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AN ASSESSMENT OF INFORMATION TECHNOLOGY FOR POWER SECTOR

Anutosh Maitra Rahul Walawalkar Anil Khanna

Tata Infotech Limited, SEEPZ, Andheri (E), Mumbai 400096, INDIA

Abstract Information Technology (IT) is widely acknowledged to be crucial for efficient operation and management of all industrial systems. This is equally true of the power utilities, which need to handle a large amount of information for their efficient operation. Information Technology is one of the most promising industrial sectors of the Indian economy and Indias IT capability is well recognized globally. At the same time the opening and restructuring of the Indian power sector have changed the perception of the power utility managers in the way they have been doing business till now. The entire gamut of the operation in power sector will be revolving around better availability of quality power and efficient management of energy while maintaining the eco-friendliness all along. In this paper, an attempt has been made to make an assessment of the scenario in the Power Sector in India and abroad, vis--vis the induction of Information Technology. The spectrum of the IT tools and their relevance in a better planning, design, management, operation and control of power system are highlighted in the paper.

I.

Introduction:

India is a fast growing developing economy and has progressed despite the challenges on the socio-political front. The GDP growth rate has exceeded 6% in the recent years, with rapid expansion of productive employment, increase in exports and decline in inflation. Consistent with the economic growth the demand for energy is growing at an average rate of 5.5%. The growth in energy demand will disproportionately exceed the growth in GDP unless measures are taken for increasing the efficiency of energy consumption, thus ensuring energy conservation and improved environmental quality. For quite a few years, utility companies in the advanced countries have been leveraging Information Technology (IT) for obtaining significant benefits. Much of the information used for this purpose is distributed over vast geographical domains and is to be acquired, transported, processed and presented in real time. The Indian power sector too has introduced with mixed successes IT solutions in several areas. The applications, however, have been isolated and sporadic so far. The recent past has seen a dramatic change in the Indian power sector, historically plagued by low return of investments. The prospect of intense competition is emerging with the entry of private, including foreign MNC and foreign investment. The outlook for this sector is of a rapid expansion to support Indias economic engine. One is now forced to think seriously in terms of increasing efficiency by increasing plant load factor (PLF), reducing T&D losses, minimizing power theft and increasing service quality without increasing the manpower requirement to remain competitive in the open market. This will require not only the modernization of equipment, but also better planning, supervision, monitoring and control of all activities related to power generation, transmission and distribution and commercial operations. In a nutshell, The entire gamut of the operation in power sector will be revolving around better availability of quality power and efficient management of energy while maintaining the eco-friendliness all along. In most advanced countries, power utilities have made major gains in terms of productivity, efficiency, reliability and commercial management through the use of modern IT tools. Information Technology has found application in a wide spectrum of tools that enhance performance in Planning, Operational, Maintenance, Training and Commercial activities in a Power System. Specific Information Systems (IS) in this context include: Energy Management Systems (EMS) Distribution Automation (DA) Systems

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Planning and Energy Accounting Systems Metering and Billing Systems Training Systems Maintenance Management Systems (MMS) Management Information Systems (MIS) Power Plant Control Systems Supervisory Control and Data Acquisition Systems (SCADA)

These systems are developed using a host of enabling core technologies such as those related to Data Communications, Centralized and Distributed Databases, Decision Support, Real-time Computing, Power System Analysis, Geographical Information Processing, Graphics and Multimedia, Distributed Process Control, Simulation and Forecasting and Enterprise Resource Planning (ERP). Some of these Information Systems such as MIS and MMS are generic in structure for all industries, while being specific to a power utility in some functional aspects. The primary objective of all the solutions are three-fold: Ensure availability of quality power Ensure high operational efficiency Maintain ecological balance. The paper describes a few prominent IT applications to power sector. The need for such information systems is further highlighted in the context of the growing consciousness about energy conservation. II. Availability of Energy:

The basic aspect of a power system is to maintain the availability of power. According to an estimate of Power Finance Corporation of India, the future projections indicate an additional 1,75,000 MW generation requirement in India by the end of 2012 AD. This monumental requirement may be further escalated if the currently available energy sources do not sustain generation till that time. The sustained availability of energy actually depends on proper maintenance management of the system as a whole. IT per se, actually concentrates on better maintenance management both at plant level as well as the distribution level. These are mentioned in a little more details hereunder. Availability in Power Plants: Availability in power plants depends on critical functions being handled expeditiously - one such leading function is the Asset Management and Maintenance. The modern IT enabled packages in this area have the following features: -Full scale asset management & mapping -Predictive, preventive and routine maintenance management -Work order generation, activity scheduling. -Open system platform and database management - Enterprise-wise documentation management One web based maintenance trainer is also conceptualized in this area. Since in India, most of the generation equipment is supplied by a only a few major manufacturers, it makes enough sense to create an Internet site (or a server on WAN) to pool and assist in maintenance of equipment. The site can be a collaborative one managed and supported by all stake- holders. IT based performance monitoring tools of the station equipment help in renovation and modernization of plants. The tool acts as decision support assistance in deferring new investments. Maintenance Management in Distribution System: An automatic maintenance and support management for distribution system network can be devised with the help of a combination of GIS and power engineering technologies. A complete such solution actually consists of the following functions:

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Fault Location determination based on Geo-referencing. Topology Analysis & Fault Isolation Requirement Analysis Resource Allocation --- Tools, Manpower Generate Work Order System Restoration

Such an automated management tool is expected to reduce the maintenance time requirement by at least 50% and reduce the chances of accidents appreciably. III. Efficiency in Energy Management:

The modern day scenario poses many challenges and opportunities for electricity consumers. Chief among them is the overwhelming array of energy-related purchasing and management decisions necessary to make the most cost-effective energy choices. Energy and facility managers must today look for the opportunities to obtain lower-cost electricity. The route to maximizing energy and cost savings involves both a long-term plan to reduce the price of electricity through rate negotiation and a coordinated effort to reduce energy consumption and peak load. Proactive consumers will be the first to experience the most savings. A few of the major important data a facility manager must have at hand are as follows: Typical seasonal energy-usage patterns. Typical load profile. Priority schedule of loads. The tariff structure The main purpose of this exercise is to reduce peak energy consumption through energy-efficient upgrades, co-generation, and/or shifting to off-peak use. In this context, the following major functions an efficient energy management should enact: a) Aggregated Purchasing:

Energy users will soon be able to aggregate their loads and negotiate power purchases in greater volume and at lower cost. This is particularly envisaged in a deregulated market. Aggregated load contracts offer a desirable way to reduce total demand surcharges, since the demand peaks of individual facilities can be averaged out over various geographically separate facilities. A detailed understanding of the energy usage, including load size and usage patterns, will be essential, as these factors will significantly influence the price of the electricity. b) Energy Management System:

A good Energy Management strategy employs optimum mix of energy, equipment and operations that result in not only long term energy savings but also increased productivity. This involves proper design of various electrical systems and regular maintenance along with the use of energy efficient equipment & procedures. Controlling peak demand offers an important opportunity for energy managers to find costsavings. Peak demand is defined as the highest kW usage during the billing period. Utilities use a demand ratchet, based on peak demand, to determine minimum demand charges for future months. Controlling demand is important to obtaining optimal pricing. Managing energy in such a way needs implementation of various modules like fuel management scheme, automatic generation control, resource planning etc. at the plant or utility level. With opening of the power sector, many utilities will implement pricing plans charging customers different rates at different times of the day or days of the week. During peak demand times, prices are likely to be higher. Energy and facility managers should know when a facility is reaching peak demand so they can take action to minimize the peak and avoid a demand ratchet. Electricity customers with comprehensive energy management plans and energy-efficient lighting and building technologies in place will be better situated to take advantage of these pricing plans by both lowering their demand when prices are high and reducing their usage over time. Likewise, customers that

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are not familiar with their energy consumption profiles and have not incorporated energy-efficient technologies will be more vulnerable to higher peak demand energy costs. A proper energy management system can help electricity boards immensely in improving their efficiency in operation. Table 1 shows a glimpse of the plant load factor at which the most of the Indian electricity boards are operating. The shortages in the peak demand as shown in Table 2 appropriately points PLF for different SEBs out the need of a proper energy management system 77.7 in this perspective. 73.3
80 60 40 20 0 SEBs 22.4 18.1 62.6

Table 1 :- PLF for various SEBs. Sr. State Electricity PLF (1998) No. Board 1. KPCL 77.7 (Highest) 2. Andhra Pradesh 73.3 3. Gujarat 62.6 (Average) 4. Bihar 22.4 5. Assam 18.1 (Lowest)

KPCL AP Gujarat Bihar Assam

Table 2 : Peak Demand Shortages 1999 Sr. SEB Registered Peak No. Demand (MW) 1. Madhya Pradesh 6,375 2. Uttar Pradesh 6,642 3. All India 67,905 c) Energy Efficiency and Energy Audit:

Peak Demand Met (MW) 4,770 5,328 58,445

% PLF

% Shortage in Peak Demand 25.2 19.8 13.9

Energy conservation means more efficient use of energy without reducing production levels and without sacrificing product quality, safety or environmental standards. Energy conservation should be based on cost effectiveness, i.e., energy conservation should only be undertaken to the extent that it can be justified in normal commercial and financial terms, like any other investment. Energy conservation requires a proper and well-planned management approach. An energy conservation program considers the monetary value of energy conservation and the percentage of the total product cost to the energy cost. Energy conservation does not mean having to do without energy, i.e., it does not mean rationing or curtailment or load shedding. It means identifying areas of wasteful use of energy and taking action to reduce the waste, i.e., an increased level of goods and services for the same amount of energy. Benefits of Energy conservation are realized best by using right amount of energy, at right time, in an efficient way. There are ample reasons to conserve energy. The human civilization is today encountering the bare fact that the sources of energy are limited. Reports prepared by various environmental agencies suggest that India will need about twice as much coal, thrice as much oil & thrice as much electric power by the year 2010 as compared to the energy consumption of the 90s to meet the ever-growing energy demand. Energy conservation offers a low cost alternative to reduce the widening energy gap as compared to investing huge amounts of money involved in installing the new power plants & developing the natural energy resources. Power generation related pollution & other environmental issues serve as an additional incentive for conserving energy. It is to be kept in mind that the lead-time for energy conservation is always shorter as compared to that of for new power generation. And though, it is not available at free of cost, energy conservation costs only a fraction compared to new power plants; typical figures being $500 as against $2,000 - $3,000 per kW for new generation installation. Since energy efficiency comes at a cost, which is about 20-25% more than the cost of a non-energy efficient goods, it is the consumer who has to make the final decision in investing the additional amount required for realizing the energy efficiency. Lack of consolidated information and the complexity of

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calculations required for determining optimum energy conservation have ensured that the initial investment required, rather than the subsequent savings in energy bills, has become the primary selection criteria for most of the decision making processes. The availability of software tools for calculating factors such as Pay Back Period, Net Present Value (NPV) and Internal Rate of Return (IRR) has however, now added a new dimension to the decision making process for any project or investment. It is also well known by now that energy is a major portion of the operating costs. e.g. for a typical lighting system the energy cost accounts for 80- 90 % of the life cycle costs & for a typical air-conditioning unit the energy costs may very between 70 85 % of the life cycle cost. Conservation of energy provides lucrative offers to the bulk consumers in terms of cost savings and improved profitability. There is a greater implication of this. Each individual may feel the involvement and satisfaction of helping the nation in reducing need for new power generation facilities and reduction in fuel import bill by resorting to energy conservation practices. More and more industrial and bulk consumers are getting inclined to adopt energy conservation practices. The base activity in this direction needs a full- scale energy audit at all levels of operation. A number of IT tools are available nowadays to help experts and consultants in carrying out this audit. d) Demand Side Management:

Table 3 below shows the figures of the energy shortages in India. A significant amount of this shortage can be alleviated by the use of proper demand management services. Table 3: Energy Shortages 1999 Sr. No. SEB Requirement (Million KWH) 1. Karnataka 26,061 2. Tamil Nadu 37,706 3. All India 446,584

Availability (Million KWH) 22,626 33,268 420,235

% Shortage 13.2 11.8 5.9

The continuous rise in electricity demand has prompted many electric industries round the world to further develop various energy resources to meet growing consumer needs. In contrast to the traditional energy conservation, Demand Side Management (or DSM) goes beyond the promotion of the efficient use and management of electricity. DSM makes use of energy-efficient technology. DSM is defined as activities that involve actions on the demand or customers side of the electric meter directly caused or indirectly stimulated by the utility. These activities include load management (the shifting of load from high cost to lower cost periods), strategic conservation (reductions in usage regardless of the time of use), electrification (replacement of non-electric with electric uses), strategic growth (or deliberately increased market share), and flexible load-shapes (or deliberate variation in quality of service to specific types of customers). For a utility, DSM postpones or defers generating capacity; postpones additional investments; optimizes the use of electric system facilities; provides value-added services to customers; and creates environmental awareness. The application of energy management at home helps the residential customers to improve their standard way of living. Commercial customers on the other hand, can strengthen their public relations with their patrons through the use of energy efficient technology. Business owners can optimize their resources and channel their savings to other resources. For Industrial customers, energy management reduces the KW demand and energy use while improving productivity and product quality, reducing waste and pollution, and improving productivity.

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IV.

Environmental Issues - Green Power:

The major issue of environmental pollution is haunting mankind for quite some time now. About 85 percent of the electricity consumed are generated through the combustion of fossil fuels, including coal, petroleum and natural gas. When burned to produce electricity, fossil fuels emit high levels of carbon dioxide, nitrogen oxide, and sulfur dioxide, which contribute to global warming, smog and acid rain. The estimated NOX emission is about 14 kg/ton of fuel. Table 4 shows that though sugar industry is primarily responsible for the global waste generation, a significant amount of pollution load is contributed by the power industry.
Table 4 : Pollution Load (Tonnes/Year) from Industry : 1996-1997 Industry Total Water Consumption (MCM/Yr) 3.917 5.307 Total Waste Generated (MCM/Yr) 3.604 3.671 Total Waste (MCM/Yr) Treated Untreat ed 2.521 1.083 3.224 0.447 Total Load Generated Pollution Load Discharged from Source to River Treated Untreated Total Source Source 2601.18 4873.40 7474.58 1171.49 1578.81 2750.30

Sugar Others

16218.90 42128.97

Others : Distillery, Power, Paper, Engineering, Textile, Chemical, Food, Steel, Oil and Dairy

New technological developments and a blossoming interest in sustainable energy supplies are helping to foster markets for renewable energy sources including water, solar, wind, geothermal and biomass. Renewable energy technologies can help us develop a sustainable energy future, reduce dependence on foreign oil, and reduce our greenhouse gas emissions. Choosing a more environmentally friendly electricity source can also improve an organization's environmental image. It has already been reported that 10% of savings in electricity are generated from captive power generating units using HSD as fuel. GIS based solutions for monitoring environment are playing a key role in this scenario. GIS based solutions are also helpful in finding suitable locations for waste dumping and selection of new power plants. V. Planning and Accounting Systems:

IT at this level includes decision support systems to Generation Expansion Planning, Transmission Expansion Planning, Load Modeling and Forecasting for short and long ranges, Static Network Simulation using different load, network and generation scenarios, etc. The energy accounting assumes more significance in the wake of the growing concern about power theft in distribution level. Calculation of transmission and distribution losses shows us a horrific picture of the unaccounted energy in India. Table 5 describes this data in details. Table 5: T&D Losses for different SEBs. Sr. State Electricity % T & D Losses No. Board 1. Maharashtra 14.8 (Lowest) 2. Tamil Nadu 16.9 3. Orissa 46.1 4. Delhi 50 (Maximum)

T&D Losses for different SEBs

50 50 % T&D Losses 40 30 20 10 0 SEBs 22.4 14.8 Maharashtra Tam il Nadu Orissa Delhi 46.1

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Monitoring of system performance parameters and statistics related to efficiency, diversity, load factors, reliability etc help accounting for energy in a proper way. This can also help solving the conflicts between various agencies about the purchase and pricing of power. VI. International Scenario:

Electric Utilities in advanced industrial countries extensively use IT for efficient and reliable operation of their system and for planning, monitoring and commercial activities. However, system features vary depending on the utility size and requirements. Accordingly, IT solution providers have recently come up with a scalable and open architecture that can be built modularly over a variety of software and hardware platforms. IT solutions for the Power System Operation and Management problems are configurable and a particular instance is configured according to the system requirements and budgetary provisions of the customer. In general the vendors provide turnkey solutions and from drawing of Information System specifications up to provision of training of customer personnel. VII. Indian Scenario:

Application of IT in the Indian Power Sector has barely started. While there have been efforts to acquire SCADA for Energy Management Centers, introduce distribution automation in the form of remote monitoring of unmanned substations and even to develop indigenous technology in these areas, the cases are isolated and sporadic. However, the opening and restructuring of the Indian Power Sector have changed the perception of the power utility managers in the way they have been doing business till now. The utilities now must gear up for managing the wave of change that is sure to hit the power scenario in the near future. Compulsion to perform financially from National and International Funding Sources, competition from private as well as government utilities, indications of fundamental changes in pricing and tariff structures, growing environmental concerns are a few of the challenges beckoning the Indian Power Manager. One is now forced to think seriously in terms of increasing efficiency to stay afloat in the business. A deregulated environment also demands additional responsibility from the power producers and distributors. Here, the use of modern IT tools can make significant differences as have been proved across the globe. VIII. Conclusion:

In this paper, an attempt has been made to make an assessment of the current scenario in the Power Sector and the opportunities for the induction of Information Technology. In most advanced countries, power utilities have made major gains in terms of productivity, efficiency, reliability and commercial management through the use of modern IT tools. It has been observed that, compared to the situations prevailing abroad, the Indian Power utilities are lagging behind mainly due to financial constraints since the imported solutions are very expensive and not always directly suited to the Indian conditions. Therefore, there is an enormous potential for the development of indigenous technology in this area. What is important to visualize the power of information in the field of energy management. Energy efficiency practices need comprehensive knowledge of the entire system and they expand over the entire length and breadth of the supply line of electricity, right from managing raw material to providing the end user a comfortable and progressive future. IT is one of the pillars to achieve this future successfully. Acknowledgements: Tata Infotech Limited most graciously acknowledges the contributions made by Indian Institute of Technology, Kharagpur in conducting the survey of the IT scenario in power sector in India. We have used lot of materials published in Energy Information Administration, TERI Reports, Electric Power Monthly and the PowerLine journal; not all those materials are presented here though.