3. FINPRO
The Need for Smart Cities in India
• It is estimated that by the year 2050, the number of people living in Indian cities will touch 843
million.
• Smart Cities Mission is an urban renewal and retrofitting program by the Government of India
with a mission to develop 100 cities all over the country making them citizen friendly and
sustainable.
• Smart cities are projected to be equipped with basic infrastructure and will offer a good quality
of life through smart solutions.
• Assured water and power supply, sanitation and solid waste management, efficient urban
mobility and public transport, robust IT connectivity, e-governance and citizen participation
along with safety of its citizens are some of the likely attributes of these smart cities
• According to the study, in 2016, service providers and over-the-top content providers will invest
heavily in city-wide Wi-Fi networks which will be the back-bone for smart city services.
• The Narendra Modi government has announced the names of the first 20 cities which will be
developed into smart cities in 2016 with investment of $7.5B.
• Indian Govt to spend over $14 Billion over next five years (Source: Deloitte)
• Nearly $12 billion will come from the private sector.(Source: Deloitte)
• Investments of about $ 1.2 trillion will be required over the next 20 years across areas like
transportation, energy and public security to build smart cities in India. (Source: eu-smartcities)
6. FINPRO
Indian Smart City Solutions
• Application of Smart Solutions will enable cities to use technology, information and data to
improve infrastructure and services. Three point Strategy:
• Retrofitting : make the existing area more efficient and liveable
• Redevelopment: replacement of the existing built-up environment and enable co-creation of a
new layout with enhanced infrastructure using mixed land use and increased density.
• Greenfield : Innovation driven projects
9. FINPRO
Market Opportunity by Sector
ENERGY SECTOR
• SMART ENERGY:
– Electrification of all households with power available for at least 8 hours per day by 2017
– Implementation of 8 smart grid pilot projects in India with an investment of USD 10 million
• ENERGY STORAGE
• The Power Grid Corporation of India Ltd has planned to invest USD 26 billion in the next 5 years
• SMART METERS
• India to install 130 million smart meters by 2021
•
• RENEWABLE ENERGY
• Ministry of New and Renewable Energy has plans to add capacity of 30,000 MW in the 12th Five
Year Plan (2012-17)
•
• WATER & WASTE MANAGENT
• The Indian Ministry of Water Resources plans to invest USD 50 billion in the water sector in the
coming years
• The Government of India and the World Bank have signed a USD 500 million credit for the Rural
Water Supply and Sanitation (RWSS) project in the Indian states of Assam, Bihar, Jharkhand and
Uttar Pradesh
• Recycling of Waste and Water
10. FINPRO
Smart Grids
For smart grids in India, the business case is emerging from the following
value levers
Loss reduction
• Accurate and timely meter
reading
• Granular level energy audit in near
real time, enabling intervention
for loss reduction
TOU Tariff
• Dynamic pricing
Rooftop Solar
• Shift to green energy
• Net metering contributing to
DISCOM’s RPO fulfilment
• Consumer cost saving in the long
run
Value Added Service for
Smart City
• DISCOMS to provide anchor
infrastructure for smart cities: (a)
Data Backbone with governance
stakeholders. (b) Physical and
Organizational infrastructure with
other service providers
• New business models to self
finance these investments.
Electric Vehicle Rollout
• EV charging infrastructure and its
remote management.
• Vehicle to Grid (V2G) services.
Value Added Service for
Smart Home/ Smart
Premises for large
consumers
• Willingness to pay for additional
services will get the option to avail
special ICT-enables facilities.
Digital Technologies for
Utilities
• Analytics
• Mobility solutions
• Customer touchpoints
• Remote Monitoring and Remote
Control Automation
11. FINPRO
Market Opportunity by Sector (2)
TRANSPORTATION
• GREEN TRANSPORT - The Government of India has approved a USD 4.13
billion plan to spur electric and hybrid vehicle production by setting an
ambitious target of 6 million vehicles by 2020
• India’s first monorail project at Mumbai will cost around USD 500 million, of
which USD 183 million has been spent on phase I
• Japanese electric vehicle maker Terra Motors Corporation plans to sell
30,000 e-rickshaws in the Indian market by year-end on the back of
enhanced sales network and new product launches. The company today
expanded its electric-rickshaw range in the country by launching 'Y4Alfa'
priced at Rs 1.2 lakh (ex-showroom Delhi) and plans to invest around $5
million to expand its production capacity and hiring more employees.
http://economictimes.indiatimes.com/articleshow/51040132.cms?utm_source=facebook.com&utm_medium=referral&utm_ca
mpaign=ETFBMain&from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
•
12. FINPRO
Market Opportunity by Sector (3)
IT & COMMUNICATION
• Cloud computing will evolve into a USD 4.5 billion market in India by 2016
• Under the flagship “Safe City” project, the Union Ministry proposes USD 333 million
to make seven big cities (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Bangalore
and Hyderabad) to focus on technological advancement rather than manpower
• Government of India and World Bank signed USD 236 million agreement for
reducing disaster risks in coastal villages of Tamil Nadu and Puducherry
INFRASTRUCTURE
• India is expected to emerge as the world’s 3rd largest construction market by 2020,
by adding 11.5 million homes every year
• The Intelligent Building Management Systems market is around USD 621 million and
is expected to reach USD 1,891 million by 2016
• Smart Buildings will save up to 30 per cent of water usage, 40 per cent of energy
usage and reduction of building maintenance costs by 10 to 30 per cent
13. FINPRO
Smart Grid Drivers
1. Loss reduction: potential to fetch faster and assured payback.
2. Making lifeline power accessible: using load limitation fuction of smart
metering/ AMI, lifeline electricity can be extended to underprivileged
consumers.
3. TOU Tariff – Dynamic pricing based on peak demand and peak supply:
DSICOMS will gain through either higher peak-time revenue, or through
lower peak-time power purchase.
4. Electric vehicle rollouts: planned 6-7 million Evs in India by 2020 and
Indian cities planning to introduce EVs for both public and private
transportation in near term. The evolving EV Supply Equipment
technologies facilitate remotely managing the distributed charging
stations and variety of payment settlement options. Large number of Evs
connected to the grid can support the grid in times of demand-supply
imbalance.
14. FINPRO
Smart Grid Drivers
5 Rooftop solar: smart meter with net metering – utilities to make their
grids smarter, commernsurate with the expansion of rooftop solar
amongst their consumers.
6 Interplay of Smart Grids with Smart Cities: soon to enter consumer
indexing on GIS by government programmes will transform the rich data
base into a more valuable asset. The fusion of smart grids and meters
with cities and homes will give rise to new business models funded by a
whole new breed of investors who will pay to “googlize” the data for the
benefit consumers and government stake holders.
7 Value added services for smart homes/ buildings/ premises: the leap of
faith that DISCOMS will consider it to move from outside the consumer
premises to inside. This will bring the next wave of technology enables
interventions, bringing together IT/ ICT, IOT and OT to converge.
8 Bridging OT & IT leveraging information across business silos.
15. FINPRO
A sample of India Business Case for next 5-10 years
• 250 million smart electricity meters to be procured and deployed under
National Smart Grid Mission.
• 200 million communication modules and minimum 0.4 million gateways/
DCUs (Data concentration units).
• Smart Streetlights would require over 100 million communication modules
and at least half a million of DCUs/ Gateways...
• Smart Buildings are going to deploy over 50 million smart censors and at
least 100k to 200k DCUs/ gateways..
• Automobiles shall be using at least 100-200 million communication nodesfor
vehicle O&M, V to V, V to I, and other telematics applications…
• Similarly various applications of the smart infrastructure paradigm like smart
water , Smart Gas, Smart Traffic, Smart Environment, Smart Sewage
Disposal, are going to use a few billions of smart sensors, with
communication modules.
16. FINPRO
Four main challenges for Smart City projects
1. How the multiple city agencies/ utilities collaborate and share assets (GIS
maps, control command centre, …)
2. How to involve customers in the change (transforming consumer into
prosumer, for example).
3. Interoperability and having uniform standards
4. Cyber security
(Source: city planners during India Smart Grid Week event)