Shri R.P. Singh CHAIRMAN & MANAGING DIRECTOR Power Grid Corporation of India Limited

1. Transmission System Development after the EA - 2003 Shri R.P. Singh CHAIRMAN & MANAGING DIRECTOR Power Grid Corporation of India Limited

2. An Evolved System...

3. Evolution of Power System • Pre Independence - power supplied through local generators and distributors • After independence, in 1948, State Electricity Boards were formed • CW & PC is constituted in 1951 • By mid 60’s Regional Electricity Boards were formed – state radial grid connections provided • By mid 70’s national entities like NTPC,NHPC,NEEPCO etc were formed. • CEA was constituted in 1975 • By end of 80’s POWERGRID was established • By end 90’s regulatory commissions were formed

4. Players in the Power Sector NLDC / RLDCs Generation Transmission Regulators Government Distribution Users Traders

5. An Analogy...

6. An Analogy – Power System vs Human Body RLDC::Brain Generation :: Heart USER Sub-Transmission :: Sub-Arteries Transmission :: Main Arteries Distribution :: Capillaries

7. The Generation… The Heart...

8. Present Status in Power Sector in India Installed Capacity - 1,12,000 MW Present Peak Demand–82,000 MW (Suppressed Demand) Peak Availability –72,000 MW Energy Deficit – 8%, Peak Shortage – 11% Growth of Demand - 8-9%; rate of capacity addition to be enhanced Investment pattern in Power Sector As a thumb rule investment in transmission and distribution together should be equal to generation. However in reality only 28% has been invested in Transmission & Distribution against 72% in generation

9. Present Status in Power Sector in India • Inadequate redundancy in Transmission & Distribution system • Outdated Low Voltage Distribution System contributing towards high T&D losses, including technical & commercial losses • Absence of effective communication and Consumer’s Grievance Redressal Mechanism • Environment of mistrust between Suppliers and consumers thus continues

10. Overview of EA 2003

11. Basic features of the Act • Policy by Government • Planning by CEA/CTU/STUs • Decontrolled Generation • Regulatory oversight • Licensed Transmission, distribution and Trading • Open access in Transmission and Distribution • Coordinated System Operation • Dispute resolution and penalty mechanisms

12. Role of Government • The Central Government shall formulate the National Electricity Policy and tariff policy. • The Central Government shall also prepare a National Policy for permitting stand-alone systems for Rural Areas, Rural Electrification and for bulk purchase of power and management of local distribution in Rural Areas. • The Government shall endeavor to supply electricity to all areas including villages and hamlets.

13. Role of CEA • CEA shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify the plan once in five years. • CEA is to formulate short term and perspective plans for development of electricity system, specify the technical standards for construction and connectivity to the grid and specify Grid Standards for O&M of Transmission Lines. • CEA shall also advise the Governments and Commissions on all technical matters relating to generation, transmission and distribution. 

14. Role of NLDC/RLDC/SLDCs • A National Load Dispatch Center shall be set up by the Central Government for optimum scheduling and dispatch of electricity among the Regional Load Dispatch Centers. National Load Dispatch Center shall not engage in the business of Trading in electricity. • Regional Load Dispatch Center shall be operated by CTU till further orders and shall not engage in the business of Generation of electricity or Trading in electricity. • State Load Dispatch Centers shall be operated by the STUs till further orders and shall not engage in the business of Trading in electricity.

15. Role of CTU/STUs • A Central/State Government company can be a CTU. CTU is a deemed Transmission Licensee. • The CTU shall not engage in the business of generation of electricity or trading in electricity. • CTU responsible for development of an efficient, coordinated and economical Inter-State Transmission System and to provide non-discriminatory “open access” to its Transmission System for use by any Licensee or Generating Company, or consumer on payment of Transmission Charges. • A similar provision has been made for STUs.

16. Role of Regulatory Commissions • Activities in the sector under overall regulations of the Appropriate Commission under the overall National Electricity Policy, National Electricity Plan and tariff policy of the Government. • The Commission shall specify the terms & conditions for the determination of tariff for generation, transmission, wheeling and retail sale of electricity. In case of distribution of electricity in the same area by two or more distribution licensees, the Commission may fix only maximum ceiling of tariff for retail sale of electricity so as to promote competition. • The tariff determined through a transparent process of bidding, in accordance with the guidelines issued by the Central Government, shall be adopted by the Commission.

17. Issues watermarked by EA 2003

18. Open access issues • Open access doesn't mean free for all. • A Generating Company may set up dedicated Transmission Lines. Open access must be mandated on transmission lines of generating plants also. • Modalities of determining excess capacity in transmission system need to be spelt out by Regulators. • Role of CTU/STU in open access for transmission systems of Transmission Licensees and generating companies needs to be defined. • Open access issues need to be addressed in totality to make it a reality.

19. CTU issues • Any person applying for Transmission License directly to Regulators is not conducive to sustained development of the sector. It has to be through a process, conducted by CTU/STU, so that only desired transmission elements are added in a systematic manner. • Statutory role of CTU/STU vis-a-vis its authority over Licensees and dedicated transmission line owners needs to be clarified. • It should be obligatory for all other entities in the sector to plan and coordinate with CTU/STU. • Expenses incurred for CTU/STU functions should be reimbursable.

20. Tariff issues • Guidelines for determining tariff through competitive bidding need to be issued by Central Government. • An agency needs to be notified which will identify the projects and process them to determine the tariff through competitive bidding. • Process of assessing the reasonability of the tariff determined through Competitive Bidding needs to be spelt out. • The entities who will pay the transmission tariff need to be identified.

21. Additional issues • Orders needed from Central Govt. on NLDC Constitution and functions. NLDC function charges to be reimbursable. • RLDCs/NLDC are to be permanently with POWERGRID, in line with the worldwide trend of Transmission and System Operation functions being together. • RPC needs to be constituted by Central Govt. • Allocation of responsibilities between RPC & RLDC needs to be done. • Nodal agency at State level needs to be identified for coordination with CTU. • Government entities are to be unbundled and Transmission Companies cannot enter the business of Generation / Trading. However, Private Companies can do Generation, Transmission, Distribution as well as Trading business, thereby creating private monopolies

22. Future Plan

23. Future Plan • 1,00,000 MW Planned for establishment in next 10 years time • Matching transmission and distribution to be planned • Energy Conservation needs priority • Nuclear, Hydro and NCES needs Special attention, especially with respect to grid stability and energy security • Commercialization and Institutional Development of the SEBs and end consumers • Supply of quality and reliable power

24. Role of POWERGRID • Development of Inter-Regional links – Completion of 1st phase of National Grid • Facilitates transfer of surplus power of Eastern Region to other Deficit Regions • Present National Grid – 8,000 MW • National Grid by 2012 – 30,000 MW • Implementation of Unified Load dispatch communication (ULDC) facilities in all the five regions • Use of State-of-the-Art technologies – SVC, FACTS, 800 kV, Multi Conductor Configuration, High Temperature Conductor • POWERGRID has an ambitious investment plan of Rs.71,000 Crs by 2012 through its own resources & private participation

25. POWERGRID’S Contribution as a System Operator • POWERGRID is also Responsible for Grid Management / System Operation of the five Regional Load Despatch Centres (RLDCs) . • RLDCs - Responsibilities • Apex Body for Integrated Grid Operation of the Region • Scheduling and Despatch of Electricity on real time basis • Energy Accounting • Supervision and Control of Inter – State Transmission System • Ensure Grid Security and adherence to Indian Electricity Grid Code (IEGC)

26. Establishment of IR Interconnection and Modernisation of RLDCs Has Resulted Into: • Considerable Improvement in System Parameters viz., Frequency & Voltage. • Merit Order Operation, Leading to Overall Economy • Introduction of ABT (Availability Based Tariff), resulting in improved Grid stability • Transparency in grid operation • Quantum leap in Intra and Inter Regional Power Exchange and Trading • Infused Grid Discipline THERE HAS BEEN NO MAJOR GRID DISTURBANCE IN LAST 22 MONTHS

27. A Comparison… National Grid in India NATIONAL vs. INTERNATIONAL Scenario Click Here

28. 1998 Ammendments vs EA 2003 Click Here

29. Thank You … POWERGRID …the Great Integrator - Electrically & Culturally

30. Annexure… • Natural Energy Resources • Development of National Grid • National Grid by 2012 • Synchronous Operation of Grid • Frequency Profiles… • Comparison of Bangalore Voltage – Typical Day • Typical Seasonal Load curves of Northern Region • Unscheduled Interchange (UI) • Growth of Inter-Regional Exchanges • Distributed Generation • Deviation of Frequency from Band of 49.0-50.5 Hz • Improvement of Grid voltage recorded at Dadri 400 kV bus • Schedules as percentage of Declared Capability • Inter Regional links • INTER-REGIONAL TRANSFER BY END OF X PLAN (2007) • Implementation Status of Regional LD&C Schemes

31. Hydro Coal Natural Energy Resources…

32. Development of National Grid

33. National Grid by 2012

34. Synchronous Operation of Grid RLDCs 2500 Kms AREA OF 16 lac sq.kms

35. Frequency Profiles… 2002, 2003& 2004

36. Comparison of Bangalore Voltage – Typical Day 2003 2004 2002

37. Typical Seasonal Load curves of Northern Region

38. Unscheduled Interchange (UI)

39. Growth of Inter-Regional Exchanges…

40. Distributed Generation • Essential for system stability • Gives much needed power at load centers • Transmission line carrying capacity goes up as it carries much needed active power • Security aspect (specially during emergency in times of war etc.)

41. Deviation of Frequency from Band of 49.0-50.5 Hz

42. Improvement of Grid voltage recorded at Dadri 400 kV bus Prior To ABT & RLDC Administration After ABT & RLDC Administration

43. Schedules as percentage of Declared Capability

44. Inter Regional links 1200 MW 500 MW 500 MW 500 MW 1000MW 2000MW Present IR Capacity = 8,500 MW By the year 2012 = 30,000 MW

45. Implementation Status of Regional LD&C Schemes