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dECEMBER 2016

Journal from PTC India Limited

Distribution reforms

finDing Light At the enD of tunneL

Distribution reforms:the necessity of Power sector

future market Design

uDay scheme

biDDing Process on DeeP Portal

measures for Distribution reforms

Power Distribution:integration of solar Power Projects

energy storage:enabling smarter grids, renewable

integration & energy access

2 | PTCHRONICLE | DECEMBER 2016


From the Chairman’s DeskIndia has an installed capacity of more than 305 GW, which

is significantly higher than around 153 GW of peak demand. Coal generation capacity (187 GW) itself is higher than peak demand. Despite the sufficient installed capacity, we face power shortages in many parts of the country and resort to alternative arrangements that are expensive and unfriendly to the environment. The main reason for the under-utilization is low demand from financially-stressed utilities. The banking sector has an exposure to Discoms to the tune of Rs 4.3 trillion in principle alone and over Rs 5 trillion if interest and unpaid dues are counted. These discoms have accumulated losses of about Rs 3.8 trillion.

Besides this, we have more than 250 million people in our country who do not have access to electricity. Estimates suggest that consumption would increase from 1,048 billion units today to 2,000 billion units (BUs) in 2019 to cater to 24x7 electricity for all consumers.

Distribution Reforms have been critical element for revival of power sector. The schemes launched in the past such as Restructured Accelerated Power Development Programme (R-APDRP) in 2008 and Financial Restructuring Plan (FRP) in 2012, however could not yield the desired results.

Government has launched Ujwal Discom Assurance Yojana (UDAY) for revival of Distribution Utilities through financial restructuring with State taking over 75% of the Discom debt and operational efficiency through reduction of AT&C losses, coal reforms and demand side management. Tariff revisions at regular intervals have been introduced to bridge the gap between revenue and cost of supply.

The key of success of UDAY scheme lies with the States/State Governments, Regulatory Commissions and Discoms. Seventeen States/UTs have signed MOUs which is encouraging. Other States/UTs have also expressed interest in joining the scheme.

We have seen in the past that the public private partnership (PPP) model has provided more efficient functioning and comfort to stakeholders. In distribution also, more competition and PPP models may provide desired results. The industry is also awaiting the enactment of amendment to the Electricity Act 2003 to give further momentum to power sector reforms in particular - Distribution Reforms.

The specific coverage of Distribution Reforms in this edition makes an endeavor to discuss the various aspects of the distribution segment from financial, technical and regulatory perspective.

We would like to thank all our readers and acknowledge their feedbacks and continued support. We hope to continue receiving your support and valuable feedbacks. We wish our readers a valuable read.

Deepak AmitabhChairman & Managing Director

PTC India Limited

Chief EditorHarish Saran

Editorial TeamRakesh Kumar GuptaHL Chaudhary Sneh Daheriya Anand KumarRaghuram C SoragaviRakesh AgarawalLavjit Singh

Editorial Address:PTC India Ltd., 2nd Floor, NBCC Tower, 15, Bhikaji Cama Place, New Delhi 110066

PTChronicle takes no responsibility in case of any unsolicited photographs or material.

PTChronicle journal is the property of PTC India Ltd. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system, or transmitted in any form without the written permission from PTC India Ltd.

The views expressed in the articles are of the authors and not of the organizations they belong.

Design & Printing by:Colour Bar Communications, New Delhi

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Editorial

In the recent years, there have been significant improvements in the power sector with generation capacity reaching 307 GW, coal production of 546

mn tonne in FY16, transmission capacity of 364,921 KMs with 65,550 MW of Inter-regional transmission capacity and power supply position improving to energy deficit and peak deficit limited to 0.7% and 1.6% respectively.

On the flip side, the discom losses continue to erode the banking sector with worries on NPAs. Development and integration of RE to combat Climate Change and at the same time providing the affordable electricity to all with cost reflective tariffs is a challenge in present scenario.

Improving Efficiency in the value chain is a solution to this challenging task, be in the fuel supply, generation, transmission, distribution or at the consumer end. The financial restructuring and operational efficiency of Discoms through UDAY scheme is going to make a difference with proper implementation and monitoring.

In this edition, we have made an endeavor to cover various aspects of distribution including the impact of renewable energy in particular solar energy and distributed generation on the distribution system and need of appropriate design for the distribution in the changing context including separation of carriage and content. The various challenges power sector and its components, viz, generation, transmission and distribution are facing and the ways to resolve them going forward is our attempt to give a perspective to various aspects of the sector reforms. We have covered salient features of UDAY Scheme, the major Distribution Reforms scheme by Ministry of power with the active participation from States for debt restructuring and efficiency measures.

Ministry of Power, Government of India has introduced DEEP Bidding, a system of ‘Reverse Auction’ through the National e-bidding portal for procurement of power for short term (i.e., for a period less than or equal to one year) by Distribution Licensees. The new system is meant to promote competitive procurement of electricity by Discoms, making the procurement process transparent and to reduce overall cost of power purchase through the process of e-tendering and reverse auction. This edition covers the process of DEEP Bidding along with its important provisions.

We have also incorporated technical articles on energy storage, wind energy generation to help readers understand the technical aspects of some of the renewable energy technologies as well as the energy storage techniques.

PTC has launched its two mobile applications – Bijli Bazaar and Bijli Vyapar for the benefit of the clients as well as public in general. Through Bijli Bazaar, power can be bought/sold through power exchanges. Bijli Vyapar contains information about the power sector and power market such as installed capacity, generation, power supply situation all over India and in the respective States/UTs, tariffs, transmission availability, Discom Rating, RPO etc. to help them make informed decisions. This edition covers more about these applications along with the power sector news and power market trends.

We thank you for your continued support and solicit your suggestions to make PTChronicle more enriched with each edition.

Harish SaranExecutive Director (Marketing)PTC India Ltd.



Your feedback is valuable to us. Kindly share them at [email protected]

C O N T E N T

DisTribuTiON rEfOrms: ThE NECEssiTy Of POwEr sECTOr 8Deepak AmitabhChairman & Managing DirectorPTC India Ltd.

ThE PTC TimEs 12

PTC’s DigiTal iNiTiaTivEs: bijli bazaar & bijli vyaPar 20

suNrisE iN POwEr DisTribuTiON 22Prabir NeogiChief Executive – Corporate AffairsRP-Sanjiv Goenka Group

CaPaCiTy builDiNg PrOgrammE fOr DEsigNiNg, maNagiNg aND OPEraTiNg a POwEr TraDiNg ENTiTy iN NEPal 30

POwEr suPPly POsiTiON 29

marKET waTCh 28


biDDiNg PrOCEss ON DEEP POrTal 31

All the contents of PTChronicle are only for general information and/or use. Such contents do not constitute advice and should not be relied upon in making (or refraining from making) any decision. Any specific advice or replies to queries in any part of the journal is/are the personal opinion of such experts/consultants/persons and are not subscribed to by PTC India. PTChronicle has employed due care and caution in compilation of data for preparing this journal. The information or data of photographs have been compiled from various sources including newspapers, websites, etc. PTChronicle does not guarantee the accuracy, adequacy or completeness of any data/information that was furnished by external reports and is not responsible for any error or omission or for the results obtained from the use of such data/ information.

rOaD TO DisTribuTiON rEfOrms 34Harish SaranExecutive Director (Marketing)PTC India Ltd.

ENErgy sTOragE: ENabliNg smarTEr griDs, rENEwablE iNTEgraTiON & ENErgy aCCEss 42Rahul WalawalkarExecutive Director, India Energy Storage Alliance &President, Customized Energy Solutions (India)

wiND TurbiNE gENEraTOr aT a glaNCE 44Rakesh Gupta Vice PresidentPTC Energy Ltd.

ujwal DisCOm assuraNCE yOjaNa (uDay) 40


Deepak AmitabhChairman & Managing Director, PTC India Ltd.

Distribution Reforms: The Necessity of Power Sector

CMD Speaks


The world economic growth is projected at 3.4% in 2017. The forecast subsumes

a subdued outlook growth for advanced economies and subsequent political development like Brexit and weaker than expected growth in United States, China, Brazil etc. These developments continue to put downward pressure on global interest rates and investment sentiment. The continued lackluster performance of developed economies has, in turn improved the sentiment toward emerging market economies as a favorable destination for investment and their consumption potential.

With the GDP growth rate of 7.6% (although being revised downward with demonetization), India retains its position of the world’s fastest growing major economy. Economic growth in India is expected to stay high on the strength of robust consumer demand from a general increase in wages that offsets a slowdown in investment. The enactment of legislation for Goods and Services Tax (GST)is a milestone reform that will create an integrated national economy and shall have capacity to induce demands. The better and uniform monsoon numbers this year is expected to generate rural demand substantially. Ongoing efforts to restructure banks’ balance sheet to revive credit off-take and reduce excessive leverage of large corporations is setting the stage for a recovery in investment spending and is likely to drive growth in coming years. The demonetization may slow the growth wheel by some basis points for a quarter or so but a robust fiscal structure is being in place for higher growth tomorrow.

Power Sector in India showed a robust capacity addition and at the end of November, 2016, the all India installed capacity stood at 308.8 GW as compared to 282.02 GW in November, 2015 (an addition of 26.78 GW in last one year). We also had a higher private participation, which constituted 42% of this capacity as compared to 39% by November, 2015. The major private participation came in the installation of Renewable Capacity. The competition among the generating


companies brought down the renewable prices close to grid parity and in some cases, at grid parity.

Competition brings efficiency in every market, and power sector has observed the similar trend in fuel supply, generation and transmission segments. However, competition has limited impact on Distribution sector since there is hardly any benchmark for service obligations (resulting in less of demand at macro level to optimally lower power supply across all categories of customers), absence of quality distribution infrastructure, market linked tariff etc.

Since 2002, Government has been making efforts for revival of Distribution sector from time to time such as Accelerated Power Development Reforms Programme (APDRP) in 2002-03, RAPDRP in 2008 and Financial Reform Package (FRP) in 2012. However, these schemes could not bring in desired results and even after 12 years and 3 such turnaround plans distribution companies were at unmanageable financial stress.

Understanding the importance of distribution sector in the entire power sector chain, Ministry of Power, GOI launched Ujwal DISCOM Assurance Yojana (UDAY) for financial restructuring and improving operational efficiency of the Discoms in 2015. UDAY scheme has been designed by Central Govt. as part of correcting the entire power sector ecosystem wherein emphasis has been laid on fiscal discipline in terms of cost component (reduction in cost of supply, cost reflective tariff), operational efficiency (reduction in AT&C losses, increase in collection and billing efficiency), and meeting all the regulatory requirements.

So far 17 States/UTs have signed MOUs with Central Govt. for Uday Scheme wherein States have taken over 75% of the debt. Thirteen States have got their tariff revised, bond of more than 1.73 Lac Crores have been issued resulting in interest saving of more than 5000 Crores p.a. The benefits from other central schemes such as DDUGJY, IPDS, and Power Sector Development Fund are also available to State/DISCOMs provided they meet the operational milestones as outlined in the scheme. The Major savings shall come from the operational efficiency and Demand Side Management.

The trickier issues of reducing AT&C losses which is presently in the range of 25%, and reduction in gap between ACS – ARR shall take some more time to unwind. Typically an AT&C loss of 25% increases the average cost of supply to 1.25 times of actual purchase cost and then adding further administrative expenses, interest cost, and other misc. cost increases the gap between ACS and ARR substantially.

The need of hour is to bring in ground level distribution sector reforms based on social commercial pricing theory, which shall have service level obligations as a primary criterion for determining applicable tariff.

While we are trying to increase the revenue potential of discoms by charging on the industrial consumers, industries are shifting / substituting their demand with their most competitive alternatives, resulting in further decrease in demand.


Presently, entire distribution sector is in catch -22 situation, due to limited impact of different steps taken by Govt. / Discoms their financial health continues to be weak. Due to gap in ACS and ARR every incremental unit supplied brings in additional loss to discoms, leading to discoms resorting to power cuts. This results in lesser power off- take which has a macro impact on generation as well financial sector. The cross subsidy on the industrial consumers is making the industries uncompetitive and further decrease in demand for the finished product. While we are trying to increase the revenue potential of discoms by charging on the industrial consumers, industries are shifting / substituting their demand with their most competitive alternatives, resulting in further decrease in demand.

So the need of hour is to bring in ground level distribution sector reforms based on social commercial pricing theory, which shall have service level obligations as a primary criterion for determining applicable tariff.

I believe the following steps can help substantially for financial and operational turnaround of the DISCOMs.

• Reliability and consistency of power to all theindustries above 3 MW shall increase the power off- take to a great extent. This shall also bring in latent demand (which is estimated to be in the range 8-10%) into the mainstream.

• Discoms need to bring in base line data for theirservice obligations which must form part of ARR filings. This set of data can give a predictive line of pent up demand and calculation of latent demand.

The national / regional schemes should monitor the capital investment for creation of the necessary infrastructure.

• Network roll out and fall in AT&C losses is notexpected to reduce the power requirement / off-take. As reduction in AT&C losses shall help bridging the financial gap to some extent. The network roll out and availability of reliable power shall help increase the consumer base and kick start the consumption theory and bring in latent demand which comprises of un-electrified / poorly electrified, load shedding area and industries with an estimated capacity of more than 80GW diesel Gen –Sets online.

• Increased market intervention in procurement ofpower across all source of generation and tenor. Presently, only 10% of total generated capacity is on the trading platform, and it must increase to higher capacity with widening of product which should include renewable energy as well. The declining trend in power tariff from renewable sources shall provide some buffer in managing the power tariff for end consumers.

• Interventionoftechnologyinmeteringandaccounting(in addition to creation of hard infrastructure like Distribution Transformer, Separate Feeder lines) for each and every consumers.

• Thedifferentschemes forstrengtheningdistributionsystems like IPDS, DDUGJY should be implemented as per plan for effective transformation in the distribution sector.


HIGHLIGHTS

PTC India Financial Services (PFS) has taken recourse to SARFAESI law to recover stressed loans from two

power projects after the Centre in August explicitly allowed certain NBFCs to use this route for recovery of dues. While one project is related to an EPC player in power sector in Hyderabad, the other was for a hydro-electric project in Himachal Pradesh. Till recently, only banks and financial institutions had recourse to the SARFAESI law. PFS is probably the first infrastructure financing NBFC to have used the SARFAESI law. Currently, for NBFCs, loans are recognised as NPA in case they are not serviced for 120 days. Beginning April 1 next year, loans extended by

NBFCs will be recognised as NPA if they are not serviced for a 90-day period.

“Infrastructure financing has a risk profile altogether different than financing for non-infrastructure projects, working capital loans and the like. Such (infrastructure financing) loans should therefore get more number of days before considered as NPA", Managing Director & Chief Executive Officer, Dr Ashok Haldia said. The stressed assets of PFS could be around `800-`1000 crore. The problem is mainly from thermal projects, which in turn is more to do with the state of distribution utilities.

PTC IndIa FIn usEs saRFaEsI law To RECovER duEs FRoM 2 PRojECTs

The PowerBites


THE PTC TIMES

Lenders to several power projects have started talks with investors as well as state-run NTPC to take over

these generation units, in a stern message to promoters who are reluctant to pay or want to shift the burden of reviving the projects to banks.

NTPC has been approached to take charge of a few projects such as Athena Power in Chhattisgarh in addition to some projects in Andhra Pradesh. Similarly, there is a possibility of Aadhunik, which has a plant in Jharkhand, too being offered to the state-run power producer. Apart from the public sector giant, some global players were also looking at some of the generation assets, which are troublesome for the lenders.

In case of Athena Power, there was a delay in receiving approvals and clearances which had pushed up the cost. In case of Aadhunik Power, which has been categorised as a non-performing asset despite the plant being operational, the lenders are not happy with the bids that have been received, including those from SBI Macquirie, IDFC Project Equity as well as the promoters. While the promoters have suggested that the productive assets be restructured under RBI's S4A, or Scheme for Sustainable Restructuring of Stressed Assets, some of the banks are not enthused with the idea. The joint lenders' forum is expected to consider the option of offering the project to NTPC after taking some haircut.

Banks EyE TakEovER oF dEBT-ladEn PowER PlanTs

The Petroleum Ministry plans to promote start-ups in clean energy space with a `300-crore fund with

resources raised mainly from oil marketing, research and development companies.Speaking to reporters after the inauguration of Hindustan Petroleum Corporation’s Green R&D Centre, Petroleum Minister Dharmendra Pradhan said: “Start-ups will be encouraged in oil, gas and bio-fuels space to develop technologies which are affordable and accessible to help oil marketing, research and development companies.” “IOC, BPCL, HPCL, ONGC, OIL and GAIL are part of this consortium and each company will be asked to device specific business plan to take it forward,” he added. The start-ups funded under the scheme will be encouraged to monetise urban waste and rural agricultural waste in generation of biofuels. The Green R&D Centre is built at a cost or `395 crore and currently houses 80 scientists. The centre is being built in phases on 104 acres. Under phase I, the R&D centre has laboratories in the areas of FCC/RFCC, hydro processing, catalysis, bioprocess, crude evaluation, fuel research and nano technology.

The country’s first plant to produce urea from coal, which will make the fertilizer cheaper for farmers, may be

set up in Maharashtra. The Maharashtra Government has signed a memorandum of understanding with a US-based company to set up the plant at Bhadravati near Chandrapur. It will be a Rs 4,000-crore project by Stonetek Energy.Urea is largely imported and the plant will reduce India’s dependence on imports. Urea which is made out of naphtha costs nearly Rs 40,000 a ton and the price can be halved if it is produced in India out of coal, which is in abundance in Vidarbha. The process for securing linkage from Western Coalfields Limited is under way and the ministry of coal will be approached soon. Maharashtra can enter into a urea purchase agreement with the company and get the fertiliser at an even cheaper rate. The company also has a coal gassifcation technology which can provide alternate fuel.The MoU was signed on October 6 and the project will come up on the land earlier allotted to Nippon Denro Limited, which had shelved a plan to set up a 1,000MW power plant. The Chandrapur district administration has been asked to identify around 800 acres of land from the 3,000 acres allotted to Nippon Denro.Research says that a chemical similar to urea can be extracted out of fly ash also. This concept will also be exploited. Flyash is generated from coal burnt in power plants and is a major pollutant.

oIl MInIsTRy PRoPosEs `300-CRoRE Fund To PRoMoTE sTaRT-uPs In ClEan EnERgy sPaCE

CounTRy’s 1sT Coal-BasEd uREa PlanT To BE sET uP In ChandRaPuR


General Electric is buying one of the world’s largest wind turbine blade manufacturers, LM Wind Power,

for $1.65 billion. The acquisition will allow GE to bring wind turbine blade design in-house to drive down cost faster than it would have with LM Wind as an independent supplier.GE is buying LM Wind from London-based private equity firm Doughty Hanson for 8.3 times EBITA. LM Wind will operate as a standalone subsidiary. The Danish blade company currently has blade factories in 13 countries including Brazil, Canada, China, Denmark, India, Poland, Spain and the U.S.LM Wind has long been a supplier to GE, but there is increasing global competition for onshore and offshore wind, both of which are growing markets, and driving down cost and pushing for further innovation in design is paramount.GE has positioned its renewable energy division as a “$9 billion startup” as it tries to innovate at the speed of a startup, but with the balance sheet of an established global powerhouse.Although onshore wind is cost-competitive with fossil fuels and even with hydropower in some parts of the world, a recent study from Lawrence Berkeley National Laboratory found wind power could see another 25% cost decline by 2030.Experts expect cost advantages in wind to come through lower capital costs, but also through higher capacity

Despite higher availability of coal, thermal power generation rose by a meagre 0.3% during July-

September quarter as compared to the corresponding period last fiscal, owing to lower system demand, brokerage firm Reliance Securities said in a report. According to the report, the total power generation during the quarter rose by 1.3% on year-on-year basis to 287 BUs. Thermal generation rose by meagre 0.3% owing to lower system demand despite higher coal inventory, while hydel generation improved by 3.5% y-o-y following improved reservoir levels. Owing to the lower demand, coal production was curtailed in the last few months with high coal inventories to the tune of 50 million tonnes."Slow industrial demand along with weak financials of the state-run power utilities (SEBs) led to muted growth. All-India Plant Load Factor (PLF) for thermal sector stood at 54.6 per cent in Q2FY17 compared to 60.5 in Q2FY16," it said. The report, however, observed that the UDAY scheme would eventually lead to their improved financial health and ability to procure more power."Despite lower per capita power consumption as a demand driver, subdued economic activity has led to lower power demand from the industrial consumers, which has led to the SEBs shedding load to the residential and agricultural consumers. "However, improvement in the policy environment and infrastructure spend coupled with manufacturing activities will aid in reviving demand environment for the power sector," the report said. According to the brokerage firm, implementation of UDAY scheme is expected to improve power demand in fiscal 2017-18, while increase in coal output would provide a much needed fillip to the sector.

factors, longer project life and operational efficiencies. That will mean better analytics and bigger turbines.Blades are the single largest cost component of the total turbine, and it is the blade that drives much of the overall performance of the turbine, so it makes sense to tightly integrate the blade design with the rest of the turbine. That involves everything from how to manufacture and ship the blades that are getting bigger and bigger, to better placement of sensors to enhance the analytics that can further a turbine’s performance.Another advantage is that both companies have global footprints that can be leveraged to grow the business in a more holistic way. GE wants to maintain a strong presence in China, where LM Wind Power already supplies various turbine manufacturers and has an office and three factories. GE lost wind market share to Goldwind and Vestas in 2015. The acquisition is expected to close in the first half of 2017.

ThERMal PowER gEnERaTIon RosE By 0.3% In Q2

gE aCQuIRIng lM wInd PowER

HIGHLIGHTS


THE PTC TIMES

India’s largest energy conglomerate NTPC plans to raise USD 500-700 million through masala bonds from the

financial markets in London, Hong Kong and Singapore from November. “The funds raised through the bonds will be for several projects under construction,” NTPC’s Director - Finance and CFO, Mr Kulamani Biswal, said after attending the launch of Singapore Exchange (SGX) Masala Bond Hub. The bonds will be listed on SGX.

NTPC’s annual capital expenditure is more than USD 4.5 billion for FY2016-17, most of which is raised through financial markets. The company raised more than USD 300 million in August through green masala bonds for solar projects. These bonds are also expected to list on SGX.

NPTC expects to raise USD 835 million from overseas markets and USD 2.12 billion from India to support its USD 4.48 billion capital outlay in 2016-17. The company has internal resources of USD 1.53 billion and debt of USD 2.96 billion.

What are Masala Bonds? : Masala bonds are Indian rupee denominated bonds issued in offshore capital markets. These are settled in dollars and, therefore, the currency risk resides with investors. With Masala Bonds, Indian corporates have more option to blend their debt portfolio to optimize the liability and minimize the cost. The investor set is more broad-based than just FIIs (foreign institutional investors), as these instruments can usually be sold to other investors who prefer the fact that these are listed.

History behind Masala Bonds: International Finance Corporation (IFC) issued a 10-year, 10 billion Indian rupee bond in November 2014 to increase foreign investment in India and mobilize international capital markets to support infrastructure development in the country. IFC converted bond proceeds from dollars into rupees and use the rupees to finance private sector investment in India. The “Masala bonds” marked the first rupee bonds listed on the London Stock Exchange. IFC named these ‘Masala’ bonds as ‘masala’ is a globally recognized term that evokes the culture and cuisine of India. This is not the first time that a bond has been named after the food or culture of a country. Chinese bonds, for example, are called Dim sum bonds, and Japanese ones as Samurai bonds.

The Pros and Cons of Masala Bonds: Masala bonds can be quite a significant plus for the Indian economy. They are issued to foreign investors and settled in US dollars. Hence the currency risk lies with the investor and not the issuer, unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans. While ECBs help companies take advantage of the lower interest rates in international markets, the cost of hedging the currency risk can be significant. If unhedged, adverse exchange rate movements can come back to the borrower. But in the case of Masala bonds, the cost of borrowing can work out much lower. However, over issuance of Masala Bonds may have some adverse effects in terms of heavy reliance on external debt and can weigh on our rating by global agencies

nTPC To RaIsE usd 500-700 Mn vIa Masala Bonds


HIGHLIGHTS

Major works under Transgrid-2.0, the ambitious Power Department initiative to strengthen the

transmission network within Kerala, would be completed in five years at an estimated expense of Rs 6,375 crore.

The State Government gave administrative sanction for rolling out Transgrid-2.0 in two phases with funding via the Kerala Infrastructure Investment Fund Board (KIIFB), the statutory body which raises money for big infrastructure projects. Designed by the Kerala State Electricity Board (KSEB) with a total financial outlay of Rs 9,425.37 crore, Transgrid-2.0 aims at scaling potentially crippling handicaps in power transmission inside Kerala and in bringing electricity from outside.

Multi-circuit lines linking 400 kV substations, five new 400 kV substations and 220 kV substations in 26 locations are among the initiatives planned under Transgrid-2.0. The KSEB board had cleared the project in February. Kerala imports roughly 70% of its daily power demand from outside, as power generation within the state is more or less stagnant. However, the demand is expected to shoot up phenomenally, though the state lacks the transmission network for bringing more power from outside. The estimates project the state’s daily peak-hour demand to shoot up to 4,900 MW by 2017-18, 6,398 MW by 2022-2023 and 12,000 MW by the end of the 15th five-year plan in 2032. Going by this projection, the state would need to add an import capability of 2000 MW by 2018, 4000 MW by 2022 and 8000 MW by 2032 to the existing network. Transgrid-2.0 is seen as the solution to this problem.

ksEB's TRansgRId 2.0 MaIn woRks To CoMPlETE By 2023

The Andhra Pradesh government proposes to issue special securities worth Rs 8,256.01 crore under the

Ujjwal Discom Assurance Yojna Scheme (UDAY). The securities will have a face value of Rs 100 issued in equal strips with a maturity at the end of 10th, 11th, 12th, 13th, 14th and 15th year, the RBI said in a statement. "An investor will be required to purchase entire structure and the bid amount will be uniformly distributed across all tenors," it said, adding the minimum size of bid will be Rs 100 crore. Ministry of Power launched the UDAY Scheme last year for operational and financial turnaround of DISCOMs. So far 17 states/UTs have signed UDAY. The combined discom debt, including central PSU dues, that would be restructured in respect of these states is around Rs 2.57 lakh crore, which is around 68% of the total outstanding discom debt as on September 30, 2015.

Green bond is a debt instrument used to raise funds from investors and the proceeds are used only towards

financing 'green projects'. With the government setting an ambitious target of 160 GW of solar and wind capacities by 2022, green bonds can be a potential option to support the funding needs, a recent report said. Green bond is a debt instrument used to raise funds from investors and the proceeds are used only towards financing 'green projects'.According to a report released jointly by Assocham and Crisil, to meet the renewable energy target, there is a need to look at innovative channels for financing and banking alone would not be able to support the huge requirements.Green bonds could be a potential option to support these funding needs. These proceeds could either be used for funding the capital expenditure of green projects such as renewable energy projects or refinancing existing loans of eligible green projects of the issuer. India, with an installed capacity of 306 GW, has the fifth largest power generation portfolio in the world and the current renewable energy contribution to this portfolio stands at 45.6 GW as of September 30, 2016. The country's total installed wind and solar power capacities stand at 28 GW and 8.5 GW, respectively, as on September 30. Given that green bonds would facilitate attracting a category of investors which are environment friendly and demand investments in green/sustainable financial instruments, these could be a good option to part fund the huge investment needs of the renewable energy sector.

andhRa PRadEsh To IssuE sECuRITIEs woRTh Rs 8,256 CR undER uday

gREEn Bonds Can PoTEnTIally Fund REnEwaBlE EnERgy, says CRIsIl REPoRT


THE PTC TIMES

Power Grid Corporation of India Limited (PGCIL) is planning to build energy highways across the country

to meet a projected growth in demand and ease the load on the national grid.

The highways include 11 high-capacity corridors, each with a capacity of about 4,000 MW, and three high-capacity HVDC (high-voltage, direct current) systems (6,000 MW each). The central transmission utility will also develop eight inter-state transmission systems (ISTS) or green energy corridors to help the renewable energy sector. The ones to come up first would be to connect the solar power parks in Rajasthan, Madhya Pradesh, Karnataka, Andhra Pradesh and Gujarat. PGCIL is constructing the first phase of green corridors connecting renewable-rich states.

The investment planned for these projects is Rs 1.12 lakh crore, with the energy highways costing Rs 58,000 crore and the HVDC systems Rs 12,000 crore each. The cost of the ongoing green corridors is Rs 18,000 crore. The ISTS for solar parks is about Rs 9,000 crore each. The costs are for the lifetime of the projects and would be invested according to commissioning time lines. Mr I S Jha, CMD PGCIL, stated: “Transmission planning now is on basis of load growth and not just power generation. The government

of India has projected per capita power consumption to grow four times to 4,000 MW by 2030. Along with central programmes, this will give a momentum to household demand. The country’s transmission needs to be prepared for the phenomenal growth of power demand.”

The central government has accelerated the development of power transmission networks to match the projected electricity demand in several regions. Along with states, which would offer transmission projects, the Centre is looking to unleash an investment opportunity of close to Rs 1 lakh crore for the sector. However, the award of projects under the bidding route has been growing slowly. Eight projects costing Rs 9,635 crore have been announced to be offered through tariff based competitive bidding this financial year.

Of the ongoing projects, totalling Rs 1.16 lakh crore, PGCIL is building Rs 16,000 crore worth of projects won through this route; the rest was nominated. Tamil Nadu, Karnataka, Rajasthan, Madhya Pradesh and Haryana would offer power transmission projects through the bidding route, which forms a part of their 24X7 Power for All plan.

PowERgRId To sET uP EnERgy hIghways To MEET dEMand gRowTh

India and Germany signed an MoU to further their cooperation in the wind energy sector. Germany, which is a pioneer in wind energy, both off shore and on shore, expressed its willingness to share technology to promote green energy to

combat greenhouse gases. The MoU was signed between the Indian Wind Turbine Manufacturers Association and Messe Husum in Chennai. Through this agreement, it would be possible for companies to invest in offshore and onshore wind energy.

IndIa, gERMany joIn hands FoR wInd EnERgy


HIGHLIGHTS

Residents of Chandigarh, Himachal Pradesh, Puducherry and Uttarakhand will be able to buy

solar power at Rs 3 per unit – the lowest tariff in India – from panels installed on their rooftops without having to shell out a penny. The solar panels will be set up by third parties, which will sell power at these prices in the two states and two Union Territories.The Solar Energy Corporation of India, a government-owned company that has the mandate to develop the renewable energy sector, had sought bids for setting up 200 MW of solar panels on rooftops in the country to sell power to residents of buildings. Bids in Himachal and Uttarakhand and the Union Territories of Chandigarh and Puducherry were the cheapest, while they were the costliest in Gujarat. The bidders have been able to quote such low prices because the government has decided to offer subsidy to special category states. The subsidy is to the extent of Rs 52.5 per watt of installed capacity for the special category states, including the four regions.The electricity generated from rooftop solar panels in these four regions would cost less than the power sold by the respective state distribution companies. The highest tariff of Rs 6.12 per unit was quoted for Gujarat, followed

Marking its foray into wind power generation, state-owned NTPC has partnered with Inox Wind for a 50-

MW wind project to be deployed in Gujarat. With 47 GW of capacity under operations, NTPC is the country's largest energy conglomerate and this 50 MW maiden order marks its foray into wind energy generation.The project is scheduled to be commissioned by first quarter of 2017-18 and will be executed on a turnkey basis. As part of the order, Inox Wind will supply and install 25 units of its advanced 2MW DFIG 100 rotor diameter wind turbine generators (WTGs) for NTPC. The 100 rotor diameter WTG has one of the highest swept areas that make it ideally suited to maximise returns, especially in low wind areas.NTPC will also spend Rs 50,000 crore to replace 11,000 MW of ageing, inefficient plants with modern energy-efficient power stations. The ambitious replacement programme is part of India's efforts to increase energy efficiency and reduce the country's carbon footprint.

by Rs 5.92 per unit for Chhattisgarh and Rs 5.55 per unit for Tamil Nadu.These are general category states where the subsidy on installation has been fixed at Rs 22.5 a watt. Among general category states, the lowest bid was Rs 4.46 per unit for Maharashtra. The government plans to set up 18 MW of solar rooftop capacity in Uttar Pradesh, the largest state, where the lowest tariff inclusive of subsidy was quoted at Rs 5.47 per unit.Implementation of such projects by the bidders within a stipulated timeline – 12 months from date of allocation – remains critical, given the clause of liquidated damage for delay. Further, the ability to maintain the operating performance within the stipulated parameters remains crucial for the bidder, both for recovery of subsidy as well as the performance bank guarantee from SECI.

nTPC EnTERs wInd PowER sPaCE, PaRTnERs wITh Inox wInd

ChandIgaRh, hIMaChal, uTTaRakhand To gET ChEaPEsT solaR RooFToP PowER


THE PTC TIMES

A new record-low price for solar in India has been set in the latest tender offered by the Solar Energy

Corporation of India (SECI). The new record-breaking price has been set for the Bhadla Solar Park in Rajasthan, and will see 750 MW of new PV capacity added for just INR 3.93/kWh ($0.0590/kWh), which undercuts the previous benchmark price for the state of INR 4.43/kWh ($0.0665/kWh).Developers will build 500 MW for the Bhadla Phase-III Solar Park and 250 MW at the Bhadla Phase-IV Solar Park as part of the National Solar Mission’s Phase II, Batch IV. The tariff set also allows developers to bid for additional viability gap funding (VGF), and the auction winners will be based on the lowest bid price once VGF has been taken into account. Additional incentives are also available, such as accelerated depreciation (AD) and concessional customs and excise duties. However, VGF and AD cannot

be claimed simultaneously. Previously, the lowest tariff was INR 4.34/kWh ($0.0651/kWh). The new tariff will be welcome news for India’s distribution companies (DISCOMs) operating in Rajasthan because it will propel solar to the front of the queue in terms of cost, and enable the DISCOMs to abide by the national ‘must run’ law for solar. The state has previously witnessed curtailment of solar and the new low tariff will give a boost to both the developers and DISCOMs.The VGF program is responsible for 4,525 MW of SECI tenders, of which PPAs for 2,528 MW have been signed. Under the National Solar Mission, some 5 GW of GVF project tariffs have been revised, and there are reports that further tariff revisions are underway at the MNRE – Rajasthan’s tariff of INR 4.50/kWh will be revised down to INR 4/kWh with SECI taking a trading margin of INR 0.07/kWh.

750 Mw oF solaR TEndEREd aT RECoRd low PRICE

The US announced two financial projects worth USD 95 million in India to bring more energy-efficient

appliances to rural sector, as part of its efforts to continue the global transition to zero-and-low carbon energy sources.The US has committed USD 70 million in Overseas Private Investment Corporation (OPIC) financing for renewable energy projects in India; and announced to launch a USD 20 million partnership this week with the philanthropic sector to bring more efficient appliances to rural Indian villages.The USD 75 million OPIC financing is for a utility-scale PV project in Telangana. It is sponsored by ReNew Power Ventures. This commitment represents the rapid mobilisation of financing under a USD 250 million facility to support up to 400 MW of new solar power projects in India across multiple states. Known as US-India Clean

Energy Finance program (USICEF), it will address a key financing gap in the Indian distributed solar market by funding early-stage project preparatory work. USICEF is anticipated to unlock up to USD 400 million in long-term debt financing from OPIC and private sector investor.The Rockefeller Foundation’s Smart Power for Rural Development Initiative is also announcing a new partnership with the Clean Energy Ministerial’s (CEM) Global Lighting and Energy Access Partnership (Global LEAP) to accelerate the deployment and use of energy efficient off-grid devices in rural India.When deployed it is expected to reduce energy consumption by over 50 per cent for rural households, increase revenue for mini-grid operators by over 300 per cent per household, and generate rural employment for people involved in distribution and supply chain management of the devices.

IndIa and us launCh usd 95 Mn ClEan EnERgy PRojECTs


PTC India Limited launched its two path breaking Digital Initiatives that may go ahead and transform

one's day to day engagement with the Indian power market. On the occasion of PTC’s 17th Annual Day on 15th July’ 2016, PTC has formally introduced “Bijli Bazaar” and “Bijli Vyapar” to the industry.

“Bijli Bazaar” is to provide you with the relevant information about the Indian Electricity Markets including Market Snapshot, State Power Scenario, Open Access, Market News, Transmission Corridor, Price Forecasting and many more to be added time to time. Information that is definitely important to you for decision making and policy formulation in power procurement. This application is available on http://www.bijlibazaar.in. It can be downloaded from Google Play Store by all the android users and it will be soon available on App Store for I-phone users.

“Bijli Vyapar”, an initiative to enable consumers to buy electricity on Power Exchanges through their mobile phones. Today in the world of “E-commerce” this initiative of PTC is an addition to its commitments and responsibilities towards the power sector and its associations. The application is available on http://www.bijlivyapar.com. The same can be downloaded from Google Play Store by all the android users and it will be soon available on App Store for I-phone users.

PTC is committed to bring the new initiatives in the sector for developing it into a transparent power market and ease of business.

Bijli Bazaar

The dashboard for this application gives you access to six necessary information tabs:1. Market Snapshot: Daily snapshot of Indian Power

Market including average exchange prices, average power procurement cost and Bilateral cost for the State

2. State Power Scenario: Daily snapshot of power supply situation in your State

3. Open Access: Check out savings when switching to Open Access (State wise)

4. Market News: Latest feed of Power sector news5. Transmission Corridor- Congestion

6. Price Forecasting

In an ideal economy, the cheaper power Discoms buy, the cheaper power consumers get. The informations that all stakeholders can see on the dashboard of the Bijli Bazaar application is which state is buying power at what cost. We can further go to the respective State and see the complete power scenario of the selected State. With this information the key stakeholders can view and compare the average cost of power purchase in all respective States. This information leads to consumer awareness and towards a transparent market. The uniqueness of this digital initiative is, it meets the needs and provides relevant informations to utilities, regulators, policy makers, open access consumers, IPP and market players.

PTC’s Digital Initiatives: Bijli Bazaar & Bijli Vyapar


PTC’s Digital Initiatives: Bijli Bazaar & Bijli Vyapar

This application also gives option for consumers who are interested to buy power from the power exchanges and they can easily calculate their monthly savings based on present exchange prices against the Discom tariff. Select the open access section and the state and you can see how much you can save monthly. With the market news option available on this application we can also view the latest developments, stories, big news about the Indian Power Sector.

To conclude, this digital initiative “Bijli Bazaar” will inculcate market related information in a simple and transparent manner and will enable open access consumers to look beyond their electricity bills and understand the supply chain. This initiative will also help State authorities to relook their performance and optimize for better results.

Bijli Vyapar

Bijli Vyapar is a mobile tool primarily to enable the consumers to trade on power exchange through their mobile phones at their convenience. Through this mobile tool we will be providing our consumers, the ease of doing business with us, lend them control over

their time, bring more error-free efficiency by reducing their efforts in submitting bids. Consumers have to simply open the mobile application 'Bijli Vyapar' and can submit their bids within few clicks.

The viewer on this application can view six kinds of information. Out of the six kinds the following information is available to each one irrespective of whether they are our clients or general viewer.

1. Exchanges Prices and Trends

2. Landed Cost Calculator to calculate the net power purchase/sale cost based on already inbuilt computing algorithms

The other informations are available to only registered clients of PTC trading power on exchanges. These are:

1. Bid Management - where one can create and upload bids

2. Trading Profile - where one can view its daily obligations / bills / trading history

3. My Profile - where one can access its statutory requirements / NOC / validity and expiry dates


SUNRISE IN POWER DISTRIBUTION

Prabir NeogiChief Executive – Corporate Affairs

RP-Sanjiv Goenka Group

Introduction

The title draws inspiration from a KPMG Publication in 2015 – The Rising Sun that sets out the disruptions

solar power will be causing to the electricity industry in the not too distant future. The article postulates that by 2020, solar price would be at par, if not lower, with coal-based generation that in itself would constitute a driving force for solar proliferation in production of electrical energy. The technology cost curve will fall at a faster rate and the impact will be felt across the value chain of solar photo-voltaic modules, inverters and batteries that will be integral of a plant configuration which will also store energy that can be released to the grid when the facility is not generating electricity.

The trend is worldwide and not restricted to India. As solar energy becomes both affordable and an attractive proposition for achieving energy economics when consumers turn prosumers, households will increasingly adopt rooftop solar panels as a means to both generate electricity and sell to the grid any excess energy that is either stored or dispensable at a given point of time. IKEA as a home solutions provider will soon be offering solar panels with household furniture as a package that might well become a lifestyle product for homeowners under an enabling framework of government policy, tariff and regulations.

India is poised to usher in a quantum leap in solar power generation. Along with France, it is leading the International Solar Alliance to harness global resources

of technology and finance, while setting an internal target of 100 GW of solar capacity to be installed by 2022, of which 40 GW will be rooftop solar. Such plan is an integral part of the country’s climate change goals to be achieved by 2030 in terms of the commitments made under its INDC and presented to the international community at COP 21 and hence, it is reasonable to expect that an explicit policy environment will drive new solar installations. Beyond households, rooftop solar holds promise for industrial and commercial establishments when space is not a constraint as the adoption will be both environment friendly and a value proposition resulting from falling solar panel and installation costs. Community solar at remote locations and vantage points as well as utility-scale plants operating from solar parks will be the icing on the cake to ramp up solar power capacity in the country.

Driven by solar, the electricity landscape in India is poised to undergo a major change to constitute a renewable energy portfolio of 175 GW by 2022, of which the contribution of wind power will be 60 GW. Mainstreaming the capacity will bring into play the challenges of grid integration in designing the balancing capacity market on the one hand and ancillary services operation on the other after the evacuation corridors are built. Adoption of policy, regulatory and technology measures to support the required interventions will determine how a renewable-focussed industry structure will evolve and fit into a complementary market design.



Emerging Context

In an emerging scenario of renewable energy proliferation, the question is if the distribution utility model reliant on central power plants or bulk sources of supply will be disrupted, but there is little doubt that there will be re-orientation of distribution planning, processes and practices. Going forward, solar capacity will make a profound impact by constituting 18% of the generation basket in 2030 as against less than 3% now. A draft policy is in circulation to set up 10000 renewable energy-based mini and micro-grids aggregating to a capacity of 500 MW in the next 5 years to essentially serve un-served and under-served areas and improve energy access; provisions have been suggested to enable these grids to both operate as stand-alone systems or in clusters and interconnect with the utility network for sale and exchange of power as and when such access is feasible. Independently too, urban consumers equipped with rooftop solar, apart from undertaking self-generation, will have the flexibility to sell their dispensable or excess solar power to recoup their costs. As a whole, distributed energy sources (DER), which under a future scenario will include, but be not limited to, renewable-based generation, storage solutions, demand response systems, electric vehicles and mini or micro-grids, will be constituting an alternative delivery mechanism that the utility distribution system has to cope with.

Rise of renewables as a source of energy will imply that both the configuration and content of the power generation basket will change. New planning tools will be necessary to ensure that the distribution network operations are coordinated and secure under diverse and disparate energy flows and synchronised with system operations to enable stable performance of the power grid. Concurrently, selection of upstream capacities for balancing market and ancillary services will be contingent upon anticipating and visualising the configuration of the power supply portfolio emerging from a dynamic mix of conventional and renewable energy, which will be primarily solar and wind and hence, both uncertain and variable or intermittent. A more profound influence will come from behind-the-meter solar generation that will alternately serve customer and

distribution loads and necessitate a flexible network design to accommodate bi-directional energy flows. By 2030, solar and wind energy together is targeted to contribute 28% of the generation capacity in the country. If such scale is to be achieved, a paradigm shift will be necessary in re-modelling the planning, design and implementation tools required to set up distribution networks. New concepts and design philosophies will then transform distribution into a sunrise industry that will attract talent, technology and capital flows, while the ‘Rising Sun’ will influence if the present utility model of receiving uni-directional power and bundling wires and supply functions under distribution services will continue or be disrupted when smaller suppliers at dispersed locations would be seeking a platform to sell their disposable power generated from behind-the-meter solar installations.

Planning Perspective

Not only rooftop solar but also smaller distributed energy resources embedded in a distribution network will be vying to sell power to the grid. It will necessitate dynamic operation of the distribution system as well as network resiliency to absorb intermittent injections of energy that will offset the power balance. As Duke Energy, a U.S. utility, has observed, voltage regulators are now required to react to “at least two new dynamics, namely, voltage swells exhibited during peak distributed generation hours, and voltage spikes or transients caused by the intermittent nature of renewables’ power profiles.”

The experience of San Diego Gas & Electric, another U.S. utility, has shown that in outlying areas, renewable energy-based micro-grids can offer a viable back-up to radial networks in the event of outages. For the purpose, protection and control systems are to be provided at the network edge to enable the interconnection and islanding of these micro-grids in an inter-changeable manner. The ability to re-direct power flow cannot be met by traditional relay coordination installed at sub-stations and hence, protection, control and automation devices are to be provided on the distribution network itself to allow for dynamic changes in the load flow. A basic tenet will be to install two-way communication



systems with modems and sensors to enable on-line monitoring of the network parameters, including voltage and line loads, and undertake adjustments in downstream supply voltages according to load variances.

Design of a flexible smart grid equipped with voltage regulators and capacitor banks will be necessary to enable instantaneous response to power quality concerns while leveraging micro-grids as an alternative to upgrading distribution lines and a simultaneous measure to effectively integrate renewable energy.

System Approach

Traditional planning of deterministic analysis and load forecasts in distribution will be passe when bulk portfolios of solar and wind energy are to be absorbed by and integrated with the power grid. Increasing the share of solar and wind generation capacity will introduce uncertainty as well as variability and intermittency of supply and hence, robust demand forecasting techniques based on probabilistic models will be necessary to enable incremental capacity selection and economic dispatch in real time to balance the supply curve on the one hand and ancillary services operation to smoothen the supply curve on the other. Resource planning of both upstream balancing capacity and regulation services will be optimised if demand forecasting is predicated and integrated with system operations.

Secondly, as rooftop and community solar projects, along with storage solutions, will constitute sources of supply and micro-grids will alternate between serving local loads and distribution system loads, demand forecasting will need to undertake scenario analysis and examine simulation models in order to align external power procurement with embedded feed-in sources and thereby, optimise portfolio planning.

Thirdly, scheduling of distributed energy sources, generation by consumers from rooftop solar panels, storage solutions as well as demand response systems as and when they are functional will be an operational requirement for Discoms. Combining data analytics with forecasting techniques will be necessary to develop advance visualisation of solar and wind generation, provide situational awareness on day-ahead basis and undertake generation and load balancing in real time. Smart grids backed by communication and IT infrastructure will be a pre-requisite.

New skill sets and organisational preparedness will be necessary to implement the advanced techniques of forecasting encompassing both the supply side and demand side of distribution. In addition to statistical methods, ‘Evolutionary and Learning Models’ have been developed on the platform of artificial intelligence to include ‘Expert Systems’, ‘Genetic Algorithm’, ‘Fuzzy Systems’ and ‘Artificial Neural Network’, among others. Case-specific applications, including hybrid modelling, will be necessary to circumscribe the uncertainty and intermittency induced in the power system by an expanding portfolio of mainstream renewable energy generation as well as distributed energy resources, including rooftop solar.

Resource planning of both upstream balancing capacity and regulation services will be optimised if demand forecasting is predicated and integrated with system operations.

New planning tools will be necessary to ensure that the distribution network operations are coordinated and secure under diverse and disparate energy flows and synchronised with system operations to enable stable performance of the power grid.



In a situation where multiple smaller suppliers will seek to sell their behind-the meter generation from solar power and distributed energy resources with uncertain and intermittent solar and wind energy as their major components will constitute a supply source, the complexity of stabilising the distribution system and synchronising with the transmission grid will be increasing manifold. A key task will be to undertake energy balancing at 15-minute intervals at distribution system level so as to synchronise with transmission system operation under ABT regime and thereby, provide grid stability as also rules for deviation settlement. Such task will be best left to an independent Distribution System Operator (DSO) for scheduling and dispatch of generation resources entering a distribution system and enforcing imbalance settlement among market participants. The function will be distinct from SLDC operation in transmission domain.

A regulatory context to be kept in view is that system costs will be encountered in integrating renewables with the power grid. A World Resources Institute Report has observed that such costs should be socialised across the whole spectrum of consumers and pricing models should focus on the complete package of grid services rather than electricity sales alone.

Changing Marketplace

The concept of separating carriage from content in distribution is under debate and there would be constituencies not favouring such a move. It does offer two distinct advantages, viz. the last mile delivery is open to market competition and the customer has the option of choosing his supplier. Successful implementation in Indian context will be contingent upon both a supportive political economy and the extent to which data and information asymmetry can be resolved to allow for meaningful accounting and functional separation from the parent entity.

The dimension will be different when customers with their behind-the meter generation will be wanting to have a pie in the power market aided and abetted by falling solar prices with progression of time. A future scenario could well be that customers would want to trade power among themselves taking advantage of solar power generation from their rooftops as well as off-grid or community-scale distributed energy resources and peer-to-peer selling will develop as a business model. As the transformation takes place, aggregators may also arrive on the scene to help smaller customers participate in the market by bundling the generation

resources (and even demand response systems) and matching them with the loads to be served as opposed to a historical utility model. The defining elements will be on the one hand the country’s overarching focus on renewable energy generation and meeting its climate change goals and on the other, aspirations of a rising customer segment of millennials, who, according to an Accenture Survey in U.S., would be open to experiment with new products and services offered by distributed energy resources and are also more likely to sign up for solar panels.

The emerging marketplace in distribution is poised to move towards a de-centralised model driven by both distributed energy resources and behind-the meter rooftop solar generation, all of which will constitute alternative service delivery mechanisms with participants intending to sell electricity to the grid as well as transact energy among themselves. As multiple buyers and sellers will emerge, the present distribution model of bundling wires and supply functions together will be put to test, if not disrupted. A new platform should rather have the ability to match producers, including prosumers, with consumers and will be best served by service providers, aggregators and traders who will be competing with each other to build their power portfolio by procuring from multiple generation sources and offer packaged products and services to end-customers. Mainstreaming of renewable energy will be a distinct benefit when service providers are able to bundle it with conventional power in their product design. With the onerous planning and a system-based approach that will be required to enable integration of renewables with both the distribution network and power grid, positioning distribution as an asset-centric business and operating it centrally without the supply function will be a prudent measure. While the wires function under distribution can concentrate on cutting-edge technology and design practices and be rewarded under a supportive regulatory regime for investments both in the network and integration of renewable energy, including distributed energy resources, the DSO will be tasked with aggregating the load curves of individual service providers and reconciling at the system level in order to undertake energy balancing and wholesale energy settlements in sync with the transmission network. Given the complexities involved and emergence of different domains of distinctive functions, separating carriage from content under distribution will be an enabling step for mainstreaming renewable energy of the scale envisaged in the country. On the other hand,



the supply platform outside of distribution function will lead to a distinct marketplace that will allow energy to be sourced and transacted freely without network and institutional barriers while empowering customers to exercise their choice of suppliers, products and services.A basic pre-requisite will be that third party non-discriminatory access to transmission and distribution networks, as enshrined in Electricity Act, 2003, will need to be institutionalised by eliminating the tariff and non-tariff barriers.

Conclusion

The article postulates a future scenario that could change the way distribution business is conducted presently to accommodate the onset of a sizeable renewable energy portfolio. To cite the Transmission and Distribution World Magazine, “these developments will disrupt the historical utility business model just as mobile phones, Uber and Airbnb have disrupted phone, taxi and the hospitality industries by offering more convenient services at lower costs.” It adds that technological advances in energy storage, electric vehicles, micro-grids, demand aggregation and demand responses all point towards a future with a different role for incumbents in the power sector, particularly in distribution business.As in any evolving business model subject to disruptive forces, new entrants offering product substitutes will be vying for market share in electricity sales. Technology firm, Apple, has already obtained a licence from FERC to re-sell green energy as a retailer, implying that it is eyeing the customer segments in establishing its brand presence rather than selling its excess renewable energy to the wholesale market. Tesla’s ambition to emerge as a “one-stop transport, solar energy and storage shop” is an attempt to disrupt the traditional utility business by offering an integrated solution that combines electric mobility, solar self-generation and storage as a convenient and seamless package.With a learning curve of 23% established from empirical evidence, it is solar PV that will hold the maximum promise as a cost-effective solution to be used by customers on their rooftops in combination with storage solutions. A Lawrence Berkeley Report suggests that the continued decrease in solar prices is unlikely to slow down anytime soon and the price decreases for larger

utility-scale solar farms will be even more pronounced. Long term PPA prices for bulk purchase of solar electricity in U.S. are now below 5 cents / kWh in four of the five regions studied as against the average market price of 3-4 cents / kWh of electricity from conventional power generation.

Literally, the sun will rise in electricity distribution with structural, functional and technological changes in the offing.

References

1. KPMG Publication The Rising Sun, November 2015

2. Ministry of New and Renewable Energy Draft National Policy on RE based Mini/Micro Grids,

June 2016

3. T&D World Magazine Integrating Solar and Storage with the Grid, July

2016

4. San Diego Gas & Electric Case Study A Utility-Owned Microgrid, October 2015

5. T&D World Magazine Evolution to a Flexible Grid, April 2016

6. World Resources Institute The Future Electricity Grid, 2016

7. T&D World Magazine Millennials’ to Drive Future Value for Energy Utilities,

July 2016

8. The Energy Times Utilities in a Prosumer World, July 2016

9. Lawrence Berkeley National Laboratory Report The Price of Solar is Declining to Unprecedented

Lows, August 2016



• PrestigiousProjectsundertaken: - Presidential Estate - AIIMS - Safdarjung Hospital - IGESIC (Rohini) - Dr. Ram Manohar Lohia Hospital - ESIC Hospital (Jhilmil) - National Archives

• MoUwithBureauofEnergyEfficiency & EESL

• ConductingInvestmentGradeEnergy Audits & preparing DPRs

• ImplementingEnergyEfficiencysolutions through ESCO model

PTC India Limited2ndFloor,NBCCTower,15BhikajiCamaPlace,NewDelhi-110066

EnergyEfficiencyservicesPTC has been continuously making strides in the direction of Energy Efficiency Management. PTC's engagement with Bureau of Energy Efficiency (BEE) under Ministry of Power has been extended for a further period of 5 years to undertake Energy efficiency projects and also to seize emerging opportunities such as perform, achieve, and trade (PAT).

Daily Prices - Power Exchange India Limited (PXIL)Daily Prices - Indian Energy Exchange (IEX)

Bilateral Trade And Power Exchange Market

POWER TRADING MARKET SIZE

Year

Electricity Transacted

through Traders (BU)

Price of Electricity Transacted

through Traders (Rs/kWh)

Size of bilateral

Trader Market (Rs Crore)

Electricity Transacted

through Power

Exchanges (BU)

Price of Electricity

Transacted through Power

Exchanges (Rs/kWh)

Size of Power Exchange Market

(Rs Crore)

Total Size of the bilateral trader + Power Exchange

Market (Rs Crore)

2009-10 26.72 5.26 14055 7.19 4.96 3563 17617

2010-11 27.70 4.79 13268 15.52 3.47 5389 18657

2011-12 35.84 4.18 14979 15.54 3.57 5553 20532

2012-13 36.12 4.33 15624 23.54 3.67 8648 24272

2013-14 35.11 4.29 15061 30.67 2.90 8891 23952

2014-15 34.56 4.28 14801 29.40 3.50 10288 25089

2015-16 35.43 4.11 14557 35.01 2.72 95.39 24096

MARKET WATCH

Ownership/ Sector

Modewise Breakup

Thermal

Coal Gas Diesel TotalNu-

clearHydro

RES(MNRE)

GrandTotal

State 64181 7211 364 71755 0 28362 1975 102093

Private 72362 10581 555 83498 0 3120 43942 130559

Central 51260 7491 58751 5780 11651 0 76182

Total 187803 25282 919 214004 5780 43133 45917 308834

All India Installed Capacity as on 30th November, 2016 (in MW)

Installed Capacity (Nov 2016)Renewable Grid Connected Installed

Capacity (Nov 2016)


PTC India Limited

Source:CERC Market Monitoring Report • Indian Energy Exchange • Power Exchange India Ltd. • CEA

POWER SUPPLY POSITIONState Wise Power Supply Situation (Apr to Oct 2016)

Region State/UT Energy Req. MUs

Energy Avail-ability, MUs

Surplus/ Deficit (-)%

Peak Demand MWs

Peak Met, MWs

Surplus/ Deficit (-)%

Northern Chandigarh 1,135 1,135 0.0% 361 361 0.0%

delhi 21,666 21,639 -0.1% 6,342 6,261 -1.3%

haryana 32,179 32,179 0.0% 9,262 9,262 0.0%

himachal Pradesh 5,142 5,113 -0.6% 1,342 1,342 0.0%

jammu & kashmir 9,737 7,929 -18.6% 2,480 2,102 -15.2%

Punjab 37,557 37,557 0.0% 11,408 11,408 0.0%

Rajasthan 38,538 38,351 -0.5% 9,906 9,906 0.0%

uttar Pradesh 65,677 64,217 -2.2% 17,183 15,501 -9.8%

uttarakhand 7,943 7,899 -0.6% 2,020 1,972 -2.4%

Western Chhattisgarh 14,724 14,671 -0.4% 3,875 3,851 -0.6%

gujarat 62,059 62,059 0.0% 14,724 14,708 -0.1%

Madhya Pradesh 35,799 35,798 0.0% 8,832 8,832 0.0%

Maharashtra 80,875 80,838 0.0% 20,499 20,462 -0.2%

daman & diu 1,434 1,434 0.0% 327 327 0.0%

dnh 3,620 3,620 0.0% 784 784 0.0%

goa 2,857 2,855 -0.1% 497 496 -0.2%

Southern andhra Pradesh 31,471 31,435 -0.1% 7,969 7,965 -0.1%

Telangana 29,538 29,532 0.0% 8,284 8,284 0.0%

karnataka 37,114 36,828 -0.8% 9,980 9,567 -4.1%

kerala 14,107 14,084 -0.2% 4,132 3,996 -3.3%

Tamil nadu 63,324 63,313 0.0% 14,823 14,823 0.0%

Puducherry 1,545 1,544 -0.1% 371 368 -0.8%

lakshadweep 28 28 0.0% 8 8 0.0%

Eastern Region Bihar 16,025 15,766 -1.6% 3,843 3,638 -5.3%

dvC 10,829 10,775 -0.5% 2,686 2,686 0.0%

jharkhand 4,673 4,662 -0.2% 1,498 1,498 0.0%

odisha 16,243 16,241 0.0% 4,012 4,012 0.0%

west Bengal 30,916 30,813 -0.3% 7,881 7,881 0.0%

sikkim 270 270 0.0% 153 112 -26.8%

andaman- nicobar 140 105 -25.0% 40 32 -20.0%

North- Eastern Region arunachal Pradesh 407 397 -2.5% 148 140 -5.4%

assam 5,730 5,481 -4.3% 1,673 1,633 -2.4%

Manipur 418 399 -4.5% 152 151 -0.7%

Meghalaya 970 970 0.0% 311 311 0.0%

Mizoram 278 270 -2.9% 95 95 0.0%

nagaland 438 429 -2.1% 130 130 0.0%

Tripura 861 845 -1.9% 284 284 0.0%

All India 686,099 681,346 -0.7% 159,542 156,934 -1.6%



Since 2000, USAID’s South Asia Regional Initiative/Energy (SARI/E) program is focused on advocating energy cooperation in South Asia, and with an intent to address this immediate need of capacity building of Nepal, USAID SARI/EI has assigned the United States Energy Association (USEA) with the task of implementing a program focused on capacity building for the Nepal.

With this objective, USEA and PTC had collaborated and conducted Training Activities for participants from Nepal, Bhutan, Afghanistan & Bangladesh. The Activities were designed to be conducted in 3 modules of a week’s duration each, covering topics ranging from the regulatory and policy environment and evolution to the specific topics related to the power trading activities in India, along with giving the participants first-hand exposure of the power trading activities. While first two modules were class room based program and third one was on the job training based module.

Module 1 of first Program was conducted from the 14th to 18th September 2015, Module 2 was conducted from 30th November to 4th December 2015 and Module 3 was

ended in January 2016. After successful completion of these activities and in view of requests from the Participants’ countries, USEA and PTC again agreed to conduct the same program for another group of participants from Nepal, Bangladesh, Bhutan and Sri Lanka.

After successful completion of first 2 modules, the Module 3 of the Program was conducted by PTC at its corporate office . The training activity was planned with the idea of giving the participants a hands-on exposure to the various day-to-day activities through Role Playing Sessions, carried out in a typical Power Trading organization. The participants were the same members from Nepal, Bangladesh, Bhutan and Sri Lanka who had attended the previous two modules. The effectiveness of the Module was sole consideration while designing the training plan for the Module-3. For this purpose, each day of the Module-3 was designed in a manner that the Participants were to attend sessions highlighting the daily activities conducted at PTC, thereafter Participants were to be given opportunity

to hands-on experience the state of the art Control Room in PTC and as well as undergo Role Play Sessions. It was envisaged that the Participants would be able to relate to the learning from the previous two modules and better understand their applications in an actual trading environment.

Further, the Participants were also taken to the India Energy Exchange at New Delhi, the largest Power Trading Exchange in India during one of the days in the Module-3. This was especially planned to give them an experience of how the large scale activities of managing an Electronic Power Exchange is carried out in India.

CAPACITY BUILDING PROGRAMME FOR DESIGNING, MANAGING AND OPERATING A POWER TRADING ENTITY IN NEPAL


PTC as the leading electricity Trader is pleased to express its sincerest congratulations on success of the

DEEP e-Bidding portal for purchase of power under Short Term contracts. So far a good number of tenders have been finalized over the new DEEP e-bidding portal and the transparent & efficient price discovery mechanism is highly appreciable.

Ministry of Power, Government of India vide extraordinary Gazette notification (guide lines) dated 30th March, 2016 have introduced a system of ‘Reverse Auction’ through the National e-bidding portal for procurement of power for short term (i.e. for a period less than or equal to one year) by Distribution Licensees.

The national e-bidding portal for procurement of power by Distribution Licensees has been developed by MSTC Limited and has been launched on 1st April 2016. All future short term procurement of power by Distribution Licensees needs to be done from 4th April, 2016 onwards through this portal only.

The guidelines issued by MoP are meant to promote competitive procurement of electricity by Discoms, making the procurement process transparent and reduce overall

cost of power purchase through the process of e-tendering and reverse auction. The Guidelines are applicable for purchase of power for a period ranging from more than one day to one year. The procurement of power by Distribution Licensee or its Authorized Representative (AR) shall be done through e-bidding portal followed by Reverse Auction. The Salient features of guidelines are as follows:

1. Introduction of e-bidding and Reverse Auction (RA)

a. All future power procurement on short term by Distribution Licensee shall be executed through e-bidding process followed by Reverse Auction.

b. MSTC has been appointed as the agency to develop the portal.

c. The link of e-bidding portal is www.mstcecommerce.com. The user needs to do registration on the portal. Each login will have a Digital Signature Certificate (DSC) linked to it.

d. Bidder to pay onetime non-refundable registration fee of Rs. 20,000/-

e. Bidder to participate in events by making payment of Rs. 500 per MW (requisite fee) for the capacity to

bidding Process on DeeP Portal


bid. The requisite fee plus applicable taxes shall be deposited through the portal by e-Payment Gateway provided by MSTC ltd.

f. After completion of process, only successful bidder to pay these charges for the quantum allocated to them and balance would be refunded. The amount would be refunded to the unsuccessful bidders also.

2. Tariff Structure

a. Procurer to invite bids based on their requirement, subject to minimum quantity. Bidder to offer constant quantum throughout the contract period.

b. Flexibility to be given the bidder to bid for a part of the tendered quantity

c. Bidder to quote single tariff upto 3 decimal point at the delivery point.

d. Delivery point shall be State / Regional Periphery of Procurer (Interstate) and shall be interconnection point of seller with STU (intrastate)

e. If power is supplied from alternate source, additional charges & losses shall be to the account of bidders.

3. Salient Features of Bidding Process

a. EMD (Bank Guarantee): Bidder to submit EMD, in the form of Bank Guarantee, @ Rs. 30,000/MW/month on RTC basis (30 days , 24 hours). The same shall be reduced on pro-rata basis in case bids invited on hourly basis

b. CPG (Contract Performance Guarantee): CPG to be submitted by successful bidder @ Rs. 2 lakh/MW/month (30 days, 24 hours). The same shall be reduced on pro-rata basis in case of LOI on hourly basis

c. Force Majeure Clause standardized

d. Change in Law also standardized

e. Billing Cycle to be on weekly basis or at the end of contract period

f. Compensation Clause is 85% @ 20% of tariff, applicable on either party

g. Payment Security Mechanism: PSM for an amount equivalent to 100% of weekly energy corresponding to contracted quantity may be provided by Buyer. LC to be provided before commencement of supply of power

DEEP e-bidding Portal Objectives

Common • To provide a platform for simultaneous bidding processes for various Distribution Licensees

and Bidders.

Platform

Uniformity

• To bring in uniformity in the process of Power Procurement across various DISCOMs in the country.

Competition

• To provide a common platform with e-Reverse Auction facility for conducting competitive bidding for procurement of power resulting overall reduction in cost of procurement, manpower and time to benefit the consumers.

n

Information Sharing

• To disseminate information to a wider audience comprising of Procurers, Bidders including the stakeholders in power sector and direct and indirect consumers.

Sharing

Transparency &

Efficienc

• To enhance transparency and efficiency in the power procurement process across the country.

Efficiency

Bidding Process on DEEP Portal

The Distribution Provisions made for e-Tendering and e-

Through e-tendering process, Initial Price

Offers (IPOs) are discovered Afterlicensees would notify

their requirements during the specified

period.

Tendering and e-Reverse Auction

process & the 1st stage of bidding is

conducted

discovered. After checking the eligibility criteria and norm of

elimination, the list of Bidders qualified for next

stage i e e Reversestage i.e. e-Reverse Auction is prepared.

The Bidders reduce their tariff in Rs./kWh in the e-

Reverse Auction stage which has the provisionAt the end of that period,

Utility have the right to reject the discovered

price if the same is not aligned to market which has the provision

to increase the quantum but reduce the tariff by

the Bidders in successive entry, continued and completed in 2 hours

the L1 Bidder is determined and the final list of bidders is prepared

aligned to market conditions. Further,

‘Bucket Filing’ approach may be adopted for

meeting the required quantum completed in 2 hoursquantum


4. Bid Submission and evaluation

a. An event shall comprise of two parts i.e. e-bidding and reverse auction. An event can have multiple requisitions. Bidder can participate in any of the available multiple requisitions.

b. A bidder can submit only one bid against each requisition. Each event of the auction would require independent Digital Signature of the Bidder.

c. Further, bidder has option to submit multiple bids against each requisition only with separate login(s) which requires separate DSC. The multiple bids can be from same sources of different sources.

d. Bidders shall be required to submit separate non financial and Financial Bids i.e. Initial Price Order (IPO).

e. Bidder to inform the minimum threshold quantum which bidder is willing to supply to the Procurer which would be considered for allocation of power.

f. After opening of Price Bid, if total quantity is greater than twice the requisitioned quantity, the highest bidder will be eliminated provided total quoted quantity after elimination is not less than or equal to twice the requisitioned quantity.

g. In case two or more bidders quote same tariff during RA, the time of submission of bid will be deciding factor for their ranking

h. RA to start within 120 mins of opening of Price Bid and shall continue for next 120 mins. Without any auto extension.

i. Bidder can reduce the tariff by a minimum of 1 paise/kWh from its IPO.

j. Bidder can increase the quantum by 1 MW, subject to its Bank Guarantee limits but has to decrease the tariff (IPO).

k. After RA is over, the bidder would be issued LOI based on their ranking of RA, up to their requisitioned quantum.

l. In case selected bidder is allocated quantity less than its minimum threshold quantity, bidder shall have option to exit without forfeiting the EMD.

5. Deviation from Guidelines

a. Procurer has option to take deviation from these guidelines with prior approval of Appropriate Electricity Regulatory Commission.

6. General

The entire process from publication of RFP up to signing of PPA should be completed within 10 days.

Challenges being faced during Reverse Auction

1. Multiple login ids and password - It is understood that as per present guidelines, for submission of a bid from a single generation source a login id and password

is required. Hence in case of Trader, multiple ids and passwords needs to be created for submission of multiple bids which is a very cumbersome process.

2. Auto Time Extension – As per present guidelines, no auto time extension is allowed in Reverse Auction. In case a bidder changes its price at last moment the entire quantum will be allotted to that bidder without giving any opportunity to other bidders to lower their rates.

3. Quantum not disclosed - During the RA process, only the L1 rate is disclosed and quantum offered by other bidders is not known to the bidders which compels other bidders to lower the RA rate.

4. Provision of Late Payment surcharge and Right to Regulate – LPS is not included in present guidelines as the provision of PSM is there. However, it is seen that Buyers/Distribution Companies do not provide payment security Mechanism even though the same is a part of tender guidelines. Thus, it is necessary to have other provisions like “Right to Regulate” in case of payment delay/defaults by the buyers.

5. With our understanding so far of the e-bidding portal, not only it has helped to check the short term power purchase prices by bringing in fair competition, but most importantly it has also encouraged participation of serious market players in most fair & transparent manner. The standardized and rational approach adopted in the e-bidding process, especially few terms like the EMD, CPG, definite time-line, RA, etc. have made the process fair & square for all market players.

6. After the success of the DEEP e-bidding portal in short term power procurement process, PTC keenly look forward its implementation in conducting Energy Banking tenders too. The Energy Banking product forms a significant share of Short Term power market and almost every Utility resorts to energy banking as their power management solution. Presently, the energy banking market is least regularized and many Utilities/Traders are finalizing banking contracts through negotiation route which jeopardizes & questions the basic transparency of the procedure followed for finalizing a banking contract.

7. With the introduction of the DEEP e-bidding portal in energy banking, the process of finalizing energy banking will be streamlined and made transparent. Further, from the market experience we would like to bring to your kind attention that since banking involves a substantial exchange of energy between two utilities it is very important that a financial security mechanism in form of EMD & CPG (linked with the offered quantum of exchange) should be attached with it, mitigating the risk of default in contractual return of energy.

road to Distribution reforms

Harish SaranExecutive Director (Marketing),PTC India Ltd.


Indian power demand is currently at 1068 BUs and is expected to increase at the rate

of 10+% given the increase in latent demand, 24x7 electrification drive by government and replacement of 60-80 GW of diesel capacity. Power deficit is expected to be as high as 10% in peak situation by 2020. However, in spite of high latent demand and a growing economy, the development of sector has been uneven and hampered by regulatory, structural and operational bottlenecks. Private sector investment across the value chain has been slow since 2010-11.

With 200-300 million electrified households, average quality of power supply, poor sector financial performance, we have a significant task at hand. To achieve this turnaround, India has set an ambitious 24x7 affordable, environment friendly Power for All objective for itself by 2019. This would primarily involve:

1. Ensuring access: Electrifying 18,452 un-electrified villages as of 1st April 2015 (~40% electrified in the last year); not only villages, but having connections for every household where demanded

2. Reviving the ailing Distribution sector : ensuring financial and operational viability of Discoms through AT&C loss reduction, debt restructuring and customer orientation

3. Making Power affordable: Ensure affordable yet cost-reflective tariffs through interventions to improve distribution sector operational and financial performance

4. Sustaining renewable energy scale-up: India has done well to set up 45-50 GW of renewable capacity (4-5 GW in 2016 itself), but ensuring the momentum holds at higher level of renewables penetration (175 GW by 2022) will need thought-through interventions, especially in T&D infrastructure

However, unallocated risks along the value chain have hampered development of the power sector. India is one of the least energy secure countries (import dependence of around 30% - 35% currently), and is likely to worsen.

Energy deficit is expected to go up to 10-12% by 2020. Over the last 5 years, new thermal investments are at record low, with developers and investors unwilling to support projects without long term Power Purchase Agreements and Fuel Supply Agreements, thus limiting the expected capacity addition in the next 5 years. Significant gas (15-20


GW) and coal based (~30 GW) capacities are stranded, in cases due to lack of fuel, but more importantly, due to low discom willingness to buy expensive power, or to lock in long- term (20-25 year) PPAs. Hydro generation is marred by project delays, whereas nuclear still is at policy stage.

Moreover, many States still face network curtailments issues given 6-7% rate of growth in transmission vs 10+% in demand. Further, our transmission system requires improvement in absorbing intermittent power, given the push in renewables. This would need investments in ancillary services, demand/ supply response, and creation of reserve margins.

Continued poor discom performance due to high cross subsidisation, high AT&C losses of ~25%, inability to raise tariffs leading to significant ACR-ACS gap and bludgeoning losses, is one of the most critical challenges India faces. Business as usual, distribution companies are unlikely to be able to absorb long term power purchases and/ or renewables power beyond an inflection point. This is further compounded by their limited ability to invest in network upgrades due to poor financial health.

Today, financially distressed discoms are unlikely to commit to PPAs for 25 years resulting in risk-reward mismatch for generation companies. It is expected not more than 1/3rd of the 200 GW of thermal capacity announced likely to materialise by 2020 given lack of commercial contracts. Further, only ~5% of the power is sold through exchange, which is low by international standards. Most of this power

is being provided by distressed assets looking to remain afloat, and is not a good reflection of a viable market clearing price.

Nonetheless, the industry is vying to implement measures that may help to bring change rapidly, driven by formal reforms and government commitment including 24*7 power for all, UDAY, focus to reduce import dependence and cutting carbon footprint by 30-35%. Parallelly, this is challenged by expected demand growth due to rural electrification, focus on Make In India, smart cities, and expected economic growth.

Given the forces changing the Indian power sector, there is push from stakeholders and private sector to drive significant changes. Implementation of UDAY will lead investments into grid strengthening, AT&C loss reduction, improvement in open access conditions, systems and processes to drive cost reflective as well as a transparent tariff policy.

Current Union Government had launched many schemes to push reform into the power sector viz. IPDS, DDUGJY and UDAY. Integrated Power Development Scheme (IPDS) is a new avatar of R-APDRP scheme in which funds are provided for reduction of AT&C losses, upgradation of infrastructure, IT based billing and auditing system and collection efficiency. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) focuses on feeder separation for rural households and agricultural purpose to enable correct metering & billing, and to avoid theft. Ujwal Discom


Assurance Yojana (UDAY) is a debt restructuring plan for DISCOMs, with an accompanied focus on improving the operational and technical efficiency of the DISCOMs.

There is also focus on capex mobilization and improving private sector participation, to be further supported by right regulatory framework (with risk adjusted returns) and creation of financial instruments (by the banking sector). There is also plan to adopt technology especially for renewable integration, i.e. investment in creating reserve margin capacity, ancillary services and energy storage to enable absorption of intermittent power; push on smart metering, grids and over time connected homes to reduce AT&C losses (to sub 15%), as well as drive energy efficiency. Further, carriage-content separation and open access, strengthening grid security and safety by prioritizing grid efficiency, spinning reserve requirements and enforcement of penalties for non-compliance with load dispatch directives, and promoting renewables through institutionalizing RGOs for thermal-power generation entities; many of these elements will need to be fast tracked to ensure power sector in India is supporting & driving the growth story of India.

With content-carriage separation and open access mandates, India took the first step towards reinforcing its commitment to protecting customer interests and increasing customer choice. However, poor implementation of the policy has resulted in customers mostly having to settle for near to no competition in choosing their power supply. Multiple licenses with content-carriage separation would also create potential for various downstream opportunities.

Power portfolio management needs integrating accurate demand forecasts, optimal power procurement and generation planning. This will reduce cost of supply, optimize revenue through surplus trades, and manage demand through demand-side management measures. Private distribution companies have accuracy of ~95% (MAPE < 5%) in forecasting electricity demand. Many financially stressed utilities are still grappling at 80-85% demand forecast accuracy (MAPE > 15%). Stressed utilities don’t meet forecast demand over short-term horizons, and are thereby prone to imprudent power purchases and imbalanced systems. Utilities need technology-enabled bottom up demand forecast accounting for historical consumption, seasonality, weather and festivities. Based on the right demand and supply assessment, discoms can identify the right mix of long term, medium term and short term power sourcing strategy to optimise power sourcing costs, improving their financial performance significantly.

The average country-wide plant load factor (PLF) is less than 70% and peak power deficit is 9%. Approximately 30GW of generating capacity is under construction and 30GW of coal based capacity is stranded. Considering growing power demand, this deficit may rise further by 4-5% by 2022. Financially distressed states need to plan supply side not only with an objective to meet state demands in future, but also to maximize revenues based on location dependency.

Consumer driven demand side management initiatives and consumer engagement enables utility in efficient portfolio management. DSM measures in energy efficiency across segments (industrial, commercial, municipal, agriculture, residential) could


With content-carriage separation

and open access mandates, India

took the first step towards reinforcing its commitment to

protecting customer interests and

increasing customer choice.

There is also focus on capex mobilization and

improving private sector participation, to be

further supported by right regulatory framework

(with risk adjusted returns) and creation of financial

instruments (by the banking sector).

potentially save 113 BUs annually (equivalent to ~39,000 Cr. based on prevalent prices).

Aggregate Technical & Commercial (AT&C) and ARR-ACS losses are plaguing Indian DISCOMS. These losses include a range of things – theft, outstanding bills, tampered meters, and technical line losses. Several states in India run huge AT&C losses. Achieving 100% metering across all transformers, feeders, and consumers will achieve reduction in commercial losses, including use of smart meters whenever costs are justified. Segregation of overloaded feeders, extension of LT mains and reorientation of LT lines, augmenting conductors, and converting overhead feeders to cables in theft prone areas are measures being used by better performing distribution utilities. LT lines are loss-prone, marked by voltage drops and poor quality supply. Improvement in HT:LT ratio in Indian context is possible by converting the LT into HT systems. High Voltage Distribution System (HVDS) has been able to allow an Indian private DISCOM reduce its technical losses, realize benefits over investments, and achieve payback within 4 years. To overcome commercial losses the element of enforcing consumer discipline is absolutely critical, and the same could be successfully implemented by encouraging consumer participation itself. Initiative like Jyotigram Yojana allowed Gujarat to achieve lowest non-technical losses by focusing on making consumers aware how quality power supply would transform their economy and improve their lives.

Post the relative failure of the 2012 FRP, DISCOMs have continued to borrow from public sector banks (PSBs) and other financers like Rural Electrification Corporation (REC) & Power Finance Corporation (PFC). By March 2015, the DISCOMs had an outstanding debt of Rs 4.3 lakh crores, accumulated losses of Rs 3.8 lakh crores, and they added Rs 60,000 crores of fresh losses last financial year. UDAY recommends a specific road map for debt restructuring and there are hard budget constraints imposed for participating in the programme. The critical element of success for UDAY lies in making sure that the tracking of the programme is done robustly and the incentives are linked to the performance e.g. penalties/rewards to SEBs for under performance/optimum performance as per targets, MoPs notice of caution to the banks against loss funding.

There has been renewed focus on RPO enforcement, especially with the government’s focus on increasing renewables generation and integration into power supply. Several issues plaguing the Indian power sector needs implementation at the state level. To highlight a few, the most pressing issues include (a) Load Balancing in states with unscheduled injection from renewable capacities, (b) Spinning Reserves (open cycle technology will be able to ramp up generation up to 10GW in no time for balancing any sudden decrease in RE generation. Suitable market designs are required to handle reserves for power balancing), (c) Extending Off-Grid Renewable Technologies


(there are a number of villages that are too remote to ever realistically be grid-connected. Off-grid technologies have the potential to impact social inclusion), (d) Solar Rooftops (solar rooftops commercially provide excellent value to select consumer categories. DISCOM supported awareness campaign allowing consumers to meet their base loads through solar rooftops during day peak could reduce peak power purchases of distribution companies), (e) RECs (at present, the market structure around RECs does not envisage the possibility of increasing channel for sales or reducing floor prices to increase sales. There lies an unsold REC inventory of around 20 Million trading at floor prices with no buyers. Change in market structure of RECs supported by strict RPO enforcement will help in reviving the financial product, and (f) Tariff (the variance of tariff policies across the various DISCOMs intensifies the complexity; distribution generates the cash flows to fund the full power sector value chain, and implementing cost-reflective tariffs would be imperative to ensure viability of the distribution sector).

As peak-base demand gap in India rises, there is a strong need to add infrastructural capacity in renewables to meet short and medium term load balancing to tackle peak power deficit. Concomitantly, a policy-level push on clean energy adoption is leading to a fast changing mix in power generation. India played a key role in clinching climate change deal between 195 countries at COP21 in Paris. India has also set record targets in the Intended Nationally Determined Contributions (INDC) by 2030. Share of renewable in the overall power mix is expected to increase from 7-8% currently to ~18.5% by 2022. At the policy level, a target of 175 GW of renewable generation capacity by 2022 is likely to be the major driving factor. Re-Invest 2015 saw combined public and private sector financing commitments of 266 GW of renewable power capacity and 41 GW of renewables manufacturing. At the International stage, India led an alliance of 121 tropical countries (Vasudhaiva Kutumbakam) with maximum potential to harness solar energy by mobilizing $1 trillion for investment by 2030.

India is committed to environment friendly power. Launching of multiple solar projects & parks, disbursement of LEDs through the UJALA scheme are some examples. On the policy front, India has enforced an 8x increase in the Clean Environment cess, Renewable General Obligations on new thermal and lignite plants, commitment to enhancing in Solar Renewable Power Obligation to 8% by March 2022, development of National Offshore Wind Energy policy, and water management through Lalyukt Bharat Program as additional initiatives to drive greater contribution of renewables. In order to realize the ambitious targets on increasing the contribution of renewables, the Green Energy corridor project was launched for evacuation of Renewable Energy through robust inter-state and intra-state network with an envisioned estimate of ~$6.6 billion.

However, intermittency is a core problem in renewables. There is a strong need to develop reserve margin infrastructure and expand ancillary services for load balancing & enabling large scale renewables penetration. Storage capabilities can play a vital role in enhancing the potential of renewables to support India’s power problems. Challenges on grid evacuation and integration, land availability, and lower rooftop solar penetration by lack of clear regulations (e.g. net metering) could lead to an installed renewable capacity significantly below government’s ambitious targets. Hydro continues to remain an untapped source, driven by problems in project clearance and execution, and further compounded by limited offtake of peaking power policy/ tariffs. India continues to be heavily dependent on international manufacturers (significant share of modules and 100% of polysilicon for solar is imported) for equipment necessary to harness its solar potential. A strategic decision framework on tech-based capabilities is needed to address India’s import dependency and inefficiency.

Strategic areas identified for reviving distribution sector and sustaining RE development is what the current government should focus on for demonstrating its commitment to revival of the power sector. Downstream reform of power value chain will only help us find light at the end of tunnel.



Objectives• To rescue financially

distressed State electricity utilities (States to take over 75% of DISCOM

debt as on 30th Sep 2015 over two years – 50% in 2015-16 and 25% in 2016-17

• To align consumer tariff with cost of generating electricity (Reduction in gap

between Average cost of supply (ACS) and Average Realised Revenue (ARR) to Zero

by 2018-19)

• To reduce AT&C losses (Reduction in AT&C loss to 15% in

2018-19)

Efforts to reduce cost of generation:GoI initiatives:

• Increased supply of domestic coal

• Coal linkage/price rationalisation, Coal swaps

• Correction in coal grade slippage

• Coal India to supply 100% washed coal by

1st Oct 2018

• Creation of adequate transmission facility by 31st Mar 2019

• Allocation of coal to States on notified price, based on the same states may go for

tariff based bidding

Efforts to reduce cost of generation:

States Initiatives• Prospective power purchase

through transparent competitive bidding by DISCOMs

• Improving efficiency of state generating units

Ujwal Discom assUrance Yojana (UDaY)



Status

• Total 18 States/UTs have consented to join UDAY Scheme: Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, J&K, Jharkhand, Karnataka, Punjab, Rajasthan, Uttarakhand, Uttar Pradesh, Manipur, Madhya Pradesh, Puducherry, Maharashtra and Himachal Pradesh

• Total Bonds issued: Rs 182,203.67 Cr (11 States). AT&C Losses 30.15%. ACS-ARR Gap - 0.77 Rs/unit

• Feeder metering (Urban) – 99%, Feeder metering (Rural) – 96%, DT metering (Urban) – 51%, DT metering (Rural) – 42%, Electricity Access to Un-connected Households – 72%, Smart Metering above 500 kWH – 2%, Smart Metering above 200 and upto 500 kWH – 0%, Feeder Segregation – 65%, Rural Feeder Audit – 79%, Distribution of LEDs Under UJALA – 100%

Operational efficiency improvement targets:

Activity Targeted Benefit Expected Date of Completion

Compulsory feeder and Distribution Transformer (DT) metering by States

Ability to track losses at the feeder and DT level for corrective action

Feeders – 30th Jun 2016 DTs – 30th Jun 2017

Consumer Indexing & GIS mapping of losses

Identification of loss making areas for corrective actions

30th Sep 2018

Upgrade or change transformer, meters etc

Reduce technical losses and minimises outages

31st Dec 2017

Smart Metering of all consumers consuming above 200 Units per month

Smart Metering of all consumers consuming above 200 Units/ month Smart Meters will be tamper proof and allow remote reading, implementation of DSM activities and consumer engagements

Consumption above 500 Units per month – Dec 2017

Others – Dec 2019

Demand Side Management and efficient industrial equipment through PAT (Perform, Achieve, Trade)

Reduce peak load and energy consumption; (LED alone has annual saving potential of Rs 40,000 Crore)

31st Mar 2019

Quarterly Tariff revision, Particularly to offset fuel price increase, to be permitted

Periodic Tariff Revision Necessary changes in tariff policy by 31st Dec 2015

Campaign to check power theft Enhance public participation Awareness Program jointly with States up to 31st Dec 2016

Assure increased power supply in areas of reduced AT & C Losses

Encourage local participation to reduce losses

31st Mar 2018

Ujwal Discom assUrance Yojana (UDaY)(Applicable for State-Owned Discoms)



India has witnessed number of transformations in past 50 years starting with the Green Revolution of 1960s

that transformed the agricultural practices in India. In 1970s and 80s, the “White Revolution - Operation Flood” included the world's biggest dairy development program which transformed India from a milk deficient nation to the largest milk producer in the world within a span of 30 years. The 1990s saw the economic reforms that opened up the Indian economy and led to the telecom and IT revolutions that have made India a leader in the knowledge economy in the 2000s. Now is a time for “Energy Revolution” to transform India’s grid from 20th century to 21st century and enable access to electricity as well as power quality as driver for economic development.

Today, India is one of the fastest growing economies in the world, with current electricity generation capacity of ~300 GW to meet the needs of over 1.25 Billion population. India's per capita annual consumption of energy at ~1000 kWh is one of the lowest in the world, even when compared to developing countries like Brazil and China. This is a decade where India needs a clean energy revolution for transforming the electricity infrastructure to provide energy access to over 300 million of households that still lack basic access to electricity.

At the same time India currently boasts a middle class population exceeding 300 Million (almost the size of USA) that is looking for the same level of energy access and power quality that is taken for granted in developed countries through movement towards Green Cities and sustainable living. Also the lack of reliable and quality power supply is a major obstacle for accelerating development of manufacturing and industrial sector in India that is required to maintain 8-10% economic growth for the world's largest democracy. Consumers bear a large burden due to poor quality and unreliable power supply. Industries maintain

diesel powered generators and households have inverters with batteries as backup for unscheduled power cuts, low voltages or variable frequency.

Advanced Energy Storage systems can play a key role in every part of the modern grid in India.

There are range of energy storage technologies covering electrochemical storage (lead acid, li-ion, flow batteries etc.), mechanical storage (pumped hydro, compressed air energy storage, flywheels etc. and thermal storage (molten salt, PCM etc.) that can be utilized for grid applications. While deciding economics of energy storage for renewable integration, a number of key factors need to be considered. These include

• Sizeofstorage(Powervsenergy)• Cyclelife&calendarlife• DepthofDischargeduringeachcycle• Round trip efficiency (including standby losses and

auxiliary load)• Charge/Dischargerate(Crate)• Space,safetyandgeographicalrequirements

Most of the electrochemical energy storage technologies can be deployed in a modular fashion in a relatively quick rollout (3-6 months, depending on site availability). With scaling up of manufacturing of various technologies these costs are also coming down quite rapidly and this trend is expected to continue in near future. Table 1 summarizes the key technologies that could be utilized for grid support, their typical sizes and performance parameters.1

Policy makers have taken some key initiatives that can drive grown of storage & microgrids:

• India is looking for rapid adoption of clean energytechnologies with 60 GW of wind capacity and 100 GW of solar capacity by 2022.

• Indiahasvariousinitiativesforprovidingenergyaccesswhere government of India provides up to 30% of the capital funding for building microgrids in rural areas with no access to electricity.

• CERC has initiated process for procurement ofancillary services and by 1st April 2017 a market based technology neutral procurement process is anticipated

Energy Storage: Enabling Smarter Grids, Renewable Integration & Energy Access

Rahul WalawalkarExecutive Director, India Energy Storage Alliance & President, Customized Energy Solutions (India)

1These are preliminary numbers and within each segment different manufacturers may have significant variations on performance and costs.



that can enable Indian consumers to get access to better power quality from grid.

• Indiahasvariousinitiativesforprovidingenergyaccesswhere government of India provides up to 30% of the capital funding for building microgrids in rural areas with no access to electricity.

• Indiahas launchedNationalElectricmobilitymissionwith a goal of 6-10 million EVs deployed in India by 2020.

• MNREandNITIAyogareworkingonnationalenergystorage mission that can provide clarity on regulatory initiatives required to encourage investment in energy storage.

These policy initiatives have resulted in tremendous opportunities for integration of energy storage technologies for variety of applications. Advanced energy storage market in India is in its infancy however it carries significant market potential. A recent market assessment by India Energy Storage Alliance (www.indiaesa.info) suggests a potential of 70 GW / 200 GWh by 2022 in India. Immediate applications range from telecom tower backups to grid ancillary services and renewable integration. The $500 Million orders during past 2 years by Indian Telecom Companies for purchasing Li-Ion batteries for telecom tower backup is a perfect example of the value proposition of the advanced storage technologies for distributed applications, and willingness of Indian businesses to adopt such technologies.

With over 37 MW of energy storage projects announced/tendered by SECI and NLC (Formerly Neyveli Lignite Corporation), the grid scale market is gearing up. These projects will come up in different parts of the country, namely Himachal Pradesh, Andhra Pradesh, Karnataka and Andaman islands. Among the contracted, there are 3 pilot projects for 0.5 MW systems for frequency regulation applications by PGCIL (Power Grid Corporation of India) in Puducherry. The PGCIL projects are likely to enter

installation and commissioning phase. This is a huge opportunity for the global energy storage community and some good news for the Indian electricity market, which is still awaiting installation of its first megawatt scale battery energy storage project.

In this respect, the Indian grid scale storage market is lagging behind countries like the US, China, South Korea and Japan. If Indian policy makers and industry leaders can get their act together, India has an opportunity to not only be a leader in deployment of these advanced technologies, but also become a global hub for manufacturing of these technologies with in next 5 years. The India Energy Storage Alliance (IESA) was launched in 2012 to promote Energy Storage and Microgrid technologies and their applications in India. IESA network has grown rapidly and currently includes 65 members. These members include a good mix of energy storage technology providers, power conversion system providers, system integrators, project developers, large users, potential investors as well as research institutions.

IESA is a new initiative, still in infancy, but with the support of all our members and strategic partners from around the world, we are confident that we can play a pivotal role in this energy revolution for India in coming decade. India has a robust manufacturing sector and many innovative entrepreneurs who are looking forward to forge partnerships with leading global technology companies. Such partnership has true potential to not only help solve the energy issues in India, but could make India a manufacturing base that can support needs of the global energy industry.

S.No. Technology Typical Size Energy Duration Cycle LifeCapital Cost $/kWh2

1 Lead Acid 1 kW – 10 MW 10 mins – 4 Hrs 300-500 $100 – $150

2 Advanced Lead Acid 100 kW – 10 MW 1 – 4 Hrs 1,000-2,000 $200 – $350

3 Li-Ion3 1 MW – 20 MW 3 kW – 10 kW

15 – 30 Mins 1 – 4 Hrs

5,000-30,000 2,000-6,000

$400 – $750 $300 – $600

4 Vanadium Redox 100 KW – 10 MW 3 – 10 Hrs 5,000 + $500 – $1,000

5 NaS 1 MW – 10 MW 4 – 8 Hrs 3,000 + $500 – $750

6 NaNiCl2 100 kW – 1 MW 2 – 6 Hrs 3,000+ $500 – $1,000

7 Compressed Air Energy Storage 10 MW – 400 MW 3 Hrs – 30 Hrs 5,000 + $150 – $300

8 Isothermal CAES 500 kW – 10 MW 2 – 6 Hrs 5,000 + $400 – $750

9 Pumped Hydro 50 MW – 2000 MW 6 – 30 Hrs 7,000 + $150 – $350

2The costs are typical costs for DC energy storage system at the module level and does not include costs of inverter and balance of the system3Includes Li-Ion Phosphate, Li-Cobalt Maganese, Li-Titanate

Table 1: Energy Storage technology comparison



Wind is an indirect form of solar energy which is created due to uneven heating of earth surface. They are

generally classified into local wind and global wind. The local winds are further classified into land and sea breeze, valley winds, mountain winds etc. The type of wind can be inferred from their name.

Wind is basically flowing air and hence it possesses kinetic energy. This kinetic energy is converted to mechanical energy with the help of wind turbines. It is then converted into electrical energy of desired quality and is fed to the grid. Kinetic Energy carried by wind is given by:

KE=1/2 MV2 {M(mass) = ρAV : for unit volume} Replacing M= ρAV

Where ρ = density of air, A = Swept Area, V = Velocity of wind

KE=1/2ρAV3

As it can be seen KE α V3, if the velocity of wind is doubled than the kinetic energy increases by 8 times and so does the power produced by the wind turbine. Thrust is generated by the wind gliding over the blades due to Bernoulli principle. Due to the special profile of the blades, the velocity of wind on the two sides differ, resulting in a pressure difference. The pressure difference creates a thrust, thus moving the rotor. Lift produced in an airplane is based on a similar concept.

Wind Turbine GeneraTor at a glance

Rakesh GuptaVice President PTC Energy Ltd.


Based on axis of rotation wind turbines are classified into two types: Horizontal axis wind turbine (HAWT) and Vertical Axis wind turbines (VAWT). HAWT are more popular than VAWT due to limitation of size and capacity. The main components of wind turbines are Tower, rotor blades Hub, Nacelle etc. The towers are of different type i.e. tubular steel tower, Tubular concrete tower, Lattice tower, three legged tower, Hybrid tower (Tubular + Lattice). The tower provides support to entire wind turbine assembly. The nacelle houses gear box and generator and other accessories. Blades are attached to the rotor through hub and they can move on their axis. The movement of blades on its own axis is referred to as pitching movement. This helps in regulating the power generated by the turbine by changing the angle of attack. The complete assembly can

rotateabout theverticalaxis for720˚. It iscalledyawingmotion. By yawing motion the rotor blade is brought into the direction facing wind.

While studying about the wind industry we come across terminology such as P 50, P 75 and P 90 and so on. P stands for the probability of exceedance, P 75 implies that chance or probability of exceeding declared CUF (Capacity Utilization Factor) is more than 75% annually. For estimating CUF, WRA (Wind Resource Assessment) is done based on the wind data captured for the respective project site. Wind data(speed, direction) is collected through anemometer installed for a particular period. The more the period for collection of wind data, more is the accuracy in estimating the CUF. Anemometer are of rotation type, pressure type, thermoelectric and phase shift Anemometer. The wind mast over which the Anemometer is installed is not as high as the hub of WTG (Wind Turbine Generator). Hence, the wind speed is interpolated from mast height to hub height. There is logarithmic dependence between the wind speed and height. Most of the Anemometer used in the wind industry on wind mast are of rotational type (cup or propeller) and are attached to a small generator. The output i.e. analog voltage of generator is converted into digital form which is processed and stored.

Power curve is another terminology which is often referred and is explained in brief here:

With respect to power curve, the wind speed is displayed on horizontal axis and power generated is on vertical axis. Power curve shows the power generation characteristics of WTG. Cut in speed is the speed when WTG starts producing power and at rated wind speed the WTG achieved the maximum rated power generation. Beyond rated speed the power produced by WTG is restricted to rated maximum capacity only, by pitching out the blades. If the wind speed goes beyond cut out speed then the machine is stopped and blades are brought to stalled condition. It is not safe to run the machine at wind speed more than cut out speed.

The speed of rotor is controlled under varying wind conditions by pitch control, stall control, active pitch control and Yaw control. In pitching, the angle of attack of blades is varied to vary the drift force exerted by wind on rotor blade and in case of yaw control, direction of rotor is varied with the direction of wind.

The problem with the selection of appropriate Generator is variable wind speed. With the variable wind speed the


rotor speed also varies, resulting in variable frequency of current produced, making the grid connectivity, a complex situation to handle. There are two types of wind turbine generators available in Indian market, namely

1. Gearless WTG

2. WTG having DFIG (Double Fed Induction Generator)

In the gearless WTG, there is no gear and rotor shaft is directly connected to generator. Hence, the blades and generator both rotate at the same speed. The AC power of varying frequency generated is converted to DC which is then converted to AC of desired frequency. As the AC-DC and DC-AC converter handle the complete power generated, the related electronics becomes heavier. The advantage is less wear and tear and less stress on machine.

Nowadays, WTG with capacity more than 2 MW generally have DFIG. This type of generator is called Double Fed because power to the grid is fed by both stator and rotor. The rotor also has winding and produces a rotating magnetic field with variable speed. The variable speed of rotating magnetic field is achieved by supplying the AC power of variable frequency. Therefore, in the rotor there are two rotating movement, one is the physical movement of rotor and the other is the movement of rotating magnetic field. The net speed of the rotating magnetic field, which is interacting with stator, is the algebraic sum of the two. Therefore, the change in the speed of rotor on account of variation in wind velocity is adjusted by varying the speed of rotating magnetic field in the rotor on either side. By

this adjustment, the net speed of rotating flux cutting the stator winding remains within limits and hence, frequency of power fed by stator to the grid is maintained within permissible limits. With varying wind speed, the rotor speed also varies, resulting in two possible conditions i.e. super synchronous (when the corresponding speed of generator rotor is more than grid frequency) or sub synchronous (when the corresponding speed of rotor generator is less than grid frequency). In case of super synchronous stage, the rotor also starts supplying the power and this generated AC power of variable frequency is converted to AC power at 50 Hz and is fed to the grid by the rotor. In case of sub synchronous, the AC power of variable frequency is fed to generator rotor. In both situations the stator of generator keeps on supplying the power to grid at desired frequency. In DFIG, electronics handle approximately 30% of total rated AC power, whereas in gearless generators, 100% of rated AC power is handled by electronics.

The DFIG machine is synchronized with grid by matching the frequency, voltage level and phase angle. First the Anemometer captures the wind speed and if the speed is equal or more than the cut-in speed, then the yawing starts and rotor blades are brought in the direction facing wind. Pitch-in of blade is carried out after setting the direction. By pitch-in movement of the blade, the wind turbine is accelerated and the frequency of AC produced is matched with the frequency of gird, then the voltage is matched and finally the phase angles are matched, thereafter WTG is synchronized with the grid.

DECEMBER 2016 | PTC INDIA LIMITED | 47PTC India Limited2ndFloor,NBCCTower,15BhikajiCamaPlace,NewDelhi-110066

PTCIndiaLimitedwasincorporatedin1999asaGovernmentofIndiainitiativebytheMinistryof Power. The major objective of PTC was to introduce power trading in India and encourage investments by facilitating market based transactions.

Withanexperienceofmorethan14years,PTCIndiahasspearheadedtheindustryintroducingproducts and services for the development of the sector.

PTChronicle, the quarterly journal from PTC India Limited, aims to draw the Indian Power Sector closer to the people by discussing answers to questions relevant to the power sector today.

We request the readers to send their valuable feedback and suggest any issue, that we may be able to address in the forthcoming editions of PTChronicle.

For suggestions and subscriptions, you may mail us at [email protected]

The Editorial Team

Dear Readers,

Thank you for the kind response. We hope we continue receiving your valuable feedback at [email protected]

APRIL 2013 | PTC INDIA LIMITED | 1

April 2013 Quarterly Journal from PTC India Limited

NOT FOR SALE

Budget2013-14

fINANCINg ReNeWABLe eNeRgY

dIStRIButIONMANAgMeNt

eLeCtRICItY PRICINg IN MARKetS

tRANSMISSIONCONStRAINtS

ReCs : WAY AheAd

NEED OF THE HOURFocus on Improving Energy Mix

MARCH 2014 | PTC INDIA LIMITED | 1NOT FOR SALE

MARCH 2014

Quarterly Journal from PTC India Limited

COMPETITION IN DISTRIBUTION(Segregation of Wire BuSineSS and Supply BuSineSS)

SUPPLY LICENSE PPA

EXCHANGE

WIRE LICENSE

AUGUST 2014 | PTC INDIA LIMITED | 1

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AUGUST 2014


Enabling ProgressOF THE INDIAN POWER SECTOR

JANUARY 2015 | PTC INDIA LIMITED | 1

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JANUARY 2015


Preparing for future

Consolidation in Power Sector

Renewable Energy

Aggregation/disaggregation of Contracts

Project Appraisal

Standard Bidding Guidelines

Electricity Act Amendment

Need for Ancillary Market

Mega size solar Projects

Coal Block Auctions

Regulatory & Policy

Environment

OCTOBER 2015 | PTC INDIA LIMITED | 1

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JUNE 2015



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