The Power Ministry is likely to finalise about eight smart grid technologies related projects on pilot basis worth nearly INR 500 crore in two months.

The basic idea of a smart grid is to improve overall efficiency of the power sector, especially in transmission and distribution segments, with the aid of information technology.

A power ministry official said that around 14 state utilities are expected to submit plans for pilot projects related to smart grid technologies this month. The official told PTI that "Once the proposals are received, we are likely to select seven or eight projects on a pilot basis. Each project is expected to cost about INR 50 to 60 crore.”

Each pilot project would take about 12 to 18 months for completion.

The official noted that "These pilot projects will be focused on areas such as integration of renewable energy (sources) with the grid, reduction of aggregate technical & commercial (AT&C) losses and peak load management.”

The official pointed out that around 50% of the total cost of a pilot project would be borne by the Ministry while the remaining would come from the utilities.

(Sourced from ET)