Japanese energy management giant Fuji Electric has agreed to develop a smart grid in the Indian state of Andhra Pradesh in a bid to cut transmission and commercial losses.
Fuji Electric has confirmed that it will set up a smart grid pilot project in the state capital Vijayawada to half losses from the existing 12.9% to 6%.
Chief minister of Andhra Pradesh N. Chandrababu Naidu has also asked Fuji Electric to explore the possibility of introducing a dynamic and cost-effective pricing system for power and also study the feasibility of introducing remote-controlled power stations.
Mr Naidu, who visited Japan in November 2015, also wants the Fuji Electric team to identify possibilities of further collaboration in energy-related technology areas such as clean energy.
Naidu said energy efficiency and energy saving is one of the government's key areas of focus.
Foothold in smart grid India
Fuji Electric, which will visit the state again in March 2015 with representatives from Japanese promotional agency New Energy and Industrial Technology Development Organization, will begin by installing sensors in commercial and residential buildings to monitor energy consumption in order to formulate patterns as well as forecast energy requirements.
Fuji Electric has already conducted a feasibility study on smart energy grid for Panipat in Haryana state.
Vijayawada is the second largest city in the state of Andhra Pradesh, with a million plus population.
The city has been recognised as a 'Global City of the Future' by McKinsey Quarterly with GDP forecast to reach US$17 billion by 2025.