Just as the golden age of steam with its engineering wonder locomotives gave way to diesel and electric – and the cloud of the steam from one of those engines has to be smelled for the nostalgia to be appreciated – so too these are now having to move with the times to lower carbon alternatives as countries drive towards a net zero future.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

As the rail sector is already partially electrified in many countries, it has received less attention than other transport sectors. Indeed, the sector is already the most energy-efficient and least carbon-intensive of mobility. But that is changing.

On the electrified side, the solution is clear cut: to shift from fossil fuel based to renewables generated electricity. A notable example is the Dutch railways, which have been running trains from wind generated energy since 2017.

But for other locomotion, particularly oil, which accounts for over half of total energy consumption in the rail sector currently, according to the IEA’s report Net Zero by 2050 – A Roadmap for the Global Energy Sector, the options have been less clear. Until now. The falling renewable generation costs are opening the way for economically viable green, renewables-based, hydrogen and the spin-off synthetic fuels.

Hydrogen rail mobility

As manufacturers of both rail rolling stock and hydrogen electrolysers, a partnership between two Siemens companies, Siemens Mobility and the spin-off Siemens Energy, has been established to jointly develop holistic hydrogen solutions for rail transport. The initial focus is on the German market with others in Europe to follow.

Siemens Mobility has its Mireo Plus H next generation hydrogen train now commercially available, with the first expected to go into operation in 2024. The rolling stock, based on the current Mireo commuter train, is equipped with a drive system comprised of a fuel cell and lithium-ion battery and is intended for rail operators to provide emission-free mobility on non-electrified routes.

Features of the train, which is due to undergo a one-year trial covering around 120,000km of rail service with German train operator Deutsche Bahn Regio in 2024, include a range of 600km to 1,000km for two and three car units respectively and a top speed of 160km/h.

The refuelling time is targeted to 15 minutes, similar to diesel. And emissions savings during the trial with the replacement of a diesel railcar are estimated at 330t of CO2.

With, for example, around half of Germany’s rail network not electrified, the potential for these trains is obvious with the opportunity to replace the thousands of diesel-electric multiple-unit trains in service in Europe.

But there is one major challenge to overcome in the form of the hydrogen infrastructure, which is where Siemens Energy comes into the picture.

“We need to produce the hydrogen at the locations where there is a constant demand and to scale this production into mobility,” says Dr Martin Johannes Schneider, Business Development Manager of Siemens Energy’s New Energy Business.

Siemens Energy has a history of over 25 years of hydrogen electrolyser development with its current top model the Silyzer 300. The system is modular with a half array setup producing up to 4,020kg/d and a full array setup with a hydrogen output of up to 8,040kg/d which equals the capacity to fuel approximately 50 trains covering a distance of up to 40,000km daily.

Broken down, the full module array with a power rating of 17.5MW has a hydrogen production of up to 335kg/hour, sufficient to fuel two trains per hour.

Currently, Silyzer 300 deployments include among others a 12 module, half array in partnership with Austrian electricity provider Verbund and others to supply green hydrogen into steel making; while a Silyzer 200 is being deployed in the Haru Oni project in southern Chile led by AME to produce efuels for Porsche cars.

Schneider explains that there are two options for hydrogen delivery for rail, depending on the demand. For smaller refuelling stations for a handful of trains, the most economical option is likely to be delivery via a high pressure hydrogen trailer from an off-site production plant supplying an industrial demand location. For larger refuelling stations for 20 trains and more, on-site production via water electrolysis is likely to ensure greater supply security and be the more economical solution.

In all cases the electrolysers must be sited close to the renewable generation, most likely with attached energy storage for maximised and lowest cost production.

“One has to look at the use case to determine where it makes sense to install the electrolysers on-site or off-site. A big factor is the size of the train fleet but one also must consider the available renewable energy on-site, the electricity price and the land footprint available.

“If there is renewable generation near to the refuelling depot and if there is space available then it would make sense to locate the electrolyser there as well.”

Schneider adds that partnerships also have to be established with industrial gas companies to operate the electrolysers or to deliver the hydrogen from the off-site location to the refuelling station and manage the station.

“This is broadly what we call our ‘hydrogen-as-a-service’ offering, which can be supplied with or without rolling stock.”

Schneider says the offering is being piloted with smaller train fleets first, with the on-site electrolyser offering to target larger fleets of around 20 or more trains and fast growth expected in the coming years as hydrogen production costs continue to decline.

Smart sector coupling

Schneider describes the rail initiative as a classic case of sector coupling with the linkage of renewable generation to hydrogen production to rail, i.e. from power to industry to transport.

“The advantages of hydrogen in terms of refuelling time and being able to match the storage capacity for the required range and load provide a competitive edge for hydrogen in a number of mobility applications where battery storage options don’t meet the expectations. Similar to other mobility applications such as forklifts or heavy-duty trucking, rail is also able to pay a reasonable price for hydrogen to make a business case.”

For this same reason, while battery storage powered electric trains will be another option on the non-electrified railways, their use is likely to be limited to smaller trains with a short range of up to about 120km.

“There is a place for both battery storage and hydrogen but for longer distance, larger trains and especially freight trains with the heavier loads, hydrogen is most likely to be the preferred solution from both operational and total cost of ownership perspectives.

“The bigger the mobility, the longer the range or the higher the load, the stronger the case for hydrogen.”

In the battle for dominance between hydrogen and battery electric power, the latter appears to have won the hearts and minds of consumers.

However, recent technological advances affecting the way hydrogen fuel is produced, stored and distributed have improved its viability for heavy-weight, industrial-scale transport applications.

From trucks and trains to ships and aircraft, hydrogen power could hold the key to a greener future for freight transportation.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

Targets set by the UK Government as part of its commitment to the Climate Change Agreement mean heavy goods vehicles will be strictly limited when it comes to CO2 emissions in the coming years.

By 2025, a 15% reduction in emissions is required, and by 2030, this will increase to 30%. As such, the freight industry is in need of a practical and efficient green solution, which could come in the form of hydrogen fuel.

Benefits of hydrogen for freight transport

Hydrogen is particularly suitable as a fuel for freight transport vehicles because of its high energy density, with one kilogram of hydrogen delivering the same power as a gallon of diesel.

It is also much quicker to refuel a hydrogenpowered vehicle than recharging one with an electric motor. This can help to reduce a commercial vehicle’s downtime, optimising efficiency and profits.

Before freight transport operators invest in switching to a hydrogen-powered fleet, however, some significant infrastructure improvements are needed. In particular, investment is needed to provide more electrolysers, compressors, storage facilities, tanks and pipelines.

Nevertheless, there are some exciting examples of hydrogen-powered freight innovation underway. ABB has teamed up with HDF Energy, a hydrogen-based solutions pioneer, to develop a large-scale hydrogen fuel cell system capable of powering a zero-emissions electric container ship.

Shipping giants such as NYK, MSC and CMA CGM have also joined the Hydrogen Council in an attempt to accelerate R&D programmes to develop hydrogen-based fuels. Part of their vision includes powering a fleet of freight ships by 2050.

Rail is another area where hydrogen is increasingly considered a viable and sustainable fuel source, with Deutsche Bahn and Siemens aiming to create a new hydrogen-powered rail system comprising a newly built train refuelling station. Although this is being designed with passenger travel in mind, it is likely that the result could also be adapted for freight.

Leading the development of hydrogen-powered road vehicles, Hyundai Hydrogen Mobility AG has developed a new range of trucks. Renewable energy sources are used to produce the hydrogen needed to fuel the vehicles, ensuring they generate zero carbon emissions.

However, at present, these trucks can only be hired on a pay-per-use basis, and there are a limited number available.

Although steps are being made in the right direction, these projects are all relatively early stage and mainstream use of hydrogen-powered freight transport solutions still seems some years away.

Production challenges

If such solutions are to help tackle the climate change crisis, innovators must focus on solving the problems associated with the production and storage of hydrogen.

The most common ‘clean’ method of hydrogen production at present is electrolysis, where water is split into hydrogen and oxygen. However, the process is extremely energy-intensive, with typical commercial electrolysis
units needing about 50 kilowatt-hours per kilogram.

As such, this method of hydrogen power generation is both expensive and inefficient. Other innovative methods of production include steam methane reforming, which generates greenhouse gases and therefore cancels out some of the environmental benefits that hydrogen-powered vehicles could otherwise bring.

Research scientists have even explored the potential of algae to address some of the issues associated with hydrogen production.

The organism naturally produces hydrogen, but it doesn’t produce enough to be commercially viable as a means of power generation.

Attempts to increase its production rate have been made, but with limited success, as oxygen inactivates the hydrogenase enzyme and other processes within the algae’s cell structure compete for electrons.

However, innovators at Tel Aviv University and Arizona State University have developed a solution. The PSI-hydrogenase chimera technology works by repositioning the algae’s hydrogenase within the algae’s cell structure, allowing it to directly capture electrons, therefore removing the issue of competition. These modified algae cells are capable of producing large volumes of hydrogen, as long as they have sufficient light.

Another innovative hydrogen production method that is currently being explored involves the use of solar power.

SunHydrogen, a California-based tech company, has been granted a patent in the US for an artificial photosynthetic battery made up of billions of nanoparticles.

These nanoparticles each function as an autonomous nano-solar cell, containing catalysts for splitting water into oxygen and hydrogen. A protective layer increases the photovoltages of the nanoparticles, resulting in a more efficient solar-to-hydrogen transformation.

If this method proves viable, it could be a highly efficient and cost-effective way to produce hydrogen on a large scale.

Storage solutions

Moving on to the issue of hydrogen storage, a number of important challenges remain that are preventing the mainstream application of hydrogen-powered vehicles.

These include the weight and volume of current hydrogen storage systems, poor energy efficiency and durability, and high costs.

To improve efficiency, vehicle manufacturer BMW has been experimenting with a technology known as cryo-compression.

Using a hybrid method that combines compressed gas and liquid hydrogen, the storage tank must be designed to withstand the internal pressure created by cryogenic fluid.

Despite having a high density and durability, these storage systems are not expensive to manufacture.

Cryo-compression tanks also reduce boil-off, which is the hydrogen lost to the atmosphere due to heat input. BMW’s system has a hydrogen boil-off rate of 3–7 g/h and the large capacity of the tank means that a significant amount of hydrogen fuel remains, even after a period of non-use.

Another more unusual storage innovation comes in the form of a paste. Researchers at the Fraunhofer Institute in Germany have developed a magnesium-based ‘Powerpaste’ that stores hydrogen at ten times the density of a lithium battery.

Its benefits include increased range compared to traditional ICE vehicles, and the ability to refuel in minutes.

This technology involves combining magnesium with hydrogen at around 350 degrees Celsius and five to six times atmospheric pressure. An ester and a metal salt are then added, creating a viscous grey substance that can then be loaded into cartridges.

A plunger mechanism is used to release the energy, with the paste being pushed into a chamber where it reacts with water, which then feeds a fuel cell to create electrical power.

At present, this method of hydrogen power generation is being considered for e-scooters and smaller vehicles, but it could be developed further.

The importance of patents

In an evolving market and with growing pressure on the freight industry to reduce carbon emissions, it is vital that innovators apply for patents at an early stage in the research and development process.

This will enable them to gain a stake in an emerging market, which they can commercialise when the time is right, at the same time as helping to deter reverse engineers from copying their inventions.

A robust intellectual property (IP) portfolio can also open doors for smaller companies looking to make their mark in the industry, making it possible for them to collaborate with larger organisations.

Such collaborations can not only increase the rate of innovation but also give SMEs exposure to a wider share of the market.

While mainstream use of hydrogen-powered transport solutions is still some years away, a recent surge in innovation activity suggests a breakthrough could be imminent.

With consumers and policymakers increasingly focused on protecting the environment, hydrogen fuel could help drive the way to a more sustainable future for all modes of freight transportation.

About the author

Russell Edson is partner and patent attorney in the advanced engineering group at European intellectual property firm Withers & Rogers.

The maritime sector encompasses many different activities as varied as fishing, cruise-boat tourism or ferry transport but shipping remains the most important segment when it comes to carbon emissions, with around 1 billion tons of CO2eq per year. This is 25% of all emissions from the global transportation sector and nearly 3% of global greenhouse gas emissions.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

For this reason, challenging targets were set in 2018 by the International Maritime Organization (IMO), which calls for a 50% reduction in emissions by 2050, compared to 2008 levels. In Europe, emissions from ships are expected to be included in the EU Emissions Trading System from 2026 following a transition period. Key players are not insensitive to these policies and calls. Maersk, the largest shipping company in the world, announced in 2018 that it intends to be carbon-free by 2050, while another sector giant, CMA-CGM, also announced its commitment to invest in carbon-neutral shipping technology.

Hydrogen-based fuel represents medium-term option

Today, the shipping industry relies quasi exclusively on so-called carbon-dense “bunker fuels” and uses virtually no low-carbon fuels. Conservative when it comes to propulsion innovation, the industry is nevertheless investigating the deployment of alternative fuels, in particular biofuels and Liquefied Natural Gas (LNG), along with low-carbon synthetic fuel and hydrogen-based solutions.

Among these alternative fuels, LNG is currently seen as the most mature technology to lower emissions by replacing diesel. If LNG fits the required standards for NOx and SOx emissions, it still does not meet expected GHG emissions on the long term. For this reason, shipowners seriously consider the use of low-carbon hydrogen and green ammonia as medium to longterm alternative fuel solutions to LNG and to other alternative solutions. The development of on-board systems reforming hydrogen from LNG is also being investigated.

The most interesting option, when it comes to Greenhouse Gas Emissions, is the production of low-carbon hydrogen by water electrolysis using low-carbon electricity, either from renewable energy (green hydrogen), or from nuclear power (purple hydrogen). This hydrogen can be used directly in fuel cells to produce electricity, without having a carbon impact and pollutant emissions like NOx, SOx and particulate matter.

Green hydrogen can also be used to produce ammonia, which can fuel large ship engines. The need for autonomy is a strong requirement of the shipping sector and on-board H2 storage in heavy cryogenic tanks is a critical issue for large cargo ships, where space is very precious. With a density twice as high, ammonia is therefore a very interesting solution. Easy to liquefy, ammonia is already transported routinely worldwide in its liquid form and many believe that this technology is probably mature enough for deployment in a few years.

Many different use cases are investigated through demonstration projects

Europe has historically dominated demonstration projects with initiatives in the UK, Norway, France, Finland, Denmark and Belgium, to name a few. Of course, North America and Asia are also actively testing hydrogen applications in the maritime environment and several projects are under development.

Fuel Cell based solutions for relatively small boat propulsion have been tested successfully. Passenger boats have been demonstrated in many countries, from the lightweight catamaran to small river tourist transportation or water-taxi/bus as in the NavHybus demonstration in my hometown of Nantes (France). Fishing boats have also been equipped with hydrogen propulsion in projects like FILHyPyNE in France, for instance. Several small ferry boats are also currently demonstrated in the frame of projects likes HYBRIDShips and MF Ole Bull, the EU-funded HYSEAS III initiative. In Asia, Shell also announced in April 2021 that it intends to test a roll-on/roll-off cargo powered by a fuel cell.

Hybrid solutions using fuel cells and traditional propulsion on larger boats were also successfully launched. Projects like the EU project Maranda demonstrate that such propulsion can be useful for research organisations, offshore companies or logistics providers who need to switch to an “environmental mode” to align with regulation, for instance.

Green hydrogen can also support Auxiliary Power Units (APU) in order to supply in port operations and the so-called “Hotel Load” for communications, refrigeration, climate control or water desalination.

Port-specific heavy-duty equipment like yard tractors (for short-distance transportation of containers), RTG cranes (used to move containers from yard tractors to drayage trucks), and reach stackers (used to handle and pile containers) have been partly demonstrated in Finland (Demo2013) and in the United States (Project Portal) . In addition, other non-specific handling equipment like fuel cell powered forklifts and transportation solutions (shuttles, trucks etc.) are also extensively tested in ports.

Key challenges hindering the adoption of H2-based solutions

The first key challenges relate to the limited technological maturity for large shipping vessels. Today, many prototype demonstration projects have been launched but no pure hydrogen propulsion pilots involving very large shipping vessels have been successfully tested yet. Scaling up is critical to really have an impact on the sector as a whole. Albeit interesting for areas with a strong ecological focus (natural reserves, urban ports), switching to H2-based solutions for small boats would have a limited impact at sector level.

To make a real difference, the shipping industry needs to learn from these projects and scale up the solutions. To do so, the maritime sector must rely on technical standards, which have not emerged yet from the existing demonstration projects as there are no broadly accepted regulations for hydrogen vessel design and operations, for instance.

Costs also remain a challenge. The shipping sector obviously needs to have a commercial justification to ensure the viability of a hydrogen-based solutions. For specific minor segments like the harbour handling equipment, alternative solutions like batteries may be more cost-competitive for similar use cases and need to be assessed. It is trickier for vessel propulsion. In addition to higher capital expenditure for adapted vessels, ship owners also face uncertainties with regard to operational costs. With long system lifetimes, low fuel and maintenance costs are particularly critical to reach a credible cost of ownership for their vessels. For all these reasons, many observers anticipate that H2-based fuels will only become cost-competitive with alternative fuels in the 2030-2040 decade.

Hydrogen infrastructure must be reinforced with the proper supply logistics, adequate storage capabilities and refuelling stations in place in harbours to prevent a ‘chicken or egg’ dilemma. The speed of development for such required infrastructures is strongly influenced by the dialogue and the alignment of interest between public players, port management entities and ship owners. In addition, having a heavy footprint is a financial challenge for any installation in port environments.

To this end, the development of LNG infrastructure will definitely bring very interesting lessons learned for the deployment of hydrogen infrastructures as many of the challenges are potentially similar. Existing demonstration pilots for H2-fuelled boats also help structure a proper supply chain and appropriate port infrastructures.

Reaching maturity

Hydrogen applications for the maritime world are less mature than on-road applications and require additional development efforts in order to become more competitive with incumbent technologies. Lower costs and refuelling infrastructures development in particular remain critical challenges beyond technical maturity elements; and the use of fuel cells for auxiliary power and for port vehicles and handling equipment will be most probably adopted first. For vessel propulsion, hydrogen-based solutions will most probably be used initially for small boat propulsion in the next decade but from 2030, such systems may be more broadly adopted for larger ships.

Ambitious IMO targets, supporting regional and national regulations as well as strong public support from large public bodies like the EU, may drive faster adoption of hydrogen-based ecosystems in specific regions before it disseminates the most interesting initiatives globally. Let’s not wait, though: the lifetime of ships is high and the introduction of zero-emission vessels, including those using hydrogen-based solutions, must therefore start now.

About the author

François le Scornet carries 15 years of experience in the energy and power generation sector, mostly working in global strategy and market Intelligence roles at AREVA and GE Renewable Energy. Le Scornet created Carbonexit Consulting in 2017 to support industrial players and investors through market research, growth strategy development and commercial due diligence globally. He is also a visiting lecturer at INP-Polytech Grenoble and regularly supports the EU commission as an expert.

More than a century ago, the transition from horse-drawn carriages to automobiles played a pivotal role in the second industrial revolution and ushered in the age of oil. In the coming decade, passenger road vehicles and energy-related industries are poised to undergo a similarly major shift. The electrification of vehicle powertrains is one of the core elements of this transition and promises increased renewable energy use, fewer pollutants and less noise on the roads.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

For years, there were two main contenders to electrify vehicle powertrains – battery electric vehicles (BEV) and fuel cell vehicles (FCV). Until a decade ago, FCV appeared to be a more convenient option. Today’s reality is different though. An increasing number of countries and jurisdictions in Europe, North America and China are banning the sale of new passenger cars powered by internal combustion engines between 2025 and 2040. The combination of such policies and the recent and significant reduction of battery technology costs means BEV are now the more energy-efficient and lower-cost option (Figure 1).

Market figures reflect the impressive progress witnessed in this sector. The cumulative number of electric cars on the road climbed to 10.9 million in 2020 worldwide, up by more than three million from the previous year. China leads with five million BEV in its fleet, followed by the United States with 1.77 million. In terms of annual growth, according to the ZSW institute in Germany, new electric vehicle registrations worldwide increased by 38% in 2020 to a record high of 3.18 million, despite the COVID-19 pandemic, with Europe representing the highest annual growth in BEV sales compared to 2019. And the trend continues in 2021. In the second quarter of 2021, registrations of BEV continued to expand in Europe, where its market share more than doubled from 3.5% in the second quarter of 2020 to 7.5% this year.

However, IRENA’s 2021 World Energy Transitions Outlook indicates that a net-zero carbon global energy sector by mid-century would require close to 1.8 billion BEV on the road by 2050.

While BEV sales are picking up and more car manufacturers are developing new electric car models, there are three aspects of this transition that deserve more attention to ensure a successful shift toward electromobility: a rapid scale-up of the charging infrastructure, the integration of electric vehicles in electricity systems, and the increasing demand for materials to produce BEV and related infrastructure. Addressing these aspects requires innovations in technology as well as in regulation, business models and global value chains.

Accelerating the deployment of charging infrastructure

By the end of 2020, more than 8 million charging points were installed, including around 1.3 million public charging points (60% of which were located in China and 30% in Europe). In a net-zero carbon scenario, IRENA estimates that by 2030 more than 200 million new charging points should be installed, and an additional one billion new charging points between 2030 and 2050.

IRENA’s World Energy Transitions Outlook highlights that those new charging points – on average, 40 million per year – would represent annual average investments in charging infrastructure of $130 billion per year, compared to just $2 billion per year observed in recent years. Targeted policies to accelerate the deployment of charging infrastructure are needed, as well as streamlining infrastructure planning and permitting.

Integrating electric vehicles in electricity systems

Simultaneous BEV charging may significantly increase peak loads in distribution grids. However, vehicle-to-grid (V2G) approaches can reduce these peak loads. BEV may be used as a demand-side flexible load to support grid planning and operations in several ways. V2G technology, allowing electricity to be injected back into the grid, can make power systems more resilient and provide services, and can compensate users for active- and reactive-power services, load balancing, power-quality-related services, retail-bill management, resource adequacy, and network deferral. Car manufacturers, such as Volkswagen, Renault Nissan and Mitsubishi, are building BEVs with V2G capabilities and actively participating in bidirectional charging pilot projects.

IRENA’s Innovation Outlook: Smart charging for electric vehicles analysis shows how smart charging approaches (adapting charging cycles via dynamic pricing and digital technologies) can reduce distribution grid investments needed for the uptake of electric vehicles by between 40% to 90% (Figure 2).

However, on the policy side, attention to smart charging and BEV integration in power systems remains somewhat limited. This may rapidly become an issue, as the actual deployment of smart charging solutions depends on market incentives.

While the use of public charging stations might be less sensitive to time-of-use tariffs, private charging points at home and offices where BEV may stay connected for long periods of time represent a big opportunity for V2G integration using dynamic pricing mechanisms. According to IRENA’s Innovation landscape for a renewable-powered future, governments need to work closely with the electricity industry in defining these smart charging strategies.

Increasing demand for minerals

Most of the attention to materials for BEV is focused on lithium demand for battery production. Over the last 10 years, the price of lithium-ion battery packs has dropped by more than 80%. Car manufacturers, such as Volkswagen and Daimler, have now become leading battery manufacturing companies.

According to the US Geological Survey, total worldwide lithium production in 2019 was 410,000 tonnes lithium carbonate equivalent (LCE). Bloomberg New Energy Finance projects that the production of lithium in 2030 will be 1.5 million tonnes LCE, a fourfold increase from 2019 levels. The main driver of this projected increase in lithium demand is its use in electric vehicles. Car manufacturers are therefore urgently making strategic alliances to secure the supply of raw materials for their electric vehicles.

In addition to lithium, other materials to produce BEV batteries include cobalt, nickel, and manganese. The demand for those will also rapidly grow as BEV deployment takes off. But supply of those metals is projected to be adequate if the needed investments in mining and refining are seen. Also, new battery designs aim to reduce the use of scarce materials.

Looking beyond batteries, demand for other materials needed for BEV deserves attention as well. That is the case of, for example, rare earth magnetic materials like neodymium, which is needed to produce the traction motors used in many of today’s leading BEVs. Electric vehicles alone may consume more than 25,000 tonnes of neodymium by 2030, nearly a doubling of today’s production.

Copper is another metal used in BEV components and their charging infrastructure. It is estimated that BEV use about 50 to 100kg of copper each. That means that, for example, annual sales of 100 million BEV would require between 5 to 10Mt of copper per year, compared to 25Mt production per year today. At the same time, copper demand will also rise for power grids, solar PV plants, and wind turbines.

Picking up speed

The road transport transition towards electromobility is moving at a faster pace than many expected, and with the increased urgency to act against climate change, the transition will only accelerate. For a successful and sustainable transition, policy makers need to pay more attention to charging infrastructure, system integration and materials demand. IRENA is working with the governments of its member countries to define smart strategies for the electrification of end-use energy demand.

About the authors

Dolf Gielen has been the Director of the International Renewable Energy Agency (IRENA) Innovation and Technology Centre in Bonn since 2011. He holds a PhD from Delft University of Technology in the Netherlands.

Francisco Boshell leads the work on Innovation for Renewable Energy Technologies at IRENA. His background is in Mechanical Engineering and he holds an MSc in Sustainable Energy Technology from the Eindhoven University of Technology, in the Netherlands.

Huiming Zhang is a loaned officer currently working with the Innovation team at IRENA. His work focuses on smart electrification and renewable energy integration. Before being seconded to IRENA, he worked as a senior R&D engineer at China Electric Power Research Institute (affiliated with State Grid Corporation).

“We are looking for solutions to mitigate climate change and other challenges, but with the solutions are also opportunities for the energy industry, including the possibility of new business models,” says Jimmy Khoo, CEO of SP PowerGrid.

And Khoo, who is also Chairman of Singapore’s chapter of the World Energy Council*, explains that collaboration is key to unlocking these opportunities.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

“Here and everywhere else in the world, energy companies have to think about what we need to do and come together to help solve the problems of climate change.” A topic that is top of his agenda at the moment and also “very pertinent to the problems we face” is the future of the grid.

So why is this such a hot topic? And what are the significant challenges for Singapore and ASEAN as a region?

Reliability is key

These are unprecedented times in the power sector. Energy companies face challenges such as continued investments to maintain infrastructure, and upholding reliability while keeping it cost-effective for the consumers.

Yet grid operators are also having to understand, embrace and incorporate increasing digitalisation, decentralisation, decarbonisation and electrification – all of which add to the complexity of operating the grid and equipping it for the future.

According to Khoo, until now, the key emphasis for the grid has been on reliability. “As one of the world’s most reliable power grids, SP Group has maintained this focus.

But the future of energy is geared for transformation, and we have to tackle climate change and the transition to new energy sources.

“How do we then focus on what is traditionally expected of the power grid and still cater to the evolving demands of the future?”He says adaptability, knowledge and reliability are paramount to grid optimisation, carrying the grid into its next stage of development.

Power companies are currently faced with challenges that operators 50, 25, and even ten years ago could not imagine, let alone manage. Khoo says because available digital tools are increasingly more powerful, addressing the issue of distance, and with greater bandwidth, obstacles preventing the development of the grid are on the brink of being overcome. However, even with the right tools, he says that power companies must ensure reliability still remains the overarching priority.

A glimpse of the future

SP Group is not alone in having to overcome barriers related to reliability. However, the company aims to empower a sustainable energy future for everyone through reliable power and a smart grid. Khoo believes that new technologies will continue to explore “smartness”, which will lead to further grid optimisation.

With so many solutions being created seemingly every day, the grid will continue down the journey of intelligence in a way which defies imagination. For example, Singapore has begun utilising reservoirs in a unique way to fortify the grid with renewable resources.

Along with a smart grid, Singapore is committed to becoming more sustainable with the addition of energy storage systems and adding renewable resources to the energy mix with floating solar. The city-state is ahead of the curve in many ways, but some things are inflexible, such as the amount of open land available. That’s where the city-state needs to become resourceful.

“Recently, the Prime Minister visited a 60MWp capacity floating solar farm in Singapore and commented that the island nation will probably do a lot more of this – the concept is really applicable to Singapore because we don’t have much space, so we have to look for new ways of implementing solar energy.”

The project will be used to power the island’s water treatment plants, spans 45 football fields, and ties into the country’s installation strategy of at least 2GWp of solar PV capacity by 2030.

Accelerating EV rollout

In addition to the challenges posed by the adoption of digital technologies and the incorporation of renewables into the grid, electrification is a developing global trend. In Singapore, the electrification of transportation has been prioritised with a significant target put in place to accelerate EV adoption.

With these changes coming down the line, there will be infrastructure challenges to overcome, including vehicle-to-grid, significant charging infrastructure demand, and the added complications posed by fast charging. I ask Khoo what SP Group has up its sleeve for planning for the full electrification of transportation.

Unsurprisingly, he says much of the electrification planning revolves around accessibility and involves grid infrastructure to enable EVs. In respect of Singapore’s electrification targets, Khoo uses the tagline ‘Empowering the future of energy’ as a mantra. In this particular instance, he says, it’s a bit like solving a chicken-or-egg dilemma with what should come first and believes it is a globally common question: whether to start with charging infrastructure or electric vehicles, because they need to go hand in hand.

“A couple of years ago, we decided to champion electric vehicle charging, and we’ve been rolling out charging points across Singapore. “At this point in time, we are the largest charging provider with more than 400 points, and we are growing this number. If you follow Singapore energy developments, by 2040 all vehicles or cars will be electric.”

Right now, the focus is on enabling the extensive infrastructure for approximately 600,000 cars to have charging points, allowing movement from point A to point B. “The key focus will be to enable and empower the use of electric vehicles, and the key is creating accessibility. We believe that it is our responsibility to do as much as possible for Singaporeans.”
With the vision already set, how then should organisations enable optimisation and, in terms of infrastructure, support many of these green energy early days?

“That’s why we believe that we need to understand many of the new technologies by way of experimentation to study the applications and opportunities to implement all this new technology,” Khoo explains. SP Group has allocated funding for research and development to apply innovative technologies to understand the possibilities.

Khoo and his team recently launched Southeast Asia’s first trial of vehicle-to-grid integration to test and verify the possibility of using the energy stored in EVs to cater for demand on the grid, and to support the increased demand when Singapore phases out internal combustion engine vehicles.

These strategies combined will enable the small city-state to become more innovative and to secure its place as the ASEAN’s electrification leader. Khoo stresses that an intelligent grid that continues to learn is a vital tool needed to facilitate the transformation of the grid. With the incorporation of renewables, smart grids can contribute to combating climate change.

The grid in ASEAN has faults just like any other grid. However, the addition of intelligence will not only improve optimisation but also enlighten operators.

Nevertheless, the smart grid transformation in ASEAN will not be achieved overnight. “The smart grid is something that, I believe, has no single end-state,” says Khoo. “It will keep evolving. But what will continue to happen is that it will get more and more green and it will become smarter. It’s going to be a journey.”

Enlit Asia – The Future of the Grid

The Enlit Asia event, Future of the Grid, will be showcasing news from the brightest energy minds about the above themes and more. The event will be held on 28-29 October 2021 by Enlit Asia, partnered with World Energy Council and part of Singapore International Energy Week.

To learn more or to register, visit the website

* * *

*) At the time of publishing Jimmy Khoo was the WEC Chairman but since then, Stanley Huang has stepped into the role.

For such a technology titan, Singapore can be considered a laggard in smart metering infrastructure deployment.

While the US kick-started its initial rollout as early as 2006, Singapore began deployment in 2017. It also set a low bar in its initial target – 1.5 million installations over seven years. And by March this year, it had only completed 500,000.
“Singapore has opted for a more conservative rollout schedule than the majority of nationwide deployments,” says Michael Kelly, senior research analyst with Guidehouse Insights.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

“Mirroring Australia’s [outside of Victoria] national rollout, smart meters are installed at new customer premises or when analogue meters are due for replacement. However, customers do have the ability to opt-in to smart metering prior to their scheduled meter replacement date by paying a one-time fee of $40.”

Today, the majority of residential customers use cumulative meters which retailers come to read once every two months and employ estimated monthly billing using metrics approved by the Energy Market Authority.
This means it is either the utility that charges more, or the consumer that is charged less.

For the few customers with a smart meter, the utility’s charges are based on half-hourly intervals and on actual energy usage.

Stephen Chakerian, senior research analyst at Northeast Group, believes Singapore’s AMI rollout is mainly driven by the need for the country to be seen as a ‘smart nation’.

Although Singapore’s electricity network is in good health and has an exceptionally low transmission and distribution loss rate, Chakerian says increased digitalisation through smart metering would go a long way to further improving the energy segment.

He explains increasing the pace of the smart meter rollout means more consumers would have access to smart grid services that in turn would enable them to optimise their energy efficiency. And for utilities, smart meter data would help further reduce both technical and non-technical energy losses and provide a springboard for digital initiatives.

Increasing penetration

At a time when calls for climate action have never been louder, increasing its smart meter rollout would also help Singapore wean itself off fossil fuels. According to a new study called Powering the World released by Utility Bidder, Singapore relies on fossil fuels more than any other country in the world.

The study states that 98% of Singapore’s total energy supply comes from traditional fuel sources including coal. More smart meters in more homes would mean Singapore’s utilities would have the data to optimise both consumer and grid energy management and be able to forecast and match energy generation with demand.

Have you read?
Greening Singapore
Singapore relies on fossil fuels more than any other country – study

Smart meter-enabled services such as demand response and time of use would in turn enable consumers to shift heavy energy use during peak periods to off-peak, which would help utilities to use renewables for baseload power.

With funds to install advanced meters mainly sourced from electricity rates charged to households, there is a need for Singapore to explore other funding avenues, including green loans and bonds. Stricter smart meter installation deadlines would also encourage rollout at a much faster pace.

Today, deployment is only based on factors such as the age of cumulative meters, development plans in the area and meter deployment efficiency. Utility-wide scale deployment can also be a better option to replace the current model since it will encourage individual retailers to rally towards reaping the benefits of a smart grid.

In addition, an increased presence of multiple vendors and smart metering technology players from other ‘mature’ markets including Europe and North America would encourage innovation, knowledge transfer to Singapore and help increase the current local appetite for smart meters.

The AMI infrastructure in Singapore today is a result of a partnership between utility SP Group and local companies: Singtel, a telco; and EDMI, a smart meter manufacturer.

Smart metering market drivers

However, despite the slow growth of the Singaporean market, recent developments within the country’s energy markets are expected to drive an increase in the pace of rollout. The opening of Singapore’s electricity retail market to competition in 2018 has the potential to accelerate the rollout, according to Chakerian.

He says deregulation will encourage those consumers who do have a smart meter to switch retailers. This is expected to help improve consumer appetite for smart meters and encourage utilities’ focus on smart metering through efforts to expand their consumer base and increase revenue streams.

The Energy Market Authority, water agency the Public Utilities Board and SP Group have embarked on an initiative aimed at accelerating smart meter rollout across the electricity, gas and water networks.

In April, they announced a project to deploy 300,000 smart water meters in seven locations, starting in early 2022.
Despite the slow pace of smart meter rollout in Singapore, the recent announcements are expected to have a significant impact in helping water, gas and electric utilities to identify the beneficial AMI use cases.

Asia is frequently cast as the laggard of the energy transition: the slow mover who is letting the side down in the race to decarbonisation.

But is that fair? Or true? If decarbonisation is indeed a race, it is surely a marathon, and in turn, Asia will cross the finish line at some point. Won’t it?

We asked several key players in the sector to take the pulse of the energy transition in Asia, and in particular, the ASEAN region.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

“Whereas the virtues of renewables are known in Europe, many Asian countries still associate renewables with being expensive and unreliable,” said Vincent Bakker, Group Controller of Entoria Energy, who adds that the paradigm shift is slow – but it will happen.

Olivier Duguet, CEO of the Blue Circle, says the renewable energy revolution “will hit ASEAN shores when local utilities recognize its cost competitiveness and cost visibility”.

He adds that the pricing of new energy sources when utilising renewables and battery energy storage will determine the ability of ASEAN countries to embrace new sustainable energy practices.

Of course, clean energy projects need funding and funding often needs incentives. There is a consensus that if ASEAN governments showed support for green energy initiatives and backed them with their own capital, it would send a green light to investors.

Comprehensive and straightforward policies around green energy investments would spur investors to move forward with financing ASEAN projects. ASEAN policymakers need to publicly back emission-reduction policies for transparency but also to entice investors.

Turning off coal

So why can’t – or won’t – ASEAN countries flip the ‘off’ switch on coal.

Rajakumar A. Gopal, Vice President I, Group Project of EDRA Power Holdings, says we must remember that the ASEAN region’s fossil fuel supply is plentiful, especially in Malaysia, Brunei, Indonesia and Thailand.

He says that due to the economic and political significance of oil, gas, and coal, completely removing these resources would not remove the dependency on them for ASEAN countries.

And consumers would bear the brunt with increased costs.

“Renewable plants have not reached the stage where they can be considered baseload,” says Gopal.

“The battery storage which needs to be expanded in achieving baseload power is still far [from realisation] in ASEAN countries due to current high prices.

“Hence, the dependence on fossil fuels for power generation will continue to dominate the ASEAN countries until such time as renewables can be reliably supplied as baseload plants.”

With this in mind, and despite the utilities of several countries committing to adding renewables to their energy mix – which is crucial for the earth’s survival – they are not equipped to do so yet. Organisations like the International Energy Agency have a decarbonisation timeline, as does the ASEAN region: they just do not align.

The economics

Eventually, coal does need to retire as a power source, but discontinuing its use today would negatively hit ASEAN countries economically.

Currently, most of these countries are not yet prepared to change their energy mix completely to renewables, although the process has begun.

Energy expert Bisman Bakhtiar says it is “impossible to stop fossil fuel projects in the next ten years”.

“There are two causes: Firstly, our energy needs. Today, most of our energy demand still relies on oil, gas, and coal.
“Secondly, the oil and gas plus coal sectors are among the main revenue contributors, especially when the price is attractive.”.

He explains that if we look to the Philippines, Energy Secretary Alfonso Cusi has said that the energy transition should be “fuel and technology-neutral” and have as little impact on the country’s inhabitants as possible.

“Cutting finance for oil, gas, and coal without considering efficiency and competitiveness would set back the Philippines’ aspiration to join the ranks of upper-middle-income countries,” he explains.

It is also important to note that the Philippines is a net importer of fuel, as is Vietnam, another ASEAN country also heavily dependent on coal.

However, the difference is that the Vietnamese energy mix has drastically changed with the substantial and successful shift to solar.

In 2019, Vietnam supplied an impressive 4.5GW of utility-scale solar power capacity in less than two years, and at the beginning of this year, ENV announced that solar power has penetrated a quarter of the national power system.

The recently released Vietnamese Power Development Plan places renewables firmly at the centre of its energy ambitions and makes the country a clean energy bright spot.

The race to zero

While some would say that the ASEAN energy sector has moved at a glacial pace in its bid to integrate renewables, there is now a flurry of activity towards changing the energy mix.

Narsingh Chaudhary, Managing Director of Black & Veatch’s Asia Power Business, believes net-zero emissions in Southeast Asia can be realized through multiple approaches, such as reducing fossil fuel investments and increasing renewable energy penetration.

However, he cautions that this add-on to the grid comes with its own challenges and careful planning is vital for the successful integration of renewables into a stable and efficient grid.

“To accommodate more renewable energy generation, the region will need more integrated solutions across generation, transmission and distribution, as well as the expansion of gas-fired generation and energy storage to improve grid efficiencies and stability.

“In the longer term, integrating hydrogen to support baseload generation could be another approach to decarbonize the electric sector.” Yatin Premchand, Managing Director for APAC at Black & Veatch Management Consulting, says we are only at the start of a significant change to Asia’s energy systems.

However, he stresses it is vital to keep a longterm perspective. While gas-to-power will be a critical element of the transition, there has been swift progress in low and zero-carbon technology, applied solutions, and their adoption.

“In general, the technologies are already here and proven, and over the next five to ten years, industry and government need to adopt a decarbonisation mind-set that fuels regulatory reform and creates enabling investment conditions.

“While investments in grid modernization and smart energy syst ems will be required, the cost of enabling technologies will continue to fall through the inevitability of greater adoption and scale.”

The technologies and methodologies are available for ASEAN to supercharge the RE implementation, but it remains to be seen if funding and government backing are also on board.

The energy sector is in the midst of a period of extraordinary change, and Asia is watching, evaluating and responding to these changes: in its own time, at its own pace.

Editor’s note: Please be aware that all responses are Mr. Rajakumar A. Gopal’s opinion which were shared in a personal capacity and do not represent EDRA Power Holdings views in any manner.

Enlit Asia Digital Festival

Learn more about the ASEAN power and energy industry during the Enlit Asia Digital Festival, in collaboration with The 76th Indonesia National Electricity Day, taking place on 28-29 September 2021.

For more information and registration,
visit: www.enlit-asia.com

Asia is already the largest energy-consuming region in the world. In the coming decades, demand will rise much further and the region will continue to exponentially expand its transmission and generation capacity.

Concurrently, the continent will rapidly build up the digital infrastructure. There are already several markets which are strongly placed to lead the way in smart energy through digital technologies and solutions, both home-grown and from abroad.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

Regional energy demand turning from large to massive

The Asia region accounted for 45.5% and 48.2% of the world’s total primary power and energy consumption respectively in 2020, based on BP data. The second largest region, North America, accounted for only 19.4% and 19.5% respectively.

In the coming three decades, consumption will rise much further because of a low base. Less than 11% of the region’s electric power consumption, or about 1,403 TWh out of the 12,919 TWh (Figure 1), was from developed markets; namely Australia, Hong Kong, Japan, New Zealand, and Singapore. This means that Asia must add massive amounts of new transmission and generation infrastructure.

Some advanced emerging economies such as China will see power demand at least double by 2050 while some less economically advanced ones, such as India, will see it rise severalfold. Many governments and corporations in the region have embraced the energy transition and are aggressively seeking green and sustainable paths. They aim at a progressive fading out of fossil fuels-based energy in favour of electricity from clean resources, such a solar and wind power.

These resources will account for 50% to 100% of electricity output in Asia by 2050, depending on which forecast scenario is used. Given the existing energy transition momentum, the amount is likely to be at the higher end of the range.

As detailed in my book, Asia’s Energy Revolution, the various electric power markets in the region will rapidly and extensively add digital technologies and solutions while they construct the new necessary electric power infrastructure. The coverage of the new digital investments will not be limited to traditional demand-side management.

It is considerably more comprehensive and encompassing.

Massive spending expected in soft and hard digital infrastructure

The amount of investment in digital technologies and solutions for energy in the region over at least the next ten years should, conservatively, exceed $200 billion per year or $2 trillion over the period.

The estimate uses various global digital infrastructure forecasts as a base and then assumes that at least half will be spent in Asia. It is imperative to understand that an accurate capital expenditure amount dedicated solely to energy digitalisation is difficult to gauge given that many of the investments in soft and hard digital infrastructure may not necessarily solely be for the energy industry, yet they are absolutely critical to its development.

Examples of this include spending towards such soft digital infrastructure as digital payment solutions and such hard digital infrastructure as connectivity, including 5G and fibre.

There are many motivations and drivers for an acceleration of investments in digitalisation. Some of these are applicable globally. New digital technologies drive cost savings throughout the value chain of the production and supply of the energy.

They facilitate raising environmental sustainability. They can effectively raise the efficiency of energy-related financial transactions. They can address challenges with the intermittent supply nature of power from variable renewable energy
(VRE). They are also essential to improving the operations of new economy electric power networks, including micro-grids and distributed energy sources, and that of energy storage.

The motivations and drivers specific to Asia revolve around the fact that many of the electric power markets are emerging economies. The amount of digital infrastructure investments towards greenfield projects will thus exceed the amount dedicated to the replacement and upgrade of existing digital infrastructure.

We can use India as an example. The country has a total installed generation capacity of almost 390GW, about 83% less than China’s 2,260GW.

So as India ramps up its capacity in the coming decades the vast majority of its investments in digital technologies and solutions will be for greenfield projects and will also allow for the use of the latest and most efficient digital technologies and solutions available.

Learning from examples

Examples of digitalisation advances in Asian electric power markets abound. This can be illustrated by some real-world cases from some widely different jurisdictions; namely Australia, China, and South Korea. The latter two are discussed in more detail in Asia’s Energy Revolution.

The Australia electric power market is only the seventh-largest in Asia with about 265TWh generated in 2020. But it is definitely top-ranked when it comes to digital-related activity for many reasons including the bulk of the market being fully liberalised and the high penetration of VRE; for example, small scale rooftop solar – 8.7kW systems on average – reached a colossal 15GW as of July 2021.

For this, regulating bodies and stakeholders are actively looking at Industry 4.0 for productivity benefits, more extensive monitoring, big data analysis, digitally enabled equipment, real-time energy management, VRE and demand management.

The investments for all of these innovations are chiefly from the private sector, albeit with government support in some areas. It is currently difficult to gauge the amount of expenditure that will be required but it will be hundreds of millions of dollars at least this decade.

China is indisputably one of the digital transformation leaders in the world. The more consumer-oriented high-profile
examples are Alibaba, Baidu and Tencent.

In the electricity sector, state-owned enterprises such as the State Grid Corp. of China (SGCC) and private sector ones such as Huawei Technologies have led the nation to make huge digitalisation advances in a great number of areas including energy efficiency, EV charging, UHV transmission lines, and smart metering.

Perhaps the most talked-about of the areas domestically is smart grids. SGCC’s annual CAPEX on smart energy was about 35 billion yuan ($5.42 billion) in 2011–2020.

In March this year, it announced that in the 15-year period through 2035 it will accelerate “the intelligent transformation of power grid infrastructure”. This includes the construction of smart microgrids, smarter and more reactive power systems, smart-generation, storage connectivity, VRE despatching optimisation, and the large-scale application of new energy storage technologies. The SGCC, Huawei and others have also invested into many digital solutions for energy including AI, big data, blockchain, the cloud, and IoT.

Korea Electric Power Corp (KEPCO) is the nation’s largest utility, accounting for about 65% of generation and virtually all of its supply. The utility has historically devoted an enormous amount of resources into digital technologies and solutions so as to raise its efficiency and also so that it would be able to export its know-how abroad. It has been spending over $600 million annually on R&D, much revolving around Industry 4.0.

In recent years it detailed the digital energy-related technologies that it was focusing on. It broke these down into how it would develop the technologies in six areas and explained how it would go about securing these technologies. The six revolve around sensors, IoT, the cloud, big data, AI, and robots. The company actually undertook many pilot projects to further improve its know-how. This includes being a key participant in 80 smart city projects around the country.

What is next

The Asia region will see hundreds of billions of investments in power generation and supply over the next 30 years. These will be accompanied by huge investments in digital technologies and solutions. The fuel source shift from polluting fossil fuels to green and sustainable sources will only be feasible with enhanced digitalisation. These investments create a massive number of opportunities for businesses and investors from within and outside Asia.

About the author

Joseph Jacobelli is an Asia finance and energy professional with over 30 years of experience. Jacobelli is the founder of Asia Clean Tech Energy Investments, a dedicated family office and advisory firm for companies to source and finance clean energy projects in the region. He published the book Asia’s Energy Revolution: China’s Role and New Opportunities as Markets Transform and Digitalise (Berlin/Boston: Walter de Gruyter GmbH) in 2021.

The UK has proved to be a fertile business destination for Malaysian utility Tenaga Nasional Berhad (TNB).

In less than five years, it has acquired and now operates roughly 400MW of renewable energy investments in the UK. This is why the company is now expanding its reach even further into Britain with the launch of a new venture.

Vantage RE is a clean energy investment and asset management company that will oversee and operate a suite of renewable assets in the UK and throughout Europe.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

“This was a strategic move,” says newly appointed Vantage RE CEO Vian Davys, who adds that the company will also be an integral pillar of its environmental, social and corporate governance.

“My top priority is to support the broader ESG agenda of TNB,” explains Davys. “That goes to the heart of what we’re about, and for me, I think that means focusing on three things.

“Firstly, it’s about driving growth in renewable capacity here in the UK and Europe. Secondly, it’s about delivering our financial promises. Vantage RE is part of TNB’s International Assets Group, which has set a target of around 20% of the group’s operating profit from renewables by 2025 – Vantage RE plays a really important part in that strategy.

“Then the third area is how we go about executing our strategy in line with the values of TNB, and we also need to execute it by managing health, safety and the environment in a professional way.”

Criteria for new markets

Vantage RE’s tactics took shape when TNB was looking abroad for the best way to engage with other markets.

“We thought long and hard about this when we were developing the strategy for Vantage RE,” says Davys. “We looked at the depth and the liquidity of the market, the availability of assets, and we reflected on our existing portfolio.

“Currently, solar makes up about 93% of the installed capacity for our portfolio, so we recognize we needed to think about three things: diversification of technologies; diversification of revenue streams; and diversification of markets.”
According to Davys, Vantage RE’s current roadmap springs from several components, including the desire to increase capacity in assets supported by Renewable Obligation Certificates and Feed-in-Tarrifs – subsidy regimes he says the company knows very well.

Additionally, Vantage RE will attempt to diversify its portfolio with alternative revenue streams for its markets in utility-scale solar and onshore wind assets in the UK and broaden into Ireland, which is the initial base growth.

Davys says Vantage RE has strong growth potential in Europe for a number of reasons: “It has huge renewable energy growth targets, so lots of opportunities for us. Secondly, it provides a natural hedge in terms of energy production – if the wind isn’t blowing in the UK, the chances are it is blowing in Europe and the same for the sun. And finally, it allows us to diversify our revenue streams across a number of different countries.

Also, it allows us to have that continual growth because when one market is particularly growing another market might not be because the subsidy might not be available.”

He adds that the ideal approach is being able to play in a couple of different markets, which allows the opportunity for continual growth. “We’re not going to have a scattergun approach to our market entry into Europe.

We’re looking to go into one or two markets, and then grow our portfolio and our capability in that market and then build out from there.” Attention to detail This forensic attention to details is characteristic of TNB’s international expansion strategy, which has seen it enter India, Pakistan, Saudi Arabia, and Turkey as well as the UK.

TNB’s Chief International Officer, Shahazwan Harris, explains: “When we grow, it has to add value as well as leveraging of our existing capabilities and experience.

“So we won’t do a 20% investment into a market in South America, even though it’s a great market, because we don’t really have presence there. That’s where we started looking internally at our core strengths.”

Currently, two of those core strengths sit in the UK in the form of wind parks and solar farms, which produce approximately 400MW.

“We knew that the UK was a market that we wanted to focus on and grow,” says Harris.

Harris stresses that while TNB executives are keen to branch out into other countries, they are equally careful to not overreach their position. Yet that does not stop them from being highly ambitious.

“We wanted to prove to people we’re actually not just a Malaysian champion – we’re a global RE champion. We can bring this capability outside of Malaysia because, as a utility company, we understand other utilities and we understand the regulations.”

Harris explains that “in some cases, especially in Southeast Asia, we work with regulators in helping them to design their own regulations to promote RE. So that’s why we are working to grow our Southeast Asia focus currently in Vietnam, in Singapore, and with our partners”.

This focus on partners is one which Harris is keen to emphasise. “Partnerships are key for us. I think we know many utilities with a traditional utility mindset that says, ‘we’re a national utility, we can do everything alone’.

” This mindset is not one shared by TNB: “I am very impressed with the way this has changed in TNB because we realize that to work well in a market like Vietnam, we not only need to partner with the local developers, but also other investors or partners who are looking into the market.

“We are open to explore opportunities with equity partners who are interested to join us as we accelerate our international business growth.”

And he adds that a perfect example of this international growth will be Vantage RE, which he says will also serve to cement TNB’s ESG credentials.

Electricity grids are extremely large and complex systems – the US power transmission and distribution grids altogether are often considered to be the largest machine ever built on earth.

They are made up of a large number of disparate elements which, although they are independent, are also highly interconnected. Furthermore, grids are inherently dynamic, as their topology shifts constantly in response to new sources of generation and especially decentralized renewables, new loads, congestion and breakdowns.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

The increasing deployment of smart grids, which allow two-way flows of electricity and data, adds further complexity. To manage all this, a complexity simulation tool – a “digital twin” – can play a critical role. This helps to better understand the interaction between grid elements for better, fully-informed decision-making.

One of the main challenges facing DSOs over the past few years has been finding the optimum balance between what they need to spend on running, maintaining and developing their grids and the quality of supply they deliver to their customers.

They are under increasing pressure to achieve more with less expenditure. That requires a fine balance of cost, risk and performance. DSOs are also key enablers of the global energy transition. But adapting distribution grids presents a number of complex investment challenges. As well as catering for new demand and distributed energy resources (DER) integration, there is a need to ensure that supplies remain reliable and secure.

Electricity demand in Europe is expected to rise to approximately 3,530TWh per year by 2030. A recent study by Deloitte suggests that distribution grids will need to handle an extra 730TWh compared with 2017, equivalent to the electricity consumption of France and Italy combined. Transport electrification will see the fastest growth, with predicted year-on-year increases of 11% in Europe over the next decade. Electric vehicles will account for most of this growth. The increasing use of power-to-gas and electrification of heating and industrial processes will also drive demand.

Distribution networks will also need to handle very significant increases in the level of energy coming from DERs, and especially renewables – everything from rooftop solar to offshore wind. More than 500GW of extra renewable capacity is envisaged by 2030. Nearly three-quarters of this will be connected to DSO networks. Ensuring network reliability and service quality are already a major focus for DSOs These will become even more important as homes and businesses head towards 100% electricity dependency. In a similar vein, there is an increased need to ensure the grid remains resilient in the face of extreme weather events linked to climate change.

Increased asset management challenges

In addition to the developments highlighted above, the operation of distribution networks is becoming increasingly challenging because of the rapidly changing landscape of the energy industry and stricter market regulations. Furthermore, DSOs also have to face a growing number of internal obstacles, including ageing infrastructure, growing budget constraints, and the loss of expertise as highly-skilled and experienced staff retire – the “knowhow” drain.
The traditional approach has been to address each of these aspects individually, often in silos.

Yet the many facets of network maintenance and renewal strategies – such as finance, quality of service, safety, or human resources – interact with each other in complex ways that cannot be easily understood and modelled. This is where digital technologies become a critical decision-making tool for efficient asset management.

Data makes the difference

Information is key to effective asset management. As an example, replacing old equipment before it fails often seems wasteful or simply impossible. Yet the data for making an informed decision is often not readily available. Consider the US power grid, where almost 70% of power transformers and transmission lines are over 25 years old.

The maintenance and renewal strategy should be designed on the basis of tangible data and realistic forecasts. Otherwise, it is impossible to find the right balance between minimising the risk of equipment failures, securing acceptable network performance and efficiently managing CAPEX and OPEX.

The information needed to drive decision making is abundant. But it is distributed across various stakeholders within the DSO organization, from asset managers to maintenance and engineering teams, from the finance department to human resources. What is needed is some way to collect and manage this data and to use it as the basis for reliable projections that consider all the many variables. This is where digital technology offers a head start for asset managers.

Recent developments in augmented intelligence have resulted in solutions capable of centralizing data and generating a digital twin of the complete distribution network. This virtual model considers all the constraints imposed by the regulatory environment, business rules, available financial and human resources, and any technical policy in place.

The digital twin

In simple terms, a digital twin is a digital version of a real-world asset. The ability to model a single asset has clear value. But now with the development of enterprise digital twins it is possible to create a model of the whole distribution business encompassing all its assets and interactions. The digital twin accurately reflects the entire physical network and the processes used to manage it (including inspections, repair and renewal strategies).

This enables the creation and testing of different scenarios, the assessment of the impact of various AM policies and strategies on key performance metrics in order to make fully informed decisions based on clear projections.

A key aspect of digital twin technology is the unique capability to deliver interconnected insights. These allow asset managers to quickly identify and measure correlations between distribution grid performance, capital expenditure and maintenance costs and risks.

These insights enable DSOs to make trade-offs between CAPEX and OPEX while mitigating risks and reducing intervention conflicts – all in line with their business objectives. For the projections to be realistic, digital twins must also factor in the aging profile and behaviour of electrical assets. The potential benefits associated with the digital twin approach to asset management are huge and have the potential to take this crucial area to a new level of efficiency.
To achieve this, DSOs need a bigger and better toolbox to move from the traditional ‘connect and forget’ concept towards ‘connect and manage’.

About the author

Bram Alkema is Business Development Manager for Asset Management Solutions at Nexans.

For me, the just transition is a unique opportunity to engage governments, businesses, third sector organisations and consumers in the most significant reformulation of modern-day society Climate change targets can be a unifying aim for driving an urgent response away from fossil fuels towards a post-carbon society.

Moving from a carbon-intensive world to a more decentralised, technologically-enabled future needs to take place fairly. Just transition is a new social contract between global citizens and the instruments of the state, private interest, and the public good.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

We can only realise the transformative potential of engaging in a just transition through a critical reflection on what rights need to be preserved: How can such a transition empower the global citizen with new rights while demanding new radical, just, social and ecological outcomes?

New citizen rights must emerge

Climate change discourse remains limited to the first dimension of these, known as prohibitive justice. Just transition is more than simply maintaining the rights of fossil fuel-polluting countries to compensate their affected communities. In this way, new rights must emerge for citizens in the Global South and low carbon intensive regions. Above all, we must combine these affirmative justice principles with a transformative outlook that seeks to reconfigure our world by placing global justice and ecological wellness at the fore.

I take the example of Malawi. It epitomises the existing problem with our current approach to the transition. As one minister told me: “Malawi doesn’t produce fossil fuels. It can’t sell fossil fuels to our neighbours. Malawi can’t afford fossil fuels. Meaning, we don’t matter.”

Supplying cheap electricity through renewable means is only part of what we should aim for. Innovative forms of multilevel decisionmaking processes must lead to a deeper redistribution of benefits and burdens.

International action beyond strategies

So what is the world doing about this? The good news is that international organisations are responding in their own way to this idea of a just transition. They explicitly stated a commitment to it in the Paris Agreement of 2015.

It has reappeared at G7 annual meetings of national leaders and in the COP UNFCCC process, most notably leading to the Silesia declaration in 2018. Other international organisations have different versions of just transition strategies – including the International Monetary Fund, United Nations Development Programme and the World Trade Organization.

This action goes beyond strategies. It increasingly means financing. The example of the EU is the most prominent to date. The EU Green Deal established a multidimensional framework for financing the transition, with its own named Just Transition Platform and associated financial mechanisms.

The amounts have varied over the past few years and have become supplemented by national examples of such financing in Scotland, Germany and Poland as notable examples.

This has not been without controversy. Terms and conditions have been in question. For me, the controversy plays a secondary role to the embeddedness of a simplified view of the just transition. One that could do more harm than good. It remains focused on compensating its most carbon-intensive territories, rather than financing new spaces of low carbon technology initiatives or considering its external power to achieve more radical global change. The financing of just transition is a nice start but needs to be reoriented in a more meaningful way.

Business and trade unions working together

Additional signs of hope emerge from trade unions. ‘Just transition’ emerged directly from coal mining disputes in the US in the 1980s. A central part of the term is about replacing jobs lost by the move away from carbon intensive industries.

The contemporary refocus on future renewable sector employment is welcome. Progressive campaigns have been designed to engage all sections of our existing carbon intensive societies in a new vision for the future. This is of course even more prominent considering the pandemic.

Businesses and trade union interests need to work together to achieve a just transition. The technological revolution means that the nature of work is due to undergo its most radical transformation in generations. Just transition means that such organisations, and the employees in the middle, deserve proper work in this reconfigured low carbon world. One in which technology enables human development in a more meaningful way than previous industrial revolutions.

The interplay between such interests and the urgency of the climate transition is the key component in reconfiguring financial mechanisms and strategies for a just transition.

Environmental organisations such as Friends of the Earth, backed by grassroots networks of community initiatives and informal groupings, are central forces for sustainable transformations such as that demanded by a just transition.

Work here is urgently required to enable comparable societal forces beyond the dominant Anglo-American or European presence today. A just transition is one in which bottom-up societal forces drive new processes of decision-making in both the virtual and physical worlds.

If we want global action more thought is needed as to what this looks like in China, India or Brazil, for example. We must therefore support community action through just transition financial mechanisms with a more pronounced global scale reflection point.

Mitigating new inequalities

In conclusion, a just transition involves a wholesale reimagination of where burdens and benefits will be shared, what type of new decision-making processes are possible and how we can mitigate new inequalities that may emerge from the transition away from fossil fuels.

It enables the achievement of climate change targets through the collective support of each section of society. This will need to be translated into contextually sensitive, reformulated social contracts between government, business, third sector organisations and citizens.

It ultimately must lead to a transformational approach to justice that is driven by the low carbon technological revolution. This means that prohibitive and affirmative principles of justice need to be complemented by more transformative thinking.

This is most urgently needed in existing and planned financial mechanisms on just transition. Practically, this involves targeting areas of renewable growth, not just fossil fuel demise. It is disrupting the current carbon intensive global system and its political power constellations.

About the author

Professor Darren McCauley is Chair in the Management of International Social Challenges at Erasmus University Rotterdam.

This article was originally published in
Enlit Europe’s Guide to Season 3 – A Just Transition.

For more articles about a just transition and other industry insights, visit the Enlit Europe website

In the wake of the European Commission’s ‘Fit for 55’ proposal focusing on the revision of its climate, energy and transport-related legislation, the European Federation of Energy Traders, in collaboration with Enlit Europe, organised a panel discussion to contemplate the various aspects of this package.

During the discussion, it quickly became clear that the pricing of carbon and the EU Emissions Trading System (ETS) has been put front and centre in this policy to reduce emissions by 55% by 2030 and to reach carbon neutrality by 2050. Hans Bergman, Head of Unit, ETS Policy Development, DG Climate Action at the European Commission, commented: “We needed to strengthen the ETS. Carbon pricing is a key instrument to reach carbon neutrality.”

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

About the release of the proposal, Bergman said: “We have a huge challenge ahead of us and I think this package contributes to this. This package will also send out an international signal. It already has, actually.” Hæge Fjellheim, Head of Carbon Research at Refinitiv, added, “It is difficult for the market to oversee the interplay between the different policy design options. We have a complex puzzle ahead of us”.

According to Fjellheim, the package “is strengthening the EU ETS, but it is also an attempt to shield it. EU ETS is working, given the current price signals and the package wants to make sure it stays a key tool to reduce emission with 55% in 2030″. Moreover, Fjellheim highlighted some of the proposals such as sharing the burden with non-EU ETS sectors, a separate ETS for transport and buildings, a stronger market stability reserve, a beefed-up modernisation and innovation fund and a gradual phase-out of free allocation with a moderate CBAM proposal.

Join the energy trading community on 20-21 October 2021 at ETCSEE in Prague, THE 2-day conference-led event for energy traders. Register here.

“These are the proposals. We will still have several years of discussions to go.” Peter Vis, Senior Research Associate: European University Institute, thinks that it is a wise decision to protect the main ETS. “Going forward there are 3 pressure points in the package,” he said. “Extension of the ETS to the buildings and transport sectors is centre of controversy.

Secondly, the experiment around free allocation; we have to see how the major players will react. The third pressure point is the inclusion of the maritime sector which extends to incoming and outgoing voyages, but only half of those voyages. I can that will be controversial with some of our international partners.” He adds: “If any of those experiments were to fail, the main ETS is going to remain safe and will stay a key instrument in delivering climate change policies.”

Paul Dawson, Head of Regulatory Affairs at RWE Supply & Trading, represented the industry’s take on the proposal and called the Fit for 55 package “exciting stuff”. “It bridges the existing ETS with other sectors like the buildings and transport sectors,” he said. “The only thing missing still, is the future role of carbon reduction technologies. We would like to see more on that element as we go forward.”

Moderator Peter Styles, Executive Vice-Chair of the EFET Board, also asked the panellists about potential future overlapping policies from national governments. Both Dawson and Fjellheim responded that ETS gives us a commitment and that national policies are not overlapping but complementary to that. And as Peter Vis concluded: “It is important for companies to know what is to be expected with these proposals. They need to start preparing for the future.” SEI

About the author

Patrick Bauduin is Content Director for Enlit Europe and for the Energy Trading Central and South Eastern Europe conference at Clarion Energy, where he covers the European Energy
Markets.

Watch the full discussion:
‘Energy Markets Series | What future for the EU ETS – the centrepiece of the EU climate policy and diplomacy?’

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Enlit Europe will bring the energy community together during the live event in Milan (30 November – 2 December 2021). Register here

Two studies published in 2021 now also confirm the long-term reliability of this technology for applications in harsh environments. The studies investigated thermal-mass gas meters following operation in the field for up to over 10 years. They concluded that all meters were operating well within the accuracy limits prescribed during service and that the majority of meters still fulfilled the requirements for brand-new gas meters.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

Coupled with the release of a dedicated European standard in 2021 (EN 17526), thermal gas technology is, therefore, a cost-effective, proven and reliable solution for gas metering that is already powering millions of gas meters worldwide. Additionally, it offers extensive self- and network-diagnostic capabilities and is ready for a wide range of natural gas compositions including hydrogen blends and pure hydrogen.

Thermal-mass measurement principle

For the past 80 years, thermal-mass technology has been used for measuring flow in the most critical applications such

life-sustaining medical ventilation, air intake regulation in car combustion engines, building ventilation systems and control of sensitive industrial processes. The thermal mass measurement principle is the most versatile and robust way to measure flow.

Until recently, however, it was prohibitively expensive for high-volume, price-sensitive applications. With the progress of MEMS (microelectromechanical system) technology, the thermal-mass flow measurement principle has been realised on a single silicon chip. Highly integrated CMOS processing of such chips allows for effective miniaturisation
and high-volume production. With these advances, the cost of thermal-mass technology has been radically reduced to
the point where it is an attractive solution not only for high-end applications but also for low-cost, high-volume devices such as disposable flow sensors and gas meters.

Thermal-mass technology for gas metering

The application of thermal-mass technology in gas metering was pioneered by Sensirion in the early 2000s. The main benefits of this implementation are excellent accuracy, compact size, ultra-low power consumption (critical for battery-powered gas meters) and, above all, a very attractive cost. The latter is made possible by the integration of the flow sensor, signal processing and analysis electronics, and calibration data storage in a single semiconductor chip. Apart from the flow, thermal-mass sensors can also readily measure various thermal properties of the gas to compensate for variations in gas composition.

This makes thermal-mass gas meters an ideal choice for measuring consumption of natural gases with a very wide composition range as well as for gas blends with hydrogen or even pure hydrogen.

The first thermal-mass gas meters were installed in the field in 2007. Following an initially slow adoption of the technology, the rollout has significantly accelerated in recent years and to date over 6 million gas meters worldwide rely on this proven way to measure gas flow. The main factor that initially limited the adoption of the technology was the perceived lack of track record in the field. Even though thermal-mass technology had been proven over the years in many other applications, it was a relative newcomer to the gas metering industry – an industry that values robust performance, safety and reliability above all else. Various national and international standards regulate the required accuracy of gas meters. Different accuracy classes exist, with class 1.5 being the most widely used worldwide.
OIML R137 and EN 17526 (the dedicated thermal-mass gas metering standard being published in 2021) define the maximum permissible error (MPE) for temperature-compensated class 1.5 gas meters (such as thermal-mass meters) as 2% and 3.5% at high and low flow regimes, respectively.

OIML R137 additionally prescribes 2x MPE (3.5% / 6.5%) for meters that have been remeasured following in-field service. Hence, the 2x MPE is widely accepted as the bar that a meter has to clear while in service (typically 10–15 years).

Field studies of reliability of thermal-mass gas meters

By 2021, a significant number of thermal mass gas meters had already been operating in the field for over a decade.
Two independent studies recently looked at how different types of thermal-mass meters perform after having been operated in gas for up to over 10 years. The first study, conducted by NMi – a Dutch notified body – looked at industrial G10, G16 and G25 meters manufactured by MeteRSit and installed in Italy between 2013 and 2016. The institute randomly selected 20 meters from a list of the 2,749 available. These were later collected by the manufacturer (19 meters – one was installed in an inaccessible location) and sent to NMi for read-back measurement. The said measurement involved measuring each meter both in air and natural gas between Qmin and Qmax flow rates. It was found that all meters, regardless of the number of years in service and accumulated measured gas volume, were still well within the 2x MPE allowed. Additionally, all meters performed within 1x MPE in gas, and 15 of the 19 meters also in air. That is to say, most of the meters performed as well as brand-new devices.

The second study involved 35 “EGZ” G4 residential meters that were built by ABB and installed in Switzerland between 2010 and 2011. These meters were operated for 9 to 10 years before being removed from the field and remeasured. The study was performed by MEMS AG, whose measurement infrastructure was certified by the Swiss Federal Institute of Metrology, METAS, in preparation for the investigation. Again, the authors measured all meters between Qmin and Qmax flow rates both in air and natural gas. Similar to the study conducted by NMi, all meters measured performed well within 2x MPE in both air and gas. Additionally, all 35 meters were still within 1x MPE when tested in gas, and 31 of the 35 also in air.

Of the 35 meters measured, 3 were installed in a pressure reduction station and experienced unusually high flow rates. In fact, they accumulated measured volumes approximately 14 times higher than the other 32 meters (280 000 m3 vs 20 200 m3 over 10 years). It would take an average meter 140 years of operation to accumulate such an amount of gas measured. Importantly, all 3 meters were still within 1x MPE for both air and natural gas – a benchmark for new gas meters. What the two studies had in common was that the tested gas meters were based on

the key metrological units manufactured by Sensirion AG: CMOSense® gas metering modules. They also both confirmed that thermal-mass gas meters are still as good as new after over 10 years of operation in the field.
Even if the errors were to double over the next 10 years of operation (of which there is no indication), the meters would still be within the 2x MPE allowed by OIML R137.

Hence, one can conclude that thermal-mass meters demonstrate the ability to operate reliably in the field for over 20 years. This is significantly longer than the lifetime of a typical gas meter. The metrological unit appears even more stable than that, given that it is unaffected by the very high volume of gas measured (14x the average). It can thus be concluded that it would easily outlive the other parts of the meters.

EN 17526: new thermal-mass gas metering standard

The maturity of thermal-mass technology for gas metering applications has been recognised by CEN with the publication of a dedicated European standard in 2021. “EN 17526. Gas meters. Thermal-mass flowmeter based gas meter” outlines the requirements and tests needed to bring thermal-mass gas meters into the field. It is a harmonised standard, meaning that it builds on the normative documents previously developed for the diaphragm and ultrasonic gas meters. It is also compatible with international norms such as OIML R137. Meter manufacturers used to the existing standards should not find any surprises in the new thermal mass norm. From now on, the dedicated thermal-mass gas metering standard will remove a significant uncertainty previously associated with certifying such meters because the requirements and test plans are clearly laid out in the dedicated standard.

Thermal-mass gas metering: proven for years, certified for the future

Recent developments have brought the cost of thermal-mass technology to the point where it has emerged as a very
attractive solution for gas metering applications. Long-term field reliability studies indicate that the lifetime of thermal-mass gas meter modules is significantly longer than the design life of a typical gas meter. The publication of a dedicated thermal-mass gas metering standard in 2021 recognises the maturity of the technology and paves the way to more widespread adoption of this well-proven method for flow measurement in the gas metering industry. In addition to attractive cost, reliability and very compact size, thermal-mass technology also offers extensive self- and network-diagnostic capabilities (e.g. air recognition for tampering detection). Finally, the technology can readily cope with measuring natural gas with a very wide composition range, as well as natural gas-hydrogen blends of any concentration and pure hydrogen.

About the author

Dr Konrad Domanski is a Product Manager at Sensirion. He is responsible for the definition, product lifecycle management and certification of thermal-mass sensor solutions used in smart gas metering products worldwide. Domanski has broad experience in international project management and holds a PhD in Material Science from the Swiss Federal Institute of Technology in Lausanne (EPFL).

About Sensirion – Experts in Environmental and Flow Sensor Solutions

Sensirion AG is a leading manufacturer of digital microsensors and systems. Its product range includes gas and liquid flow sensors, differential pressure sensors and environmental sensors for the measurement of humidity and temperature, volatile organic compounds, carbon dioxide and particulate matter.

Akhil Aryan, Co-founder & CEO
ION Energy

What is cool about your start-up?

ION Energy aims to create a generational impact by solving the biggest problem of our generation, climate change. As the world accelerates towards zero emissions and renewables, efficient energy storage still remains a question.

This is where we come in, providing companies access to a technology infrastructure that blends advanced electronics and analytics, such as AI, ML, Big Data, with deep domain expertise in energy storage. ION Energy plans to shepherd the gradual and seemingly inevitable shift from fossil fuels to electric energy.

ION Energy offers products and services that help optimize battery performance and enhance lithium-ion batteries’ lifetime value in electric vehicles and battery energy storage systems (BESS). Using our technology, companies can buy or build their own Battery Management System (BMS), which measures cell voltages, keeps balanced charge cycles, and controls safety systems.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

Main area of impact

Electric vehicles (EVs) are the automobile industry’s second coming as they are solely responsible for the sector’s impending transformation into a renewable alternative. India has also shown considerable progress in the EV space.

Today, EV and energy companies worldwide are leveraging our proprietary algorithms for energy assets’ Health Monitoring, Warranty Management, Fleet Management, Predictive Maintenance, Anomaly Detection, Performance Benchmarking, Charger Management, and Energy Demand Forecasting.

ION Energy is a tier-1 supplier to manufacturers like Bajaj Auto and TVS Motor Company, the two major Indian OEMs that have entered the EV segment. Over the last three years, we have become the largest BMS company in India, and over 30,000 vehicles on Indian roads are running on our BMS.

Words of wisdom for other start-ups?

If I were to give one piece of advice, it would be around self-reflection. It is all in you.

Life is happening. All that you have to do is be conscious and self-aware to know that life is happening for us, not to us. So this notion of being able to sit with yourself and ask some very existential questions like: “Who am I?”, “Who do I want to serve?”, “How can I extend the impact for the life of that service?” And whatever it is, the ‘mission of building a sustainable future so that we have a future’ underlies it all. A simple counterintuitive yet intuitive way of approaching how you can do your life’s best work.

Learn more at www.ionenergy.co

Eka Himawan, Co-founder
Xurya

What is cool about Xurya?

PT Xurya Daya Indonesia is a Solar Fintech Platform in Indonesia. Xurya connects the global capital supply with local demand from commercial and industrial customers, and considers itself the market-maker for the renewable energy sector.

We use technology to automate project return calculation. Selecting projects from proposal through to construction and monitoring, through an IoT-based monitoring system and automated maintenance requests

We provide solar lease agreements to enable a transition to renewables without initial investment, with lower tariffs than grid electricity. During the lease contracts, we operate and maintain the solar asset without additional cost.

Main area of impact

We aim to address two key issues that Indonesia is facing. First, the increasing negative impact from climate change due to fossil fuel-based emissions. Solar can play a huge part in reducing such emissions with minimal impact on the environment – solar’s LCOE is dropping in many parts of the world.

Second, Indonesia is still way behind in solar usage with enormous growth potential. Currently, solar penetration is low compared to other surrounding countries in the South East Asian region, and historically there have been few government incentives for solar development. However, grid parity was achieved in 2018, making it possible for positive returns on solar investment to be generated without additional incentives.

Since our establishment in 2018, we have been operating solar rooftop systems in more than 40 locations and are in the process of installing in more than 50 locations around Indonesia. So far, we have been able to reduce more than 17,000 tons of CO2 with these installations.

Words of wisdom for other start-ups?

Money comes as an after-effect of value creation to society, but the reverse does not work. If you give value-add to the society, someone will pay for it.

Learn more at https://xurya.com

Kartik Hajela, Co-founder & COO
Log 9 Materials

What is cool about your start-up?

Energy storage (battery technology) is a key piece in addressing the widely accepted problems of emissions and global warming. Log 9’s technologies provide energy storage solutions for mobility and stationary devices.

Our RAPIDX batteries in mobility applications address the problems of battery degradation, range anxiety, slow charging, limited power output and load-carrying capacity amongst others. The developed batteries have a life of over 15,000 cycles, corresponding to over 15 years of usage.

With already certified less than 3% degradation in the life of a typical last-mile delivery vehicle.

Moreover, the battery can charge/discharge at 5-6C continuously with a peak power of 9C. High power allows quicker acceleration/deceleration and a consistent load-carrying capacity (500kg payload for three-wheelers). Additionally, a two-wheeler battery can be fully-charged in <15 minutes and a three-wheeler in <40 minutes. The battery is quite robust and can function in temperatures from -30 to 650C.

On the other hand, Log 9’s aluminium fuel cell technology is designed and envisioned to pioneer a 100% clean, green and recyclable aluminium-based economy. An aluminium slab goes into the fuel cell, ‘burns’ to produce energy while converting to aluminium hydroxide which can be re-smelted back into aluminium utilising clean energy. An end-to-end zero waste and zero-emission system supporting the circular economy can finally provide a sustainable solution to our energy problems.

Main area of impact

The last-mile logistics is a booming sector owing to the increasing market penetration of the e-commerce, groceries and food delivery industries. India is estimated to have over 200 million two-wheelers and 10 million threewheelers on its roads, most of which are using petrol/diesel as fuel, signifying the immense potential of the EV market in the country.

The adoption of EVs is most appealing for companies possessing a commercial fleet, delivery companies from an operating cost perspective, streamlined routes/end-points (requiring minimal charging infrastructure) and the rather underestimated environmental impact. For instance, there are about 1 million two-wheelers used in the country for making deliveries. Assuming a daily usage of 100km, which is common for any commercial last-mile vehicle, the total carbon emissions of this fleet operation in India alone is more than that of the entire population of countries like Nepal and Mauritius, among many others. Electrifying the same signifies the impact potential of Log 9 Materials.

Words of wisdom for other start-ups

Patience is key to a successful venture. It’s normal to get demotivated with early signs of failure, but if you are solving key challenges in the industry, be patient and wait for the market to align. It requires great belief in the purpose (‘why’) of what you are solving. With a strong belief, you will stand your ground and continue innovating.

Learn more at www.log9materials.com

Are you an entrepreneur or student with an idea for a new innovative clean renewable energy technology?
Apply for the Indonesian Energy Innovation Challenge 2021: https://indonesianenergyinnovationchallenge.com/

The Indonesian Energy Innovation Challenge 2021, co-organised by Energy Investment Management, Initiate Asia and Enlit Asia, provides entrepreneurs and students with a platform to share their ideas and solutions, realize new connections and allow the start of new collaborations.

Have you heard about Initiate!?

Initiate is a global movement that spotlights talent, empowers the next generation of energy entrepreneurs and creates impactful programmes to move the industry forward. To learn more about Initiate and read the latest news about start-ups and small ventures, visit www.initiate-global.com or www.smart-energy.com/initiate

The enormous attention on clean hydrogen shows no signs of diminishing as the world continues to transition to a lowcarbon future. Although it’s not a ‘silver bullet’ that will enable us to achieve all our decarbonisation goals, it is expected to be a major low-carbon fuel and energy carrier in the near future, particularly in hard-to-abate areas, such as industrial processes and heavy transportation.

Much of that attention is being fuelled by the strong political focus globally. This is especially true in Europe, with the publication last year of the EU Hydrogen Strategy and more recently the Fit for 55 Package, which many hope will provide the necessary legislative boost for the greater deployment and uptake of clean hydrogen by industry, energy and transportation.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

What’s critical for clean hydrogen, whether ‘blue’ or ‘green’, to reach its full potential in supporting our low-carbon transition is achieving scale and reducing costs right along the whole value chain, from production to transport to storage to utilization. This is where innovation and small ventures, such as start-ups and scale-ups are playing a vital role.

Last year, StartUs Insights created a Global StartUp Heat Map that showed the distribution of over 600 viable hydrogenfocused start-ups and scale-ups. And because it’s such a fast-moving area in all likelihood that number is now even higher.

Looking across the whole value chain, highlighted below are six start-ups, whose tech solutions seek to address common challenges facing clean hydrogen production, transport, storage and utilization.

Addressing the cost of production

The fact is, currently it’s significantly more expensive to produce green hydrogen (from renewable-based electricity) than grey hydrogen, which is produced from natural gas and is routinely used as an industrial feedstock.

However, one Israeli start-up, founded in 2019, is seeking to challenge that. H2Pro has developed what it describes as a revolutionary method for splitting water. Although similar to conventional electrolysis, that’s where the similarity ends because the hydrogen and oxygen are generated separately at different phases – an electrochemical phase and a thermally-activated chemical phase.

The result is that their device is expected to reach 95% efficiency, operate at higher pressure (50 bar or higher) and importantly cost significantly less than a conventional electrolyser.

Coupled with anticipated reductions in the cost of renewable energy, H2Pro believes its technology will enable $1/kg green hydrogen production at scale, making it the world’s lowest-cost production and helping to accelerate green hydrogen’s mainstream adoption.

Last year, H2Pro won the Scale-up Category in Shell’s New Energy Challenge, and is now working with Shell Ventures to jointly develop an all-important pilot. While in March of this year, it successfully closed a $22 million Series A2 funding round led by Breakthrough Energy Ventures.

Meanwhile, in the UK, Supercritical Solutions is developing a novel high pressure, ultra-efficient electrolyser solution. By using heat and pressure, its proprietary design allows it to exploit the benefits of supercritical water and deliver gases at over 200 bar of pressure, but without the expense or challenges of hydrogen compressors. Supercritical Solutions says this means it can deliver the lowest cost pressurized green hydrogen.

Shortlisted for this year’s New Energy Challenge, the start-up will pitch for the opportunity to win €100,000 ($117, 880) towards a proof of concept within the Shell GameChanger programme. In June, it also received over £320,000 ($443,253) from InnovateUK, which will support the development and testing of a fully operational multi-cell module.

Making transportation & storage safer

Handling and transporting hydrogen is challenging because of its high flammability, high diffusivity and very low density as a gas. However, German start-up, Hydrogenious LOHC Technologies GmbH, believes the hydrogen storage and transport system that they’ve developed, based on Liquid Organic Hydrogen Carriers, could be a game-changer.

Using a toluene-based oil as the carrier material, which has low flammability, its LOHC technology is said to be ideal for the safe storage and transportation of largequantity hydrogen. Furthermore, the oil itself can be re-used for another load.

Hydrogenious is a finalist in the ‘Rising Star’ category of the 2021 German Founders Award.

According to Dr Daniel Teichmann, Founder and CEO, “Renowned studies such as that of the Hydrogen Council, have found our proprietary LOHC technology to be one of the most promising solutions for the storage and transport of hydrogen”.

Returning to the UK, H2GO Power, which was founded in 2014, has developed a patentpending reactor that stores hydrogen gas. Employing nanotechnology to create a flexible sponge, it traps the hydrogen atoms in its pores, enabling the safe storage of large quantities in a small space.

The reactor has a proprietary design and has been manufactured, tested and certified to operate between 1-10 bar and below 100°C and meets current pressure vessel standards.

For utility-scale storage, H2GO Power has developed a stationary ‘plug and play’ unit, which houses multiple reactors and is the size of a standard shipping container. It is designed to take in renewable energy, store it as hydrogen for a long duration and release power on demand. AI algorithms provide cost-efficient management and optimal storage/response operations.

“We chose to do our part at H2GO Power by working on developing and deploying zeroemission technologies that could capture renewable energy, store it for long durations at scale for low-cost and then release it back to the user when the demand for power increases”, says Dr Enass Abo-Hamed, CEO and Co-founder.

Targeting new consumer markets

Developing new consumer markets and therefore demand is an essential part of creating a viable clean hydrogen economy, and the following two innovators’ solutions are aiming to do just that.

Focusing on a diverse range of decentralised end-use sectors – such as marine, telecommunications, construction, hospitals and off-grid homes – Estonia’s PowerUP Energy Technologies, which was founded in 2016, has developed a series of fuel cell-based electric generators that it says is a sustainable and viable alternative to both diesel generators and batteries.

Its generators, which are fuelled by pure hydrogen gas, are based on proton exchange membrane (PEM) fuel cells. PowerUP has developed its own highly active bio-based and CO2-derived nanocatalyst and is in the process of developing corrosion proof and lightweight fuel cell stacks that can operate in extremely corrosive environments.

In March, PowerUP received a €150,000 ($176,848) grant from Estonia’s Environmental Investment Center to develop two 12 kW protoypes that will be tested and validated by Mushi Bio Power in Namibia and the National Radio and Pakistan’s Telecommunication Corporation in early 2023.

It is also one of the 15 finalists in this year’s SET Award.

While, KEYOU GmbH, which is based in the German city of Munich, is aiming its solution, at least initially, at the commercial vehicle sector.

Via a technological approach of combining efficient injection, exhaust gas recirculation, turbocharging and a patented hydrogen catalytic converter, KEYOU has demonstrated how a conventional diesel engine can be transformed into an emission-free hydrogen one, and ultimately make the internal combustion engine green.

Importantly, its hydrogen technology is not specific to a particular engine or manufacturer, and can be used in both new and existing vehicles.

KEYOU, which was founded in 2015, was on the top 100 international start-ups list of the 2020 SET Award.

All six start-ups demonstrate the ingenuity and agility that small ventures possess when seeking to overcome challenges, many of which can be long-standing. So if we’re serious about creating a clean hydrogen economy that is truly sustainable, industry incumbents, investors and governments all need to be encouraging, engaging with and supporting more of these innovators.

About the author

Dr Heather Johnstone is Content Director of Initiate! in Europe, a global programme that seeks to empower the next-gen energy tech and talent.

Historically, Europe has always been an anthropocentric continent, placing the individual and the community
in the centre of its philosophical, sociological and economic ideas. Therefore, it should not come as a surprise to anyone that the European Commission does exactly the same on every level, including the one that interests us the most. That of the Energy Sector.

Since 2019 and as the European answer to the Paris Agreement, the Clean Energy Package brought to the table an enabling legislative framework for citizen and energy communities. Since then, community energy projects, mostly on renewable energy sources, have increased in number and have provided incentives and increased awareness.

This article was originally published in Smart Energy International Issue 3-2021.

Read the mobile-friendly digital magazine or subscribe to receive a print copy.

Projects like ‘Clean Energy for EU Islands’ – that helps island communities transit to clean energy sources – or ‘FlexCoop’ – a complete demand response solution targeting energy cooperatives and their residential consumer-members – are sponsored by the EU Commission. And they engage citizens, reinforce social norms and support the energy transition.

As Achille Hannoset, DG Energy, says: “The purpose of energy communities is to provide value over profit. And this is very important to emphasize, as it is very much a social concept. In addition, they have a democratic participation structure because their work is based on the principle of openness, and voluntariness.”

The social innovation potential of energy communities also resides in the ability to allow access to consumers independently of their income or access to capital, and therefore ensure democratic participation in projects that are transforming the energy system.

Moreover, the European Commission’s Clean Energy for All Europeans Package confirms the prominent role prosumers and their collective forms will play in the future energy system. The EU legislative framework formally acknowledges and defines specific types of community energy as ‘renewable energy communities’ and ‘citizen energy communities’.

But how does the Clean Package envision the Energy Communities? According to Hannoset, “as a means to empower citizens in the energy transition, but also to accelerate the transition itself and increase the uptake of renewables.
And finally, as a way to also trigger energy-conscious behaviour, where people have control over their production and supply, and they take up more and more responsibility in the energy sector, so they don’t merely act out of economic self-interest anymore, but are also taking social responsibilities”.

A ‘social contract’ of this kind, establishing an energy community very much like the political community Rousseau envisioned in 1762, would need a robust regulatory framework in order to bloom and flourish. Not to mention to help deploy the renewable capacity at the scale necessary to reach our 2030 and 2050 targets.

“What is needed in general,” says Hannoset, “is a framework that takes into account the special needs of prosumers and energy communities derived from their nonprofessional characters. They have limited financial means, limited technical resources and limited time available because it’s usually a side activity for them. The people involved in the energy communities have full-time jobs on the side. So what such a general framework might encompass are easy, accessible and streamlined procedures.

And with that, I’m thinking of licensing and grid access procedures, help for financing and getting the information needed, campaigns to inform local authorities and municipalities about the benefits that energy communities might bring to their particular city. And finally, special rights or exemptions on the support scheme for renewable energy communities”.

That said, one should also take into consideration that there are different member states in the European Union, with different levels of acceleration and progress regarding the energy transition. Should then the change happen at a local level first? “No,” says Hannoset. “It should happen simultaneously, both on a local and pan-European level, in order to achieve climate neutrality in a cost-effective and secure way”. And he is probably right because after all, it’s not like we have all the time in the world to adapt…

To find out more, visit the Enlit Europe EU project zone

Hydrogen to the rescue?

Green hydrogen was supposed to be the key energy protagonist of the delayed 2020 Tokyo Olympics, which finally took place from the 23rd of July until the 8th of August 2021. And in a way it was. Just not at the scale originally envisaged by the organisers.

Initially, Japan was planning to use hydrogen for multiple different use cases: from powering the Olympic village, to moving the athletes around in hydrogen-powered buses, to fuelling the Olympic cauldrons and the various ceremonial torches that were strategically placed around Japan, to many more.

But in the end, the parts of the plan that actually materialised were the use of green hydrogen to power the two cauldrons, some (not all) of the torches, a part of the village and the approximately 500 fuel-cell cars supplied by the sponsor Toyota, used to move officials around the premises.

Would you consider this to be a failure? I wouldn’t. The Japanese organisers did the best they could and it should be considered good enough. I would consider it, however, as proof of how demanding and expensive it is to generate, integrate into the (existing) power grid and distribute green hydrogen. It is definitely not child’s play.

Inspired by the Olympics, we give in this issue extra attention to the Asian continent, as well as to the talk of the town when it comes to the future of power. That would be hydrogen, in case you are wondering.

In the pages that follow you can read all about hydrogen and the ways that it might change our lives, but also, the issues that it brings to the sector. I highly recommend the article “Catching hydrogen’s next big wave” by François Le Scornet. It is an interesting, new take on the challenging but promising deployment of hydrogen-based solutions in the maritime sector.

In addition, Russell Edson’s “Freight transportation: on the cusp of a hydrogen-powered future” discusses the ‘battle’ between hydrogen and battery electric power, and the winning party might just not be the one you’d think. For more on this topic, make sure to give IRENA’s contribution about e-mobility a read.

But it’s not all about hydrogen in this issue. Nexans’ Bram Alkema shares how digital twins can enhance asset management for DSOs and Professor Darren McCauley describes his vision for a just transition.

One of my favourite articles from this issue features Shalu Agrawal, Senior Programme Lead at the Council on Energy, Environment and Water (CEEW) in India. In our ‘Women in Energy’ series, she speaks about India’s power sector, the gains made in household electrification over the last 20 years, and the challenges and impact of the pandemic. A very engaging interview that I recommend to everybody, but especially to young women dreaming of working in the sector. You can learn more about India’s energy transition in our special supplement.

And from dreams, back to reality. While you read this issue, the seasons will start changing again. For our readers in the northern hemisphere, the summer will soon transform more or less into a (distant) memory and the prospect of a ‘normal’ autumn will open little by little. Hopefully. In the southern hemisphere, may spring bring new hope and inspiration.

However, regardless of where you are based, don’t forget to keep up with the Smart Energy International website for news, webinars and podcasts. I hope to see you there, and – of course – at Enlit Europe 2021 in Milan.

Cheers,
Areti Ntaradimou
Editor – Smart Energy International

editorial@smart-energy.com

Anil Rawal, Managing Director and Chief Executive Officer of IntelliSmart Infrastructure, the JV leading the drive for smart metering initiatives, discusses the rollout with Jonathan Spencer Jones.

What is the current status of India’s smart meter market?

Smart metering has been in India for more than two years now, but it has been at a very early stage. Initially, there was an issue around acceptance with resistance from consumers, but slowly, developments have started to increase, thanks to EESL, which took the initiative with various states.

Today, we have more than 2 million smart meters installed across the country by various entities. Of these, over 1.7 million have been installed by IntelliSmart and EESL in six states and union territories and the others by other agencies.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

With this, we are slowly seeing an increasing acceptance of the programme because the utilities who went in for smart metering have seen the benefits in terms of their financial and operational efficiency improvements and the various other benefits consumers receive. The market has also responded well in terms of manufacturing capacities, cloud services, telecoms services, etc.

I think the market is fairly well prepared to take on the second leap of smart metering, which is being enabled by the policy and regulatory drive of the government.

We have a current order of about 8 million meters, including the 1.7 million already installed. The government’s plan is to install 250 million smart meters in the next three to four years across all the states. For that, various tenders are out based on a model document prepared by the government.

What is the local smart meter manufacturing capability?

The government’s definition of local manufacturing is more than 50% value addition to the meter – or to any appliance – from local parties and all the meters in our order book meet that requirement.

We are confident there is a reasonable supply available locally and I have met the manufacturers and they have promised to increase the capacity to meet new tenders and to support the rollout programme to whatever extent required.

Why the focus on prepaid smart metering?

The lead has been taken by Bihar, which is one of India’s largest states in terms of population but not among the richer states of the country in terms of per capita income, and there they decided to install all prepaid meters. The reason was to provide an empowerment tool for consumers to purchase the amount of electricity they need and can afford, e.g. as little as Rs 20 (US$0.27) at a time.

For a distribution company, prepaid removes the requirement of working capital as payment is upfront. This increases their ROI by about 0.5%, which is a lot of money.

While government is focusing on the prepaid mode of smart metering in the country, various states are evaluating their needs and pursuing more and more consumers to opt for prepaid metering as technically both options are available to choose for the consumers. We need to align with the regulatory environment as well as with the distribution utilities and consumer requirements.

What are the key challenges facing the distribution companies and between states?

The first challenge is utility inertia. They have to think beyond the conventional and to think digital in order to be financially and operationally independent and strong, but there is a gap in terms of the skills to move to digital.

Secondly, we have always had an issue with a large number of consumers who were not paying for their electricity. That’s why we have losses to the tune of beyond 20%, which totals up to billions of dollars being lost every year. Getting consumers to pay and understand that power is no longer free as it used to be thought of in the past is a major challenge.

Thirdly, consumer awareness and educating them about the benefits of smart metering is another critical challenge to be worked on in all states of the country to ensure smooth build-up on the programme.

What consumer engagement is being delivered with the smart meters?

The programme has so far had a top-down approach obliging consumers to adopt smart meters. If we continue this way, it may not be very successful. For a successful large-scale implementation there has to be a pull coming from the consumers and that they conceive it as positive and not as a move against them.

We have been pitching a programme telling consumers that this empowers them in terms of monitoring and controlling their consumption, it makes them law abiding and saves them from defaulting on payment. It also offers net metering with two-way flow detection for those with rooftop solar to become a source of revenue and obliges the distribution companies to be more responsive to consumer rights.

The other part, which the government is working on, is to link account subsidies directly with the programme. If we have a section of society which we feel should not be given free power, then the subsidy money can go to their accounts and they can pay that way. Their electricity is accounted for, they feel responsible and law abiding although at the same time they are not actually paying for the power. So that is the last piece of the puzzle to make it a pull-oriented rather than a push-oriented programme.

Why was the Build-Own-Operate-Transfer (BOOT) model selected?

The reason for adopting the BOOT model is the ‘catch 22’ that the discoms have been caught in because of the high nonpayment. This has led to a lack of revenue for investment in the distribution sector and the inability to draw power even for those who are willing to pay for it, further impacting revenues.

The BOOT or OpEx model, which essentially enables an investor to invest in installing and operating the infrastructure and receive a return based on the value it creates over an agreed period of time, has been applied successfully in various Indian states in generation and transmission.

The main investor at present is the government-backed National Investment and Infrastructure Fund but there are a large number of investors waiting on the fence and set to come in once the contracts and security mechanisms are in place, which I expect soon.

What does the new ‘Revamped Reforms-based and Results-linked, Distribution Sector Scheme’ bring?

Under this new initiative, government has committed to investing up to 15% in BOOT-based smart metering as well as other distribution upgrades. With this sweetener, the government expects more lenders to enter the picture and adoption by the federal states.

The first state to participate in the programme is Assam and we participated as one of the bidders in their project, and several more states are ready to do it. We also are still working to finalise the tender document which should give confidence to external investors.

We think this BOOT model can be applied in other developing nations where power sector utilities are in trouble. For governments with a credible base, sovereign backing would encourage investors into the sector and elevate the utilities. Ultimately, if we can strengthen the lowest end of the power value chain, i.e. distribution, we can strengthen the whole power value chain and enable it to become a leading indicator for growth.

How do you see smart meters in the integration of renewables?

Renewables have put the distribution utilities under pressure with their variability and challenges in delivering demand side management. An additional issue unique to India is that the utilities have long-term Power Purchase Agreements (PPAs) with thermal plants. To honour those as well as use green power, both costs have to be paid.

Smart meters can help to stabilise the grid with the granular demand information they provide. The utilities also can use this data for other value-added services for consumers to SCADA and other services. Smart meters are ultimately the base for the smart grid, which is the future of the sector.

And for an Indian ‘supergrid’?

I believe the concept of ‘supergrid’ should rest on the fulcrum of the grid being responsive. We have a large grid which is doing reasonably well when it comes to management and smart meters would only add to further stabilisation. Variability in the grid is going to increase as the penetration of renewables increases. With more and more smart metering, the stability and harmonics issues could be reduced.

If a supergrid plays out, it will obviously do so through the smart meters. That’s why we as a nation are focussed on driving the mission!

About Anil Rawal

Anil Rawal has a long history of service in India’s government and corporate arena, and the power sector in particular, and is a specialist on the financial, contractual, regulatory and commercial aspects for large national and international infrastructure projects. He also has been involved in the evolution of the public-private partnership framework for infrastructure development projects.

About IntelliSmart

IntelliSmart Infrastructure Private Limited is a JV between Energy Efficiency Services Ltd (EESL), an Indian government energy service company, and the National Investment and Infrastructure Fund (NIIF), established to enable the implementation of smart meters through a BOOT (Build, Own, Operate, Transfer) model.

For more insights from Anil Rawal, visit POWERGEN India and Indian Utility Week’s digital platform and watch the Fireside Chat, as well as the webinar recording ‘Smart Metering – Adopt, Accelerate and Transform, Co-organised by EESL’.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

What do you think makes a successful leader?

A successful leader is someone who can provide and communicate a vision and execute it. Dr Abdul Kalam, a former president of India (2007-2012) is an example to me. He was a scientist coming from a very humble background in rural India and became the person who realised India’s position in space technology. He helped take the country from nowhere to a very respectable position. Nowadays, India is a very reputable country when it comes to space technology. This was a dream of the country of a billion people, but you needed someone like Dr Kalam to take that vision and execute it over decades. In my opinion, he was a true leader.

Which of your leadership skills was the most difficult to develop?

Changing my mindset from working independently to managing a team. During my first years in management, I needed time to build self-confidence and to delegate – not micromanage! – and take on team failure. I learned this from working under different leadership styles and approaches for several years. For example, today I would hire college graduates to join the team in our technology department and feel comfortable in giving them large tasks and responsibility.

I’m not setting them up to fail but rather I see it as giving them responsibility with sufficient tools and training to learn and excel. Allowing yourself and your team to fail is the key founding principle of delegating. After a failure, you need to learn together. Although this process may take time, it builds self-confidence. And confidence in your team, colleagues, suppliers, and even customers.

What industry challenge keeps you awake at night?

Working in the renewable energy sector, our focus is on helping our customers with their energy transition. The gap between understanding and the ability or the intention to transition is something that keeps our team ‘awake at night’. For example, people understand the impacts of climate change; however, asking them to make real-life changes to their day-to-day routine to help mitigate these impacts is a real challenge.

Everybody is worried about the future but people are more worried about putting food on the table or what the next quarter holds. When we approach our customers, we educate them on the personal benefit first and then follow on with a greater benefit, such as environmental benefits. This lack of awareness or inertia in society is huge. I feel that sometimes there is a general lack of courage to take a step forward. Eventually, something is going to happen. It keeps me awake that the speed at which we are moving is not what it should be. I don’t want to wake up someday and realise that it’s too late.

Read the full interview

What are your and your team’s greatest blind spots and how are you improving these?

Being an idealistic person, I sometimes face practical hindrances in the execution of new ideas. With my team, I find people are mostly constrained by their departmental boundaries. When they are performing they are limiting themselves to their departments or functional role, which does not help them to see the bigger picture.

If we change our focus from output to outcome, which is a general requirement for any business process to be effective, we can get great results.

For that change to happen, one needs to articulate some real-life examples so that people understand how change impacts and benefits them.

What’s the biggest risk you’ve ever taken?

Professionally, the biggest risk I took was to design the smart grid pilot programme in 2011. At that time, India was at a very different stage where the majority of people did not have access to electricity, with a low per capita consumption of electricity. To implement smart grids, large investments were required for technology intervention and information
communication tools.

The question was how to keep the balance between short-term priorities of energy access and futuristic technology interventions for sustainable economic development.

My focus was on how we would be able to leverage the latest technology innovations and meet some of the country’s priorities. Based on the objectives and outcomes, we needed a design and country-specific use cases around smarter grid functionality.

Utilities in different areas could select from the suggested use cases and corresponding smart grid solutions to address their specific requirements. This allowed connecting their needs with the best technology options – a vital part of that smart pilot template design.

That was a big risk in terms of how we designed the pilot, and the way we communicated with the stakeholders and evaluated the right partners to accept and implement the innovative smart grid solutions.

We had some success stories of pilot implementation at CESC Mysore, UGVCL Gujarat and many more, that are also globally acknowledged.

On a personal note, in 1985 when I had to choose a career, females in India were only pursuing medicine or teaching as their career option whereas I was considering engineering, a big risk in a male-dominated sector in those days.

There were a lot of negative feelings towards females in the engineering field. But there was a great desire in me to
pursue engineering as the career I had dreamt of, to contribute meaningfully to the country. Ultimately, I came out with flying colours.

What’s the most important leadership lesson you’ve learned and how has it proven invaluable?

One needs to persevere irrespective of whether the short-term rewards are there or not. As someone said, we do not live in bungalows, duplexes or flats, we live in our minds, which are unlimited areas. We should keep our thoughts sorted and uncluttered in our mind.

To perform well in life and every arena, one should be able to control the quantity and quality of the internal dialogue, as our performance equals potential minus internal conflicts.

When meeting other leaders, what do you ask them?

I would ask them: What is the one situation that you wanted to run away from? That, to me, is the starting point for every leader. I would never run away from a leadership position.

Running away means that you no longer have anything to offer or are too afraid to own up to your mistakes. All human beings will make mistakes at work!Another big trait of a leader is to not only focus on the good things but also be someone who can accept honest mistakes and be willing to take remedial steps so that these mistakes won’t reoccur.

What do you think makes a successful leader?

Every leader should possess sincerity as a quality.

Taking the first step instead of letting others do so is the second quality. Thirdly, I would say you need to stand by your decisions as a leader. If you are leading a group, try to give them the kind of confidence that if anything good happens, it was the whole team who made that happen. If anything doesn’t go to plan, stand behind them as a leader to help take corrective measures. Having worked in a bureaucratic system where in a high position, people presume that automatically it means leadership. For me, that has never been the case. You have to provide leadership to people, your peers and even people who are ready to move on.

What tips do you have for keeping a team motivated?

Firstly, we are a government organisation so I am not able to set monetary incentives. Therefore, I struggle to answer this question. But I’ve been thinking a lot what other, non-monetary things I can do. What I’ve seen is motivation based on doing something for the community and getting the best out of it.

For example, I still remember the joy on people’s faces when we visited villages during our LED bulb programme back in 2014-2016. This is a big motivation for me. Also, because we grew fast and our EESL projects became increasingly relevant in India, people at a more junior level started getting the attention of the state and the municipal bodies. This is also something that is motivating them. We also made sure that if there is a good idea, regardless of age, gender or location, this person got the full support of the management and encouragement in front of everyone.

Lastly, we try to motivate people by actively creating new opportunities abroad, but these are solely given to people based on merit and performance.

There has been consistent growth in installed capacity in the thermal, hydro and nuclear sectors. But during the last decade the pace of growth for renewables, specifically solar and wind, has been remarkable and is expected to approach almost 100GW by the end of 2021. With this increase in the share of renewable energy, India should achieve about 30-35 % reduction in GDP emission intensity by 2030.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

The national renewable energy capacity target has been ramped up from 175GW by 2022 to 450GW by 2030. Comparing the present capacity with this target, there is much work to be done along with the transition to e-mobility and digital innovation across all energy systems.

The rising share of renewables in the power system adds various challenges for system operators due to its variability and uncertainty. The call for system resilience to manage this uncertainty with more flexibility in the system is a key aspect for greater renewable integration, alongside the availability of transmission corridors, the readiness of local distribution networks and issues of behind the meter renewable generators.

Various other issues like dynamic tariffs, net metering, banking and block by block set up and forecasting and scheduling also need to be addressed.

Both at the state and national levels, electricity is a concurrent subject in India. The top down approach recognises the importance of flexibility in the system by including storage and dynamic response of conventional plants. The role of the electricity network for delivery of the energy transition needs to be stated, particularly as it is required to meet wide areal coverage, the growth in urbanisation, rural electrification and increasing per capita energy consumption.

The various policy, regulation and regulatory related norms, rules and methodology are being planned, designed and implemented both nationally and in some states. Here one needs a holistic view of growing the renewables penetration to reduce carbon emissions and provide a green tomorrow for the next generation. Both the regulation and policy should be inclusive to ensure projects are viable and sustainable. It has been observed that much renewable capacity could not be established or operated or became unsustainable due to improper policies, guidelines or regulations hampering their future.

Key initiatives like modification in the government controlling scheme for more flexibility in thermal plants, operation of pump mode hydro projects, off-grid solar projects for the agriculture sector, battery storage to meet short term peak demand and absorption of high renewable generation from demand side management with financial incentive are to be deployed by individual utilities.

A collective approach to address the basic problem of project viability, smooth integration and grid operators’ requirements is required with a positive outlook and the filtering out of speculative developers.

About the author

B. B. Mehta is in charge of efficient and secure Power System Operation and Control at Odisha Power Transmission Corporation Ltd as Chief Load Dispatcher and Director (SLDC). He has been associated with the power sector for more than 36 years.

Watch an exclusive interview with B.B. Metha on POWERGEN India and Indian Utility Week’s digital platform https://bit.ly/bbmehta.

The front of the meter storage market is still in its nascent stage with a total installed capacity of 28MW/20MWh as of March 2021 across seven projects. There is a strong pipeline of projects which are in various stages of construction accounting for 360MW/312MWh.

There are also GWh-scale RFPs that are coming up with different agencies such as Solar Energy Corporation of India and NTPC (formerly the National Thermal Power Corporation).

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

These are primarily renewable energy integration and distribution company-side integration.

Presently, the behind-the-meter market comprises the major share of the total stationary market and is expected to pass 30GWh in 2027. Behind-the-meter installations are mainly for power backup applications, driven by the low grid reliability situation existing in several parts of the country.

In 2020, the annual battery sales for power backup in inverters, uninterruptible power supplies (UPS) and telecom towers together constituted nearly 18GWh. These segments can be termed as traditional segments, as they have been existing for decades and are largely based on lead-acid (Pb-acid) batteries.

Traditional BTM battery segments

The UPS segment has been supporting the emergency load in the manufacturing, data centres, IT and healthcare sectors, while the inverter segment primarily covers residential and small commercial consumers.

While valve regulated lead–acid batteries are used in UPS applications, flooded lead-acid batteries of 1-2kWh capacity are installed in inverter applications. Most telecom towers in the country are backed with batteries and diesel gensets.

Lithium-ion penetration has kickstarted in all of these applications, with the telecom sector having the highest penetration of 20% in 2020. The techno-commercial benefits of Li-ion batteries over Pb-acid types are driving this change in this application. In the UPS segment, data centres are the early adopters of Li-ion batteries. Due to the smaller footprint of Li-ion batteries compared to valve regulated lead–acid, the extra space is utilised to accommodate more servers or network infrastructure.

Emerging BTM battery segments

The emerging segments in the behind-the-meter battery market are rooftop solar, diesel genset hybridisation and microgrids. Though these segments presently account for approximately 1.2GWh of annual battery sales, it has the potential to grow five times by 2027.

Growing electricity tariffs and long duration power cuts faced by the commercial and industrial (C&I) sector are driving the battery demand from these two segments. Besides, the price of solar panels and Li-ion batteries have dropped significantly during the past decade, so the blended cost of energy stored in batteries from solar PV has become cost comparable to that of C&I tariffs being paid by the customers.

The C&I electricity tariffs in several states in India are over US$0.10/kWh (Figure 1). The levelised cost of energy (LCOE) of solar+storage is compared with that of the C&I tariffs for a battery penetration of 50% of that of solar PV capacity.

The price of Li-ion battery packs is expected to drop from $180/kWh in 2020 to under $100/kWh by 2027 while the cycle life is also increasing for stationary storage batteries. With the drop in battery prices, a longer duration of batteries is expected to be installed for this application.

The LCOE of a four-hour battery system with solar PV is expected to drop below US$0.09/kWh by 2025. Domestic gigafactories that are ancipated to start production in 2024 are expected to reduce these prices further, starting in 2025.

Diesel genset hybridisation is an important market. The installed capacity of diesel gensets is around 90GW in India. Of this at least 2% of the diesel gensets are in operation for an annual running time of 1000+ hours. Diesel consumption can be significantly reduced by hybridising these gensets with a battery. In several cases analyzed, C&I customers facing average three-hour power cuts daily were found to benefit significantly by hybridizing DG set with a Li-ion battery for a 1-1.5 hour duration. Opex costs were reduced by up to 30% annually with a pay-back period of 5-6 years.

Li-ion battery penetration

The annual Li-ion battery demand in behind-the-meter applications crossed 1GWh in 2019. As the Li-ion battery prices drop and become comparable to that of Pb-acid, higher penetration of the chemistry is expected in the market. By 2027, the annual demand is expected to grow ten times to reach 10GWh, growing at a CAGR of 39%. Presently, there are more than thirty Li-ion battery pack assemblers in the market supplying to both the stationary and emobility sectors.

Despite a strong demand for Li-ion batteries for stationary applications and a growing demand from the emobility sector, battery cells are still imported largely from China or South Korea. To address the challenge associated with local battery manufacturing, in May 2021 the government of India approved a Rs18,100 crore (US$2.4 billion) production-linked incentive (PLI) scheme for building 50GWh of advanced chemistry cell battery manufacturing in the country by 2027.

The scheme aims to incentivize 50GWh of advanced cell batteries manufactured in the country with high local value addition. The minimum capacity that can be bid is 5GWh and the maximum is 20GWh. With the incentive programme, it is expected that the locally manufactured advanced batteries, including Li-ion chemistry, is expected to become competitive with global suppliers.

Batteries beyond BTM application

India has a strong renewable energy target to include 450GW of renewable power into the grid by 2030. Integrating this amount of renewable power on the grid is expected to create demand for 100GWh of energy storage.

In addition to this, in July 2021 the Ministry of Power announced plans to float tenders of 4GWh for the installation of battery storage for ancillary service applications. Customized Energy Solutions forecasts the demand for front-of-the-meter storage to grow at 104% CAGR between 2020-2030.

To learn more about India Stationary Storage Market trends, challenges, case studies, LCOE analysis, policy landscape analysis, the detailed report is available at
https://indiaesa.info/resources/industry-reports

About the authors

Rahul Walawalkar is a strong votary of improving energy storage and e-mobility in India. He founded the India Energy Storage Alliance in 2012 and continues to serve as its President and has served as a board member for Energy Storage Association, USA and Chair of the Global Energy Storage Alliance. He has played an instrumental role in shaping the Advanced Chemistry Cell Battery Manufacturing Program and worked on drafting the national energy storage mission for the Ministry of New and Renewable Energy, India. He holds a PhD in Engineering and Public Policy from Carnegie Mellon University, a Master’s degree in Energy Management from NYIT, United States and a BE from Walchand College of Engineering, India.

Avanthika Satheesh has over a decade’s experience in market research and consulting services in the energy sector. Her research expertise is on emerging technologies such as energy storage, renewable energy, EV charging, and smart grid. She holds a Master of Engineering in Power Systems from Anna University, a Bachelor of Technology in Electrical Engineering from Kerala University and a Post Graduate Diploma in Business Administration from Symbiosis International University, Pune.

A BNEF report says that electric vehicles are expected to supply 58% of new passenger car sales by 2040.

This shift, when examined closely, reveals a gamut of driving forces. Increased climate consciousness at both individual and institutional levels, a rise in EV charging infrastructure and falling prices of battery storage have been acting as the drivers for this metamorphosis.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

India has been astute about the increased utility of electric vehicles, with both the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) I and II schemes being a testament to that. These schemes are aimed at promoting the adoption of electric vehicles and creating a robust EV charging infrastructure.

Additionally, several ministries and departments have been involved in supporting the electric mobility transition. Furthermore, many states have formulated strategies for transforming their mobility systems and several have formulated or are in the process of formulating their EV policies. They have also set ambitious targets for themselves, with states like Bihar aiming for 100% e-mobility by 2030 and Uttar Pradesh seeking 100% electrification of public transport on green routes along with 100% EV adoption for rickshaws, cabs, etc. in select cities. Haryana has set a target for converting 100% of its buses into e-buses by 2029 and Uttarakhand looks to electrify its entire public transport by 2030. These are just some of the examples, with other states also leading the charge in e-mobility adoption.

It is pertinent to note that the prerequisite for the adoption of EVs is a robust charging infrastructure. Only when consumers see an extensive network of public charging stations will they consider EVs a feasible mobility solution. Thus, a reliable and accessible network of public chargers is imminent. The FAME-II scheme focuses on the establishment of a thriving charging infrastructure and the Ministry of Power has amended the EV guidelines to set a goal for at least one public charging station to be available in a grid of 3 x 3 km2 within cities with a population over 4 million. It has also clarified that EV charging stations will not require a separate licence for electricity transmission, distribution or trading under the Electricity Act 2003.

At Convergence Energy Services Limited (CESL), a wholly owned subsidiary of EESL with responsibility for driving sector integration, we have been rapidly stimulating e-mobility adoption, by deploying EVs and establishing the requisite charging infrastructure. As of date, more than 1,500 EVs have been deployed across government institutions. Realising the varied need for EV charging, we are establishing a combination of captive and public charging stations, which will be key to driving EV adoption. We have also set up a first of its kind EV Charging Plaza with five chargers, with two different specifications, in a bid to optimise the charging.

Innovation in business models is also a key imperative. For example, at CESL, we tie up with a land partner to install public EV charging stations and have deployed more than 400 such publicly accessible EV charging stations. Herein, we own and operate the charging stations over their lifetime (~10 years), leading to affordable services for the end-consumers. We also utilise low-cost financing and demand aggregation, which enables bulk procurement, leading to the lowering of overall costs. Such innovation is required to build consumer confidence in electric vehicles and to attract private sector investment in the sector.

We are now witnessing a collective push from the governments, OEMs, charging infrastructure providers and financial institutions, along with an increased appetite from the consumer for EV adoption. India is swiftly moving towards creating an extensive network of EV charging. We have also seen a dip in the cost of battery storage, which will play a catalytic role in making EV acquisition affordable. The two and three-wheeler market too has witnessed sharp growth, while there has been major movement in the four wheeled segments, with innovative and viable EVs being launched by OEMs. All of these tailwinds together are building the consumer confidence in EVs and stimulating their widespread adoption.

For more insights on e-mobility and an exclusive interview with N Mohan, visit POWERGEN India and Indian Utility Week’s digital platform https://bit.ly/nmohan.

About the author

N. Mohan heads the Electric Vehicle Charging Infrastructure (EVCI) Department at Convergence Energy Services Limited. He is leading the EV penetration in the country through the deployment of reliable Charging Infrastructure.

In the current times, some of India’s largest corporations such as Reliance Industries Ltd are announcing plans to invest Rs75,000 crore ($10.1 billion) in renewable energy projects, a portion of which will be used to construct an
electrolyser and fuel cell gigaplant, giving the country’s fledgling hydrogen sector a significant boost.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

Similarly, the Indian Oil Corporation is working on developing hydrogen-spiked compressed natural gas (H-CNG) and big energy players like the natural gas transmission company GAIL, the corporation NTPC, Aditya Birla chemicals
and INOX Air are investing in green hydrogen technologies.

The need for building expensive electrolysers for green hydrogen generation has made the process unsustainably costly and logistically complex for small players to invest in these technologies, especially with respect to generation.

Moreover, in addition to existing regulations and market design, this high cost of production has been a significant barrier to the uptake of green hydrogen, as the green hydrogen is still two to three times more expensive than blue hydrogen (produced from fossil fuels with carbon capture and storage).

Further cost reductions to match up with the other energy sources becomes one of the critical issues to be addressed to increase the uptake of green hydrogen in small industries and SMEs. Although the economic complexity of the
infrastructure may act as an impediment for SMEs, this sector could become an important component of the hydrogen growth engine if it is supported by infrastructure in the domain of ancillaries around the green hydrogen ecosystem.

The SMEs can help develop improved cross-sectoral applications of green hydrogen by coupling sectors through local manufacturing and services of various hydrogen value chain elements; e.g. fuel cells, carbon fibre, vessels, equipment, power electronics, etc.

Considering the above, it will be crucial to simultaneously develop a sustainable energy policy ecosystem for green hydrogen for SMEs, by taking the following action steps:

• Subsiding the cost differential between green hydrogen production and fossil fuel cost.
• Duty-free import of plant machinery and technologies for renewable energies.
• Tax holidays for green hydrogen use for initial technology adoption.
• Improvement in the cost and performance of the hydrogen supply chain on a large scale.

These actions will not only help achieve economic stimulus around sustainable energy policies in green hydrogen but will also help engage SMEs in the green hydrogen ecosystem in an inclusive manner.

About the author

In addition to his current role at the Ministry, Dr Gupta is the Chairman of the Environment Committee, PHD Chamber of Commerce & Industry (PHDCCI). He is also on the board of Norwegian companies like GreenStat Hydrogen India and Fiberstrength India International.

To know more about the role of hydrogen in India’s energy landscape, visit https://ics-hydrogen.com/.

As the Senior Programme Lead at the Council on Energy, Environment and Water (CEEW) in India, Agrawal leads The Council’s work on residential energy access, demand-side management and power sector reform, using data to study the changing energy landscape and devising strategies to ensure universal access to affordable, reliable and sustainable energy. We sat down to speak about India’s power sector, the gains made in household electrification over the last 20 years, and the challenges and impact of the pandemic.

In partnership with Power for All

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

You’ve worked in the energy sector in India for a number of years. How did you first get involved in this work and has your motivation changed over the years?

As a child, I was always excited by science – the myriad of mysteries it unfolded and the amazing things one could do with simple technologies. So, I pursued an education in electrical engineering. My undergraduate studies exposed me to wider literature and ideas on technology, society and environment, highlighting the need to develop and deploy solutions that would benefit our social and environmental context. Having grown up in a small town with various developmental issues, I could relate to these ideas. This, combined with a growing interest in public service, drove me to join CEEW, which at the time was a young four-year-old policy think tank. CEEW provided me the platform to work on various cross-cutting issues related to energy access and the clean energy transition.

What is your research focusing on?

In the beginning, my focus was on renewable energy policy and finance, and how it could help India raise its ambition towards deploying clean energy solutions – whether it was largescale plants or targeted solutions like solar irrigation pumps. However, even as India is pursuing very ambitious renewable targets, there are two critical hurdles in our journey.

Firstly, the health of the power distribution companies in the country – past financial burdens and inefficiencies make the transition difficult. Secondly, the ability of power utilities to provide reliable and affordable power supply to consumers at all times. The intermittent nature of renewables and the existing legacy issues in the sector present complex challenges for utilities to meet the changing nature of power demand. So, my current focus is on understanding these complexities so that we can strengthen our utilities for the transition through institutional, regulatory, technological and financial reforms, while keeping the consumer at the centre.

As a woman in the power sector, have there been specific challenges you’ve had to overcome? If so, what and how? What could change this for other women?

Technically, I’m working in the power sector from the outside – with a policy think tank. Outside of this think tank space, however, the presence of women in the power sector is appallingly dismal, both at the groundlevel and in leadership positions. In most of my conversations in the field, in offices, at conferences, I often find myself to be one of the few women, or sometimes the only woman in the room, which can be quite intimidating. But more than a personal challenge, I think this state of the sector is disturbing from the perspective of the clean energy transition. We can’t expect a just and inclusive transition through a system which lacks diversity and scores poorly on inclusion itself.

Can you give an example?

Sure. To improve revenue recovery, the power utility in an Indian state rolled out an innovative model: recruiting women members of self-help groups to collect electricity bill payments. But the model didn’t take off due to several design flaws, particularly linked to a lack of an understanding about what it would require to recruit, train and work with these women.

As another example: we would all like to see distributed solar systems penetrate our cities, and efforts for their adoption abound. But India’s rooftop solar sector has a mere 10% of women in the workforce. When half our consumers are women, how do we expect to design solutions that would cater to their needs through a male-dominated industry?

There are so many other examples I could speak of, but the bottom line is we need more women in the sector across all levels – not just because it is the right thing to do and would have several positive spillover impacts – but most importantly, to make sure that we achieve a just and inclusive transition.

Have you read?
Women in Energy: Marzia Zafar about what the energy sector needs
Women in Energy: Sharelynn Moore about the changing face of the energy sector

One of the flagship surveys CEEW did last year was the India Residential Energy Survey (IRES) 2020. Can you speak about the overall state of electricity access in India, the impact of the COVID-19 lockdowns on household energy consumption, and the impact on revenue for state-owned distribution companies?

Insights from IRES 2020 were both heartening and perturbing. The survey indicated that nearly 97.5% of Indian households now have an electricity connection. This is a significant change when just 20 years ago only 56% of households used electricity for lighting their homes. We also note a significant improvement in the duration of power supply that these electrified households receive, as a result of which every 3 in 4 households expressed satisfaction with services provided. Yet, the disturbing part is the fact that the affordability of power supply remains a key challenge in sustaining these gains.

Even before the pandemic, nearly 0.5% of households had given up their connections due to their inability to pay bills (as per our survey). The drop in income and job losses during the pandemic would have made this worse and there is a concern that many more households would find it difficult to afford electricity – despite subsidies – even to meet their basic needs. In many countries, electricity use in homes went up during the lockdown, as people spent more time at home. But in many Indian cities and towns, we observed a reserve trend – drop in electricity use – partly linked to economic concerns.

As people feel the pressure on their pockets, the demand for electricity subsidies have risen, and this has become an important issue. At the same time, the power utilities incurred even higher losses, due to fall in demand from commercial and industrial consumers who paid higher tariffs to subsidise consumption in homes. There is no silver bullet out of the current situation, as we need multiple solutions. Making utilities efficient is definitely the most important step, which could be facilitated through stronger regulation of the sector and digitising operations, but this would only happen over time. In the short-term, we need to make energy affordable for everyone, through a mix of subsidies and energy-efficiency solutions.

What are some of the key initiatives you’re focusing on this year?

A big focus will be on power sector reforms. We are working with utilities in two Indian states to understand the challenges that consumers face in accessing reliable services and making timely payments, and accordingly devise solutions to bridge the gaps. Secondly, we are also devising business models that could help bring down the cost of superefficient appliances such as ceiling fans, and promote their adoption among low-income consumers. This in turn would make electricity affordable for consumers, improve their payment behaviour and help discoms recover adequate revenues. The third focus is on leveraging high-frequency data from smart meters to understand the consumer behaviour concerning air-conditioning use, which in turn could inform strategies to better manage the fast-rising energy demand to meet cooling needs.

The world over, the power distribution scenario is changing. The greater integration of renewable energy, growth in rooftop solar and need for electric vehicle charging are all leading to larger variation and unpredictability in the net power demand curve. With this, management is now the biggest concern and challenge for the utility.

This article was originally published in India’s energy transition special supplement featured in Smart Energy International Issue 3-2021.

Read the full supplement, the full digital magazine or subscribe to receive a print copy

Further, with the higher levels of engagement, meeting the expectations of consumers and other stakeholders is becoming another big challenge. With this changing scenario, utility objectives are also changing. To address these issues, concerns and expectations, utilities are opting for smart grid technology, with smart metering one of its key components (Figure 1).

Need for smart metering validation

Smart metering is one of the most desirable technologies for utilities and most of them are going for large scale implementation. It is important to note that smart metering is a tool, not a solution; and is also an integrated system, not a standalone product. The key question is how to ensure that the chosen ‘smart metering integrated system tool’ is effective and is the right one with the required capabilities to empower the utility to achieve its desired objectives. The only way, ahead of mass installation, is the process of ‘validation’.

A smart metering system is totally different from a standalone static energy meter. As an integrated system, the validation of a smart metering system is not merely the testing of the meter alone, but far more than that. Before going further, let us refer to some experiences encountered in the past:

• When an LV CT meter and the LV CT box were tested individually, they were accurate, but when coupled, the composite accuracy was out. In other words, the standalone and integrated behaviours can be different.
• When a ‘disconnect’ command was given, many meters did not disconnect. The reason was that the meter feeding power to the network went off first and affected the travel of the command to the remaining meters.
• At a particular location, a smart meter was found malfunctioning with intermittent functioning of load relay. The fault continued even after the meter was replaced and was later tracked to a powerful magnet in the speaker, impacting the performance.
• At a utility, many customers suddenly lost supply. This was tracked to a server having given a command to switch off but the ‘why’ and ‘how’ need investigation.
• A meter reader reported, ‘No display/ display not working’. When checked, the audit team found it working, indicating an intermittent behaviour.
• A smart fire sensor connected to the server was found less effective compared to a conventional sensor connected directly to the relay. Time is critical in protection with delays due to signal travel from sensor to server to the switchgear RTU.

From these incidents, we can conclude that validation of the product alone is not sufficient and needs testing far beyond the applicable standard or specification.

Meters and other components of a smart metering system can experience conditions not covered in the standard. While compliance with a standard can ensure a product works normally in defined conditions, the product should be checked in the conditions that may be experienced in the field. The validation engineer has to imagine the extreme scenario-based on field experience and plan the validation process accordingly.

The limit when a meter/system can malfunction or fail should be identified. This will help to understand the limitation of the system and to compare different product offers. The performance level, e.g. signal response time, can vary with the objective. Validation should be done keeping the objective in consideration.

Utilities are highly staked on their metering systems. Validation should be planned taking this aspect into consideration. An error in a bill can be a headline in the next day’s newspaper.

Finally, there are many parameters of meters, which the utility has no plan to use. A typical metering system life is 10 years and tests related to these parameters should be done. They may be needed at a later date. Cyber and data security are equally critical and should be part of the validation.

Validation is one of the most critical aspects to ensure the success of a smart metering project. It should cover all aspects of system. Any malfunctioning or undesirable behaviour in an integrated system or any lack of features, when found at a later date, may be too costly to rectify.

Role of smart apps

Smart phones are popular as they are frequently used and their popularity can be traced to the ‘smart apps’ which bring benefits to users. Similarly, in order to leverage the maximum benefit from a smart metering system, smart apps are needed to carry out the various functions (Figure 2). Thus, it is equally critical to validate the smart apps.

Planning smart metering system validation

For planning and preparation of the validation process, ask four questions:

1. What should be validated? Validation is a process to ensure functioning of the system to meet the objectives without failure or malfunctioning in any field condition and to ensure the ‘return on investment’ and no regrets about the technology.
2. How should validation be done? A series of steps are recommended, starting with understanding the objectives, both short term and long term, of the project:
   1. The first step is to define the process and strategy as to how the technology will be used to address the objectives. This mainly covers the data required and their frequency; logics for events, alerts, etc.; the processing, analysis and storage of data; and then inferring and planning actions.
   2. The probable conditions for when and what can go wrong should be identified and the system behaviour during extreme conditions checked.
3. Who should do the validation? Validation should not be done entirely alone but in partnership with others such as vendors, independent test labs and other utilities. Their data can also be used to validate and certify the smart metering system. As the utility holds the biggest stake, the involvement of the utility engineer is a must in the entire validation process.
4. What initial preparation is required? Three basic preparations are recommended:
   1. Manpower training – to understand the objectives, product, process and strategy.
   2. Test setup – in general not many instruments are required and rather than simulating field conditions in the lab, validation should be undertaken in real field conditions.
   3. Interpretation of validation results – to check compliance with the plan and understand behaviour under extreme conditions. These need to be analysed, reviewed and then inferences drawn. This also includes analysis and driving conclusions from similar tests done or actual field experience of other users.

Conclusion

Smart metering system validation is a specialised job and should be carried out before mass installation. The utility should have a dedicated team, which is well trained, and the required resources should be allocated.

For validation of the communication network, HES/DAS, computer system, data storage, MDMS, the services of field experts/vendors can be taken. However, the utility should be directly involved in validation of the smart meter and smart apps.

This description is just a skeleton structure on how to make validation roadmap, with guideline charts to prepare the validation process. Incidentally, there is no complete, structured roadmap is available. To prepare an effective validation process, basic knowledge about meters, the study of abnormal behaviour as observed by utilities and knowledge on how to use data to address objectives is a must.

Based on his past experience with static meters, data usage applications software and on the feedback and experiences of other utilities, the author is preparing a validation roadmap for the smart metering system, detailing a set of validation tests, test methodology and data collection chart and process.

About the author

Rajesh Bansal is an Electronic Engineering graduate, presently working as CEO at BSES Rajdhani Power Ltd, a power utility serving 2.7 million consumers in Delhi, India. He has 10 years’ experience in meter design and manufacture and 17 years’ experience in power distribution. His specialisation is in the field of meter management, meter data usage and network operations management.