Introduction to Smart Grid

Unit 1
What is electrical grid?
Electric grid is network of synchronized power providers and Consumers that are
connected by transmission and distribution lines and operated by one or more
control centres.

1.1 Evolution of Electric Grid in India

1. In India, firstly, Electric Grid was developed at state level, after that grid
management started on regional basis from 1960’s
2. Regional grid are namely Northern, Eastern, Western, North Eastern, and
Southern grids
3. Regional grid interconnection started in 1991.
4. In 1991, North Eastern and Eastern grid were interconnected
5. Western and ER-NER were interconnected in March 2003.
6. After that Northern grid was interconnected to WR- ER-NER in the year
2006.
7. In the year 2013 finally, Southern Grid was interconnected to NR-WR-ER-
NER thereby achieving One Nation- One Grid -One frequency

Traditional Electric Grid

1.2 Concept of Smart Grid

In short we can define smart grid as electrical grid with communication

intelligence technologies.

Smart Grid

1.3 Smart Grid - Definitions

As per European Technology Platform -

Smart Grid is an electricity network that can intelligently integrate the
actions of all users connected to it – generators, consumers and those that
do both-in order to efficiently deliver sustainable, economic and secure
security supplies.
As per U.S. Department of Energy -
A smart gird uses digital technology to improve reliability, security and
efficiency (both energy and economic) of the electrical system from large
generation, through the delivery systems to electricity consumers and a
growing number of distributed generation and storage resources.
As per IEC -
Smart Grid is a developing network of transmission lines, equipment,
controls and new technologies working together to respond immediately to
our 21st century demand for electricity.
As per IEEE –
Smart Grid a revolutionary undertaking-entailing new communications
and control capabilities, energy sources, generation models and adherence
to cross jurisdictional regulatory structures.

In General
Smart grid is an advanced digital two-way power flow power system
capable of self-healing, adaptive, resilient and sustainable with foresight
for prediction under different uncertainties. It is equipped for
interoperability with present and future standards of components, devices
and systems that are cyber-secured against malicious attack.
1.4 Need of Smart Grid
A smart grid distribution system, whose objective is to develop a power
grid more efficient and reliable, improving safety and quality of supply in
accordance with the requirements of the digital age.
 Higher Penetration of renewable resources or distributed generation
 Extensive and effective communication overlay from generation to
consumers
 Use of advanced sensors and high speed control
 Higher operating efficiency.
 Greater resiliency against attacks and natural disasters
 Automated metering and rapid power restoration
 Provided greater customer participation
Presently the Indian Electricity System faces a number of challenges which
can overcome by smart grid:
 Shortage of power
 Power Theft
 Poor access to electricity in Rural areas
 Huge losses in the Grid
 Inefficient Power Consumption
 Poor reliability

Smart Grid drivers?

 Increasing demand: Information and communications technology,

Measurement and control Demand response, Advanced metering
infrastructure (AMI)
 High Aggregate Technical &Non-Technical, Losses:18%-62%
 Ageing Assets: Transformers, Feeders etc.,
  Grid to carry more power: Need for, Reliability and greater
Security
 Billing and collections: Profitability of distribution companies
 Energy mix: Need for Renewable Energy [Hydro Power, Solar
Thermal Energy, Wind, Biomass, Biogas ] to reduce carbon
footprint
 Deliver sustainable energy: Voltage & VAR control, Resource
planning, analysis, and forecasting tools, Fault Detection,
Identification, and Restoration (FDIR)
 Increased efficiency: Direct load control, Distributed energy
resources, Distributed energy resources integration, Energy storage,
Advanced metering infrastructure (AMI)
 Empower consumers: Consumer education and awareness,
Residential consumer energy management, Information and
communications technology
 Improve reliability: System wide monitoring, Measurement and
control, Distributed energy resources, Distributed energy resources
integration, Energy storage, Advanced metering infrastructure
(AMI)
1.5 Functions of Smart Grid

Function Definition
Fault current limiting can be achieved through sensors, communications,
information processing, and actuators that allow the utility to use a higher degree
Fault of network coordination to reconfigure the system to prevent fault currents from
Current exceeding damaging levels. Fault current limiting can also be achieved through
Limiting the implementation of special stand alone devices known as Fault Current
Limiters (FCLs) which act to automatically limit high through currents that occur
during faults.
Wide Area Wide area monitoring and visualization requires time synchronized sensors,
Monitoring communications, and information processing that make it possible for the
Visualizati condition of the bulk power system to be observed and understood in real‐time
on, & so that protective, preventative, or corrective action can be taken.
Control
Dynamic Dynamic capability rating can be achieved through real‐time determination
Capabilit of an element’s (e.g., line, transformer etc.) ability to carry load based on
y Rating electrical and environmental conditions.
 Flow control requires techniques that are applied at transmission and distribution
levels to influence the path that power (real & reactive) travels. This functionality
Power is enabled by tools such as flexible AC transmission systems (FACTS), phase
Flow angle regulating transformers (PARs), series capacitors, and very low impedance
Control superconductors.
Adaptive protection uses adjustable protective relay settings (e.g., current,
Adaptive voltage, feeders, and equipment) that can change in real time based on signals
Protection from local sensors or a central control system. This is particularly useful for
feeder transfers and two‐way power flow issues associated with high DER
penetration.
Automated feeder and line switching is realized through automatic isolation and
Automated reconfiguration of faulted segments of distribution feeders or transmission lines
Feeder and via sensors, controls, switches, and communications systems. These devices can
Line operate autonomously in response to local events or in response to signals from
Switching a central control system.
Automated islanding and reconnection is achieved by automated separation and
subsequent reconnection (autonomous synchronization) of an independently
Automated operated portion of the T&D system (i.e., microgrid) from the interconnected
Islanding electric grid. A microgrid is an integrated energy system consisting of
&Reconnecti interconnected loads and distributed energy resources which, as an integrated
on system, can operate in parallel with the grid or as an island.
Automated voltage and VAR control requires coordinated operation of reactive
Automated power resources such as capacitor banks, voltage regulators, transformer load‐
Voltage and
tap changers, and distributed generation (DG) with sensors, controls, and
VAR Control
communications systems. These devices could operate autonomously in
response to local events or in response to signals from a central control system.

Diagnosis and notification of equipment condition is defined as on‐line

Diagnosis & monitoring and analysis of equipment, its performance, and operating
Notification of
environment in order to detect abnormal conditions (e.g., high number of
Equipment
Condition equipment operations, temperature, or vibration). Asset managers and operations
personnel can then be automatically notified to respond to conditions that
increase the probability of equipment failure.
Enhanced fault protection requires higher precision and greater discrimination
of fault location and type with coordinated measurement among multiple
devices. For distribution applications, these systems will detect and isolate faults
without
Enhanced full‐power re‐closing, reducing the frequency of through‐fault currents. Using
Fault high resolution sensors and fault signatures, these systems can better detect high
Protection impedance faults. For transmission applications, these systems will employ high
speed communications between multiple elements (e.g., stations) to protect
entire regions, rather than just single elements. They will also use the latest
digital techniques to advance beyond conventional impedance relaying of
transmission lines.

Real-time This function provides real‐time measurement of customer consumption and

Load management of load through Advanced Metering Infrastructure (AMI) systems
Measurement
and (smart meters, two‐way communications) and embedded appliance controllers
Management that help customers make informed energy use decisions via real‐time price
signals,
time‐of‐use (TOU) rates, and service options.
Real-time Real‐time load transfer is achieved through real‐time feeder reconfiguration and
Load Transfer optimization to relieve load on equipment, improve asset utilization, improve
distribution system efficiency, and enhance system performance.
Customer Customer electricity use optimization is possible if customers are provided with
Electricity Use information to make educated decisions about their electricity use. Customers
Optimization
could be able to optimize toward multiple goals such as cost, reliability,
convenience, and environmental impact.

Opportunities of Smart Grid

 Upgrading and expanding infrastructure to improve interconnectivity and
communications.
 Build up smart tools and technologies to exploit DR, demand load control
and energy efficiency.
 Promote smart grid investment and inform regulatory frameworks
 Build up infrastructure to guarantee cyber security and resilience.
 Regulations in communication, price and cyber security
Local Opportunities of Smart Grid
• Integrated Communications
– Data acquisition, protection and control and allowing consumers to interact
– Connect components in real-time for control and data exchange
– Scope for improvement – Substation Automation, DR, Feeder automation,
SCADA, EMSs, wireless mesh networks and other technologies, power-line
carrier communications and fiber optics.
• Sensing and measurement
– Support acquiring data for healthy and integrity of grid
– Support faster and more accurate response
• Advanced Components
• Advanced Control Methods
• Improved interfaces and decision support
Regional and National Opportunities of Smart Grid
• Provide high quality power
• Accommodate all generation and energy storage options
• Motivate consumers to actively participate in grid operations.
• Be self-healing
• Resist attack.

Global Opportunities of Smart Grid

• Run the gird more efficiently
• Enable higher penetration of intermittent power generation sources
• Enable electricity market to flourish
Barrier of Smart Grid
Seven barriers are holding back the implementation of smart grids; none of which
are insurmountable, as described in the next section. The paramount issue is a
regulatory framework that is out of sync with today’s industry needs and society’s
broader environmental objectives.
In the following section, the current challenges that are holding back investments
in smart grids will be examined, before looking, in Section 3, at potential actions
that could be taken to address them and accelerate the adoption of smart grid
technologies. There are a number of factors that, in combination, are acting as a
brake on smart grid investment, most of which are institutional and relate to the
regulatory and policy frameworks that have evolved to support the existing power
delivery system. Seven areas have been identified that will need to be addressed
before smart grids become more widely adopted:
1.Policy and regulation In many cases, utilities do not get as far as a business
case for the smart grid as there are regulatory and policy barriers in place that
either create reverse incentives or fail to create sufficient positive incentives for
private sector investment.
2. Business case Where policy-makers and utility executives are aware of the role
that smart grids can play, they are often unable to make the business case for
smart grid investments. With in the business case, two factors operate: first, the
capital and operating costs are too high, as suppliers have not been able to achieve
scale economies in production and delivery risk is priced in; and second, only
those benefits that are economically tangible are factored in, while other ancillary
and non-financial benefits are not included (e.g. the carbon benefits) or are
aligned to the appropriate value-chain players.
3.Technology maturity and delivery risk A smart grid brings together a number
of technologies (communications, power electronics, software, etc.) at different
stages of the technology maturity lifecycle. In some cases, these technologies
have significant technology risks associated with them because de facto or agreed
standards have note merged. In addition, there are only a handful of examples of
large- scale implementation of more than 50,000 premises and therefore there
continues to be significant delivery risk priced in to the estimates.
4.Lack of awareness Consumers and policy-makers are becoming increasingly
aware of the challenges posed by climate change and the role of greenhouse gas
emissions in creating the problem. In some cases, they are aware of the role of
renewable generation and energy efficiency in combating climate change. It is
much less common that they are also aware of the way that power is delivered to
the home and the role of smart grids in enabling a low-carbon future.
5.Access to affordable capital Utility companies are generally adept at tapping
the capitalmarkets; however, where delivery risks are high and economic
frameworks are variable, therelative cost of capital may be higher than normal,
which acts as a deterrent to investment.Stable frameworks and optimum
allocation of risk between the customer, the utility andgovernment will be the key
to accessing the cheapest capital possible. In the case ofmunicipalities and
cooperatives, this challenge may become amplified as the ability tomanage
delivery risk is reduced.
6.Skills and knowledge In the longer term, a shortfall is expected in critical skills
that will be required to architect and build smart grids. As experienced power
system engineers approach retirement, companies will need to transition the pool
of engineering skills to include power electronics, communications and data
management and mining. System operators will need to manage networks at
different levels of transition and learn to operate using advanced visualization and
decision support.
7. Cybersecurity and data privacy Digital communication networks and more
granular and frequent information on consumption patterns raise concerns in
some quarters of cyber-insecurity and potential for misuse of private data. These
issues are not unique to smart grids but are cause for concern on what is a critical
network infrastructure.
Of the seven barriers outlined above, the first three pose the most significant
hurdles, but, if addressed, will go a long way towards creating an environment
that will encourage investment in smart grids. None of these barriers is
insurmountable; however, it is important to understand the root cause of the issues
before developing strategies to break them down.
Difference between Conventional and Smart Grid
Characteristics Conventional grid Smart grid
Active participation Consumers are uninformed Consumers are involved
consumer and theydo not participate ,informedand participate actively

Provision of power Response to power quality Rapid resolution of power

quality for the division issues arelow qualityissues with priority
of economy
Accommodation of all Many obstacles exist for Many DERs with plug-and-play
generation integrationof DERs option can be integrated at any
time
Optimization of assets Little incorporation of Greatly expanded data
operational data with asset acquisition of grid parameters
management – business ;focus on prevention,
process silos minimizing impact to consumers
New products, service Limited and poorly Mature and well integrated
and integrated wholesale wholesale markets ; growth of
markets markets ; limited new electricity markets for
opportunities for consumers consumers
Resiliency against Vulnerable to malicious acts Resilient to cyber attack and
cyber attack and of terror and natural disasters natural disasters ; rapid
natural disasters ; slow response restoration capabilities

Anticipating responses Responds to prevent further Automatically detects and

to system damage; Focus on protecting responds to problems ; focus on
disturbances(self- assets following a fault prevention ; minimizing impact
healing) to consumers
Topology Mainly radial Network
Restoration Manual Decentralized control
Reliability Based on static ,offline Proactive , real-time predictions
models and simulations , more actual system data
Power flow control Limited More extensive
Generation Centralized Centralized and distributed .
Substantial RES and energy
storage
Operation and Manual and dispatching Distributed monitoring ,
maintenance diagnostics and predictive
Interaction with energy Limited to large energy users Extensive two-way
users communications
System Limited to power companies Expanded and real-time
communications
Reaction time Slow reaction time Extremely quick reaction time

What is Resiliency in Smart Grid?

Resiliency is a feature of the smart grid, and it may be defined as under-

The ability of the smart grid to resist failure and rapidly recover from breakdown
or fault occurred is referred to as resiliency of the smart grid.

At present due to increasing power demand, the reliability of the electric grid
system is decreasing day by day. Consequently, our typical power systems
becoming prone to outages and blackouts. Hence, in order to avoid such losses
and to increase the reliability of the power system, the idea of the smart grid is
being used.

Smart grids work on digital platforms for fast and reliable sensing,
communication, control, and protection of the entire transmission and distribution
system. A resilient electric grid is a more reliable grid.

Working of a Resilient Smart Grid

A resilient smart grid follows three basic steps in its working mechanism after
receiving any kind of disruptive fault to the system. These three steps are as
follows:
 The resilient grid gives the ability to prevent initial failure or reduce its
magnitude.
 The resilient grid provides a high degree to which the system can absorb
the impact of the initial failure of the system.
 A resilient grid provides the ability to the system to be easily repaired.
Based on these three working guidelines, electric grids involve various
technologies such as electric vehicles, distributed generation, etc.
What is Self-Healing in Smart Grid?
The property of a smart grid that enables a power system to know that it is not
operating correctly and without human intervention, the system makes necessary
adjustments to restore itself to normal operating conditions is referred to as the
self-healing property of the smart grid.
The self-healing property of the smart grid is almost similar to the self-healing
action of cells and tissues in a human body on receiving any injury.
Smart grid uses sensors and smart meters for receiving data to make decisions. It
regularly monitors the working status of the system. When any fault is detected
in the system, the system automatically tries to reduce it or remove the faulty part.
Then, it performs a maintenance job to check overall operation along with the
removal of the fault to zero level.
This complete process of pre-fault, during-fault, and post-fault is performed
automatically by the system itself without any human intervention. For this
reason, it is known as the self-healing or automatic troubleshooting facility of the
smart grid.
Working Steps of Self-Healing of Smart Grid
The following are the basic working steps of self-healing in a smart grid:

 Self-healing smart grid uses real-time security monitoring and reaction

mechanism that allows the system to constantly check itself automatically
to an optimal state.
 A self-healing smart grid has functionality that enables the system to
automatically look for problem areas that can cause large disturbances in
the system.
 Self-healing in a smart grid provides rapid isolation that allows the system
to isolate those parts of the system that experience failure from the rest of
the system. It is essential to avoid a further loss to the existing working
system.
Therefore, a smart grid system uses sensors, embedded systems, and digital
communication which enables the modern grid to become observable,
controllable, automated, and fully integrated.
 International policies in Smart Grid
Smart grids policies For USA
The Energy Policy Act of 2005 is the first federal law that specifically promotes
the development of smart meters. It directs utility regulators to consider time-
based pricing and other forms of demand response for their states. Utilities are
required to provide each customer a time-based rate schedule and a time-based
meter upon customer request. The 2007 Energy Independence and Security Act
(EISA) lays out a national policy for the Smart Grid in the U.S.
– The Act assigned NIST the primary responsibility to coordinate development
of standards for the Smart Grid
– NIST is also supporting future FERC and State PUC rulemaking to adopt Smart
Grid standards
• Key Federal policy recommendations:
– Enable cost-effective smart grid investments
– Unlock innovation
– Empower and inform consumers
– Secure the grid
The National Institute of Standards and Technology (NIST), a major standards
developing federal agency, is directed to develop a smart-grid interoperability
framework that provides protocols and standards for smart-grid technologies.
EISA established a federal smart-grid investment matching grant program to
reimburse 20% of qualifying smart-grid investments.
The next important legislative effort is the American Recovery and Reinvestment
Act of 2009. It accelerates the development of smart grid technologies by
appropriating $4.5 billion for electricity delivery and energy reliability
modernization efforts. Utilities and other investors can apply stimulus grants to
pay up to 50% of the qualifying smart-grid investments. To date, the Smart Grid
Investment Grant authorized under this Act has 99 recipients, with a total public
investment of $3.5 billion
Smart grids policies For UK
To modernize and reduce the carbon footprint of electric grids, one major
initiative of the United Kingdom is to encourage energy efficiency through smart-
meter deployment.
The British government expects full penetration of smart meters by 2020, with a
total financial investment of £8.6 billion ($13.5 billion) and total benefits of £14.6
billion ($22.9 billion) over the next 20 years
Puducherry Smart Grid Pilot Project (Case Study )( I. S. Jha, S. Sen and R. Kumar,
"Smart grid development in India — A case study," 2014 Eighteenth National Power Systems Conference (NPSC),
Guwahati, India, 2014, pp. 1-6, doi: 10.1109/NPSC.2014.7103866.)

POWERGRID has taken a pioneering initiative to develop Smart Grid Pilot

Project at Puducherry through open collaboration jointly with Electricity
Department, Govt. of Puducherry for demonstration of technology efficacy,
provide input for standardization and interoperability framework of various
technologies, policy advocacy and regulatory framework for tariff design & net
metering, electric vehicle deployment with charging through renewables etc.
Under this project various Smart Grid attributes have already been implemented
and are being scaled up in a progressive manner. Presently, more than 1600 smart
meters at consumer premises along with Data Concentrator Units (DCU) & Meter
Data Management System (MDMS) have been integrated at one common
platform at Smart Grid Control Centre at Puducherry.
Real time monitoring of energy consumption pattern, various alarms associated
with it, etc. have been made possible with AMI system installed at Puducherry.
Meters with various communication technologies have been deployed including
narrow band & broad band PLC, RF-2.4GHz, RF-865 MHz & GPRS. Smart Grid
Control Centre at Puducherry is the first of its kind in the country has been
establish
hed under this project. Real time Distribution Transformer (DT) wise energy
audit is also possible, an example of monthly audit of a given DT is shown at Fig
1.

Fig 1: Real Time DT wise Energy Audit

To bring down outage duration and ensure reliable supply to consumers, Outage
Management System (OMS) having Distribution Transformer Monitoring Unit
(DTMU) and Fault Passage Indicators (FPI) have also been installed integrated
with Smart Grid Control Center. DTMU monitors various parameters of
distribution transformers (DT) like oil level, oil temperature, load current,
voltage, harmonics, palm temperature etc. on real time. Daily average Loading
and temperature profile monitored through a DTMU installed at Puducherry FPI
facilitates in quick detection and identification of faulty network.
Outage information is being sent to control center through GPRS communication
at regular interval.
In order to ensure quality supply to consumers 140 kVAR Automatic Power
Factor Corrector (APFC) in steps of (50+50+20+10+10) as part of Power Quality
Management (PQM) has been integrated. In addition IGBT based 150 kVAR
active filters for harmonic suppression; reactive power compensation and smooth
voltage control have also been deployed.
A demonstration model of demand response has also been set up at Puducherry.
It would facilitate customer to receive utility signals and to respond for demand
management. In addition, efficient street light automation system has been
implemented for 126 nos. of street light which has resulted into reduction of
energy consumptions for street lighting by about 57%.
Renewable integration is one of the major thrust areas of Smart Grid
implementation. With rooftop solar generation, every consumer has become a
“Prosumer” (a term commonly used for energy producer and consumer). For
integration of distributed generation in the form of roof top solar & integration
into grid, net metering has been implemented in the premises of two different
types of consumers’ i.e. residential consumer and academic Institute in the
Puducherry Project area. Besides getting clean and reliable supply of power, these
consumers with rooftop solar are saving significantly on monthly electricity bill.
Environmental friendly Electric vehicle having charging facility through Solar
PV has been deployed at Puducherry under this pilot project.
To facilitate in consumer participation, Smart Home Energy Management system
has been demonstrated at Puducherry. Functionality like Smart security, Micro
grid controllers etc. have also been demonstrated under this project.
PED, the electricity utility in the project area has been immensely benefited from
the success of Smart Grid Pilot. Some of the tangible benefits reported by PED
on implementation of initial phase of Smart Grid pilot Project in their area are as
summarized below:
1. Improved metering and collection efficiency: Metering efficiency increased by
14 % in the project area. This resulted in corresponding increase in billing
efficiency.
2. Improved Billing Cycle: Remote meter reading AMI has enabled simultaneous
collection of meter reading for a large consumer base. Therefore, now working
on modification of billing cycle that would improve collection and cash flows.
3. AMI has facilitated utility in detection of abnormal consumer behaviour in real
time. Examples of few such cases are explained below:
•In one of the case utility observed very high consumption by a consumer. On
investigation it was found that there was additional lighting and other loads
during a family function.
•Detecting meter tampering in real time: On investigation it was observed that
consumer was trying to bypass the meter for using welding machine.
•Several cases of consumer shifting the meter within his premises due to some
construction work were detected. Consumers were advised to inform the utility
for carrying out such activities.
•In another case damaged wiring at consumer premises was also detected.
Consumer was advised to rectify the wiring.
 Case of meter recording more than actual consumption due to faulty meter
was reported. Faulty meters were replaced.
 Cases of bypassing meter were also reported.
4. AMI also helped utility in detecting unbalance in power thereby reducing the
overall efficiency of system. Facilitated utility in planning mitigating measures.
5. AMI also helped utility in detecting variation in voltage at consumer end as
This pilot would help in Indigenization of technology and evolve a suitable
commercial mechanism. The project also aims at preparing groundwork for
policy advocacy, regulations, standards, and evolution of a commercial
mechanism among other things.
This Puducherry Smart Grid Pilot Project has not only been found to be very
useful in understanding the evolving Smart Grid technology but also act as a proof
of concept in India. Experts from distribution utilities across the country,
regulators and policy makers, etc. are regularly witnessing various smart grid
attributes like, AMI, OMS, PLM, net metering, smart street lighting, demand
response etc. implemented under Puducherry Smart Grid Pilot Project. Various
functionalities implemented under this smart grid project can serve as a reference
for other utilities planning to implement it in their system.
The smart grid shall bring efficiency and sustainability in power sector, meeting
the growing electricity demand with reliability, resilience, stability and best of
the quality while reducing the electricity bill of a consumer. It also enables
consumer participation in energy management.
Clean Development Mechanism Opportunities
Clean Development Mechanism or CDM is one mechanism that allows an
industrialized nation listed in Annex I of the United Nations Framework
Convention on Climate Change (UNFCCC) to buy emission reductions which
arises from sustainable development projects that are in non-Annex I
(developing) nations. The carbon credits that are generated by a CDM project are
termed in CERs, expressed in tones of CO2 equivalent (tCO2e).
Under the Kyoto Protocol’s Clean Development Mechanism (CDM), an
additional finance for the projects that reduce greenhouse gas emission could
possibly help to accelerate wind and solar power development across the world.
CDM and Carbon Credits:
Carbon credits are a tradable permit scheme. They provide a way to reduce green
house gas emissions by giving them a monetary value. A credit gives the owner
the right to emit one tonne of carbon dioxide. Carbon credits are generated as the
result of an additional carbon project. A can be an emissions allowance which is
allocated or auctioned by the administrators of a cap-and-trade program or an
offset of Greenhouse Gas equivalent carbon dioxide emissions. An offset
generated by a carbon project under Clean Development Mechanism (CDM) or
Joint Implementation (JI) is limited in value by the fact that regulated entities are
limited as to what percentage of compliance can be accomplished via these
flexible mechanisms. International treaties such as the Kyoto Protocol set quotas
on the amount of greenhouse gases countries can produce. Countries, in turn, set
quotas on the emissions of businesses. The concept of carbon credits came into
existence as a result of increasing awareness of the need for pollution control.
Carbon credits are certificates awarded to countries that are successful in reducing
emissions of greenhouse gases. For trading purposes, one credit is considered
equivalent to one tonne of CO2 emissions.
Various sectors which comes under CDM project
1) Green Buildings
2) Plug in Hybrid Electric Vehicles
3) SF6 based Gas Insulated Substations
4) Renewable Energy Sources like Solar, Wind, Biogas