by Power Grid Corporation of India Ltd

by : Power Grid Corporation of India Ltd

POWERGRID AT A GLANCE • Central Transmission Utility of India & Operator of RLDCs. (TSO) • One of the largest transmission utility in the world • Operating – 48, 000 CKms of EHV transmission lines – 82 EHVAC & HVDC sub-stations – 47, 000 MVA transformation capacity • Emerged as leading consultancy Organisation in Power Sector • Catalytic Role in Power Sector Reforms (APDRP) • Diversified in Telecom

POWERGRID FUNCTIONS P O W E R G R I D NON-CTU FUNCTIONS Telecom, Consultancy, Distribution Inter-state Transmission Services LICENSEES TSO RLDCs

Development of ABT Mechanism • On site administrator of the Tariff Study in Feb. , 94 by International Consultant M/s ECC Inc. , USA • Co-ordinated the study and mooted the idea of frequency linked tariff to ECC • Basic frame work developed • RTFs/ NTF deliberations • ABT is a commercial mechanism linked to frequency • CERC hearings with utilities • Clarifications on issues • CERC issued Order on 04. 01. 2000

ABT implementation at Regional Level – POWERGRID’s Expertise • More than 150 presentations to – – SEBs Generators Central / State Government Other Utilities • In-house development of softwares for – Scheduling – Energy Accounting – Time tested and proven software • Legal issues resolved • Only Utility in the world having experience to develop and implement

POWERGRID’S Expertise in ABT • Only Utility having proven capability in – Development of ABT – Implementation of ABT – Actual Operating experience • Pioneers and leaders in ABT mechanism • Capability to implement ABT mechanism • Expertise to train the personnel • Experience in development and implementation of – Scheduling Procedure – Energy Accounting • Development of Special Energy Meters • Development of Metering Scheme • Experience in Operation of Pool Accounts for UI and reactive Charges

Development of Energy Meters • • • Foreseen the requirement of a New Meter for ABT Tailor made meter specifications for ABT tariff Prototype development followed by field trials Vendor Development Main features of SEMs – Tamper proof and low cost – Developed and manufactured indigenously – Accuracy of class 0. 2 – Static Meters to record energy transmittals in 15 min. time block – Reactive power measurement in pre-specified voltage conditions • Establishment of Data Collection and Data transfer infrastructure

co-ordinated and provided all infrastructure for ABT implementatio n. WR took lead for ABT implementati on Other Regions followed 01. 12. 20 02 01. 07. 20 02 01. 2003 01. 11. 20 03 01. 04. 20 03 ABT implement ed in All Five Regions. Pool Accoun s Operate d by RLDCs.

Experience in intra-State ABT implementation • Based on our expertise consultancy for intra. State ABT to GEB on single offer basis. • Consultancy for PSEB • Roadmap prepared for MSEB. • Other States are approaching for consultancy

Expertise in Operation of Pool Account • RLDC have collected and dispersed as follows: – UI Pool account : Rs. Dec. ’ 04) 7637 Crores (Upto • No discrepancies, disputes raised • Amount disbursed within 3 days • E-banking facilities available

Similarity between ABT at Regional Level and intra-State level Regional ABT • Regulator- CERC • Central Sector Generators • IPPs • SEBs • SEMs • Day Ahead Scheduling by RLDCs • Weekly Settlement of regional UI • UI Pool Account • Reactive Pool A/c Intra-State ABT • Regulator- SERC • State Sector Generators • embedded generators • Discoms • SEMs • Day Ahead Scheduling by SLDCs • Weekly Settlement of State UI • UI Pool Account • Reactive Pool A/c

ABT • UI mechanism takes care of this in a inherent way • Cost based on frequency reflecting load generation balance in the grid • No negotiations, no bidding. Flexibleanybody can inject or draw. Balancing Market • ISO purchases balancing power and despatches • Cost of balancing power based on bids which reflect notional market conditions • Requires Exchanges, complicated procurement procedure and involves cost in setting up of computerised systems

ABT Balancing Market • Inadvertant • No mechanism for exchanges priced pricing inadvertant based on frequency exchanges before & price is known in hand but is based on advance post facto computations • Gaming is possible • No gaming

ABT Balancing Market • RLDCs unilaterally • Gives autonomy to decides and SLDCs can implements. Demand curtailment regulate loads options (in India) not • ABT allows considered frequency variation • Suitable in systems between 49. 0 and abroad where 50. 5 Hz. frequency has to be maintained close to nominal

NEED OF SCADA FOR ABT ® All utilities to monitor & control the load & generation in real time ® Special energy meters provide energy & average frequency for every 15 minutes time block ® Data of energy meters is generally downloaded weekly ® Need of real time SCADA system for energy meters telemetry

SCADA APPLICATIONS FOR ABT ® SCADA process power flow on inter-state exchange points in real time basis ® Monitor schedule & actual drawals ® Provides information for their own generation ® Reactive power management using capacitor / reactors. ® Management of voltage by transformer tap adjustment

Unified Grid Operation National Level NLDC 5 Nos. ERLDC WRLDC NRLDC SRLDC NERLDC Regional Level 29 Nos. SLDC State HQ Level 51 Nos. SUB LDC Group / Distt Level 1015 Nos. RTU RTU Plant / Sub. Station Level

International Practices- Balancing Market • Real Time Spot Market • Day Ahead Scheduling Procedure covers – Next day hourly forecast of demand – Availability of Generation – Finalisation of Day-Ahead Schedule considering transmission & generation constraints • Generators and Buyers submit price bids. • Deviations within a predetermined percentage limit – Penalties for deviation beyond prescribed limit • Deviations to be paid as per Real Time Spot Market rates

EUROPEAN & SOUTH AFRICAN MODEL G G T D G + D D G G SO D D This model is followed in UK by NGC, in Norway by Statenett, in Sweden by Svenska Kraftnet, in Finland by Fingrid, in Netherland by Tennet, in Denmark by Eltral/Elkrafts and in South Africa by Eskom. NEXT

AMERICAN MODEL G R T SO O D G G T D D G T D SO D This model is followed in USA. Based on their experience, USA is now moving towards TSO model through RTO.

ABT Structure… Three-part tariff • Capacity Charges – linked to availability • Variable Charges – as per schedule • UI Charges – for deviations

… ABT Structure … – Allocations to Discoms from shared generating plants -to be notified by State government • State generators • Central Sector generators • IPPs – Criteria to be finalised • In percentages , not in MW terms • No unallocated power

… ABT Structure … – STU’s role in collection and disbursement of transmission charges • STU’s charges • CTU’s charges

… ABT Structure … – GENCO norms of operation • Financial Norms – similar to ISGS – Depreciation, Rate of return, O&M Cost, D: E ratio etc. • Operational Norms – similar to ISGS – Auxiliary power consumption – Target availability • Can be increased progressively in 5 years. • Scheme for incentives – based on availability.

… ABT Structure … – Re-negotiation of existing contracts with IPPs • Financial Norms – as per ISGS – Depreciation, Rate of return, O&M Cost, D: E ratio etc. – Incentives • Operational Norms – as per ISGS – Auxiliary power consumption – Target availability 80%

Region ISTS TNEB APSEB • ~ ISGS 3 Inter-regional ISGS 1 KEB KSEB • ~ ~ ISGS 2 ISGS 4 SGS 3 State Discom 1 ~ SGS 4 Discom 3 STS Discom 2 • ~ Inter-state ISGS 1 Discom 4 ISGS 2 Inter-state

Inter-State ABT Intra-State ABT • Distribution Control Centre – One for each Discom • ISGS: Inter State Generating Stations • SGS: State Generating Stations • CTU: Central Transmission Utility • STU: State Transmission Utility

Market Models • Option – 1 Single Buyer Model – All the generation including IPPs to be pooled /purchased by residual Electricity Board & all power sale / purchase from other agencies through residual Electricity Board • Option – 2 Multi Buyer Model – All the generation including IPPs to be sold/purchased by DISCOMs directly & all power sale / purchase from other agencies also directly by DISCOMs

STATE POWER POOL : Single Buyer Model- Option 1 GEN 3 GEN 2 IPP 2 External Purchases IPP 1 s STATE GENCO ISGS Allocations RESIDUAL EB/TRADECO TO POOL ALL GENERATION THROUGH TRANSCO SYSTEM Dist. Iicensee – 1 DISCOM A DISCOM B DISCOM C DISCOM D Dist. Iicensee-2 Po Pu

STATE POWER POOL : Multiple Buyer Model Option 2 External Purchases GEN 1 GEN 3 GEN 2 IPP 1 ISGS Allocations STATE GENCO TRANSMISSION SYSTEM OF GETCO TRADECO DISCOM A DISCOM B DISCOM C DISCOM D Dist. Licensee-1 Dist. Licensee-2

Options for UI • UI Rate Curve • • Same as inter-state UI-Rate Curve Higher inter-state UI-Rate Curve Lower inter-state UI-Rate Curve Differential Rate Curve ( for injection and drawal of UI) • Different curves for CPPs and other bulk power licensee – Frequency –UI rate curve • Single-slope Curve • Multi-slope Curve

UI Rate as specified by CERC Rate of Unscheduled Drawal/Injection Frequency (Hz) Above 50. 5 Rate (p/u) 0 50. 0 150 49. 8 210 49. 0 and below 570

Special Energy Meters • 0. 2 s class of IEC static type. • Works in 3 -phase, 4 wire principle • Voltage from 110 V secondary side VT and current from CT's of ratio 1 A or 5 Amp • In Model-A with 1 Amp CT, model-B with 5 Amp CT. • Meter will store the data in the memory for 10 days. • Meter is having a optical port for tapping the stored data by using a hand held unit called DCD (data collection device)

SEM stores the following • Net active energy (wh) in each 15 minute timeblock with +/- sign. • Cumulative Wh reading at each mid night. • Average frequency of each 15 minute block with a 2 digit code. • Integrate the reactive energy (VARh) algebrically into two separate registers, one for Vave RMS ≥ 103% and other for Vave RMS ≤ 97%, at each midnight.

SEM displays following • • • Processor's identification code and model Date (year month day) Time (hour min sec) Cumulative Wh reading Average frequency of the previous block Net Wh transmittal during the previous block Average per unit voltage Reactive power (VAR) Voltage – high VARh register reading Voltage – low VARh register reading

AMR System : Through RS 485 connection • 1 • PSTN Meter 1 Meter 2 PSTN Modem Meter 31 RS 485 / RS 232 Conv. RS 232 port Local Data Collection Remote Data Collection

Local data collection through Optical Port –as backup Meter 1 • DCD Meter 2 • 1 • Meter 31 •

SCADA APPLICATIONS ® Power flows in real time ® Monitor schedule & actual drawals ® Provides information on generation ® Reactive power management using capacitor / reactors and by transformer tap adjustment

Intra-state ABT – Achieves. • Unbundling of Vertically Integrated State Utilities • Mechanism to price power based on Demand / Supply • Harness surplus generating capacity available in state with CPPs/IPPs • Operation of grid on economic principles –Merit Order Despatch • Open Access in Intra-state Transmission and Distribution.

Intra-state ABT – achieves • Generate signals for efficient grid operation at the intra-state level. – Overdrawals at low frequency by different DISCOMs to be priced. – Encourage serving of higher consumer demand – Encourage maximisation of generation during deficit conditions. – Each DISCOM and state generating station to be responsible for its actions – a profit centre

…Intra-state ABT – achieves. • Introduce UI mechanism at the intra-state level. – UI to be applied on the deviations from the schedules of the DISCOMs/State generators/IPPs/CPPs. – State Utilities to be liable for the States’ liabilities with the regional UI pool account. – To achieve merit order operation.

Implementation Plan • 1 st Phase Activities – Finalisation of listing of entities – Listing of Metering locations – Finalisation of quantities of SEMs, DCDs/MTEs – Finalisation of technical specifications of SEMs/DCDs – Initiate tendering process for procurement of meters

Implementation Plan • 2 nd Phase Activities – Finsalisation of Tariff of State Generating Stations as per ABT parameters/norms – Finalisation of Reactive Charge scheme – Finalisation of commercial mechanism for CPPs, Wind farms, Wheeling and banking, Open Access Customers etc. – Determination of Allocations of different Discoms in State Genco/ ISGS/ IPPs.

Implementation Plan • 3 rd Phase Activities – Supply and commissioning of meters at different locations – Installation of software for data processing – Installation of software for scheduling – Estimate time to implementation – 12 to 18 months

POWERGRID, INDIA …with clear Vision.

Consultancy by POWERGRID • Rendering consultancy services to utilities like WBPDCL, UPPCL, UPCL, BSEB, RRVPNL, KPTCL, GRIDCO, Malana Power, Tata Power, BSES, Chandigargh, ASEB, Pondicherry, Me. SEB, MPSEB, Goa, CSEB, Bhutan Telecom, THPA, MOP, D&D, DNH • Turnkey Transmission Lines/Sub-stations • O&M of EHV Transmission System • APDRP • Telecom • Consultancy for project cost of about Rs. 5000 Crores.

Schedule Vs Actual Injection at Dadri (T) UI Actual Injection Declared Capability ά Capacity Charges Schedule ά Energy Charges Frequency NEXT

Schedule Vs Actual Drawal by UP Actual Drawal Schedule ά Energy Charges UI Entitlement ά Capacity Charges Frequency