HP STATE ELECTRICITY BOARD Power Sector Development in Himachal Pradesh Business Partner Meet - 2009 A presentation by HP STATE ELECTRICITY BOARD October 12th, 2008 Venue: Shimla

Index HPSEB’s Mission, Existing System, and Growth Projections Power Sector Development in Himachal Pradesh Index HPSEB’s Mission, Existing System, and Growth Projections Hydro Power Potential & Hydro- Policy in Himachal Pradesh Building Partnerships Quick & Efficient billing system

Power Sector Development in Himachal Pradesh Our Mission… Uninterrupted, Reliable and Quality Power Supply to all our Consumers Round the clock, 365 days a year. Himachal Pradesh “A Hydro Power State”

Existing Power System of HPSEB Power Sector Development in Himachal Pradesh Existing Power System of HPSEB Installed Capacity 467 MW Villages Electrified 17169 Nos. Hamlets Electrified 4239 Nos. Consumers Connected 18.41 lakh Connected Load 4037303 kW EHV Sub-Stations 37 Nos. HV (33 kV) Sub Stations 140 Nos. Distribution Sub-Stations 19907 Nos. EHT Lines 2208.846 ckt Km HT Lines 27330.134 ckt Km LT Lines 52411.498 ckt kM A State Load Dispatch Center (SLDC) with the latest state of art technology has been established to have online control and transaction of Electricity

Power Sector Development in Himachal Pradesh

Energy Requirement (GWH) Power Sector Development in Himachal Pradesh Projected Growth for HPSEB Power System Year Energy Requirement (GWH) Peak Demand (MW) 2009-10 7,684 1,306 2010-11 8,545 1,451 2011-12 9.504 1,611

& Hydro-Policy in Himachal Pradesh Hydro Power Potential Power Sector Development in Himachal Pradesh Hydro Power Potential & Hydro-Policy in Himachal Pradesh

Hydro potential of H.P. as % of country’s potential (in MW) Power Sector Development in Himachal Pradesh Hydro potential of H.P. as % of country’s potential (in MW) Total Power Potential = 1,40,000 At 60% load factor = 84,000 Basin wise potential In H.P. Yamuna basin = 602.52 Sutlej basin = 9866.55 Beas basin = 4626.90 Ravi basin = 2345.25 Chenab basin = 2251.00 Mini micro = 723.40 Projects Total = 20415.62 At 60 % Load factor = 12249.37

Map of H.P. with basin wise hydro potential Power Sector Development in Himachal Pradesh Map of H.P. with basin wise hydro potential 2251 MW Chenab basin 2345.25 MW Ravi basin 4626.90 MW Beas basin 9866.55 MW Sutlej basin 602.52 MW Yamuna basin

Hydro Power Potential in H.P.- breakup Power Sector Development in Himachal Pradesh Hydro Power Potential in H.P.- breakup Total identified potential 20415 Harnessed so far 6429 Under execution 5728 Under Allotment 7668 Abandoned 460 Self identified in Private Sector 473 ______ Total (460 MW abandoned) 20875 (in MW)

Hydro potential of H.P. – Harness plan (in MW) Power Sector Development in Himachal Pradesh Hydro potential of H.P. – Harness plan (in MW) In State Sector/ HPPCL 1580 Central/ Joint Sector 10389 Private Sector More than 5 MW 7696 Less than 5 MW 760 ______ Total 20415

Potential harnessed so far by different agencies in H.P. (in MW) Power Sector Development in Himachal Pradesh Potential harnessed so far by different agencies in H.P. (in MW) HPSEB 467 Central/ Joint Sector 5490 Private Sector More than 5 MW 418 Less than 5 MW 54 _____ Total 6429

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: HPPCL 1012.00 HPSEB 121.10 Central/ Joint Sector 2763.00 Private Sector 1832.00 __________ Total 5728.10 (in MW)

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: Project Basin Installed Capacity (MW) Executing Agency STATE SECTOR: Bhaba Aug. PH Satluj 4.50 HPSEB Kashang-I 130.00 HPPCL Kashang-II 65.00 Kashang-III 48.00 Ganvi-II 10.00 Shongtong Karcham 402.00

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: Project Basin Installed Capacity (MW) Executing Agency STATE SECTOR: Uhl-III Beas 100.00 HPSEB Sainj HPPCL Khauli-II 6.60 Sawra Kuddu Yamuna 111.00 Chirgaon Majhgaon 46.00 Dhamwari Sunda 70.00 Renuka 40.00

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: Project Basin Installed Capacity (MW) Executing Agency CENTRAL/JOINT SECTOR: Chamera-III Ravi 231.00 NHPC Kol-Dam Satluj 800.00 NTPC Rampur 412.00 NJPC Parbati-II Beas Parbati-III 520.00

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: Project Basin Installed Capacity (MW) Executing Agency PRIVATE SECTOR: Allian Duhangan Beas 192.00 AD Hydro Power Ltd., Manali Malana-II 100.00 Everest Power Pvt. Ltd., Shimla Neogal 15.00 Om Power Corp. Ltd. New Delhi Lambadug 25.00 Himachal Consort. Power Project Pvt. Ltd, Bangalore Baragaon 11.00 Kanchanjunga Power Corp. Ltd. Fozal 9.00 M/s. Cosmos Consulting Ltd., New Delhi Baner-II 6.00 Tidong-I Satluj M/s. Nuziveedu Seeds Ltd., Secunderabad

Capacity under execution by different Agencies in HP: Power Sector Development in Himachal Pradesh Capacity under execution by different Agencies in HP: Project Basin Installed Capacity (MW) Executing Agency PRIVATE SECTOR: Sorang Satluj 100.00 KarchamWangtoo 1000.00 M/s. Jaypee Karcham Hydro Corp. Ltd. Raura 8.00 PauditalLassa Yamuna 24.00 TangnuRomai 50.00 M/s. PCP International Ltd. Chandigarh Sai Kothi Ravi 17.00 M/s. Venture Energy Technologies, New Delhi Harsar 60.00 M/s. Sofimat SA, France Bharmour 45.00 Budhil 70.00 M/s. Lanco Green Power Ltd., New Delhi

Salient features of Hydro Policy in HP: Power Sector Development in Himachal Pradesh Salient features of Hydro Policy in HP: Projects upto 2MW capacity have been earmarked for the investors of HP & for Projects between 2 & 5 MW first preference shall be given to Himachalis. Projects above 5MW & upto 100MW shall be allotted to IPPs through MOU route and above 100 MW through ICB . To ensure employment to the people of HP, the IPP shall ensure that 70% of the total employees are bonafide Himachalis. The activities of Local Area Development Committee (LADC) during execution shall be financed by the project itself.

Salient features of Hydro Policy in HP: Power Sector Development in Himachal Pradesh Salient features of Hydro Policy in HP: Royalty on water usage in the shape of free power to the state from the Project shall be charged @ 12% for the first 12 years, @ 18% from 13th to 30th year and @30% for the balance period beyond 30 years. The developer will be permitted to Establish, Own, Operate and Maintain the Project for a period of forty years. The developers will be free to dispose the power from the projects, after allowing for royalty in the shape of free power to the state. The Govt. of HP shall absorb the generated power from the Hydro electric projects locally to maximum possible extent .

Development of Transmission System: Power Sector Development in Himachal Pradesh Development of Transmission System: GoHP has prepared a draft Transmission Master Plan for the State in co-ordination with State Transmission Utility (STU), Central Transmission Utility (CTU) and Central Electricity Authority (CEA) for each river basin to ensure evacuation of power through Interstate & Intrastate transmission system. A power transmission master plan has also been formulated for evacuation of power from smal hydro projects (SHPs).

Status of Hydro Potential by the end of 11th Plan Power Sector Development in Himachal Pradesh Status of Hydro Potential by the end of 11th Plan Already under operation: 6429.00 MW B. To be completed by the 11th Plan State Sector (i/c HPPCL) 1063.10 MW Central/Joint Sector 2763.00 MW Private Sector 1900.00 MW Total (B) 5726.10 MW Total (A+B) 12155.10 MW

Status of Hydro Potential by the end of 12th /13th Plan Power Sector Development in Himachal Pradesh Status of Hydro Potential by the end of 12th /13th Plan A . Potential harnessed upto 11th Plan 12155.10 MW B. To be Executed by end of 12th /13th Plan: Under State Sector 0.00 MW Under Central/Joint Sector 2136.00 MW Under Private Sector 4960.50 MW Total (B) 7096.50 MW

Power Sector Development in Himachal Pradesh Status of harnessed identified Hydro Schemes by various stake-holders at the end of 12th/13th Plan Under State Sector(32 Nos.) 1529 MW Under Central/Joint Sector (18 Nos.) 10389 MW Under Private Sector (60 Nos.) 7262 MW Through HIMURJA/self-identified 1235 MW Abandoned 460 MW Total: 20875 MW

Scheduled Commissioning Date Power Sector Development in Himachal Pradesh On going projects at present with HPSEB planned for commissioning during 11th plan period S. No. Project Capacity (MW) Basin Implementing Agency Scheduled Commissioning Date 1 Ganvi Stage-II 10 Sutlej HPSEB During 2009-10 2 Bhaba Augmentation 4.50 3 Uhl Stage-III 100 Beas March 2010 4 Khauli-II 6.6 5 Total 121.1

Power Sector Development in Himachal Pradesh Building Partnerships

Power Scenario in HP is characterized by: Power Sector Development in Himachal Pradesh Power Scenario in HP is characterized by: Predominantly Hydro Based Generating Stations Perennial Winter Shortages Demand expected to go up to 2500 MW in 2014 from about 1000 MW at present HP expected to be short by about 1000 MW in 2014 on round the clock basis during winter months

HP Power Supply Status Power Sector Development in Himachal Pradesh Power in Himachal Pradesh is predominantly Hydro with the availability comprising of: Own Generation ( 100 % Hydro) – 467 MW Central Sector/bilateral shares (10 to 15% thermal) – total approx. 900 MW Our power requirements are more in winters rather than summers This results in: Surplus of power during the Summer months Extreme Deficits in Winter months since Our own generation reduces almost to 15- 25% due to lean water discharge Similar reduction happens with our Central Sector Shares from hydros in the region. There is an increase in demand due to the cold weather

Typical Annual Availability and Demand pattern for HP Power Sector Development in Himachal Pradesh Typical Annual Availability and Demand pattern for HP Monthly Availability (MU) Monthly Demand (MU)

Proposed Business Model for joint venture between HPSEB & NTPC Power Sector Development in Himachal Pradesh Proposed Business Model for joint venture between HPSEB & NTPC Capacity of proposed plants Hydro plant : 500 -1000 MW Thermal Plant: 1000 MW Debt : Equity Ratio For the Project: 70:30 All expenditure on account of investment & administrative charges to be born in the ratio: 50 : 50

Energy Management for Proposed Projects Power Sector Development in Himachal Pradesh Energy Management for Proposed Projects Summer Months: (April to September) The entire power to be jointly used by HPSEB and NTPC, for meeting their requirements, selling to other states or for trading on the Power Exchanges. Availability of Hydro generation of the order of 500-1000 MW shall facilitate NTPC to put their thermal plants under maintenance in summer months, which are invariably allowed during winter months (i.e. Nov to Feb).

Energy Management for the Proposed Projects Power Sector Development in Himachal Pradesh Energy Management for the Proposed Projects Winter Months: (October to March) - The entire Hydropower available from the project would be at HPSEB’s disposal along with 500 MW from Thermal Project for meeting the Winter Shortages in the state.

Power Sector Development in Himachal Pradesh Integrated Billing NTPC is raising Energy Bills to HPSEB every month for its Shares in Central Sector Projects. HPSEB is receiving plethora of Bills which are highly cumbersome and tedious for scrutiny at our end. It is therefore proposed that…

Power Sector Development in Himachal Pradesh Integrated Billing For Faster processing of Billing & Settlement with NTPC, requisite Software Application Interface be provided to HPSEB. This shall result in faster scrutiny of Bills and Speedy Reconciliation and Settlement of Accounts with NTPC.

Power Sector Development in Himachal Pradesh Thank You