The Indian distribution sector in particular and the overall generation, T&D Industry in general are in a bad shape, is something well known. To a great extent, these problems are due to various factors including political, policy issues, policy implementation issues and can be summed up simply as a lack of will by the politicians and bureaucratic to take tough decisions, which are part and parcel of what is India.
A solution to this problem as envisaged by the various stakeholders is to embrace smart grid, as a good solution to improve the sector. While the intent is good, there is very high chance that, this effort too would result in more capex procurement by utilities, with very little or minuscule utilization of the same to achieve the benefits that is intended by its adoption.
The best way in my opinion to approach this problem is to take simple, common sense decisions that right from the MD of a DISCOM to the line-man can understand, with very tangible results expected at the end of every year for these steps. These steps would be different for each DISCOM and each area even. While decentralization, grass root democracy and panchayati raj is the policy direction in the policy arena, it does not seem to be the direction taken to address the issues within the power sector. It is important we let the individual DISCOM to come with their own solution to the problem, and reward results.
A first step in this direction in my opinion would be to start installing DLMS COSEM standards based single phase and three phase meters for LT and HT customers across the country and implement AMR for these meters using wireless technologies. Where-ever the existing meter reading takes lot of time to remotely read or are non reliable over remote read, the same should be replaced with new meters, with DLMS COSEM support and higher baud rate and selective reading of registers to enable better success for billing / energy audit applications.
Thus a robust metering system on open protocol which is friendly over wireless communication medium will be the most critical requirement / base line towards a smarter grid. All others including two way communication, connect/disconnect or DSM etc., should only follow this basic first step.