and the global positioning system to maintain accurate asset records for service repair and maintenance purposes. The company also tracks a set KPIs that are specific to asset integrity in order to monitor its various installations. Further, MGL uses “permit to work” to ensure safety while working on gas installations. The permit types include CNG preventive maintenance; CNG/dispenser breakdown; hot work/cold work; testing, charging and commissioning; MRS/DRS preventive maintenance; and electric works.
requires investments in capital-intensive tech-
the number of incidents linked to the failure of instrumentation of alarms or other internal failures. An analysis of KPIs helps in evaluating the asset integrity performance against the goals of the operator. Finally, in order to improve future performance, plans should be consistently formulated with specified deadlines.
Conclusion Using AIM is crucial for the O&M of pipelines as CGD assets are exposed to various unforeseen damages resulting from internal risks like pipeline leakages and failure of pressure valves or gas flow regulators as well as external risks like natural calamities and ground digging. AIM allows operators to support decisions regarding the functioning of their network. Moreover, successful implementation of AIM solutions provides a higher standard of health and safety for people who are likely to be affected by CGD operations and helps in preventing operational failures. January-March 2014 | Smart Utilities
33
Gas
Scope for ERP
include the following: • Pre-eevaluation screening: In this phase,
packages that are not suitable for the compa-
Integrating information and processes in the CGD segment
ny’s business processes are removed. • Package evaluation: Under this process, the
ERP package best suited for an organisation’s
I
n the current business environment where
An ERP system integrates all the processes of an
competitors are constantly upgrading their
organisation with a central database and a fused
capabilities, organisations must strive for
computing platform. These processes include:
requirement is selected. • Project planning: Implementation strategies
are decided, including time schedules and
operational visibility, control and effectiveness.
• Manufacturing: Engineering, resource plan-
These objectives apply to city gas distribution
ning, capacity planning, material planning,
• Gap analysis: Through this process, compa-
(CGD) companies as well. In order to achieve
workflow management, quality control, materi-
nies create a model illustrating their current
these goals, effective generation and communi-
al bills, the actual manufacturing process, etc.
and desired positions.
cation of accurate information must be ensured
• Finance: Accounts payable, accounts receiv-
• Re-eengineering: In this phase, human factors
within various departments of an organisation. In
able, fixed assets, general ledger, cash man-
such as changing the job responsibilities of
this regard, enterprise resource planning (ERP) plays a crucial role in improving the overall efficiency of a company’s operations.
ERP system
agement, billing, etc.
project deadlines.
employees are taken into consideration.
• Human capital: Recruitment, benefits, com-
• Customisation: In this phase, the ERP pack-
pensations, training, payroll, time and atten-
age is tailored to suit the organisation’s busi-
dance, labour laws, people management, etc.
ness processes.
• Supply chain management: Inventory manage-
• Training of the implementation team: The
An ERP system integrates information and
ment, supply chain planning, supplier schedul-
company trains its employees in system
processes of all functional divisions of an organ-
ing, sales order administration, procurement
isation. It effectively uses an application to run
planning, transportation and distribution, etc.
an entire business. This not only increases effi-
• Project management: Task management,
ciency but also decreases overall costs, thereby
schedules, costs, etc.
improving an organisation’s profitability. In India,
• Customer relationship management: Sales,
three software firms dominate the ERP market –
marketing, commissions, customer contacts,
SAP AG, the world’s biggest business software
after-sales service, etc.
implementation and operations. • Testing: In this phase, tests are conducted to
check for any problems, errors, etc. • Operation: The ERP system is made available
to the entire organisation. • End-uuser training: In this phase, training is
provided to end-users. • Post implementation: This is the mainte-
firm (through its Indian unit, SAP India Private Limited), Oracle India Private Limited and
ERP implementation
nance phase where the trained employees
Microsoft India Private Limited.
ERP implementation has several phases. These
tackle post-implementation challenges.
34
Smart Utilities | January-March 2014
Gas Implementation strategies The successful installation of ERP depends on the implementation strategy. The focus of an imple-
Key challenges and benefits associated with ERP
ment. High overall costs, extensive implementation, etc. are the major shortcomings of this strategy. • Hybrid: This approach is a combination of all
mentation strategy (also known as transition strat-
Key benefits
egy) is on the process of shifting from a legacy
• Reduced manufacturing cycle
the above-mentioned-strategies. Organisa-
system to the new ERP system. Selecting the right
• Reduced production costs
tions with optimal interdepartmental commu-
transition strategy is critical for any organisation
• Reduced inventory overheads
nication and strong managerial leadership can
as there are several issues in ERP implementa-
• Reduced manpower requirement
utilise the hybrid method.
tion. It is imperative to understand the relationship
• Increased transparency in procure-
of ERP transition strategies with the processes,
ments
ERP in CGD companies
people and technologies. This will help in prudent
• Reduced delays in supply chain
A CGD company’s business complexity increas-
selection of the ERP module type or a combina-
• Faster response to changing market
es as several internal and external environmen-
tion of modules. There are various ERP imple-
situations
tal factors affect its operations. Of these, the
mentation strategies. These include:
• Better utilisation of resources
major ones pertain to the limited period of mar-
• Big Bang: Under this, the ERP systems of all
• Increased customer satisfaction
ket exclusivity, regulated margins (due to regu-
• Global outreach
lated gas prices), the capex-intensive nature of
business processes (modules) are installed across the organisation in a single phase. The transition from the existing or legacy system to the new ERP system takes place on a specific date. Some of the advantages of this strategy include low overall implementation costs, faster returns on investments and avoidance of complex integration issues. However, this method has its disadvantages, which include the dedication of significant time and efforts towards pre-implementation planning, high failure rates, etc.
Key challenges
• Single point of failure • Insufficient training of end-users • Lack of top management’s commitment and support
• Lack of employee training • Use of wrong ERP tools • Conflicts among user departments • Ineffective communication with users • Failure of ERP software implementation
the business, and high uptime of the pipeline infrastructure required for uninterrupted gas supply. Therefore, CGD companies must implement ERP solutions to achieve overall operational efficiency. With the adoption of ERP systems, CGD companies can automate and streamline key business processes – from sales and customer service to logistics, financing and reporting. The solution delivers fast, measurable results like improved
• Parallel: Under this, both the legacy and new
Source: International Journal of Rese-
inventory management, lower transportation
ERP systems are kept operational simultane-
arch in Management & Technology;
expenses, increased sales and reduced day sales
ously for a specific period of time. This
Working Paper, MIT Sloan School of
outstanding. ERP integrates business processes
approach provides good recovery options in
Management
and streamlines information flow for faster decision-making for the benefit of customers.
the case of failure. On the other hand, it consumes more resources than other techniques
tages are the requirement for a large technical
in the transition phase.
resource base for developing interface pro-
Conclusion
grams, high overall costs, etc.
The adoption of ERP systems for CGD compa-
• Phased: This strategy calls for the implemen-
tation of one functional module at a time in a
• Process line: In this case, the implementa-
nies in an increasingly competitive environ-
sequential order, and is also known as the
tion strategy is divided to manage parallel
ment has become essential. However, an ERP
modular, functional and sequential approach.
business process flows/product lines. The
project is a large and risky investment. Some
The presence of interface programs is one of
transition from the legacy system to the new
experts have estimated the rate of failure in ERP
the main requirements of this approach. The
ERP system takes place in terms of one
implementation to be as high as 60 per cent.
gap between the legacy and the new ERP sys-
product line (and related resources) at a
Therefore, it is imperative for a CGD company
tems (until the latter is fully operational) is
given time. Once the transition of the first
to understand that ERP implementation must be
bridged by the interface programs. This
product line is complete, the process contin-
undertaken as a phased investment from the
approach has several advantages including
ues sequentially with other product lines.
initial stage. Nevertheless, realising the signif-
lower risk exposure, a step-wise approach and
The benefits of this approach include high
icance of ERP, many CGD operators in India
low resource commitment. Its main disadvan-
success rates and low resource commit-
have implemented the solution. January-March 2014 | Smart Utilities
35
Gas
Increasing Competition Market restructuring promotes growth in US natural gas distribution segment
A
bout 70 million customers consuming 20
country’s local gas distribution business and
Energy Regulatory Commission (FERC) Order
trillion cubic feet (tcf) of natural gas
examines the changing role of natural gas dis-
636 (1992), which mandated the provision of
per annum in the US depend on the
tributors in light of various regulatory and oper-
open access transportation and restricted the
ational changes...
sale and purchase of natural gas by interstate
national distribution network for gas supplies. Gas
pipeline companies. This allowed large-volume
currently accounts for about 22 per cent of the
Impact of legislative and regulatory reforms on market structure
gas users to buy supplies in an open and com-
customer base of 92 per cent residential units, 7 per cent commercial businesses and 1 per cent
The role of natural gas distributors in the US has
pipeline at the interstate level.
large industrial and power generation customers.
changed significantly over the past two decades
total energy consumed in the US per year, with a
petitive market rather than from a single-source
as the country’s legislative and regulatory initia-
The switch to open access suppliers resulted in
About 60 per cent of the natural gas consumed
tives, along with market forces, have helped cre-
a reduction in the customer base of LDCs that
by end-users in the US is delivered by local dis-
ate a more competitive end-user market. This
typically provided bundled sales and delivery
tribution companies (LDCs) and the remaining
can be attributed to the restructuring of pipeline
services. As part of an effort to minimise such
40 per cent is supplied through mainline pipeline
transmission operations in the 1990s and the
“bypassing” of LDCs, a few states established
systems. Although LDCs still account for almost
growing competition between pipeline and local
their own open access programmes that
two-thirds of the total gas supplied to end-users,
distribution segments for catering to large-vol-
allowed LDCs to formulate policies that facili-
their share in the market has declined during the
ume customers.
tated open access.
A major factor in the reform of the natural gas
Natural gas supplies decreased in all end-user
industry was the notification of the Federal
sectors in the late 1990s and mid-2000s, except
past decade due to market restructuring. Smart Utilities presents an overview of the
36
Smart Utilities | January-March 2014
Gas in the power generation sector. The decline in
In addition, the FERC’s order addressed the
the mid-west, the states of Indiana, Michigan
average consumption per user was particularly
needs of small-volume customers — residen-
and Ohio host several of the top 20 (in terms of
evident in the residential and commercial user
tial, commercial and industrial users. “Customer
volumes delivered) investor-owned LDCs such
segments, which are the core customers of LDCs
choice” programmes were also implemented by
as the Dominion East Ohio Gas Company and the
and account for over 50 per cent of the natural
several state regulators and legislatures, or in
Northern Indiana Public Service Company.
gas supplies. Moreover, gas volumes delivered
some cases, the LDCs themselves. These LDCs operate in service territories that
by LDCs declined by 16 per cent despite an increase of 8 million (14 per cent) in their user
By 2007, at least 23 states had implemented
cover large portions of a state. In California, for
base during 2000-10.
these programmes. These states have mandated
instance, SoCal serves the entire southern region
most of their LDCs to offer unbundled trans-
of the state while PG&E, caters to the northern
The US natural gas market has transformed over
portation-only service to residential and small-
region. Such dominant players are also present
the past decade. While earlier LDCs and pipeline
volume customers.
in states such as Texas, Virginia, North Carolina, South Carolina and Arizona, amongst others.
companies operated as both buyers and sellers of natural gas, providing transportation as part of
Market structure and composition
their bundled services, their business and oper-
In the US, there are primarily nine types of com-
According to latest estimates, the top 20
ational environments changed significantly fol-
panies that supply natural gas to one or more
investor-owned LDCs delivered 5.5 tcf of natural
lowing market restructuring.
end-user groups. However, four types of compa-
gas to end-users, equivalent to the total gas vol-
nies predominate, either in terms of volume
umes collectively supplied by the remaining 237
The FERC’s Order 636 mandated that the inter-
delivered or the number of customers served.
investor-owned LDCs.
state pipeline business should be reorganised
These include investor-owned LDCs, municipal
from a merchant (sales) business to a trans-
LDCs, intra-state pipeline companies and inter-
On an average, these players supplied about 53
portation-only operation (open access). More-
state pipeline companies.
per cent of their deliveries on an unbundled transportation-only basis while the remaining
over, by allowing multiple buyers and sellers of natural gas to sign contracts directly with each
Investor-owned LDCs
provided 44 per cent. This is due to the fact that
other, the monopoly or monopsony position of
Of the 1,500 LDCs, 260 investor-owned LDCs are
14 of the top 20 investor-owned LDCs operate in
pipeline operators in the country’s upstream and
currently operational in the US. These companies
states that have implemented customer choice
downstream markets was eliminated. The increa-
cater to the majority of the end-users in the US
programmes. Investor-owned LDCs adapted
sing number of market participants was expect-
(61 million in 2006). The residential customer
quickly to the demands of their customers for
ed to create a more competitive environment,
segment forms the core market of investor-owned
more open access transportation service and
thereby ensuring higher efficiency and offering
LDCs, accounting for about 35 per cent of their
less single-source sales.
lower average natural gas costs to consumers.
total natural gas deliveries per annum.
Municipal LDCs
Open access operations in the interstate market helped stabilise natural gas prices and resulted
The two largest investor-owned LDCs in the
The majority of the local natural gas enterprises
in streamlining the delivery mechanism.
country, Southern California Natural Gas Com-
operating in the US are government owned.
pany (SoCal) and Pacific Gas and Electric
Many of these utilities were formed by small to
Although the order is targeted at only the inter-
Company (PG&E), are located in California, each
medium-sized communities that were unable to
state pipeline industry, it has influenced the
accounting for about 4 per cent of the natural gas
arrange private investments for developing the
operations of some intra-state pipeline compa-
delivered to end-users. The Northern Illinois Gas
local infrastructure required to support their nat-
nies and LDCs. Following the order’s success,
Company is the third largest, accounting for
ural gas demand. At present, more than 930
the state governments started adopting the open
about 2 per cent of all natural gas supplies.
municipal LDCs operate throughout the country.
states have realised the need for open access
Several investor-owned LDCs also operate in the
The four largest municipal LDCs in the country
transportation that allows large-volume con-
north-eastern and mid-western regions of the
are Philadelphia Gas Works (Pennsylvania), San
sumers such as industrial and electric power
US. Keyspan Delivery Inc. mainly operates in the
Antonio Public Service Board’s CPS Energy
generators to sign contracts with the LDCs for
eastern parts of New York State, with subsidiaries
(Texas), the Memphis Light Gas & Water
transportation services only.
in Massachusetts and New Hampshire as well. In
Company and Citizens Gas (Indiana). The high-
access model for local markets as well. Several
January-March 2014 | Smart Utilities
37
Gas est number of municipal LDCs is found in the south-eastern and south-western regions of the country. Texas and Louisiana account for about 20 per cent, with 83 and 85 municipal LDCs respectively, followed by Georgia, Tennessee and Alabama that have over 65 municipal LDCs each. Collectively, the 15 states in these two regions account for over 60 per cent of all the municipal LDCs in the US. Municipal LDCs mainly deliver gas through bundled services rather than transportationonly programmes. The 20 largest municipal LDCs have been delivering only about 25 per cent of their supplies through transportationonly programmes and only 11 per cent of the remaining municipal LDCs use this route to supply gas to end-users. largest US market for natural gas deliveries to
Pipeline subsidiary more than doubled its sup-
Although the vast majority of their customer
power generation facilities is in Florida. Since
plies to power generation companies, from 36 bil-
base comprises residential users, this category
2000, the amount of gas supplied to this con-
lion cubic feet (bcf) in 2000 to 76 bcf in 2010.
accounts for only 32 per cent of all municipal
sumer segment has doubled, which has been
LDC deliveries as compared to the industrial
made possible by adding pipeline capacity such
In the southwest region, five of the largest intra-
sector which accounts for 33 per cent. Several of
as the Gulf stream system in 2002. The two
state pipeline companies in the US operate in
the top 20 municipal LDCs deliver a significant
largest natural gas pipeline companies in the
Texas. Kinder Morgan Tejas and Kinder Morgan
portion of their supplies to electric power gener-
state are the Florida Gas Transmission Company
Texas are the leading companies, accounting
ation companies as well as industrial clients.
and the Gulfstream Natural Gas System.
for over 22 per cent of the total intra-state
Pipeline companies
In western US, the El Paso Natural Gas Pipeline
ly cater to large industrial or electric power
Mainline interstate and intra-state gas pipeline
Company and the Kern River Transmission
generation customers.
companies supply 38 per cent of the natural gas
Company are the major natural gas suppliers to
distributed to end-users, the majority of which is
electric power generation facilities. Nevada is one
Conclusion
provided to large-volume users. In several areas,
of the fastest growing state markets which record-
The US natural gas industry has witnessed sig-
these large gas mainline pipeline systems are
ed an increase of 36 per cent in consumption lev-
nificant changes since the early 1990s, triggered
the primary suppliers of gas to electric power
els during 2000-10. Two interstate pipeline com-
by an interstate restructuring of pipeline trans-
generation plants. Interstate gas pipelines car-
panies – the Kern River Transmission Company
mission operations under the FERC Order 636.
ried about 35 per cent of the total volumes deliv-
and the Tuscarora Pipeline Company – overtook
The order helped promote competition between
ered to these companies during the past 10
the state’s two largest investor-owned LDCs – the
the pipeline and local distribution segments
years, while intra-state natural gas pipelines,
Sierra Pacific Company and the Southwest Gas
catering to large-volume customers.
which operate exclusively within a state’s bor-
Corporation, in terms of gas deliveries to large-
ders, delivered about 30 per cent.
volume customers.
Natural gas pipeline companies account for an
Intra-state pipeline systems also significantly
of their large-volume customers have switched
increasing share of the total natural gas delivered
increased their share in the large-volume natural
to mainline pipeline systems. However, LDCs
to gas-fired electric power plants each year,
gas market in the region. In California, for ins-
still form the backbone of the natural gas distri-
which currently stands at over 40 per cent. The
tance, the Calpine Corporation’s intra-state CPN
bution network in the US.
pipeline supplies. These two companies main-
Overall, natural gas deliveries by LDCs have decreased by 15 per cent since 2000 and some
38
Smart Utilities | January-March 2014
Gas
Key Statistics CGD network and customer base PNG status as of December 31, 2013 State
City covered
Company
Delhi
Delhi, Noida, Greater Noida, Ghaziabad
IGL
Maharashtra
Domestic consumers
Commercial consumers
Industrial consumers
434,009
1,202
538
695,950
2,223
126
1,239,410
14,982
3,705
10,326
90
12,907
256
43
2,514
16
54
Mumbai, Thane, Mira-Bhayandar, Navi Mumbai, MGL, MNGL Pune, Kalyan, Ambernath, Panvel, Bhiwandi
Gujarat
Ahmedabad, Vadodara, Surat, Ankleshwar
GSPC, SGL, Gujarat Gas, HPCL, VMSS, Adani Gas
Uttar Pradesh
Agra, Kanpur, Bareilly, Lucknow
Green Gas Limited (Lucknow),
436
CUGL(Kanpur) Tripura
Agartala
TNGCL
Madhya Pradesh
Dewas, Indore, Ujjain, Gwalior
GAIL Gas, AGL
Rajasthan
Kota
GAIL Gas
Assam
Tinsukia, Dibrugarh, Sibsagar, Jorhat
Assam Gas Company Limited
Andhra Pradesh
Kakinada, Hyderabad, Vijayawada, Rajamundry BGL
Haryana
Sonepat, Gurgaon, Faridabad
186
1
25,215
857
16 371
2,055
15
1
16,269
63
13
2,438,841
19,705
5,427
GAIL Gas, Adani Gas, Haryana City Gas
Total
AGL: Aavantika Gas Limited; BGL: Bhagyanagar Gas Limited; CUGL: Central UP Gas Limited; GSPC: Gujarat State Petronet Limited; HPCL: Hindustan Petroleum Corporation Limited; IGL: Indraprastha Gas Limited; MGL: Mahanagar Gas Limited; MNGL: Maharashtra Natural Gas Limited; PNG: Piped natural gas; SGL: Sabarmati Gas Limited; TNGCL: Tripura Natural Gas Company Limited; VMSS: Vadodara Mahanagar Seva Sadan
Source: Petroleum Planning and Analysis Cell
CNG sales (thousand metric tonnes) State
Company
2011-12
2012-13
April-December 2013 (Provisional)
Gujarat
GAIL Gas; Adani Gas,GSPC, GGCL, SGL,HPCL
409.1
441.8
343.5
Delhi
IGL
649.3
695.1
525.2
Rajasthan (Kota)
GAIL
Maharashtra
MGL (Mumbai), MNGL (Pune)
0.2
0.8
1.2
382.8
425.1
353.0
Andhra Pradesh
BGL (Hyderabad)
Uttar Pradesh
Green Gas Limited (Lucknow), CUGL (Kanpur)
Tripura
TNGCL (Agartala)
3.2
4.3
4.9
Madhya Pradesh
AGL (Indore)/GAIL Gas Limited
10.7
14.5
12.0
Haryana
Haryana City Gas Limited
54.0
73.2
58.5
West Bengal
GEECL
0.0
0.6
0.7
1,637.7
1,817.8
1,438.3
Total
15.8
24.7
18.1
112.6
137.7
121.2
GEECL: Great Eastern Energy Corporation Limited; CNG: compressed natural gas; GGCL: Gujarat Gas Company Limited Source : Petroleum Planning and Analysis Cell
January-March 2014 | Smart Utilities
39
Gas CNG stations and vehicles as of December 31, 2013 State
Company Name
No. of CNG stations
No. of CNG vehicles (million)
Gujarat
GAIL Gas/Adani Energy/ Gujarat Gas, GSPC, GGCL, SGL, HPCL
333
64,082
Delhi/NCR
IGL (New Delhi)
295
71,085
Maharashtra
MGL (Mumbai), MNGL (Pune)
189
39,873
Andhra Pradesh
BGL (Hyderabad)
29
2,677
Rajasthan
GAIL Gas
Uttar Pradesh
Green Gas Limited (Lucknow), CUGL (Kanpur)
Tripura
TNGCL (Agartala)
4
544
Madhya Pradesh
AGL (Indore)/GAIL Gas Limited
16
1,167
Haryana
Haryana City Gas Limited
14
10,124
West Bengal
GEECL
7
356
922
197,489
All India
2
97
33
7,484
Source : Petroleum Planning and Analysis Cell
Pipeline length (km) 35,000
32,720
30,000
26,550
26,726
2011
2012
25,000 20,000
18,000
15,000 10,000
9,174
11,000 7,936
5,000 0 2007
2008
Source: India Infrastructure Research
40
Smart Utilities | January-March 2014
2009
2010
2013
Water
Performance Check
lation of standardised indicators, implementation of management information systems at the city and state levels, and development of
PAS project evaluates progress in service delivery
performance improvement plans. About 1,400 cities in 13 states notified their service delivery status for 2010-11 and targets for 2011-
I
nadequate availability of reliable and updated
collected, the quality of the data is an issue.
12. These data points have not been updated
data on urban water supply and sanitation ser-
• Jawaharlal Nehru National Urban Renewal
so far, making it difficult to assess the
vices has affected project uptake and alloca-
Mission (JNNURM): The union government
tion of financial resources. With the objective of
launched the JNNURM in 2007 to encourage
developing appropriate methods and tools to
reforms and planned development in 65 mis-
PAS project
measure, monitor and improve delivery of water
sion cities. Core civic infrastructure sectors
During the past five years, huge investments
and sanitation services in urban India, the Center
like water supply and sanitation are covered
have been made in water supply and sanitation
For Environmental Planning and Technology Uni-
under the programme and 470 projects have
projects. A robust PAS will assist ULBs to eval-
versity recently launched the Performance Asse-
been sanctioned at a cost of Rs 566 billion.
uate their performance regularly and identify
ssment System (PAS) project. At present, the
While the JNNURM has led to improved pro-
critical areas of intervention, monitor the impact
urban local bodies (ULBs) of Gujarat and Maha-
ject monitoring with regular quarterly updates,
of investments and set realistic targets.
rashtra have been covered under the project.
data and analysis of the impact of new/refur-
progress of cities in achieving targets.
bished infrastructure remain inadequate. For
At the state level, PAS will help in making infor-
The PAS project has three major components:
instance, information related to quality of
med policy decisions related to investment
These are as follows.
water supply is unavailable, which may lead to
priorities, setting tariffs for different consumer
improper allocation of resources.
segments, ensuring judicious allocation of water,
• Performance measurement: Under this com-
ponent, key indicators have been developed
• Service level benchmarks (SLBs): The
formulating strategies for reducing non-revenue
to record service performance across five
Ministry of Urban Development launched the
water/unaccounted for water, identifying areas of
categories.
SLB exercise in 2009 to monitor service
improvement (coverage, cost recovery, etc.) and
• Performance monitoring: Under this, a perfor-
delivery performance. These benchmarks pro-
preparing performance improvement plans.
mance monitoring and dissemination system
vide a standard framework for evaluating ser-
has been set up to help in decision-making by
vice delivery standards in four sectors – water
Besides improving service delivery performance,
analysing and sharing comparative perfor-
supply, sewerage, solid waste management
PAS will also help in increasing accountability ac-
mance results.
and stormwater drainage – across 31 different
ross three tiers – central and state governments,
parameters. The SLB initiative focuses on col-
ULBs/service providers and citizens/consumers.
• Performance improvement: Performance
indicators are used to develop
Three tiers of improving accountability
city service improvement plans
come-linked funding and monitor-
for providing access to improved services and ensuring financial sustainability.
Clearly, there is a need for out-
Union and state governments
l l l
Reform/Outcome-linked funding Regulatory compliance Performance benchmarking
Upward accountability
ing. Successful implementation of PAS in Gujarat and Maharashtra will set the pace for similar initia-
Earlier initiatives In the past, several government programmes have been launched to
tives in other states. ULBs/Service providers
l l l
Performance benchmarking Internal systems/processes Performance Improvement Planning
Internal accountability
improve the provision of civic ser-
toring. While some progress has been made and data on different civic service parameters has been
Bill and Melinda Gates Foundation and is being implemented by the
vices with a focus on assessing service performance and project moni-
(The PAS project is funded by the
Center For Environmental Planning and Citizens/ Consumers
Source: PAS Project
l l l
Grievance redressal Citizen charters Public dissemination
Downward accountability
Technology University with support from the Urban Management Centre in Gujarat and the All India Institute of Local SelfGovernment in Maharashtra.)
January-March 2014 | Smart Utilities
41
Water
Streamlining Services
The services provided under the system can be divided into two categories: • Category A: These services are provided to cit-
Andhra Pradesh’s Mee-seva system to improve governance
T
izens across counters or by kiosk operators within 15 minutes. Citizens are not required to submit any supporting documents at the kiosk.
he Andhra Pradesh government has
• Category B: Services covered under this cate-
taken several technological initiatives to
gory are transactional or statutory in nature.
improve the provision of civic services.
These are further categorised as B1 and B2.
The government launched the Mee-seva sys-
The service delivery time under B1 is less
tem in 2011 to ensure effective and efficient
than five days and can be moved to Category
civic governance. The system is developed as
A from the second and subsequent requests.
an integrated service delivery model with an
The delivery time for B2 services has statuto-
aim to provide improved efficiency, transparen-
ry limits and cannot be moved to Category A
cy and accountability for citizen-related ser-
as they require field verification and back-end
vices through a single point.
processes for every request.
Mee-seva system
Structure of the system
The central government’s National e-Governance
The system involves a three-tier structure to con-
Plan (NeGP) aims at digitisation of government
nect citizens with the departments. Tier I of the
records. Initially, the Mee-seva system covered
system is related to citizens. The central server in
10 services, and its scope has now been expand-
which information from citizens is fed is the Tier II
ed to a total of 300 services through 7,097 Mee-
vice centres (CSCs) established by the Andhra
system. This information is processed for the
seva centres spread across Andhra Pradesh. The
Pradesh government. The scope for improve-
concerned departments, which conclude the
ambit of the system includes services like pay-
ment in e-seva centres, limited service roll-out
structure as Tier III. Tier I and Tier III are connect-
ment of utility bills and the issue of birth and de-
through CSCs, and below-par utilisation of
ed to a central server through a leased line and an
ath, caste and encumbrance certificates, among
developed infrastructure provided the basis for
integrated service digital network is created as a
others. The aim is to bring services to consumers
initiating the Mee-seva system. Under this, all e-
backup. Every department is registered in the sys-
(and not draw citizens towards services) through
seva centres and CSCs were converted to Mee-
tem with a secure user identification, password
the effective use of information and communica-
seva centres. These centres provide services
and digital certificate. The portal displays applica-
tion technology. The system creates an integrated
across 31 departments including agriculture,
tions by users across the service centres. The
database for all services under a single roof,
education, industries, municipal administration,
concerned departments are liable to conduct the
thereby providing citizens a transparent system.
the Unique Identification Authority of India, the
procedure and update the status of the application
Warangal Municipal Corporation, the Hyderabad
with their remarks on the Mee-seva portal.
The system is an improvement over the e-seva
Metropolitan Water Supply and Sewerage Board,
initiative launched in 2001 and the common ser-
and the Panchayati Raj.
The system has been deployed at a centrally
User charges for Mee-seva services (Rs) Category A B
Type of service Certified copies delivered at a kiosk Application data entry, scanning of documents, delivery of certificates
Kiosks
Infrastructure
Department
8
Service centre agencies 4
6
7
20
3
5
7
Source: Department of Information Technology and Communication, Government of Andhra Pradesh
42
Smart Utilities | January-March 2014
Total user charges with service tax 25 35
Additional charges A charge of Rs 2 per page for printing more than one page per copy
Water located state data centre. The technology for
Comparison of Mee-seva with the old process
development and maintenance of the system and the centres has been outsourced from organisations including HCL Infosystems Limited, Spanco Telesystems and Solutions Limited and the Data Management Corporation.
Parameter
Mee-seva
Prior to Mee-seva
Citizen satisfaction level
Very good
Poor
Time taken – for services under Category A
15 minutes across the counter
3-15 days
– for services under Category B
As per the proposed citizen
10-60 days
charter timelines
Advantages of the system
Service availability
The foremost advantage of the system is that it
Time and money spent by citizens to avail of services
clubs a range of services and offers them
– Adangal
Rs 25 per service within 15 minutes
Rs 300-Rs 1,000
through a single window. Thus, the system pro-
– Certified copy of registration
Rs 25 per service within 15 minutes
Rs 500-Rs 1,000
vides an alternative to the conventional process
– RoR 1B
Rs 25 per service within 15 minutes
Rs 500-Rs 1,000
of visiting the respective offices to avail of each
– Birth certificate
Rs 25 per service within 15 minutes
Rs 500-Rs 1,000
Nil
3-15 days
3-45 days, depending on
10-60 days
service with restricted timings and at different locations and helps citizens in saving time and costs of travel. It also provides consumers flexible hours to file an application related to the services offered online. Users have the option of paying for these services online through Airtel
Only at the issuing authority
Processing time for issuing authority – for services categorised for instant service – for services involving departmental workflow
the departmental verification and approval process
Transparency in information
Money, debit cards and credit cards. The entire
Citizens can verify the status of their and at the service delivery centre
Contribution to reduction in
Minimises travel and reduces both
traffic congestion and pollution
It also provides the state government an additional source of revenue. This can be used to improve existing systems or re-invest into the same system, expanding the scope by includ-
Negligible
data application on the Mee-seva portal
data is updated online, which makes the process transparent and provides an efficient system.
7,097 Mee-seva centres
Increases both due to multiple service delivery centres located at varying distances
Procedure for availing
Minimum information required for
of services
citizens to avail of the service
Highly insulated
Source: Department of Information Technology and Communication, Government of Andhra Pradesh
ing additional services and covering more departments, and increasing the area of opera-
Issues and challenges
and the government. However, in order to provide
tion. The total cost of implementing the system
There are some issues that need to be addressed
more convenience to online users, the govern-
was Rs 90 million, and within a year, the gov-
to widen the scope of the system. The first among
ment has decided to develop an online secured
ernment had accumulated revenues of more
these is the lack of education and awareness
portal, through which any citizen can avail of
than Rs 1,500 million.
amongst citizens. The system also faces resis-
Mee-seva services from home/office,” says Jaju.
tance from various departments, that are unwillThe system has also eliminated the role of mid-
ingly to offer their services through Mee-seva
The government also plans to modify the depart-
dlemen. “The centralised architecture of the
centres. Six departments have taken back control
ments and significantly improve the application
Mee-seva system has helped in eliminating the
over their respective services from Mee-seva cen-
platform for the system. It aims to accomplish
requirement for huge hardware establishments at
tres – for example, the police department issues
this by identifying senior officers as nodal offi-
the regional level, which has led to significant
antecedent and character certificates, which was
cers, adding more departments and services to
savings in terms of power consumption and e-
previously undertaken through Mee-seva centres.
the network, digitising of existing data for
waste. In addition, all services are provided
This creates confusion among citizens and has
Category A services, and training operators.
online, through Mee-seva kiosks, which helps in
time and financial implications, thus defeating the
Other plans include approving and digitally sign-
saving paper used for government approval
purpose of the Mee-seva system.
ing Mee-seva requests, scanning and uploading
processes,” says Sanjay Jaju, secretary to gov-
digital signatures for approval of requests related
ernment, information technology and communi-
The way forward
to Category B services, and enabling mobile
cation department, Andhra Pradesh government.
“The system has so far worked well for citizens
applications for availing of services. January-March 2014 | Smart Utilities
43
Water
Complaint Redressal AMC launches a comprehensive system to address civic issues
T
he Ahmedabad Municipal Corporation (AMC), which is responsible for the provision of basic municipal services in
Ahmedabad, was established in 1950 and covers 43 wards. It provides services related to water supply, medical services, public transport, and sewerage and storm water drainage, among others. With an aim to streamline services offered by AMC and facilitate convenient redressal of complaints, AMC launched the comprehensive complaint redressal system (CCRS) in July 2013. The system was introduced to address civic issues faced by the city in a more effective and efficient manner. It provides for categorisation of complaints with respect to their nature and the area concerned. This helps AMC in prioritising its focus areas and highlighting manpower and infrastructure shortages to improve the means of services in the future.
highlight the issue through a call centre, online, or by personally visiting the ward office. The fol-
CCRS
lowing are the various channels for registering
the CCRS-specific website launched by AMC to register a complaint. • Call centre: AMC has set up a dedicated call
The CCRS is a web-based service aimed at
complaints:
centre for people who wish to register their
enhancing customer service management. AMC
• Website: Citizens can lodge a complaint
complaints through mobile phones. They
has launched the system to ensure comprehen-
online related to any municipal service being
can call on a predefined number during stat-
sive service management and efficient service
provided by AMC. They are supposed to use
ed working hours to raise a complaint. AMC has operationalised 30 lines for the same
delivery. Yatinder Naik, head of department, information technology, AMC, explains, “The system was first launched on a pilot basis in 2009 for the north-west zone and offered citizens options to register complaints related to 34 categories. After
Distribution of complaints through various channels (%)
and provides an option for registering complaints through interactive voice response (IVR) in case the complaint is to be registered during the non-working hours or if they
Website, SMS and e-mail: 1
successful review of the pilot project, an upgrad-
cannot get through to the operators. An alter-
ed version of the system including 204 cate-
native is to send a text message in a prede-
gories of complaints was launched to cover the
Call centre: 37
entire city of Ahmedabad”. The software for the system has been outsourced from AMC from
Personal visit: 62
fined format to a number assigned by AMC, upon which the complainant gets a designated call back for further details. The complainant can also register multiple com-
VBSOFT (India) Limited.
plaints through a single call.
Channels to register complaints The system provides consumers various options for registering a complaint. A complainant can 44
Smart Utilities | January-March 2014
• Personal visit: Citizens have the option of regSource: AMC
istering a complaint at the ward office. They are supposed to provide operators all the nec-
Water essary details for further processing of com-
A snapshot of Website complaint registration
plaints. AMC has operationalised 64 ward offices and six zonal offices for the same. • Email: AMC also provides the option to regis-
ter complaints through email. After the successful registration of complaints through any of these methods, the complaint is automatically forwarded to the concerned area officer through an SMS and the complainant receives a complaint acknowledgement number for further follow-up. The officer is assigned a particular time frame for addressing the issue and update the complaint status as closed thereafter. The system sends an automatic informative text to the complainant after the redressal. The complaint is forwarded to a higher authority in case an issue is reopened due to dissatisfaction or it is not addressed and closed within the specified time period.
Advantages of CCRS The system helps to fast-track the entire process of registering a complaint and redressing it. The biggest advantage is that it does away with the requirement for the physical presence
Source: AMC
of the complainant at AMC office. So far, 38 per cent of the complaints have been registered
one of the cases, a citizen had lodged a com-
The Way forward
through the call centre, website, SMS, and e-
plaint with regard to non-operational street lights
The system has so far received 243,000 com-
mail, which shows the increasing awareness
in the city’s Maninagar area. A message was
plaints over a period of eight months, implying
amongst citizens. The system also provides
sent a few hours after the registration of the com-
an average of 30,375 complaints per month.
flexibility to register complaints round the
plaint that the issue has been resolved, while the
Considering the fact that Ahmedabad was the
clock. The options with complainants to reopen
lights were still not operational. Citizens have
first city in Gujarat to implement such a system,
complaints due to their dissatisfaction and to
faced similar issues even after reopening com-
awareness amongst citizens has been reason-
track their complaints throughout the redressal
plaints. They have also complained about no
able. This is likely to increase with time as eight
process are other major positives of CCRS.
response on the designated contact number for
other cities in Gujarat are planning to implement
Another key option provided by the system is
complaint registration.
CCRS. “AMC also plans to integrate CCRS with
anonymous reporting of illegal works.
the geographic information system (GIS) at a “Despite the issues, installation of CCRS has
later stage, which is likely to enhance the tech-
Issues and challenges
been a major step on the part of AMC in its bid
nological aspects of the system and allow further
The system has also faced some roadblocks in
to provide the citizens an accessible and user-
efficiency improvements,” says Naik.
successful provisioning of efficient services to
friendly complaint system. The five-level system
citizens. On several occasions, complainants
has been designed in a way that complainants
Going forward, AMC should address issues
have received messages stating that the issues
can access the concerned officers on their
related to CCRS so that the civic body is able to
have been addressed and the case has been
phones in case an issue is not addressed as per
provide a streamlined structure for registering
closed, even when the issue is not resolved. In
their expectations,” says Naik.
complaints to Ahmedabad’s citizens. January-March 2014 | Smart Utilities
45
Water
The MIS Advantage MCC improves water billing process
ious tariff categories, history of payment of a particular consumer, etc. Also, a web-based resource centre has been created, wherein information related to water by-laws, water conservation tips, the procedure for checking water leakage, water connection forms, etc. are uploaded by MCC officials. For consumers who do not have access to the internet, the civic agency dispatches hard copies of water bills through post. A duplicate copy of the same duly signed by the consumers along with their mobile numbers is sent back to MCC
T
for future reference. These consumers can pay o improve revenue collection and opera-
effectively manage water consumption data and
their water bills at the nearest e-Sampark centre
tional transparency, the Municipal Cor-
enhance transparency in the billing and collection
by showing the water bill or the SMS. At present,
poration Chandigarh (MCC) has been
process. The new system was introduced in
there are 12 e-Sampark centres in the city.
taking initiatives to streamline the billing process
August 2013 with a long-term objective to replace
and for efficient recovery of water bills. The civic
the manual billing process with an advanced digi-
Advantages and the way ahead
agency has taken steps such as setting up citi-
tised billing process. It has been designed and
The online system has resulted in greater cus-
zen facilitation centres (e-Sampark); conducting
developed by the National Institute of Electronics
tomer satisfaction by reducing the possibilities of
special drives for disconnecting the water
and Information Technology (NIELIT). MCC has
human error in the billing process. Further, avail-
connections of defaulters; developing an online
also signed an MoU with the Directorate of
ability of up-to-date records of water use (latest
complaint redressal system and a management
Telecommunication for operating the system.
readings) and supporting documents ensures that
information system (MIS) for water billing; and
consumers receive water bills based on actual
reconciliation of water billing data for identifying
Under this system, consumers can receive the
consumption instead of the average bill, which is
outstanding payments and defaulters.
details for outstanding bills along with the due
generated without meter reading. Instances of
date of payment through SMS and email as and
non-payment of bill due to delays in receipt/non-
At present, MCC incurs huge expenses on its
when a bill is generated. To avail of the service,
receipt of its hard copy have reduced as con-
water operations, while revenue collection rema-
consumers are required to register their mobile
sumers now receive bill alerts through SMS and
ins low due to illegal connections and non-pay-
number and email address on MCC’s official
email. Nonetheless, the system is fairly recent,
ment of water bills. Moreover, the civic agency is
website. Consumers can submit their meter
and is yet to make any significant impact on the
recording losses due to increasing power costs.
readings online and update their personal
billing process and revenue collection.
Currently, the city has 150,000 registered water
details. The system sends SMS alerts to the
connections including residential, commercial
registered mobile number as reminders about
Going forward, MCC plans to revamp its IT sys-
and institutional users. Every year, it pays more
the payment of outstanding water bills. Further,
tem to improve operational efficiency. It would
than Rs 700 million in electricity charges for pu-
the MIS provides customer information related
integrate all e-governance modules to form a
mping water into the city. Against this, the reve-
to the tariff structure for the domestic, industri-
centralised and connected system. At present,
nue generated from water tariffs is estimated at Rs
al, commercial and institutional consumer cat-
computerisation of civic services is undertaken
650 million. The civic body spends over 75 per
egories; water bill calculation; and the proce-
in different modules, which are not interlinked.
cent of the investment allocated for maintenance
dure for lodging complaints for defective water
Centralisation of various modules will not only
of its systems on payment of electricity bills.
meters and other water connection-related
help the civic agency in delivering services
issues. Consumers can also access MIS re-
online but will also improve responsiveness to
Management information system
ports related to the defaulters’ list, the monthly
local needs. In addition, it will expand the scope
One of the biggest initiatives taken to improve rev-
revenue generated, the tariff structure, con-
for other technological initiatives to improve the
enue collection is the development of an MIS to
sumption, the number of consumers under var-
customer interface. „
46
Smart Utilities | January-March 2014
Water and Wastewater in India (Research report with quarterly updates)
India Infrastructure Research (publishers of Indian Infrastructure magazine and Urban Water & Sanitation newsletter) is currently developing and will soon release the 2014 edition of “Water and Wastewater in India” report, the most comprehensive and up-to-date study on the subject in India. The “Water and Wastewater in India” report will cover both municipal and industrial segments.It will have three sections with 20 distinct chapters: Section I - Macro Analysis z
Overview
z
Water Pricing
z
Recent Developments (last 12-15 months)
z
Financing
z
Policy and Regulatory Framework
z
Future Outlook and Projections (2014 to 2019)
z
Water Demand and Supply Sources
Section II – Segment Analysis: Municipal Water and Wastewater z
Segment Size and Growth
z
24/7 Water Supply
z
Key Government Programmes
z
Non-Revenue Water Reduction
z
PPP Experience
z
Metering
z
Municipal Sewage Treatment
z
Key Projects
new
rt
repo
Section III – Segment Analysis: Industrial Water and Wastewater z
Segment Size and Growth
z
Desalination
z
Key Industrial Consumers
z
Key Projects
z
Recycle and Reuse
In addition, subscribers will receive three quarterly updates (July 2014; October 2014; and January 2015) providing: z
Update on JNNURM
z
Status of Key Projects - Existing/Upcoming
z
Summary of Key New Developments
z
Analysis of Policy and Regulatory Developments
z
Analysis of Key Trends
z
Key Data and Statistics
The report (alongwith the quarterly updates) is priced at Rs 50,000 (plus 12.36% service tax) for a Site Licence and Rs 75,000 (plus 12.36% service tax) for an Enterprise Licence. The report along with a presentation in PDF format will be ready by mid-April 2014.
To order a copy, please send a cheque or draft payable to “India Infrastructure Publishing Pvt. Ltd.” and mail to: Raktima Majumdar Manager - Information Products Tel: +91-11-46078365(D), Fax: +91-11-26531196 Mobile: 91-8826127521 Email: raktima.majumdar@indiainfrastructure.com India Infrastructure Publishing Pvt. Ltd., B-17, Qutab Institutional Area. New Delhi - 110 016, India To subscribe, please send cheque/demand draft in favour of "India Infrastructure Publishing Pvt. Ltd." to the above address.
Water
Customer First JUSCO strengthens grievance redressal mechanism through Sahyog Kendra
U
ntil 2004, municipal services in
tralised complaint redressal number.
Jamshedpur were provided by
The complaint is registered in a central
the Town Services Division of
database, and is sent to the respective
Tata Steel Limited. The division provided
departments for redressal. This reduces
regular water supply and was reasonably
the need for direct contact between
successful in meeting customer needs.
customers and service providers.
However, the growing population and
Further, there is a provision for register-
urbanisation in the city’s peripheral
ing repeat or recurring complaints with
areas limited the capacity of the division
the Sahyog Kendra. This complaint reg-
to effectively provide services. In view of
istration is followed by an in-depth
this, the Jamshedpur Utilities and
analysis of the last complaint, the nature of action taken and the reasons
Services Company (JUSCO), a wholly owned subsidiary of Tata Steel, was established in August 2003, to provide
JUSCO wins Best Practice Award for “Customer Service and Complaint Management in Water Distribution”
utility services including water supply, power
service standards uniform across locations and
supply, waste management and other allied civic
customer categories.
for non-redressal of complaints on a permanent basis.
At present, the system has eight service categories classified as town electrical, integrated
services to a part of the Jamshedpur Notified Area Committee. At present, JUSCO’s operational area
Customer grievance redressal initiative
customer service, water management, planning
spans 56.67 square km.
Prior to the establishment of the Sahyog Kendra,
engineering and construction, public health,
each civic department had its own complaint
fleet management, billing and customer care,
Over the last decade, JUSCO has taken several
redressal cell responsible for addressing com-
and horticulture. For administration purposes,
initiatives including metering, installation of
plaints. However, as the redressal agencies were
the area under the Sahyog Kendra has been
supervisory control and data acquisition systems
different, the complaint redressal time and qual-
divided into seven zones that have been mapped
at water treatment plants and geographic infor-
ity varied across departments, leading to cus-
using GIS technology.
mation system (GIS)-based mapping to increase
tomer dissatisfaction. To ensure that complaints are addressed within
its operational efficiency. Besides, the utility has taken steps to improve customer satisfaction –
To address this issue, JUSCO established the
the service level guarantee (SLG) period, a
setting up of the Grahak Sewa Kendra (a cus-
Sahyog Kendra, a single-window complaint log-
system of job prioritisation has been introduced.
tomer helpdesk), and installation of “any time”
ging and follow-up system, to handle all
In the event of complaint redressal delayed
payment machines (for utility bill payments) and
customer complaints. Under the system, all
beyond the SLG period, an automatic escalation
online systems for billing enquiries.
complaints are tracked and monitored from a
of priority takes place, and the higher officials
single point. This enables the creation of a cen-
are informed about the delay. Apart from this, the
In 2004, JUSCO established a 24x7 customer
tralised database that provides information about
facility maintains a follow-up list to ensure time-
grievance redressal cell, Sahyog Kendra, to effe-
the quality of services being provided by JUSCO,
ly redressal of complaints. Officials at the
ctively address the grievances of the over 60,000
and the quality gap between the service bench-
Sahyog Kendra randomly call 100 customers on
customers under its jurisdiction. Through this
mark and the actual service level.
a daily basis for their feedback on services. Based on the feedback, the service level expec-
facility, customers can register complaints for all services through a single integrated agency. The
Customers can lodge complaints related to ser-
tation, which is the average time that elapses
initiative has helped the utility to enhance
vices including water management, solid waste
before the complaint is addressed, is estimated
responsiveness to civic services and make its
management and power by dialling the cen-
to improve the service quality and the customer
48
Smart Utilities | January-March 2014
Water experience. The utility also assigns specific out-
Standards for service delivery
comes and performance measures for services in order to ensure that its employees and field
Indicator
Definition
staff are trained to meet operational efficiency
SLG
Expected compliance time by a service department
and service delivery requirements.
Service level performance (SLP)
Actual performance against SLG; SLP is the number of complaints within SLG/total number of complaints with defined SLG
Advantages and the way ahead
Service level expectation (SLE)
Average time before the complaint is addressed
The Sahyog Kendra initiative has brought about
Actual turnaround time (ATAT)
Time taken by JUSCO to resolve a complaint
key changes in the grievance redressal mech-
Capability gap (CG)
JUSCO’s inability to promise a service level expected by the customer CG: ATAT-SLG
anism by replacing the conventional top-down models with an advanced mechanism. The
Service gap (SG)
Gap between ATAT and SLG SG: ATAT-SLG
facility has streamlined the process of complaint registration by reducing the number of
Quality gap (QG)
Sum of capability gap and service gap QG: CG+SG
customer contact points from 16 to 1. According to the latest data, the overall redres-
Source: Asian Development Bank
sal of customer complaints within the SLG period has reached 93 per cent. Moreover,
SLG based on customer feedback
owing to the efforts of JUSCO, the SLG period has reduced significantly in certain cases. For
Complaint
instance, the SLG for pipe leakage complaints
Overflow from overhead tank
SLG period (day/s) 1
has reduced from 3 days to 1 day. This has led
Drinking water scarcity
2
to an increase in customer satisfaction and a
No water
1
reduction in persistent follow-ups from cus-
Pipe leakage or pipe burst outside the house
1
tomers. Also, access to real-time information
Cleaning of overhead tank
2
about customer satisfaction and expectations
Stormwater, rainwater, front-side drain repair
2
has reduced the time lag before redressal
Source: JUSCO
action is taken.
JUSCO’s complaint registration and service delivery mechanism
The initiative has been widely recognised and JUSCO won the “Customer Service and Compl-
• To register a complaint, customers call a centralised complaint number and are required
aint Management in Water Distribution” award
to provide their phone number, ID and location. In the case of infrastructure-related prob-
instituted by the Indian Utility Knowledge and Net-
lems, JUSCO maps down the location through GIS.
working Forum in February 2014 for outstanding
• After identification of the location, customers are asked to specify the job code (as listed in the Sahyog Kendra’s complaint booklet), followed by the details of the complaint.
• The complaint is initially registered in a central database, along with the customer ID and the nature of the complaint identified by the job code.
• The Sahyog Kendra then sends a request for addressing the complaint by categorising it according to the relevant department and sending it to that department for considera-
efforts in the area of customer service and complaint management. In 2009, it was presented a national award for customer service and complaint management by the central government.
tion. A job card is simultaneously printed at the Sahyog Kendra and sent to the allocat-
To conclude, even though the complaint redressal
ed employee for complaint redressal.
mechanism for the area under JUSCO has
• The complainant is communicated a reference number and an SLG, which is the maximum time within which the service department expects to address the complaint.
• After the complaint is addressed, customers are required to fill the job card indicating their level of satisfaction with the action taken to resolve the complaint. The job card must also be signed by the concerned employee before handing it back to the department responsible for resolving the complaint. The department then updates the database for review at the Sahyog Kendra.
improved significantly, the service delivery and redressal mechanism in the remaining area of the Jamshedpur urban agglomeration faces several challenges. JUSCO’s initiatives to improve service delivery and customer satisfaction will serve as an example for other utilities to learn from and take similar steps to improve civic amenities. January-March 2014 | Smart Utilities
49
Water
On A Fast Track GMC expedites application processing through the citizen service centre the service delivery mechanism. The functioning of the CSC was fully computerised in 2005. The facility acts as a centralised window for accessing GMC’s services. At the time of submission of the application, the customer is provided an acknowledgement number, which acts as a primary key to monitor the status of application, avoiding the need for frequent visits to the GMC. The application is then sent to the con-
T
cerned department, which has to address it withhe Guntur Municipal Corporation (GMC)
citizens as well as government officials.
in the stipulated time frame.
covers an area of 45.71 square km and is
The shift to the CSC
At present, the number of services offered by the
vices in 52 wards. As per the latest data, there
Prior to the establishment of the CSC, citizens
CSC stands at 47, as compared to five in 2005.
are 110,000 households under GMC, of which
had to visit several municipal departments to
The facility caters to applications for the
only 55 per cent have registered water connec-
access services. They had to identify the con-
accounts, administrative, engineering, public
tions. In addition, of the registered water con-
cerned department and contact the relevant offi-
health, revenue, and town planning departments,
nections, only 2.2 per cent are metered. The total
cer to submit applications. The applications
and pension schemes. The applications are relat-
quantity of water supplied stands at 115 million
often moved from department to department and
ed to new water tap connections, new under-
litres per day. Moreover, against the benchmark
citizens had no means to track their status. Also,
ground
of 100 per cent, only 65 per cent of households
the system lacked transparency, often leading to
birth/death certificates and occupancy certifi-
are covered under GMC’s solid waste manage-
customer dissatisfaction.
cates, house tax fixation, etc.
solid waste collection charges stands at 72 per
The inability of the traditional administration to
Application processing at the CSC is regularly
cent. The civic agency aims to increase its ser-
effectively meet citizens’ needs led to the estab-
monitored. To monitor the system, the head of the
vice coverage in the near future.
lishment of the CSC. GMC introduced the facil-
department conducts a regular review of pending
ity in 2001 as part of administrative reforms to
applications. Further, the GMC commissioner
make the system more transparent and improve
monitors the performance of the CSC every week.
responsible for the provision of civic ser-
drainage
connections,
issue
of
ment services. The efficiency in the recovery of
In the past decade or so, GMC has taken sever-
In case an application is not processed within the
al initiatives to improve its service delivery mechanism. These include the organisation of solid waste disposal programmes, construction of a water filtration plant, laying of pipelines, renovation of the water supply system, establishment of a call centre for complaint redressal and introduction of online tax payment services. One of the key initiatives is the establishment of the citizen service centre (CSC). The facility has significantly streamlined the process for submitting applications, queries and requests for 50
Smart Utilities | January-March 2014
The CSC has helped in increasing the efficiency of service delivery by restructuring the application process and utilising management information system.
stipulated time, the concerned department pays Rs 50 per day to the applicant till its processing. This cost is recovered from the employee in charge of the application. In November 2006, GMC launched a toll-free complaint registration number for lodging complaints if applications are not processed in time. At the time of registering a complaint, citizens are provided a complaint number for tracking the
Water Application processing at the CSC
The CSC’s performance during 2005-13 Year
Total applications
Total applications disposed of
Disposal
received
Before due date After due date
Before due date After due date
• Helpdesks are provided at the CSC to provide customers information and
2005
5,332
4,136
1,196
77.57
22.43
2006
6,583
5,753
830
87.39
12.61
2007
29,734
20,889
8,845
70.25
29.75
2008
43,445
30,751
12,694
70.78
29.22
• The application is scrutinised and
2009
47,492
26,035
21,457
54.82
45.18
entered into the MIS. An acknowl-
2010
54,541
41,319
13,222
75.76
24.24
2011
78,026
54,376
22,025
69.68
28.23
posal is generated and handed over
2012
71,325
49,277
20,042
69.09
28.10
to the customer.
2013
30,714
11,112
16,061
36.18
52.29
application forms.
• Customers submit their applications at the CSC through letters, phone calls or in person.
edgement of the same with basic details along with the due date of dis-
• Thereafter, the application is categorised based on the type of services and sent to the concerned department
Note: Disposal is the time taken to complete the application request. Source: GMC
for processing.
• After all the procedures are completed
Processing time of key services under the CSC
at the concerned department, the result in the form of an endorsement/
Service
approval/rejection is sent back to the
New underground drainage connection
CSC within the stipulated time.
• The status of the application is updated on the MIS, and the result is despat-
Processing time (days) 30
Underground drainage repair New tap connection
ched to the applicant. Moreover, an
Tap repair
SMS regarding the status of the appli-
Issue of birth and death certificates
cation is sent to the applicant.
Single-window scheme
7 30 7 30 7
Source: GMC
status of the complaint. technology. This has helped both customers and
the cost of transaction and the time required to
Advantages and the way ahead
the civic agency to monitor pending applications.
access services. The status of applications can be
The CSC has improved citizens’ access to gov-
Therefore, the system is now more transparent and
tracked online, without the need for physically
ernment services. This is evident from the
accountable. Moreover, the CSC has decreased
approaching government officials.
increase in the number of applications received by GMC from 5,332 in 2005 to
GMC’s CSC initiative was appreciated
30,714 in 2013. Besides, GMC maintains
by the Ministry of Urban Development
a record of department-wise applications
at the National Urban Water Awards in
received. In 2013, the public health
2010 for initiatives in the citizen ser-
department accounted for the highest
vices and governance category. Going
number of applications (52 per cent), fol-
forward, GMC plans to upgrade various
lowed by the engineering and revenue
components of the centralised CSC and
departments (14 per cent each). Further,
develop a division-wise CSC for effi-
the CSC has helped in increasing the effi-
cient service delivery. This will serve as
ciency of service delivery by restructuring
an example for other urban local bodies
the application process and utilising
to implement similar projects in areas
management information system (MIS)
under their jurisdiction. January-March 2014 | Smart Utilities
51
Water
Investing in Technology Maynilad’s initiatives to improve water supply
M
vatisation of the Metropolitan Waterworks and Sewerage System, which had been in charge of providing water supply and sewerage disposal services in the Greater Metro Manila area. However, financial, legal and regulatory disputes led to a change in the ownership of Maynilad a
aynilad Water Services, Inc. is the lar-
Makati, Caloocan, Pasay, Parañaque, Las Piñas,
decade later. In 2007, the consortium of DMCI
gest private water concessionaire in
Muntinlupa, Valenzuela, Navotas and Malabon (in
Holdings, Inc. and the Metro Pacific Investments
the Philippines in terms of customer
Metro Manila); and the cities of Cavite, Bacoor
Corporation acquired about 84 per cent of the
base, serving a population of about 8 million. It is
and Imus, and the towns of Kawit, Noveleta and
company’s shares, with Lyonnaise Asia Water
responsible for water supply and wastewater ser-
Rosario (in Cavite province).
holding the remaining 16 per cent.
The company was formed in 1997 after the pri-
Since its reprivatisation in 2007, Maynilad has
vices in the West Zone of the Greater Manila Area, which includes the cities of Manila, Quezon City, Picture courtesy: Maynilad Water Services, Inc.
been expanding infrastructure facilities and improving operations and network efficiency, investing about PhP 38 billion till 2012. More than 50 per cent of the investment was directed at reducing system losses through an extensive non-revenue water (NRW) management programme, which included the establishment of district metered areas (DMAs), undertaking massive leak repairs, obsolete and faulty pipe replacements and active leak detection. During 2007-12, the total physical loss measured on the basis of NRW in total water supply decreased by almost 29 per cent. The company replaced around 1,108 km of damaged pipelines. It also took several technology initiatives to ensure efficient management of infrastructure facilities and improve service delivery.
Water management initiatives To improve management of the water distribution network, Maynilad has established 1,302 DMAs covering the entire concession area. Of these, more than 600 DMAs have been automated for faster acquisition of field data. This helps the company in monitoring and controlling water distribution as well as measuring the level of NRW in each hydraulic area. The company also has been at the forefront of using advanced technologies to detect physical water losses in its distribution network. A number of modern leak detection technologies including Bentley’s WaterGEMS technology, the Sahara® mobile leak detection system, the Aquascan 52
Smart Utilities | January-March 2014
Water Trunk Main leak noise correlator, and the JD7
Maynilad’s operations
LDS2010 Investigator closed circuit television leak noise correlator have been deployed. These technologies help in proactive leak detection
Population served
and expeditious repair of reported leaks, which
Total billed volume (million cubic metres)
prevents water contamination and reduces water
Pipes laid per year (km)
losses. To further reduce losses due to system inefficiencies, Maynilad undertakes pipeline replacement and repair every year. In 2013, the
Water losses (%) 24-hour water availability (% of population)
company invested about PhP 2 billion in its
No. of connections ('000)
NRW management programme to reduce physi-
Over 7 psi pressure (%)
cal and commercial water losses. Of the total
*For 2012
investment, about PhP 1.1 billion was spent on
Source: Maynilad Water Services
2007
2013
530,228
895,462
286.00
428.42*
318
220
67
38
46.0
97.8
703.5
1,129.0
53.0
99.9
replacement of 168 km of obsolete and faulty pipes in its service area. The company recov-
work. The telemetry system uses the field moni-
evaluate its pipe laying activities. The data
ered about 140 million litres per day (mld) of
toring user system (FieldMOUS) technology for
repository, which earlier had only one access
potable water, which is enough to meet the
monitoring vital field data in a compact manner.
point, has been opened to multiple users with
requirements of 140,000 households.
At present, the company has installed this system
multiple access channels. Post-upgradation,
at the Pasay pumping station. All vital information
about 40 authorised users can access and edit
In October 2012, Maynilad had operationalised a
regarding operations including production levels
data on a real-time basis. Moreover, Maynilad
meter laboratory to test residential, commercial
and daily supply averages is integrated with the
has acquired 12 units of the global positioning
and industrial water meters on a regular basis. The
telemetry system and made accessible through
system and 10 units of the electronic total sta-
facility is capable of testing large meters of up to
FieldMOUS. Likewise, other facilities including tr-
tion for better monitoring of infrastructure facili-
300 mm in size. It is equipped with an advanced
eatment plants, hydraulic system gauging points,
ties. These technologies have helped the com-
meter test bench, which determines meter accur-
pressure points and deep wells will be integrated
pany in field surveying, data collection, project
acy by comparing the volume of water flowing
with the telemetry system and will have dedicated
management, NRW management, and right-of-
into the meter with the registered reading.
site pages for monitoring operations data.
way and facility mapping.
In the same year, the company initiated a six-
Meanwhile, the company has installed variable
Maynilad has also taken a number of initiatives
year programme involving the adoption of a
frequency drives (VFDs) and high efficiency
to improve customer interface and collection
supervisory control and data acquisition system
electric motors at its 13 pumping stations and
efficiency. It has developed the infoboard ser-
to monitor and control infrastructure facilities.
14 online boosters to save on electricity costs.
vice Text Tubig and customer service helpdesk
The system is being used for centralised super-
VFDs are electronic controllers that adjust the
email facilities to provide water service advi-
vision of supply operations. To begin with, the
speed of an electronic motor, allowing the
sories and other useful information such as ser-
system has been implemented on a pilot basis in
modulation of pump speed and flow rate accord-
vice application requirements. Maynilad has
the Putatan water treatment plant and the Pasay
ing to actual requirements. They also help in
also introduced the Read and Bill facility, which
pumping station with the goal of adopting the
reducing mechanical and electrical pressure,
involves the use of technology for immediate
technology to automate operations in all treat-
which reduces maintenance and repair costs.
printing and issuance of water bills once the reading is recorded. Further, the company has
ment plants and pumping stations. Currently, it is being utilised for remote monitoring and data
To further improve its services, Maynilad has
initiated the issuance of electronic statement of
acquisition, which has helped in reducing oper-
established a geographic information system
accounts in lieu of printed bills to select cus-
ational costs and enhancing efficiency.
department to update and validate the geograph-
tomers. In November 2013, it signed an MoU
ical location of its pipes and laterals. This
with Citibank to allow customers to automatical-
Maynilad is also installing a telemetry system for
enables the company to efficiently locate and
ly pay monthly water bills through their Citibank
centralised data acquisition and monitoring of
decommission deteriorated pipes, search for
credit cards. These initiatives helped Maynilad
various facilities throughout the distribution net-
possible leaks and illegal connections, and
improve its collection efficiency from 92 per January-March 2014 | Smart Utilities
53
Water Picture courtesy: Maynilad Water Services, Inc.
2012 from PhP 55.21 billion in 2011. Going forward, Maynilad plans to continue with its efforts to deliver improved water services. To this end, it has earmarked PhP 18 billion of investment for improving water supply and wastewater services, the highest capital investment by the company since water services in Manila were privatised in 1997. Around PhP 8.2 billion (46 per cent) of the capital investment will be spent on wastewater management projects, including the construction of several sewage treatment plants and conveyance systems in Muntinlupa, Parañaque and Valenzuela. To ensure sufficient water supply and pressure in the West Zone, PhP 2.3 billion has been earmarked for constructing, rehabilitating and upgrading boosters, pumping stations and reservoirs. cent in 2009 to 96 per cent in 2012.
On the other hand, the company’s total cash operating expenses increased by 16.5 per cent
Further, the company plans to reduce its physical
In the last one to two years, Maynilad has
year on year to PhP 4.63 billion in 2012. At the
water losses to 36 per cent by end-2014. It has
expanded its footprint in the Philippines by ven-
same time, total non-cash operating expenses
earmarked PhP 2.2 billion for the NRW reduction
turing into new water-related projects outside its
increased by about 15 per cent to PhP 2.13 bil-
programme, which covers meter and pressure
concession area. In August 2012, the company
lion from PhP 1.86 billion.
management, active leakage control, primary line assessment, selective pipe replacement, and
signed a share purchase agreement with Philippine Hydro, Inc., effectively taking over opera-
The way forward
DMA management. Of the total amount, PhP 1.4
tions and management of four water treatment
As a result of various initiatives, the share of
billion would be used for pipe replacement pro-
plants in Luzon. The year 2012 also saw Mayni-
Maynilad’s customers with 24x7 water availabil-
jects in select parts of Manila, Caloocan, Mala-
lad enter the Visayas and Mindanao areas
ity increased to 97.5 per cent in 2013. At the
bon, Valenzuela, Parañaque, Las Piñas and Cavite.
through a share purchase agreement between the
same time, the share of NRW dropped to 38 per
About PhP 665 million would be used for meter
Metropac Water Investments Corporation
cent from 41 per cent in 2012. The company
management projects, establishment of smaller
(MWIC) and the Manila Water Consortium to
expanded its customer base by connecting
DMAs, leak repair and diagnostic activities. The
implement the Carmen Bulk Water Supply
70,962 new accounts to its distribution network.
rest of the allocation would be used for leak
Project. Maynilad is MWIC’s technical partner in
This took Maynilad’s total number of accounts to
detection equipment and technical services. In
the venture, which will deliver about 35 mld of
1,129,497. Moreover, its asset base increased
addition, about PhP 314 million has been allotted
water to the Metro Cebu water district.
by 10.7 per cent to PhP 61.13 billion at end-
for the modernisation of the company’s data man-
Financial performance During 2007-12, the company’s total revenue witnessed a compound annual growth rate of 20 per cent. In 2012, the total revenue stood at PhP 15.4 billion, registering an increase of 15.6 per cent over the previous year. Its earnings before interest, taxes and depreciation grew by 17 per cent to PhP 10.83 billion in 2012 as compared to PhP 9.25 billion in 2011. 54
Smart Utilities | January-March 2014
Maynilad has earmarked PhP 18 billion for improving water supply and wastewater services, the highest capital investment by the company since water services in Manila were privatised in 1997.
agement and information systems. Maynilad also plans to expand its customer base by 53,000 accounts in 2014. It has earmarked an investment of about PhP 500 million for expanding coverage in Bacoor, Imus, Kawit, Noveleta and Rosario (in Cavite province). Around 70 km of primary pipes and over 80 km of secondary pipes will be laid to expand its distribution network.
Water
Key Statistics Allocations and disbursements under the JNNURM Costs approved and funds released under the UIG, by sector (Rs million) Sector/Key indicator
Cost approved as on September 30, 2013
Funds released during October-December 2013
Approved cost of projects
207,021.2
16,284.8
ACA committed
101,137.0
7,339.7
ACA released
75,008.9
196.1
Subtotal (A)
383,167.1
23,820.6
169,304.8
2,615.1
ACA committed
81,646.7
603.7
ACA released
53,899.2
1,432.9
Subtotal (B)
304,850.7
4,651.7
Approved cost of projects
84,728.5
1,282.8
ACA committed
34,576.0
231.6
ACA released
25,736.4
519.7
Subtotal (C)
145,040.9
2,034.1
Total (A+B+C)
833,058.7
30,506.4
(A) Water supply
(B) Sanitation (sewerage and solid waste management) Approved cost of projects
(C) Drainage/Stormwater drainage
Note: Data includes projects approved in the transition phase (March 31, 2012-March 31, 2014) JNNURM: Jawaharlal Nehru National Urban Renewal Mission; ACA: Additional central assistance; UIG: Urban Infrastructure and Governance
Source: Ministry of Urban Development
January-March 2014 | Smart Utilities
55
Water Costs approved and funds released under the UIDSSMT, by sector (Rs million) Sector/Key indicator
July-September 2013
October-December 2013
(A) Water supply Approved cost of projects
93,569.7
3,206.9
ACA committed
73,497.1
2,565.5
ACA released
66,553.5
399.2
Subtotal (A)
233,620.3
6,171.6
Approved cost of projects
31,224.1
1,080.4
ACA committed
24,542.2
864.3
ACA released
18,102.8
277.5
Subtotal (B)
73,869.1
2,222.2
Approved cost of projects
7,801.0
9.4
ACA committed
6,679.9
7.5
ACA released
6,358.6
-
Subtotal (C)
20,839.5
16.9
Approved cost of projects
3,529.6
348.8
ACA committed
2,917.1
279.0
ACA released
2,218.4
155.1
Subtotal (D)
8,665.1
782.9
336,994.0
9,193.6
(B) Sewerage
(C) Stormwater drainage
(D) Solid waste management
Total (A+B+C+D)
ACA: Additional central assistance; UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns
Source: Ministry of Urban Development
56
Smart Utilities | January-March 2014
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