W E L C O M E

Power Grid Corporation of India Limited

AVAILABILITY BASED TARIFF: AVAILABILITY BASED TARIFF:

EAST SOUTH INTER-REGIONAL EAST SOUTH INTER-REGIONAL LINK TALCHER-KOLARLINK TALCHER-KOLAR

UNIFIED LOAD DESPATCH UNIFIED LOAD DESPATCH SCHEMESCHEME

CHINA EXPERIENCECHINA EXPERIENCE

AVAILABILITY BASED TARIFF – AVAILABILITY BASED TARIFF – AN INTRODUCTIONAN INTRODUCTION

CAPACITY AND ENERGY CHARGES -CAPACITY AND ENERGY CHARGES -DE-ALIENATEDDE-ALIENATED

CAPACITY CHARGES LINKED TO CAPACITY CHARGES LINKED TO AVAILABILITY.AVAILABILITY.

ENERGY CHARGES AS PER ENERGY CHARGES AS PER SCHEDULE.SCHEDULE.

PRICING FOR DEVIATIONS FROM PRICING FOR DEVIATIONS FROM SCHEDULE LINKED TO FREQUENCYSCHEDULE LINKED TO FREQUENCY

ADVANTAGE ABT.ADVANTAGE ABT. SIMPLE TO IMPLEMENTSIMPLE TO IMPLEMENT DOES NOT REQUIRE ANY DOES NOT REQUIRE ANY

ADDITIONAL INVESTMENTADDITIONAL INVESTMENT MAKES USE OF INDUSTRIES MAKES USE OF INDUSTRIES

PSYCHOLOGYPSYCHOLOGY EXHIBITS ALL PROPERTIES OF GAME EXHIBITS ALL PROPERTIES OF GAME

THEORY.THEORY. TANGIBLE SHIFT FROM TANGIBLE SHIFT FROM COMMAND COMMAND

AND CONTROL CULTUREAND CONTROL CULTURE TOWARDS TOWARDS CONTRACTUAL CULTURECONTRACTUAL CULTURE

ADVANTAGE ABT.ADVANTAGE ABT. MAXIMISATION OF GENERATION MAXIMISATION OF GENERATION

AVAILABILITY- MEET MORE AVAILABILITY- MEET MORE CONSUMER DEMANDCONSUMER DEMAND

ECONOMY IN OPERATION – REDUCE ECONOMY IN OPERATION – REDUCE COSTSCOSTS

RESULT :-RESULT :- IMPROVED QUALITY OF SUPPLY.IMPROVED QUALITY OF SUPPLY. HIDDEN CAPACITY HARNESSED.HIDDEN CAPACITY HARNESSED. MERIT ORDER IN GENERATION.MERIT ORDER IN GENERATION. GRID DISCIPLINE GRID DISCIPLINE

POST ABT SCENARIOPOST ABT SCENARIO DRAMATIC IMPROVEMENT IN THE DRAMATIC IMPROVEMENT IN THE

FREQUENCYFREQUENCY HYDRO GENERATION OPTIMISEDHYDRO GENERATION OPTIMISED PUMPED STORAGE UTILISED DIURNALLYPUMPED STORAGE UTILISED DIURNALLY LOAD CURVE FLATTENEDLOAD CURVE FLATTENED INCREASED BILATERAL TRADINGINCREASED BILATERAL TRADING

NEYVELI TO PONDYNEYVELI TO PONDY KERALA TO TAMILNADUKERALA TO TAMILNADU ER POWER TO WR THROUGH SRER POWER TO WR THROUGH SR

EFFICACY OF ABT MECHANISM IS EFFICACY OF ABT MECHANISM IS GLOBALLY APPLAUDED.GLOBALLY APPLAUDED.

COMPARISION

COMPARISION

COMPARISION

3D DEMAND

EXCERPTS

POST ABT SCENARIOPOST ABT SCENARIO ENHANCED ASSISTANCE TO WESTERN ENHANCED ASSISTANCE TO WESTERN

REGION ON OPPORTUNITY BASISREGION ON OPPORTUNITY BASIS ONCE ABT IS IMPLEMENTED IN EASTERN ONCE ABT IS IMPLEMENTED IN EASTERN

REGIONREGION OTHER REGIONS WOULD FURTHER AVAIL OTHER REGIONS WOULD FURTHER AVAIL

SURPLUS POWER OF EASTERN REGION.SURPLUS POWER OF EASTERN REGION. COST OF IMPORTS WOULD REDUCE.COST OF IMPORTS WOULD REDUCE. BILATERAL(FIRM) TRANSACTIONS POISED TO BILATERAL(FIRM) TRANSACTIONS POISED TO

INCREASE.INCREASE. CAPACITY UTILISATION OF GENERATING CAPACITY UTILISATION OF GENERATING

STATIONS INCLUDING CAPTIVE POWER STATIONS INCLUDING CAPTIVE POWER PLANTS WOULD INCREASE.PLANTS WOULD INCREASE.

AVAILABILITY BASED TARIFF – AVAILABILITY BASED TARIFF – CHRONOLOGYCHRONOLOGY

1980’s1980’s CONCIEVED BY SHRI BHANU BUSHAN DURING HIS CONCIEVED BY SHRI BHANU BUSHAN DURING HIS TENURE IN NTPCTENURE IN NTPC

19911991 PRESENTED BY POWERGRID AS A SOLUTION FOR PRESENTED BY POWERGRID AS A SOLUTION FOR TECHNICAL AND COMMERCIAL PROBLEMS TECHNICAL AND COMMERCIAL PROBLEMS

IN IN REGIONAL GRID OPERATION IN INDIAREGIONAL GRID OPERATION IN INDIADEVELOPMENT OF SPECIAL ENERGY DEVELOPMENT OF SPECIAL ENERGY

METERS METERS INITIATED BY INITIATED BY POWERGRID WHICH POWERGRID WHICH WAS WAS INSTRUMENTAL FOR INSTRUMENTAL FOR IMPLEMENTATION OF ABTIMPLEMENTATION OF ABT

19931993 EXAMINED AND ENDORSED BY WORLD BANK / EXAMINED AND ENDORSED BY WORLD BANK / ADB ADB APPOINTED CONSULTANTS (ECC OF USA)APPOINTED CONSULTANTS (ECC OF USA)

19941994 ACCEPTED BY GOVT.OF INDIA.. IMPLEMENTATION ACCEPTED BY GOVT.OF INDIA.. IMPLEMENTATION DELAYED DUE TO MIS-APPREHENSIONS DELAYED DUE TO MIS-APPREHENSIONS

AND AND INCONCLUSIVE DISCUSSIONINCONCLUSIVE DISCUSSION 19991999 REFFERED BY GOI TO CERC.REFFERED BY GOI TO CERC. 2000 JAN2000 JAN NOTIFIED BY CERC-DEFFERED DUE TO STIFF NOTIFIED BY CERC-DEFFERED DUE TO STIFF

OPPOSITION FROM SOME PARTIESOPPOSITION FROM SOME PARTIES 20002000 DECDEC REVISED NOTIFICATION ISSUED BY CERC-REVISED NOTIFICATION ISSUED BY CERC-

IMPLEMENTATION HELD UP DUE TO IMPLEMENTATION HELD UP DUE TO STAYS STAYS OBTAINED IN HIGH COURT BY OBTAINED IN HIGH COURT BY SOME SEB’sSOME SEB’s

AVAILABILITY BASED TARIFF – AVAILABILITY BASED TARIFF – CHRONOLOGYCHRONOLOGY

01-07-2002: IMPLEMENTED IN 01-07-2002: IMPLEMENTED IN WESTERN REGION.WESTERN REGION.

01-12-2002: IMPLEMENTED IN 01-12-2002: IMPLEMENTED IN NORTHERN REGIONNORTHERN REGION

01-01-2003: IMPLEMENTED IN 01-01-2003: IMPLEMENTED IN SOUTHERN REGIONSOUTHERN REGION

ULDC-THE EYES AND EARS OF ULDC-THE EYES AND EARS OF THE SYSTEM OPERATORTHE SYSTEM OPERATOR

ALL CONSTITUENTS GET THE ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME.SAME DATA IN REAL TIME. TRANSPARENCY.TRANSPARENCY. SYNERGY IN OPERATION.SYNERGY IN OPERATION. NO “PASSING THE BUCK” APPROACH.NO “PASSING THE BUCK” APPROACH.

QUANTUM LEAP IN VISIBILITY TO QUANTUM LEAP IN VISIBILITY TO OPERATOR.OPERATOR. INCREASED CONFIDENCE.INCREASED CONFIDENCE. FOCUS ON SECURITY AND ECONOMY.FOCUS ON SECURITY AND ECONOMY.

SOME ULDCPICTURES

ULDC-THE EYES AND EARS OF ULDC-THE EYES AND EARS OF THE SYSTEM OPERATORTHE SYSTEM OPERATOR

PREMPTIVE, DYNAMIC “EARLY PREMPTIVE, DYNAMIC “EARLY WARNING” SYSTEMS.WARNING” SYSTEMS. LOAD ANGLE.LOAD ANGLE. ALARMSALARMS CONTINGENCY ANALYSISCONTINGENCY ANALYSIS

GRID LESS VULNERABLE TO GRID LESS VULNERABLE TO DISTURBANCES.DISTURBANCES.

ANALYSIS OF GRID INCIDENTS – ANALYSIS OF GRID INCIDENTS – ACCURATE AND EASIERACCURATE AND EASIER

RESTORATION AFTER PERTURBATION RESTORATION AFTER PERTURBATION BECOMES MUCH FASTER.BECOMES MUCH FASTER.

ULDCULDC LOAD FORECASTING.LOAD FORECASTING. HYDRO SCHEDULING.HYDRO SCHEDULING. HYDRO THERMAL CO-ORDINATION.HYDRO THERMAL CO-ORDINATION. UNIT COMMITMENT.UNIT COMMITMENT. LOAD MANAGEMENT.LOAD MANAGEMENT.

POST ULDC SCENARIOPOST ULDC SCENARIO FREQUENCY OF WR & ER FREQUENCY OF WR & ER

AVAILABLE TO OPERATOR IN SR TO AVAILABLE TO OPERATOR IN SR TO DECIDEDECIDE

WHENWHEN HOWHOW WHERE FROM/TO EXCHANGE POWER WHERE FROM/TO EXCHANGE POWER

OPERATORS OF ALL REGIONS CAN OPERATORS OF ALL REGIONS CAN ACT IN CONJUNCTION TO GET THE ACT IN CONJUNCTION TO GET THE BEST FOR THE COUNTRY AS A BEST FOR THE COUNTRY AS A WHOLE.WHOLE.

POST KOLAR HVDC POST KOLAR HVDC SCENARIOSCENARIO

SUBSTANTIAL IMPROVEMENT IN THE SUBSTANTIAL IMPROVEMENT IN THE VOLTAGE PROFILE FOR THE REGION.VOLTAGE PROFILE FOR THE REGION.

TRUNK LINE LOADINGS EASED – INCREASED TRUNK LINE LOADINGS EASED – INCREASED TRANSFER MARGIN.TRANSFER MARGIN.

IMPORT FROM ER AROUND 800 MWIMPORT FROM ER AROUND 800 MW MORE DEMAND CAN BE MET.MORE DEMAND CAN BE MET. DEPLETED HYDRO RESERVES CAN BE CONSERVED.DEPLETED HYDRO RESERVES CAN BE CONSERVED. AVERAGE COST OF POWER IS BROUGHT DOWNAVERAGE COST OF POWER IS BROUGHT DOWN ABOUT 250 MU WORTH RS 40 Cr. IMPORTED FROM ABOUT 250 MU WORTH RS 40 Cr. IMPORTED FROM

ER IN DEC02ER IN DEC02 INCREASED TRANSACTIONSINCREASED TRANSACTIONS

POWER IS BEING WHEELED FROM ER TO WR VIA SR.POWER IS BEING WHEELED FROM ER TO WR VIA SR. TRANSACTION BASED ON DIFFERENTIAL PRICE TRANSACTION BASED ON DIFFERENTIAL PRICE

BETWEEN WR AND SRBETWEEN WR AND SR

MORE TO COME…..MORE TO COME….. 1000MW POLE-II LIKELY TO BE 1000MW POLE-II LIKELY TO BE

COMMISSIONED BY FEB-2003COMMISSIONED BY FEB-2003 ADDITIONAL POWER TRANSFER BETWEEN ER AND ADDITIONAL POWER TRANSFER BETWEEN ER AND

SRSR MORE ROOM FOR WHEELING BETWEEN ER-WRMORE ROOM FOR WHEELING BETWEEN ER-WR

VIJAYAWADA-MADRAS LINK IS LIKELY TO BE VIJAYAWADA-MADRAS LINK IS LIKELY TO BE COMMISSIONED BY FEB 2003COMMISSIONED BY FEB 2003 VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER.VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER. TRUNK LINE LOADING CONSTRAINTS WOULD BE TRUNK LINE LOADING CONSTRAINTS WOULD BE

FURTHER EASED.FURTHER EASED. MORE MARGIN FOR TRANSFER FROM ER/WR.MORE MARGIN FOR TRANSFER FROM ER/WR. MORE COMPETITION POSSIBLE AMONGST MORE COMPETITION POSSIBLE AMONGST

GENERATORS.GENERATORS. IMPROVED STABILITY.IMPROVED STABILITY.

BACK TO SLIDE

BACK TO SLIDE

BACK TO SLIDE

BACK TO SLIDE

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

01-JAN-03

01-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

02-JAN-03

02-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

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03-JAN-03

03-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

04-JAN-03

04-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

05-JAN-03

05-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

06-JAN-03

06-JAN-02

FREQUENCY COMPARISION SOUTHERN REGION

47.5

48

48.5

49

49.5

50

50.5

51

51.5

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DATE AND TIME

FREQ

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HZ

47.5

48

48.5

49

49.5

50

50.5

51

51.5

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n 00:0

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01 Ja

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DATE AND TIME

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HZ

FREQUENCY COMPARISIONJAN 2002 AND JAN 2003

JANUARY 2002JANUARY 2002 JANUARY 2003

RANGE JAN-02 JAN-03

49 TO 50.5

(HZ)

30 % 97 %

COMPARSON OF FREQ JAN-02 & JAN-0320 days

JAN-02 JAN-03

ENERGY IN MUs

10.106 16.940

COMPARSON OF KADAMPARI PUMPED ENERGY

20 days

SOUTHERN REGION HYDRO GENERATION - COMPARISON

1112131415161718191

101

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

DAY

MIL

LIO

N U

NIT

S

Jan-02 Jan-03

N

MAX MIN AVG TOTAL

Jan-02 93.8 54.4 69.0 2138.0

Jan-03 52.4 30.0 42.0 839.4

3D VIRTUAL REALITY

SR FREQ JAN 03 SR FREQ DEC 02SR FREQ JAN 02 SR FREQ MAR 02

SR DEMAND JAN 03 SR DEMAND DEC 02SR DEMAND JAN 02 SR DEMAND MAR 02

APDEMAND JAN 03

KERDEMAND JAN 03

KARDEMAND JAN 03

TNDEMAND JAN 03

BLR VOLTJAN 03

SPAREBLR VOLTJAN 02

SPARE

On the invitation of State Power Corporation of China, Senior Officials from POWERGRID and Ministry of Power visited their various establishment in the first week of January,2003

Different aspects of the development of Power sector in both the countries were discussed and need for mutual co-operation was recognized

POWER SCENARIO IN CHINA

• China Power System comprises mainly of 6 Regional Grid and 29 Provincial Grid

• Present Installed capacity - 338,000 MW ( 76% Thermal, 23%

hydro, & 1% Nuclear)

• Energy Consumption - 1400 TWH

• Average Annual growth : 10%

• Impressive Growth in generation from 50,000 MW in 1978 to 338,000 MW in 2001

• Transmission Voltage : 500kV, 330kv, 220kV & 110kV

• First long distance HVDC line in China : +500kV,

1200MW HVDC between Gezhouga Hydro Station to

east China Power Network . Commissioned in 1989.

• Flexible AC Transmission (FACTS) devices are being

provided

• Total Ckt km ( Above 220kV) : 176,610 km

Including 330kV and 500kV of 38,392 ckm)

Transmission Network in ChinaTransmission Network in China

• Contingency of outage of one parallel transmission line for most of the transmission corridors is considered

• In critical Transmission Corridors, outage of two lines is also being considered

• Frequency maintained between 49.8 and 50.2 HzThe state transmission company Owns and Operates some hydro generation stations, having capacity of about 7% of total installed capacity in China, to take care of Frequency Variation and to maintain Security and stability

• Voltages are maintained within limits (more than 98.5% time in a year)

• Insulators and equipment in substations and lines are cleaned regularly

• Polymer insulators are being used in highly polluted areas

Operation & Maintenance of Grid in Operation & Maintenance of Grid in ChinaChina

• Uneven distribution of Energy resources like IndiaCoal deposits in north and south-westHydro potential in south-westLoad centers located in Central and coastal areas

Need of bulk power transfer over long distance from one region to other

• Nation wise interconnection program begin with establishment of first HVDC line of 1200MW in 1989.

• Further interconnection of different regions is under different stage of implementation along with “Three Gorges” hydro power station

Future Development in ChinaFuture Development in China

• Three Gorges hydro power station :18200MW (26x700MW) Transmission system comprises of HVDC bipoles (2 nos.

3000MW capacity) and several 500kV AC lines interconnecting Central China with East China & Sichuan network

Provides strong interconnections of different regions which ultimately lead to formation of National Grid.

• In long-term, more large hydro power stations requiring power transfer of 6000MW and above over long distances High capacity AC lines like 800kV, 1200kV & HVDC lines are

being examined

Future Transmission NetworkFuture Transmission Network

Objectives• Improve efficiency by breaking monopoly and introducing

competitiveness • Optimized power tariff structure• Future Structure

Vertically integrated power sector in China segregated into Generation and Transmission & Distribution

Two different Transmission & Distribution Co. - State Power Grid Corporation South China Power Grid Corporation

Separate Regional Power Trading Center Design, engineering and construction activities being identified

separately Independent Regulatory BodyAll above under the umbrella of China Electric Power

Regulatory Commission – Formation in nascent stageState Transmission Co. responsible for operation of National

Grid – No Independent System Operator(ISO)

Reforms & Restructuring of Power Sector Reforms & Restructuring of Power Sector in Chinain China

Indian Power System Indian Power System

Following Major aspects deliberated during the Visit•Projected Peak Demand - 157,000 MW

(as per 16th EPS) • Capacity addition envisaged –

In 10th Plan (2006-07) - 45,000 MWIn 11th Plan (2011-12)- 55,000 MW

(Approx. 10000 MW Capacity Addition per Year)

• Major Resources for Capacity AdditionHydro potential in J&K, HP & NER Coal potential in Bihar, Orissa

Plan for National GridPlan for National Grid

Development of National Grid in India in three phases –

Phase-I : Most of the regions are interconnected through HVDC links and present cumulative capacity is about 8000MW

Phase-II : Different regions are planned to be inter-connected through high capacity 800kV and 400kV Ac lines and also through HVDC bipole lines.

Phase-III : Further Strengthening through 800kV and HVDC lines

The cumulative power transfer capacity of the National Grid would be 30,000MW. By the end of 2011-12.

Load Desptach and Communication facilities Details of State of Art Load Desptach and

Communication facilities including SCADA and Advanced Energy Management system being established by POWERGRID.

Program for National Load Despatch center.

Restructuring and Reforms in Indian Power Sector – Status of following was explained

Amendment of Electricity Act and the Implementation of Electricity regulatory Commission Act,1998

Formation and functions of Central and State Regulatory Commissions and Central and State transmission utilities

Status of unbundling of Vertically integrated Power Utilities in separate generation and transmission & Distribution companies

Development of rational tariff Mechanism

Other Aspects - deliberatedOther Aspects - deliberated

Experience of China in operation and maintenance

of transmission Grid

India can assist In the development of transmission

system like adoption of New technologies viz., 800

kV AC and Load Desptach & Communication

facilities

As India is quite advanced in Restructuring and

Reform program, the experience of India can be of

help to China

Both the countries agreed for the close co-

operation in Power sector development

A MOU between two countries is being

contemplated

Areas of Mutual Co-OperationAreas of Mutual Co-Operation

220kV

400kV

220kV

500MW

500MW220kV

1000MW

UNDER CONSTRUCTION/PLANNED

500MW

220kV

400kV

220kV

2000MW

500MW

220kV

North-eastern

Salakati

Bongaigaon

Birpara

Malda

Dehri

Sasaram

Sahupuri

Allahabad

Eastern

Northern

Belgaum

Kolhapur

Budhipadar

Rourkela

Korba

Raipur

Auraiya

Malanpur

Western

Southern

Balimela

Upper Sileru

Chandrapur

Ramagundam

Jeypore

Gazuwaka

Singrauli

Vindhyachal

Existing Link

Talcher

Kolar

Legend

HVDC back-to-back link

HVDC bipole

INTER- REGIONAL LINKS

(Existing/New Approved Scheme)