INDIAN POWER SECTOR

1. INDIAN POWER SECTOR • India has a FEDERAL structure • Electricity a concurrent subject – Both Central and State Govts. responsible for its development

2. SG SG SG SG SG SG SG SG SG SG . . . . . . . . . . . . . . . . . . . . INDIAN POWER GRIDS NATIONAL GRID SYNCHRONOUSLY LINKED INSTALLED CAP :50,000 MW , LENGTH : 2500 Kms NORTH-EASTERN REGION (2500 MW) WESTERN REGION (31,500 MW) EASTERN REGION (16,000 MW) NORTHERN REGION (29,000 MW) SOUTHERN REGION (29,000 MW) TOTAL STATE GRIDS (SG) : 33 INSTALLED CAPACITY : 1,08,000 MWPEAK DEMAND: 82,000 MW

3. INDIAN POWER SECTOR PRIOR TO REFORMS • Structure • SEBs vertically integrated: Generation, Transmission and Distribution under one umbrella. • Administrative Mechanism • Power sector administrated by GoI, REBs & SEBs • Planning & project approval through GoI/CEA • Tariff setting of central sector utilities by GoI/CEA • Licensing function by the state Govts • Grid operation by RLDCs

4. POWER SECTOR REFORMS • In 1991, private sector participation in generation allowed • In 1998, Central Electricity Regulatory Commission (CERC) for the centre and State Electricity Regulatory Commissions (SERC) for the states setup • In 1998, Transmission recognized as a distinct activity • Private sector participation in transmission also allowed • POWERGRID notified as Central Transmission Utility (CTU) • State Govt. to notify State Transmission Utility (STU)

5. POWER SECTOR REFORMS CONTD  • Un-bundling & corporatisation of SEBs to make separate corporations for Generation, Transmission and distribution for better accountability • Formation of Power Trading Corporation (PTC) to facilitate trading of power especially providing payment security to IPPs • In Distribution sector, Accelerated Power Development Reform Program (APDRP) undertaken for upgrading of sub-transmission and distribution network • Indian Electricity Act,2003 promulgated, consoliding previous Acts and more

6. POWER SECTOR DEVELOPMENT NATIONAL REGIONAL • Formation of CTU • CTU assigned the role of Grid operation (TSO) • Formation of Regulatory bodies CERC & SERC STATE Province • Development on Regional basis • Constitution of REBs for regional grid operation • Central Gen. cos. Constituted to develop big project on regional basis • Constitution of CEA as NATIONAL PLANNER • CEA to concur power projects • Constitution of Vertically integrated SEBs for development on state level 1950’s 1970’s 1990’s

7. INDIAN POWER SECTOR – CENTRAL LEVEL Central Govt State Govts CEA Regulator (CERC) CENTRAL GEN Cos./ IPPs POWERGRID CTU & Grid Operator ( RLDCs) TRANSMISSION LICENCEES STUs

8. INDIAN POWER SECTOR – STATE LEVEL CENTRAL GOVTs. STATE GOVTs. Regulator (SERC) GENERATING COS. STUs/ Grid Operator ( SLDCs) DISCOMs

9. FUNCTIONS OF VARIOUS PLAYERS • Central Government • To prepare & publish National Electricity Policy and Tariff Policy in consultation with State Govts. and CEA for development of power system based on optimal utilisation of resources • Formulate a National Policy, in consultation with State Govts. and state commissions, for rural electrification • Central govt. to establish an Appellate Tribunal

10. FUNCTIONS OF VARIOUS PLAYERS CONTD  • Appellate Tribunal • To hear appeals against the orders of the adjudicating officer or the appropriate commission. • Appellate Tribunals to have all powers of civil court • Appeal against Judgment of Appellate tribunal only in Supreme court

11. FUNCTIONS OF VARIOUS PLAYERS CONTD  • Central Electricity Authority (CEA) • To prepare National electricity plan in accordance with the National electricity policy of Central Govt. and notify the same • Specify technical standard for construction, operation & maintenance of electrical plants, electric lines and connectivity to the grid • Advice the appropriate Govt./Commission on all technical matters related to Generation, transmission and distribution

12. FUNCTIONS OF VARIOUS PLAYERS CONTD  • Central Electricity Regulatory Commission (CERC) • To regulate tariff of central generating companies • To determine the tariff & regulate inter-state transmission of electricity • To issue licensees to function as transmission licensees (other than CTU) and electricity trader with respect to inter-state operation • Aid & Advice the Central Govt. for formulation of National electricity policy & Tariff policy. • To specify the Grid Code • Develop appropriate policies & procedures for Environmental regulation of the power sector

13. FUNCTIONS OF VARIOUS PLAYERS CONTD  • Regional Load Despatch Center (RLDC) • Apex body to ensure integrated operation of the power system in the region • Give directions and exercise supervision and control which is required for integrated operation to achieve maximum economy and efficiency • Scheduling/Re-scheduling of generation and contigency analysis • System restoration following Grid disturbances • Metering & Data collection • Compiling & furnishing data pertaining to system operation

14. FUNCTIONS OF VARIOUS PLAYERS CONTD  • Central Transmission Utility (CTU) • Discharge all functions of planning & co-ordination for inter-state transmission system with state transmission utilities, Central Govt., State Govt., Generating companies, Authority, Licensees etc • To ensure development of an efficient, coordinated and economical system of inter-state transmission lines for smooth flow of electricity from generating stations to load centers • To exercise supervision & control over the inter-state transmission system • To ensure integrated operation of the regional grids through RLDCs

15. FUNCTIONS OF VARIOUS PLAYERS CONTD  • State Electricity Regulatory Commission (SERC) • To determine the tariff for electricity within the state • To regulate operation of power system within the state • Issue licensees for Transmission, distribution & trading of electricity within the state • To specify State Grid Code consistent with Grid Code • Advice state Govt. on matters like promotion of competition, efficiency, investment and economy in the electrical industry

16. POWER SECTOR WORLD-WIDE

17. Regulator (OFFER) U.K ELECTRICITY STRUCTURE National Power PowerGen Independent Generators British Energy National Electric Grid & Pool Other Licensed Suppliers Regional Electricity Companies Generators/Suppliers Small Users (<100 kW) Large Users (>100 kW)

18. ARGENTINA POWER SECTOR Scenario after 1992 UNBUNDLING in Power Sector 48 Generators Private Tx. Co TRANSENER National Electricity Regulatory Agency (ENRE) 6 REGIONAL Co. Independent System Operator (ISO) , CAMMESA CAMMESA Looks after the National Load Dispatch Center

19. FRANCE POWER SECTOR Eligible consumers REGULATOR Other Producers Other Distributors Non eligible consumers RTE (TSO) Producer EDF Distributor EDF Foreign TSOs Foreign TSOs Foreign consumers Foreign Producers & suppliers

20. POWER SYSTEM MODELS- SCHEMATIC G G G G G G T + SO T + SO RTE D D D D D D EdF • EUROPEAN, SOUTH AFRICA & INDIAN MODEL • FRENCH MODEL

21. POWER SYSTEM MODELS -SCHEMATIC Contd  G G G G G G G G G RTO T + SO SO T T T SO + D D D D D D D • MALAYSIAN AND KOREAN MODEL • AMERICAN MODEL

22. SUMMARY – POWER SYSTEM MODEL INDEPENDENT SYSTEM OPERATOR (ISO) • System operation is independent of the function of transmission system development • ISO prevalent when there are multiple transmission agencies TRANSMISSION SYSTEM OPERATOR (TSO) • Grid operation as well as transmission system development with single entity • TSO prevalent where unbundling has taken place and there is one transmission utility

23. ADVANTAGES OF TSO • TSO, having no interest in generation and trading of electricity is impartial and has same interest as that of system operator. • On-hand experience of systems constraints, direct control over planning and development of transmission system. Can therefore take immediate measures for system improvement schemes on short-term and long-term • More coordinated approach towards development and operation of grids • No duplication of assets and expertise