Adoption of Smart-Grid Technologies by Electrical Utilities in India: An Exploratory Study of Issues and Challenges

Abstract

The Indian power sector is struggling with a unique array of challenges, ranging from supply–demand gap, reliability, efficiency to rising costs, and global warming. There is an increasing agreement on the main forces driving the transformation of the electricity network worldwide. These and other forces are driving the need to reinvent the utility business. In this context, adoption of smart technology assumes significance. The objectives of this study are: (i) compare smart-grid technologies and the conventional grid, (ii) review the various technology-adoption models and investigate challenges Indian electricity utilities are facing for decision-making process with respect to smart-grid adoption, and (iii) examine lessons to be learnt from developed countries’ experience and draw implications for Indian power sector. The factors that will drive India’s adoption of smart grids include the need to reduce technical and commercial losses, resolve its chronic supply–demand gap and improve reliability. There are technical, economic, and administrative barriers towards the adoption of smart-grid technology. Utilities around the world are rapidly making the smart grid the centerpiece of their infrastructure development plans.