The grid of the future

Decentralised grid systems aim to enhance energy access, reliability and resilience, especially in remote and underserved regions. Complemented by the central grid system, this dual approach ensures seamless power distribution while promoting localised energy generation.

The Indian power sector is evolving and driven by ambitious energy goals and the integration of advanced digital solutions. Both government and private entities, collaborating independently and together, are working to create world-class infrastructure for uninterrupted power flow across the country. A key focus is the development of decentralised grids, which aim to enhance energy access, reliability, and resilience, especially in remote and underserved regions. This dual approach and the central grid system ensure seamless power distribution while promoting localised energy generation. Rapid economic growth and urbanisation have increased the demand for a sustainable, reliable, and scalable energy system, making this evolution crucial. The transition to decentralised power is further supported by advancements in renewable energy, energy storage, and digital technologies, which enable real-time monitoring and efficient energy management. These innovations also facilitate better integration of solar and wind energy into the grid, helping India build a robust, future-ready energy infrastructure that addresses present challenges and long-term sustainability goals.

To better understand the evolution of the power grid,, let us explore this cover story.

Government initiative

The Ministry of New and Renewable Energy (MNRE) is actively working to address the challenge of accurately capturing the actual generation data from decentralised renewable energy systems, particularly solar power. According to Jeevan Kumar Jethani, Senior Official at MNRE, efforts are underway to integrate remote monitoring systems (RMS) into solar installations.

Speaking about the initiatives, Jethani mentions, “Even for the PM-KUSUM scheme, where we provide standalone solar pumps, we included provisions for remote monitoring systems. So far, we have installed 500,000 solar pumps, and over 400,000 are being monitored online in real-time. This enables us to track operational data such as electricity generation, voltage levels, and overall performance remotely.”

Building on this success, the ministry is now collaborating with inverter manufacturers, telecom companies like BSNL and Airtel, and other stakeholders to implement similar monitoring systems for solar inverters. The goal is to extend real-time data monitoring capabilities across all decentralised solar installations, including smaller plants that are often behind the meter and not connected to the grid.

The current system predominantly tracks generation data from grid-connected and large-capacity solar plants, representing only part of the total renewable energy landscape. Jethani acknowledges this gap: “The actual generation could be much more than what we report, as a significant portion of capacity remains unmonitored, especially for smaller, decentralised systems.”

MNRE’s push toward remote monitoring integration aims to bridge this gap and ensure accurate reporting of decentralised renewable energy generation, a critical step toward optimising the country’s renewable energy potential.

Centralised or distributed power systems

The discussion around central or decentralised energy systems has been ongoing for many years. Prashant Sinha COO – Infra Business, Sterlite Power Transmission Ltd, a key player in the energy sector, sheds light on the role of distributed generation, microgrids, and transmission corridors in shaping the future of energy infrastructure. He argues that distributed generation systems certainly have a place in modern energy systems but cannot fully replace centralised power systems due to their inherent limitations.

Sinha emphasises that the primary role of distributed systems is to address “last mile connectivity,” particularly in rural or underserved areas, where renewable energy sources like rooftop solar can make a significant impact. However, he also points out that such systems come with challenges. “The OpEx is higher, the cost of CapEx goes up, the efficiency comes down, the PLFS comes down, the reliability comes down,” he notes. This indicates that distributed systems can provide localised solutions but are less efficient or reliable than centralised systems. Furthermore, integrating large-scale renewable generation, like wind and solar, requires the grid strength and capacity only a centralised system can provide.

Milind Solanki Vice President- EY,  discusses the future of transmission and the need for robust planning to accommodate growing renewable energy capacity. He mentions the evacuation of renewable energy and how the transmission system would cope with the rapid expansion of renewable generation. Sinha acknowledges this, explaining that the transmission system must be planned at least ten years ahead of generation. “Transmission capacity has to come first, and the generation follows,” he says, underscoring the importance of forward-thinking infrastructure development.

Sinha points out that in India, the renewable energy generation boom preceded the necessary upgrades to the transmission system. This mismatch in timing has led to instances where renewable energy capacity is left underutilised due to a lack of adequate transmission corridors. “Our transmission system has to be at least 10 years ahead of generation,” Sinha reiterates. “But what’s happening is the renewable wave came first, and now the green corridors are coming up.” This scenario has resulted in the curtailment of renewable energy in some regions like Karnataka, where power from renewable sources, particularly wind and solar, was curtailed because transmission infrastructure could not accommodate the additional power.

Addressing the specific challenges of renewable energy systems, Sinha speaks about the inherent limitations of distributed generation, especially with wind energy. He explains that wind power requires a grid strength that distributed systems cannot achieve. “You will never get the resources you require at a distributed level,” he says. This is because wind turbines need a certain level of grid stability and reliability to operate efficiently, something decentralised systems cannot provide. Similarly, for rooftop or ground-mounted solar, there are challenges related to land use and the ability to ensure consistent sunlight, particularly in densely populated areas where space is limited.

Also, it is important to maintain a strong centralised power system in the future, especially as urbanisation trends continue. Sinha notes that rural areas are gradually emptying as people migrate to urban centres, emphasising the need for centralised systems to meet the growing power demand in cities and metros. “The power dominance of the centralised system will continue,” he asserts. While he acknowledges the role of decentralised energy systems, he leans more towards the idea that “the more centralised it is, the better it will be.”

Jeevan Kumar Jethani presents a strong case for decentralised plants, emphasising the need for diversity in energy sources to prevent issues caused by sudden fluctuations in power generation. He points to scenarios such as the loss of 4000 MW of solar power during cloud coverage, which could destabilise the grid. “That’s why we are advocating more and more decentralised plants; it creates diversity,” Jethani explains. He argues that decentralised systems offer advantages, particularly in avoiding the land-use conflicts that centralised plants might encounter, where large land areas are required, potentially taking away from agricultural use. Jethani also highlights the importance of accounting for externalities in energy generation. “Once we consider the externalities, decentralisation will be more beneficial than centralised.”

On the other hand, Prashanth Sinha acknowledges the role of decentralised systems but remains sceptical about their dominance shortly. He recognises that technologies like rooftop solar have their place but argues that 60 per cent of generation shifting to decentralised sources in the next few decades seems unlikely. “The decentralised system can exist only on the back of a centralised system,” Sinha asserts, suggesting that centralised systems will continue to play a vital role in the energy mix.

Faisal Masood Head- Digital Grid Business from Schneider Electric,   provides a balanced perspective, recognising the necessity of both systems in the evolving energy landscape. He stresses that the bulk of the energy load should be managed by centralised generation, but decentralised systems should address specific regional needs. “Energy generation systems should exist in both forms…for regionalisation, probably it should be nearer to the load,” Masood explains. He also highlights the role of technologies like Battery Energy Storage Systems (BESS) in stabilising decentralised networks and addressing the intermittency of renewable sources. “The research is going on to stabilise the network,” he adds, indicating that while decentralised energy resources are less reliable, advancements are being made.

Ultimately, the future of energy generation may not be a matter of choosing one system over another. As Jethani, Sinha, and Masood suggest, the energy landscape will likely rely on a combination of centralised and decentralised systems, each fulfilling complementary roles to ensure a stable and sustainable future.

Digitisation challenges in DISCOMs

Key challenges and aspirations surrounding the digital transformation of Indian distribution companies (DISCOMs), particularly in terms of integrating SCADA, ADMS, and other digital systems, need to be addressed.

Faisal Masood speaks on past efforts in digitising the Indian power sector, explicitly referencing the RAPDRP (Restructured Accelerated Power Development and Reform Programme). RAPDRP was intended to digitise the distribution network, but according to Faisal, the results have been underwhelming. “Only 15 to 20 percent of the digitisation that was done is being used today. The rest is either thrown out or lying idle,” he explains. This situation poses a critical question, i.e., what has been learned from past investments, and how can future digitisation efforts be more effective?

However, Milind raises concerns about the practicality of such an ambitious goal. He points out the inherent challenges of creating a truly unified platform, mainly when Operational Technology (OT) and Information Technology (IT) systems differ. “Unified platform is impossible, is what I feel,” Milind remarks, citing the disjointed nature of various networks like NMS (Network Management Systems) and SoC (System on Chip) across IT and OT domains. Faisal expresses that achieving a unified platform is a far-reaching ambition.

While there is a significant push for modernisation through digitisation, challenges remain in creating a cohesive, interoperable infrastructure. Faisal and Milind’s insights underscore the need for more strategic planning and clear objectives in future projects. “We need to understand how the evolution of the connected ecosystem needs to be,” Faisal concludes, emphasising the importance of a thoughtful and integrated approach to the future of the power sector.

The future of energy is undeniably shifting towards a more decentralised model, driven by the increasing demand for renewable energy and the need to address climate change. As highlighted, regions like Maharashtra, Gujarat, and Rajasthan are already pioneering decentralised solar solutions for farmers, addressing high electricity subsidies while reducing the burden on the grid. However, challenges remain, including land acquisition issues, transmission infrastructure limitations, and local resistance. Despite these hurdles, the potential of decentralised systems continues to grow, particularly with advancements in storage technologies and more efficient renewable energy solutions like rooftop solar, vertical wind turbines, and higher-efficiency photovoltaic modules. Centralised power generation will still play a significant role, especially for large-scale needs. The grid of the future will need to become more flexible and open to accommodate multiple energy sources, whether decentralised or centralised. As technology advances, such as improved storage and more efficient generation methods, we will move closer to a world where homes and smaller establishments can become net zero by producing their energy.