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Please give some insight on strategically important
smart grid solution for modernizing the electricity
distribution management system?
Schneider Electric believes that smart grids are a very
important component of measuring, managing and ultimately
reducing energy consumption across the entire
value chain of an electrical network. Typically, this value
chain was seen as having three components, namely
generation, transmission and distribution. The distribution
side was considered as the 'demand' side i.e. as a
consumer of electricity. Now, we have a new dimension
to it, namely, energy storage. Imagine a scenario when a
number of batteries or similar storage devices, including
the batteries of your car, will be able to store electricity
when there is less demand, and then feed back into the
grid when the demand exceeds the supply. This is one
major change that has happened across the value chain
in the recent past.
Secondly, with the increase in generation of power
from renewable resources, we have multiple sites which
generate electricity and feed into the electrical grid. So
instead of a centralised power generation system, where
typically a large power plant met the needs of industrial,
commercial, agricultural and residential users, we also
have a large number of power generation installations
which are comparatively smaller in size (say, a 600-MW
thermal power plant versus a 5-MW solar plant).
Smart Grids also facilitate the 'Time of Use Pricing' feature
which will play a huge role in influencing and modifying
customer behavior across multiple sectors. The idea
behind 'Time of Use Pricing' is as follows - during periods
of peak demand, the end users pay a higher rate per unit
of electricity consumed than during periods of low
demand. Say, in a residential building, the maximum use
of electricity will be during the daytime and evening
hours. So consumers will pay a lower rate for electricity
for tasks such as laundry, use of microwave etc., if they
are carried during nighttime. This will reduce the peak
load requirement from the grid, and thus the power producers,
distribution companies, and end users will all be
able to reduce the overall load on the system.
As you can imagine, the grid will become more complex
to manage in the above scenarios. That is where
smart grid will play an
important role: it will communicate
across all levels
of the system, and provide
real-time updates to
optimise the energy supply
and the energy
demand. This will be
extremely important for
countries such as India
which have to balance the
twin challenges of sustaining
growth while minimising
environmental
impact.
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