NARROWING OF FREQUENCY BAND – IMPLICATIONS THEREOF A PRESENTATION BY HPSEB Presented by : Er.Suneel Grover

INDEX 1. Low frequency in the Grid 2. HPSEB’s Suggested Methodology 3. CERC Regulations 2009 4. Impact of CERC Regulations 5. Proposed CERC Regulations 6. Factors for low Frequency 7. Likely Impact of Proposed Regulations 8. Submissions

LOW FREQUENCY IN THE GRID Low Frequency in the Grid and the rampant over drawls by the constituent states threaten the security of the Grid. During 2007-08 the frequency used to hover around 49.0Hz No Restrictions on over drawls during low frequency conditions further worsen the situation.

LOW FREQUENCY IN THE GRID Hon’ble CERC increased the rate for UI exchange i.e. Rs.10/kWh for over drawls when frequency was below 49.0 Hz However many States continued heavy over drawls under low frequency conditions constantly threatening of the Grid.

HPSEB’s SUGGESTED METHODOLOGY Certain percentage, about 5% or as may be decided after due deliberations for overdrawl must be fixed for constituents overdrawing when frequency starts falling below 49.5 Hz. This is necessarily required to discipline the overdrawing constituents and consequently save the system from further deterioration. No overdraws be permitted to any constituent when the frequency equals to 49.0 Hz or goes below. NRPC may moot an amendment in IEGC in this regard as IEGC does not mandatorily restrict the overdrawls (Clause 6.4 refers). Flouting States after due warning be disconnected electrically by RLDC under these circumstances & their connected feeders be kept in off conditions for atleast six hours before reconnection.

CERC REGULATION The Hon’ble Commission had taken cognizance of HPSEB’s submissions and the views of other constituents/ RLDCs etc. and Incorporated Clause 7 in the UI regulations effective from 1.4.2009 limiting over/under drawl under low frequency conditions as under:

CERC REGULATION Clause 7: “The over-drawl of electricity from the schedule by any beneficiary or a buyer during a time-block shall not exceed 12% of its scheduled drawl or 150 MW (whichever is lower) when frequency is below 49.5 Hz, and 3% on a daily aggregate basis for all the time blocks when the frequency is below 49.5 Hz”

IMPACT OF CERC REGULATION This regulation had SIGNIFICANT IMPACT on the Grid Frequency, and it remained between 49.5 Hz and 49.2 Hz for most of the time during the year 2009-10, which earlier used to hover around 49.0 Hz

IMPACT OF CERC REGULATION Since the inception of Our beloved new Grid the frequency profile has considerably improved. States/Utilities have put in considerable effort that OD is limited and is mostly done under exigent conditions.

IMPACT OF CERC REGULATION This clearly indicates that the regulation had imbibed grid discipline amongst the constituents. However, some of the constituents did violate the aforesaid regulation by overdrawing power when the frequency was below 49.2 Hz which requires more stringent penalties for such overdrawls.

OD for month of Apr-09 when Frequency <= 49.2 Hz Data Source: NREB

OD for month of Jun-09 when Frequency <= 49.2 Hz Data Source: NREB

OD for month of Jul-09 when Frequency <= 49.2 Hz Data Source: NREB

OD for month of Aug-09 when Frequency <= 49.2 Hz Data Source: NREB

OD for month of Oct-09 when Frequency <= 49.2 Hz Data Source: NREB

OD for month of Nov-09 when Frequency <= 49.2 Hz Data Source: NREB

Over Drawl by States If a few states out of the many in the country, as mentioned in the draft amendment are defaulting, the focus should be to set them right instead of changing the whole system

Frequency Profile for April 2009 Occurrence %age Data Source: NREB

Frequency Profile for May 2009 Occurrence %age Data Source: NREB

Frequency Profile for June 2009 Occurrence %age Data Source: NREB

Frequency Profile for July 2009 Occurrence %age Data Source: NREB

Frequency Profile for August 2009 Occurrence %age Data Source: NREB

Frequency Profile for Sep 2009 Occurrence %age Data Source: NREB

Frequency Profile for Oct 2009 Occurrence %age Data Source: NREB

Frequency Profile for Nov 2009 Occurrence %age Data Source: NREB

Frequency Profile for Dec 2009 Occurrence %age Data Source: NREB

Frequency Profile for Jan 2010 Occurrence %age Data Source: NREB

Frequency Profile for Feb 2010 Occurrence %age Data Source: NREB

Annual Frequency Profile (2009-10) Occurrence %age Data Source: NREB

A DAY WITH LOW FREQUENCY Frequency and OD Chart of Northern Region on 08.08.09 370 MW at 49 Hz Data : NRLDC

Frequency & OD of NR States on April 9, 2010 OD of 1000 MW 48.85Hz Data : Real Time

Graph of Frequency and OD of Northern Region on 09.04.10 1060 MW at 48.9 Hz 1100 MW at 48.8 Hz Data : Real Time

PROPOSED CERC REGULATION

PROPOSED CERC REGULATION Prevalent UI Charges Freq. Band (Hz) Step (paisa/kwh) 50.30 – 49.50 12.00 49.50 – 49.20 17.00 Charge for OD for each Time block where Frequency is below 49.2 shall be 40% of the UI charge corresponding to the of below 49.22 Hz Proposed UI Charges Freq. Band (Hz) Step (paisa/kwh) 50.20 – 50.00 21.50 50.00 – 49.70 12.50 49.70 – 49.50 45.50 Charge for OD for each Time block where Frequency is below 49.5 shall be 100% of the UI charge corresponding to the of below 49.5 Hz

PROPOSED CERC REGULATION Additional UI Charge for over drawl of electricity for each time block when Grid Frequency is below 49.5 Hz shall be equivalent to 100% of UI charge of 870.0 paise/kwh corresponding to the grid frequency of below 49.5 Hz.

MEANING THEREBY… The cost of energy under UI when frequency is below 49.5 Hz. …….. 1740 Paise/kWh

Factors Contributing to Low Frequency Conditions in the Grid

Mismatch of Demand – Supply of power in the country Huge Gap between demand and supply of power Growth in generation lagging growth in demand – Under 11th Plan 78700 MW were supposed to be added, however only about 27000 MW actually materialized uptill recently as per press reports.

Mismatch of Demand – Supply of power in the country Power plants – either hydro or thermal – are Capital Intensive and take a lot of time in setting up Inadequate Transmission and Distribution Infra-Structure

Impact of Proposed CERC Regulations

Precarious Financial Health of DISCOMs/Utilities Most DISCOMs/Utilities are coping with system inadequacies and narrowing down of frequency band shall not yield any fructuous results, rather shall impede even the ongoing works. It shall add to the huge financial burden and will only further deteriorate the financial health of the already sick DISCOMS/Utilities. Ongoing works related to capacity addition & system strengthening of state utilities shall be hampered & shall have Negative Impact on the existing Grid conditions .

Freq, UI Comparison with Market & Exchange Rate (2002 - Till Date) 40% Scharge Data Source: NREB

Most Likely Impact of Proposed CERC Regulations DISCOMs/Utilities will have no option but to increase tariff across all categories of consumers however the highest rate that can be charged will be decided by SERC … forcing utilities to resort to power cuts. Contd…

Most Likely Impact of Proposed CERC Regulations This narrowing of Frequency band and increase in surcharge will in the end make power a commodity that will be out of reach for the common man of our nation.

Most Likely Impact of Proposed CERC Regulations In times when the country is recovering from recession, an increase in cost of power – the prime mover of growth - will severely hamper the process of recovery as industrial units will be hard hit by frequent power cuts due to System constraints.

SUBMISSIONS Since low frequency in the Grid is mainly due to wide mismatch of demand & supply, due to delayed commissioning of power projects for one reason or another. In this activity DISCOMs/Utilities are not at all associated and as such there is not much that DISCOMs/Utilities to improve the Grid frequency. Contd…

SUBMISSIONS In essence the Utilities/ Agencies entrusted with this job of capacity addition should be held responsible and penalised for creating such conditions in the Grid. Contd…

SUBMISSIONS Therefore it is submitted that for a period of one year or till such time adequate generation capacity is available following may please be considered: The prevalent frequency bands should not be squeezed To restrict over drawl the additional surcharge on Over drawl when Frequency is below 49.2 should be increased from 40% to 100% Contd…

SUBMISSIONS For better Load Management especially when the frequency goes down below 49.2 Hz, Automatic Load Shedding schemes can be put in place.

SUBMISSIONS 20000 MW capacity addition is expected by 2012, when this capacity addition will enhance the frequency profile of the Grid. Therefore till such time the present UI bands may be allowed to continue. The low voltage issue plaguing the Grid need also to be addressed. Therefore the funds collected through 100% Surcharge levied on over drawls at low frequencies should be utilized on systems that help in improving Grid voltages.

THANK YOU