Tata Power pilots new AI-enabled energy management system in city

Starting this month, Tata Power has initiated a trial of an AI-enabled smart energy management system.

Mumbai: Summer may not be here officially but Mumbai is already feeling the heat. However, in what might prove to be a relief to consumers, there could be a way to control how they consume electricity and even earn incentives doing so.

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Starting this month, Tata Power has initiated a trial of an AI-enabled smart energy management system. In the pilot, they will be testing this system on 55,000 residential and 6,000 commercial and industrial consumers of Mumbai.

As a part of this pilot project, when power guzzling air conditioners are switched on in the coming days, Tata Power expects its ‘Demand Response Program’ to help their consumers optimise electricity demand. A message will be sent to these consumers, who are part of the pilot project, about the peak hour, probable market rate and time when the peak hour might end. These consumers also include big office spaces, commercial complexes and government agencies.

“The customers can defer the use of AC and switch it off during the peak hours and cool the room before the peak hour hits. By doing this, the load will come down. Also, we will be able to monitor these customers on how they optimized their use of electricity,” said an official from Tata power.

“We have proposed to provide a one-time incentive of ₹25 and ₹1 per unit saved by all those residential consumers who have participated in this pilot project,” added the official.

At present, Mumbai’s electricity demand is cruising at around 2,800-2,900 Mw, which is expected to increase in the coming days. This system would be helpful especially with the rising temperatures and demand for electricity expected to go up. The power distributing companies of Mumbai have long-term power purchase agreements but still have to buy from the open market owing to the swelling demand.

In the initial period, Tata Power expects to prevent use of 75 Mw in six months and aims to touch 200 Mw by summer of 2025. During peak hours, the power distribution companies buy electricity from open market.

At present the open market rate for per unit of electricity is around ₹3-3.50 or so, that zooms upwards to even ₹6-8 per unit during summers. Incidentally, last year when there was coal shortage all around the country, per unit cost in the open market had touched even ₹16-18.

When asked about the pilot project, a power expert said: “The main problem would be implementing it to its utmost potential. Although the system looks good, there is no guarantee on even those who have agreed to participate in the pilot project, to actually follow the system and use electricity in an optimised manner”.