Discrepancies between power demand and supply have resulted in the growth of the Smart Grid Market in India, which is expected to post a CAGR of 16.4 percent from 2014-2018, says research firm TechNavio.
The implementation of efficient and reliable end-to-end bi-directional energy systems through integration of renewable sources, and smart distribution and transmission is facilitated by the use of smart grids. They ensure the sustainability and efficiency of energy through adoption of various management and demand-response systems and also help reduce Aggregate Technical and Commercial (AT&C) losses.
“Smart grids enable consumer side energy management by interconnecting various energy management systems and allowing greater control of the appliances and equipment in the home and workplace, thus enabling consumers to lower their energy consumption,” says Faisal Ghaus, Vice President of TechNavio.
While availability of funds is a major challenge impacting the implementation of smart grids in India, the Government has set new policies, which have substantially eased the process of foreign investment in the power and construction sectors.
“The Government of India is considering exempting smart grid foreign investment from all foreign direct investment conditions,” says Ghaus.
The five major vendors in the Smart Grid Market in India are ABB, GE, L&T, Schneider Electric and Wipro.