Like cell-phone users, people may be able to pick a plan for electricity consumption. The Uttar Gujarat Vij Company Ltd (UGVCL) will roll out India's first modernized electrical grid, or the smart grid, in Naroda and Deesa in north Gujarat by April 2014.
The pilot project will study consumer behaviour of electricity usage and propose a tariff structure based on usage and load on the power utility. Eventually, it will be rolled out across the state to disincentivize power consumption during peak hours.
New meters embedded with SIM cards will be installed in 20,000 residential and industrial units in Naroda to monitor data every 15 minutes on how a particular consumer uses power.
The smart grid was first implemented in the US for efficient transmission of electricity. Like the internet, the smart grid consists of controls, computers, automation, and new technologies and equipment working in unison. These technologies work with the grid to respond digitally to the consumer's dynamic electricity demand.
"The smart grid will work on the 'time of day' concept, based on which tariffs will be set. For example if the demand is at peak during 7pm to 11pm, the tariffs will be higher for that period," said Nityanand Srivastava, and managing director, UGVCL on the sidelines of the 6th India Energy Conclave organized by CII.
"This will help us curb power theft substantially," said energy minister Saurabh Patel. In a 50-50 partnership, UGVCL, along with the Central government, will invest Rs 48 crore in the project to set up new infrastructure, meters, servers and analytic systems for smart grid.
The process of inviting tenders for the project will begin on December 17 and after a month of evaluation the companies will be selected. "Once we get data, we will submit a proposal for tariffs based on the data," added Srivastava.
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