Investments in digital energy reached $ 55 billion globally last year, growing at 20 per cent every year. These investments are in the areas of digital transformation of the power sector through smart meters, energy management systems, automated demand response, etc. Dushyanth Reddy, Vice President, Power Generation, QuEST Global, believes digitalization in power industry is the way forward and can help power plants optimise their asset utilisation and increase asset life thus curbing the problem of non-performing assets (NPAs). According to him, digital power plants are more efficient, productive and cost-effective as compared to legacy power plants. Speaking to Rakesh Rao, Reddy highlights the key hurdles in the digitalization of power industry and offers solutions to overcome these challenges.

 

What is the present status of power industry in India?

India has one of the most diversified power sectors in the world. About a third of India’s power is generated from renewable energy sources like hydro, wind, solar, biomass, etc., about 2 per cent is nuclear powered and the rest from conventional non-renewable sources such as coal, lignite, natural gas, and oil. Indian power industry crossed some important milestones recently. India became a net exporter of electricity last year. And earlier this year, all Indian villages were electrified because of the government’s ‘Power for All’ mission.

 

India’s commitment to environment protection has resulted in a strong focus towards development of renewable energy sector. Currently, the country has the fourth largest installed wind power capacity in the world. Government of India plans to achieve and hopes to exceed 175 GW of renewable energy capacity by 2022, up from 70 GW in 2018. The market opportunity in renewables is huge and the sector is getting competitive with as new companies enter the race.

 

At the overall power sector level, India has the world’s fifth largest market in generation capacity and the third largest in network. Its energy consumption is expected to triple over the next decade. This growth in demand, network strengthening by states, unbundling of supply services and growing cross-border trade offers lucrative opportunities for governments, international agencies and private sector to work together.  

 

Having said this, certain challenges need to be addressed to fully capitalis on these opportunities. Unreliable fuel supply, shortage of skilled manpower, monopoly restrictions on open access, huge transmission & distribution losses and availability of project finance are some of the areas that need attention. Optimising operational efficiency and cost are the top priorities for the Indian power companies currently.

 

What are the advantages of digitalization for the power industry?

As per a 2017 report by Bloomberg New Energy Finance (BNEF), investments in digital energy are growing at 20 per cent every year, reaching $55 billion globally last year. These investments are in the areas of digital transformation of the power sector through smart meters, energy management systems, automated demand response, etc.

 

With digitalization, power companies not only monitor but also intelligently and actively predict, manage, and even remotely control decentralised and complex energy networks. It also helps in making more informed decisions and improving customer relationships. 

 

Digitalization offers many benefits. With integration of multi-device supporting apps, asset management becomes simpler, faster and cost efficient. Advancements in the field of artificial intelligence are making data analytics and predictions more accurate. Real-time monitoring & diagnostics of plant and network assets can lead to transition from preventive to predictive maintenance thus reducing ownership costs.

 

Digital technologies allow power producers, prosumers and consumers to understand, forecast and optimise the behaviour of complex energy systems involving multiple production units, energy storage systems and players, and trade energy. They can manage electricity loads in response to forecasted price signals, and benefit from lower power costs.

 

Digitalization opens new business opportunities and models driven by need of energy communities, in the areas of virtual power plant management, distributed generation, solar installations, etc. Digital tools also enhance customer interactions through self-services, value-added services, advanced reporting.

 

Latest addition in the array of digital technologies is visualization solutions through Augmented Reality (AR). AR can boost operator efficiency by allowing remote visualization and maintenance of operational systems. It can also be used for training operators on simulated life-like environments.

 

How do you cater to the power industry?

QuEST supports the entire value chain in the power industry for renewable and non-renewable players.  We offer comprehensive engineering services in key areas such as new product introductions, product enhancements, digital transformation of operational systems such as SCADA, DCS, SAS, EMS, DERMS, DRs, IT-OT integration, control systems engineering, manufacturing & operations improvement, supply chain management, software and embedded product engineering, among others. We also have extensive experience with emerging technologies like automation, deep learning, asset performance management, hybrid power systems and microgrids, which enable our clients to transform their solutions and gain a competitive edge.

 

How is collaboration with GE Group helping QuEST Global's growth in the digital space?

GE is front-runner in driving digital transformation in industrial space through their industrial Internet platform, Predix and the GE Digital Alliance program. We are part of this program striving to make a robust Industrial Internet ecosystem along with other systems integrators, technology providers, software developers, service providers, and resellers. This program provides us access to the right insights, skills, tools and rewards from GE and this ecosystem, so we can together create valuable solutions for our joint customers.

 

With the Predix platform, we can create and test novel IoT solutions for both GE and non-GE customers. Our developers get access to trainings and support from Predix team so they can confidently build, certify, and support Industrial Internet apps. 

 

What are the key challenges in the digitalization of power industry? How can we overcome these challenges?

One of the biggest challenges is the proliferation of connected devices which are collecting and transmitting more data than ever. It will be crucial to make correct decisions about which data is really required and to make the most of the data that is collected. In the trade-off between speed and server capacity, using the right mix of cloud analytics and local computing resources will be very important. Also, to realize full potential of digitalization, data sharing across the power industry value chain needs to happen on a persistent level and data ownership must be regulated and unambiguous. 

 

Another challenge will be to upgrade and modernise legacy networks and systems without impacting their services. Without proper planning and the right technology partners, such transitions can not only be costly and inefficient but also make the systems vulnerable to security and safety issues.

 

That brings us to the issue of cyber-security. It is of paramount importance to secure power plants, grids and networks from cyber-attacks and maintain system’s integrity while sharing data across the eco-system. 

 

All of this would need the right skills and right resources. The engineering talent needs to be up-skilled to be able to cater to the new requirements of the digitalized power industry.

 

What is the effect of rise in share of renewables in India's energy basket on the entire power sector?

There is a significant shift from coal-based power generation to renewable energy sources as India plans to produce 40 per cent of its energy requirements from non-fossil fuels by 2030. The rising share of renewables in the Indian energy basket has had some key impact on the entire power sector. As renewable energy sources tend to be intermittent, their growth has led to the industry requirement and development of robust energy storage and distributed energy systems to assure reliable, constant power. 

 

It has also impacted the economics of traditional energy sources. The potential profitability of renewable projects has led to increased investment in this sector. So much so, that it has impacted the viability of thermal projects. Through competitive bidding, solar and wind energy tariffs in India dropped down by 50 per cent in just two years reaching record lows last year, becoming cheaper than thermally generated power. The rate of thermal power installations also went down as compared to previous years while that of renewable additions jumped up. 

 

While demand for energy is growing manifold, pressure on power generators to adhere to stringent environment norms is on the rise. How can digitalization help power generators in their effort to become eco-friendly?

There are several ways in which digitalization can make power generation more sustainable and eco-friendly. One is through smart and connected devices across the power value chain, energy usage can be monitored and consumption patterns can be forecasted with greater accuracy. Using these insights, power generation can be controlled remotely as per demand variations and energy can be provided at the right moment, thus reducing energy wastage while also improving plant life. 

 

Virtual power plants are a reality now with access to real-time data and analytics which enable faster decision making and response, thus improving overall system efficiency. The other advantage is in making the processes within the power plant more energy efficient and productive. Predictive maintenance of plants and automated production processes help power generators to improve their plant’s reliability, energy efficiency and productivity. Digitalization also enables delocalisation of energy production through micro-grids bringing them closer to the consumers, thus reducing transmission losses and ensuring sustainable power supply even to remote areas.

 

Some of the power generating plants are affected by the problem of NPAs (non-performing assets). Will this have an impact on the process of digitalization?  

We believe digitalization in power industry is the way forward and it is inevitable. Power plants affected by NPAs might be slow to adopt digital technologies as it needs investment, for buying modern assets and for upgrading legacy assets. But benefits from digitalization will eventually offset costs. Predictive maintenance and IIoT can help power plants optimise their asset utilisation and increase asset life thus curbing the problem of NPAs.

 

Operational efficiency and cost are the top priorities before the Indian power companies. How will digitalization help them achieve these objectives?

Solutions like virtual power plants, asset performance management, predictive maintenance and smart grids, enabled by digital technologies, allow power companies to monitor, diagnose and control operations in almost real-time. Operators can view dashboards and reports anywhere, anytime on their handheld device. They are notified in advance in case of abnormalities and they can prevent incidents proactively. They can even visualise remote systems in operation through augmented reality solutions. All this helps in minimising downtime of systems and optimising operational efficiency. Efficiency improvements, productivity gains and prolonged asset life eventually lead to cost reductions.

 

Can digital power plants power India's growth in future? 

Electricity is crucial for growth of all industries in any nation. But Indian power sector is plagued with certain challenges like intermittent power supply, lack of electrification in millions of households, last mile connectivity, inefficient power generation, etc. Digital power plants are more efficient, productive and cost-effective as compared to legacy power plants. Through micro-grids power can be supplied to the farthest of areas and smart grids will ensure that power is supplied exactly when, where and how much needed. The consumption patterns will flow back to the producers, who can plan production based on demand. Thus, a connected power ecosystem will ensure uninterrupted, reliable and sustainable power supply to industrial as well as residential consumers.

 

What are your growth plans for the future?

We are already investing in the information management systems in all sub-segments in-line with the developments in Indian power sector. Our plan is to intensify the efforts in coming years to enable us to play an important role in the journey. In line with the current trends and the investments being done by Government of India, we are preparing to support the explosive growth in digital powerplants, substations and microgrids, as well as digital transmission and distribution management systems.

 

We believe our partnerships with world leaders along with our readiness on respective technologies shall be a pivotal and a key enabler for our growth in the power sector in India.