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National Smart Grid Mission (NSGM)

Background

During the implementation of Smart Grid Pilot projects in State utilities, it was felt that smart grid efforts required urgent concerted focus for which it was necessary to create a comprehensive institutional arrangement capable of dedicating the manpower, resources and organizational attention needed to take it forward.

NSGM Establishment

National Smart Grid Mission has been established by Govt. of India vide MoP Office Memorandum dated 27.03.2015 to accelerate Smart Grid deployment in India. NSGM has been in operational since January 2016 with dedicated team. NSGM has its own resources, authority, functional & financial autonomy to plan and monitor implementation of the policies and programs related to Smart Grids in the country.

Structure

  • NSGM is housed under MoP considering the fact that most of the prominent stakeholders (DISCOMs, Regulators, Electrical Manufactures, CEA etc.) for Smart Grid are associated with MoP. Other concerned Ministries like MNRE and MoHI would also be associated with the mission. It is important to note that Smart Grid is a dynamic and evolving concept due to constant technological innovations. Therefore, the objectives, structure and functioning of NSGM is sketched so as to allow sufficient freedom and flexibility of operations without needing to refer the matter to different Ministries / Agencies frequently
  • NSGM functions with three tier hierarchical structure [1] as follows:
  • The NSGM Project Management Unit (NPMU) is headed by the Director NPMU. The Director NPMU is the Member of the Governing Council and Empowered Committee, and Member Secretary of Technical Committee. NPMU is the implementing agency for operationalizing the Smart Grid activities in the country under the guidance of Governing Council and Empowered Committee.
  • Corresponding to the NSGM Project Management Unit at national level, each of the States will also have a State Level Project Management Unit (SLPMU [6]) which would be chaired by the Power Secretary of the State. The administrative / operation and maintenance expenses in this regard would be borne by respective States. NSGM will provide support for training & capacity building to SLPMUs for smart grid activities.
  • The Smart Grid Knowledge Centre (SGKC [7]) being developed by POWERGRID with funding from MoP will act as a Resource Centre for providing technical support to the Mission in all technical matters, including development of technical manpower, capacity building, outreach, suggesting curriculum changes in technical education etc. Possibility will also be explored for bilateral and multilateral financial support from various national and international agencies in this regard. The SGKC shall undertake programs and activities envisaged for it as per the guidance from NPMU.



Phase-1 (2015-2017)

Click Here for Office Memorandum [8]


Interventions in Smart Grids for 12th Plan

The indicative components of smart grids in 12th plan would be broadly as follows:

  • Deployment of Smart Meters and AMI.
  • Substation renovation and Modernisation with deployment of GIS wherever economically feasible.
  • Development of medium sized Microgrids.
  • Development of Distributed Generation in form of Roof Top PVs.
  • Real-time monitoring and control of Distribution Transformers.
  • Provision of Harmonic Filters and other power quality improvement measures.
  • Creation of EV Charging Infrastructure for supporting proliferation of EVs.

Smart grid being a new and evolving field, the activities presently envisaged are only indicative and during the course of implementation, further activities can be incorporated based on evolution of technology.

Financial Implication (Phase-1)

The total estimated cost for all the projects and NSGM activities for 12th Plan (ending March 2017) is ₹ 980 Cr. including a budgetary support of ₹ 338 Cr. Details are as follows:

Sl. Activity Outlay (in ₹ Cr.) Budgetary Support (in ₹ Cr.) FY Wise Budgetary Support (in ₹ Cr.)
2015-16
2016-17
A. Development of Smart Grid in Smart Cities
890
267
(i.e. 30% of project cost as grant)
120
147
B. Development of Micro Grids
27
8
(i.e. 30% of project cost as grant)
4
4
C. Training & Capacity Building
(Funding for SGKC etc)
8
8
(i.e. 100% cost as grant)
4
4
D. Consumer Engagement
(~60 Discoms @ 20 Lakhs each)
30
30
(i.e. 100% cost as grant)
15
15
E. NSGM Establishment, O&M etc
25
25
(i.e. 100% cost as grant)
7
18
Total Outlay
980
338
150
188

Phase-2 (2017-2021)

Click Here for Office Memorandum (2017-20) [9]

Click Here for Scheme Extension Letter (2020-21) [10]


Proposed Interventions till 14th Finance Commission Period

Bringing in the development of Smart Grids in alignment with activities stated in the Smart Grid Roadmap towards attainment of objectives as mentioned below:

  • Enable access and availability of quality power to all.
  • Loss reduction.
  • Smart Grid roll outs including automation, microgrids and other improvements - AMI roll out, prosumer enablement, demand response (DR)/demand side management (DSM).
  • Policies and tariffs – dynamic tariff implementation, DR programs, tariff mechanisms for solar PVs.
  • Green power and energy efficiency – renewable integration.
  • Electric vehicles and energy storage – electric vehicle (EV) charging stations & energy storage systems.

During the currency of NSGM in this period, the implementation of Smart Grid projects shall be expedited and timelines adhered to so as to showcase the demonstrated benefits of these projects on ground. NSGM continues to focus on sustainable deployment models of Smart Grids considering that Smart Grids would supplement the efforts in Smart Cities, efforts would be made to initiate and complete Smart Grid Projects in the identified smart cities as well.

Financial Implication (Phase-2)

The outlay of NSGM has been recast for the period April 2017 to March 2020 with an estimated outlay of ₹ 990 Cr. including budgetary support of ₹ 312 Cr. The scheme has been further extended for the period April 2020 to March 2021 within the same outlay and GBS. Details are as follows:

Sl. Activity Outlay (in ₹ Cr.) Budgetary Support (in ₹ Cr.) FY Wise Budgetary Support (in ₹ Cr.)
2017-18
2018-19
2019-20
2020-21
A. Development of 10 Smart Grid Projects (incl. 4 Ongoing Projects)
938
281
(i.e. 30% of project cost as grant)
63
136
82
Included
B. Development of Micro Grids in Medium Sized Pockets
30
9
(i.e. 30% of project cost as grant)
2
3
4
Included
C. Training and Capacity Building incl. Funding to SGKC and Consumer Engagement etc.
7
7
(i.e. 100% cost as grant)
1
3
3
Included
D. NSGM Establishment and O&M etc.
15
15
(i.e. 100% cost as grant)
3
5
7
Included
Total Outlay
990
312
69
147
96
Included
Source URL: https://www.nsgm.gov.in/en/nsgm

Links:
[1] http://nsgm.gov.in/en/organizational_structure
[2] https://www.nsgm.gov.in/en/governing_council
[3] https://www.nsgm.gov.in/en/empowered_committee
[4] https://www.nsgm.gov.in/en/technical_committee
[5] https://www.nsgm.gov.in/en/npmu
[6] https://www.nsgm.gov.in/en/slpmu
[7] https://www.nsgm.gov.in/en/sgkc
[8] https://www.nsgm.gov.in/sites/default/files/NSGM%20Office%20Memorandum.pdf
[9] https://www.nsgm.gov.in/sites/default/files/National-Smart-Grid-Mission-OM-2.pdf
[10] https://www.nsgm.gov.in/sites/default/files/NSGM-Continuation-April-2020-March-2021.pdf