Analyzing the Role of Distribution System Operator in Context of India’s Energy Transition

Vehicles (EVs) and other DERs as major behind-the-meter sources and loads, the distribution network is expected to experience significant bi-directional power flows. Even in remote locations, DERs contribute to enough, dependable, and high-quality supply, which is essential for reaching the Net Zero goal. DERs include EVs, small natural gas-fuelled generators, battery energy storage systems (BESS), rooftop solar photovoltaic units, combined heat and power plants, controlled loads, etc. In order to encourage the construction of solar photovoltaic units and improve the uptake of hybrid and electric vehicles, the Indian government has also announced new rules and incentives. On 29th February, 2024, Government of India has approved the PM Surya Ghar: Muft Bijli Yojana to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. According to the plan, the Distribution Companies (DISCOMs) must implement a number of supportive measures to encourage rooftop solar in their localities, including the provision of net meters, prompt installation inspection and commissioning, vendor registration,etc.

Reforms in the power industry worldwide are being propelled by the growing number of DERs installed in the distribution network, the rise of prosumers, and the accessibility of detailed, real-time data. Automation, information management, control, and communication technologies are also being included into the traditional power grid, enabling two-way data and information exchange between utility firms and customers. Numerous utilities and regulators worldwide have acknowledged the significance of the Distribution System Operator (DSO) idea and are actively working for active implementation. As rooftop PV becomes more popular and distribution networks become more complex, DSOs may be required in the future to prevent network congestion, optimizing system demand and to use solar forecasting systems for smallscale rooftop solar installations. These systems may also be used to forecast cumulative regional variable renewable energy (VRE) generation.

India is also envisaging the establishment of DSO to manage the distribution system in realtime in order to guarantee the security and dependability of the supply to customers as well as the security of the grid. DSO would be crucial in managing DERs, such as rooftop solar PV electricity connected to the grid. To propel India's distribution system change, additional technical investments, structural frameworks, and DSO skills are needed. But the distribution networks with varying load and generation are far too complex for a one-size-fits-all strategy.

In order to address the set of technological needs, institutional framework, and regulatory requirements, this research intends to provide a roadmap for DSO implementation in India, taking into account the current structure of the Indian power industry and pertinent lessons learned from global experience. Because DSO is no longer just a concept, the foundation for bringing distribution system operators to India may be set-up using a bottom-up methodology.

This is because a variety of stakeholders, such as distribution licensees, State or Sub/Area Load

Despatch Centers (SLDC/Sub-SLDC/ALDC), State Electricity Regulatory Commissions

(SERCs), and other pertinent organizations, currently ensure retail electricity supply in India.

Nonetheless, a number of issues facing the Indian distribution industry are having an impact on the planning and operating procedures in the retail supply sector. Given India's size and geographic diversity, the development of DSO models would mostly be driven by local requirements.