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    COLUMN-India needs smarter grid to avoid another blackout: Kemp

    (John Kemp is a Reuters market analyst. The views expressed are

    his own)

    LONDON, Aug 1 (Reuters) - The precise cause of widespread

    power failures that cut electricity supply on Tuesday to states

    where half of India's 1.2 billion people live will take many

    months to establish, and may never be known for certain.

    So any analysis at present must be speculative.

    The most likely explanation is a small localised problem

    that rippled across the network as grid managers lost control of

    power flows and automatic relays shut down transmission lines

    and power plants to prevent further damage to equipment.

    India needs more power generation and transmission capacity

    but that will not solve the problem on its own. Even more

    urgently, India needs investment in grid control technology, a

    smarter grid, and a thorough review of operational procedures to

    reduce the likelihood that massive power failures will recur.

    LOSS OF CONTROL

    Cascading power failures are not uncommon in transmission

    systems under stress. In 2003, cascading failures knocked out

    power to more than 50 million people across the north-eastern

    United States and parts of Canada, some for as long as four

    days.

    On the afternoon of Aug. 14, 2003, a local problem in the

    Cleveland-Akron area of Ohio that had been rumbling all

    afternoon spread like a tidal wave across the network, shutting

    down 508 generating units at 265 separate power plants in less

    than five minutes, including emergency stoppages at 10 nuclear

    stations.

    As automatic relays shut down the most overloaded

    transmission lines and vulnerable power generators, electricity

    surged around the rest of the network taking increasingly

    unpredictable pathways, unbalancing more and more parts of the

    system, and forcing further emergency shutdowns, until the grid

    and power generation collapsed across the entire region

    .

    Something similar appears to have occurred in northern India

    on July 30, shutting down power supply to nine states including

    Delhi on the country's northern grid region. (http://www.powergridindia.com/PGCIL_NEW/exlink.aspx?Pageid=P:2108)

    It was followed by an even more widespread collapse the next

    day, that included not just the northern grid but also the

    eastern and north-eastern power grids, extending power failures

    to 18 states and two territories covering half the population.

    The country's other two grids (western and southern) appear to

    have been unaffected.

    On July 30, a disturbance occurred on the northern grid at

    2.35 a.m., according to Power Grid Corporation of India, which

    manages the network. Power was restored by using

    hydro-generation and sourcing electricity from the neighbouring

    western and eastern systems to help restart thermal generators

    across the northern area, according to the grid controller.

    On July 31, however, another disturbance hit the three

    northern, eastern and north-eastern regional networks at 1.00

    p.m. Power Grid Corporation responded by routing power up from

    the unaffected western and southern grids, as well as maximising

    hydroelectric generation across the northern region.

    LOCAL PROBLEMS

    The simple response is to blame a growing imbalance between

    supply and demand. The country's aging power system is

    struggling to cope with underinvestment and booming demand,

    including widespread theft and non-payment problems, as well as

    extensive subsidies and artificially low tariffs. India's

    rapidly growing economy is bumping up against the limits imposed

    by an underdeveloped power generation and transmission system.

    But such analysis is simplistic. Even severe imbalances

    between supply and demand should not cause widespread grid

    collapse.

    Properly engineered and run networks have multiple

    mechanisms for managing supply/demand imbalances, including:

    extra generation from frequency and spinning reserves which can

    be called up at short notice; demand management; voltage

    reduction; and ultimately forced load shedding, where power is

    cut to certain users and areas to protect supplies to the rest

    of the network.

    In a system under stress, however, even tiny problems can

    escalate to knock out power to tens of millions or even hundreds

    of millions of users.

    In the case of the August 2003 blackout, an extensive

    investigation by the U.S. and Canadian governments traced the

    failure back to something as apparently trivial as tree growth

    and hot summer weather, which caused a handful of small local

    transmission lines to overload after sagging in the heat and

    becoming entangled in branches.

    It escalated into a crisis because of computer system

    failures and poor communications and operating practices among

    grid controllers. There wasn't even an overall imbalance in

    power supply and demand. There was plenty of power, just not the

    right sort in the right places ("Final Report on the August 14

    2003 Blackout" April 2004).

    POLICY LESSONS

    In India, the original cause of the power failure is not yet

    known (and may never be known because such investigations are

    exceptionally complex). Whether a transmission line failed, a

    generator went offline unexpectedly, a sudden uptick in demand

    exceeded supply, or someone somewhere in the grid control system

    made a mistake, or some combination, is not yet known.

    But both the August 2003 and August 2012 blackouts are signs

    of power systems operating under stress. In the 2003 incident,

    the joint U.S.-Canadian task force issued 46 separate

    recommendations, mostly focused on improved grid control.

    India's problems are more complex and will be more expensive to

    resolve.

    Soaring power demand has eroded the margin of spare reserves

    in the generation system, leaving grid controllers with less and

    less room for error. Limited transmission capacity within the

    five regional grids as well as between them reduces system

    flexibility further in the face of local problems.

    There may also have been some element of human error,

    computer failure or weaknesses in operating protocols, though

    that will only become known after a lengthy enquiry by the grid

    company and the government.

    Simply adding a few more power plants to boost nationwide

    generation capacity would not in itself avoid the kind of

    cascading failures reported this week. After all, the United

    States and Canada suffered a similar crisis even though there

    was no overall shortage of power generation in the region at the

    time.

    No power system can ever be 100 percent robust. Power

    systems are the biggest machines ever built by mankind, and

    their interconnectedness means there is always some risk that a

    problem with one tiny part will bring widespread collapse.

    Problems are not limited to developing countries. In North

    America, there have been eight comparable grid failures since

    1965, affecting between 2 million and 50 million people each

    time, according to a listing presented in the task force's Final

    Report.

    The North American task force identified a number of common

    factors in most of these eight outages, including "(1) conductor

    contact with trees; (2) overestimation of dynamic reactive

    output of system generators; (3) inability of system operators

    or coordinators to visualize events on the entire system; (4)

    failure to ensure that system operation was within safe limits;

    (5) lack of coordination on system protection; (6) ineffective

    communication; (7) lack of 'safety nets'; and (8) inadequate

    training of operating personnel."

    What India needs is a comprehensive upgrade of its power

    system. Upgrades will involve some combination of more

    generation capacity, more transmission lines (the often unloved

    part of the system), and better grid control, as well as new

    pricing and billing systems to ensure customers pay the full

    marginal cost of their supply and reduce theft and wasteful use.

    Part of that is a smarter power grid. The smart grid concept

    is most often associated with the United States, where it has

    been heavily promoted by the Obama administration, and

    specifically smart metering designed to manage peak-time power

    consumption by encouraging more load-shifting and use of

    off-peak power by households and small businesses.

    But the biggest gains are likely to be in developing

    countries, using technology to upgrade grid management and

    control. Smart grid technology can report unusual fluctuations

    at any point across the grid in a matter of seconds. Linked with

    better control systems, it can initiate procedures to protect

    the grid and prevent widespread power failures, isolating

    problems in a sub-region, rather than letting them spread across

    the network like wildfire.

    (Editing by Anthony Barker)