W E L C O M E Power Grid Corporation of India Limited

AVAILABILITY BASED TARIFF: EAST SOUTH INTER-REGIONAL LINK TALCHER-KOLAR UNIFIED LOAD DESPATCH SCHEME CHINA EXPERIENCE

AVAILABILITY BASED TARIFF – AN INTRODUCTION CAPACITY AND ENERGY CHARGES - DE-ALIENATED CAPACITY CHARGES LINKED TO AVAILABILITY. ENERGY CHARGES AS PER SCHEDULE. PRICING FOR DEVIATIONS FROM SCHEDULE LINKED TO FREQUENCY

ADVANTAGE ABT. SIMPLE TO IMPLEMENT DOES NOT REQUIRE ANY ADDITIONAL INVESTMENT MAKES USE OF INDUSTRIES PSYCHOLOGY EXHIBITS ALL PROPERTIES OF GAME THEORY. TANGIBLE SHIFT FROM COMMAND AND CONTROL CULTURE TOWARDS CONTRACTUAL CULTURE

MAXIMISATION OF GENERATION AVAILABILITY- MEET MORE CONSUMER DEMAND ECONOMY IN OPERATION – REDUCE COSTS RESULT :- IMPROVED QUALITY OF SUPPLY. HIDDEN CAPACITY HARNESSED. MERIT ORDER IN GENERATION. G GRID DISCIPLINE

POST ABT SCENARIO DRAMATIC IMPROVEMENT IN THE FREQUENCY HYDRO GENERATION OPTIMISED PUMPED STORAGE UTILISED DIURNALLY LOAD CURVE FLATTENED INCREASED BILATERAL TRADING NEYVELI TO PONDY KERALA TO TAMILNADU ER POWER TO WR THROUGH SR EFFICACY OF ABT MECHANISM IS GLOBALLY APPLAUDED. COMPARISION 3D DEMAND EXCERPTS

POST ABT SCENARIO ENHANCED ASSISTANCE TO WESTERN REGION ON OPPORTUNITY BASIS ONCE ABT IS IMPLEMENTED IN EASTERN REGION OTHER REGIONS WOULD FURTHER AVAIL SURPLUS POWER OF EASTERN REGION. COST OF IMPORTS WOULD REDUCE. BILATERAL(FIRM) TRANSACTIONS POISED TO INCREASE. CAPACITY UTILISATION OF GENERATING STATIONS INCLUDING CAPTIVE POWER PLANTS WOULD INCREASE.

AVAILABILITY BASED TARIFF – CHRONOLOGY 1980’sCONCIEVED BY SHRI BHANU BUSHAN DURING HIS TENURE IN NTPC 1991PRESENTED BY POWERGRID AS A SOLUTION FOR TECHNICAL AND COMMERCIAL PROBLEMS IN REGIONAL GRID OPERATION IN INDIA DEVELOPMENT OF SPECIAL ENERGY METERS INITIATED BYPOWERGRID WHICH WAS INSTRUMENTAL FORIMPLEMENTATION OF ABT 1993EXAMINED AND ENDORSED BY WORLD BANK / ADB APPOINTED CONSULTANTS (ECC OF USA) 1994ACCEPTED BY GOVT.OF INDIA.. IMPLEMENTATION DELAYED DUE TO MIS-APPREHENSIONS AND INCONCLUSIVE DISCUSSION 1999REFFERED BY GOI TO CERC JANNOTIFIED BY CERC-DEFFERED DUE TO STIFF OPPOSITION FROM SOME PARTIES 2000DECREVISED NOTIFICATION ISSUED BY CERC- IMPLEMENTATION HELD UP DUE TO STAYS OBTAINED IN HIGH COURT BY SOME SEB’s

: IMPLEMENTED IN WESTERN REGION : IMPLEMENTED IN WESTERN REGION : IMPLEMENTED IN NORTHERN REGION : IMPLEMENTED IN NORTHERN REGION : IMPLEMENTED IN SOUTHERN REGION : IMPLEMENTED IN SOUTHERN REGION

ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME. TRANSPARENCY. SYNERGY IN OPERATION. NO “PASSING THE BUCK” APPROACH. QUANTUM LEAP IN VISIBILITY TO OPERATOR. INCREASED CONFIDENCE. FOCUS ON SECURITY AND ECONOMY. SOME ULDC PICTURES

ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR PREMPTIVE, DYNAMIC “EARLY WARNING” SYSTEMS. LOAD ANGLE. ALARMS CONTINGENCY ANALYSIS GRID LESS VULNERABLE TO DISTURBANCES. ANALYSIS OF GRID INCIDENTS – ACCURATE AND EASIER RESTORATION AFTER PERTURBATION BECOMES MUCH FASTER.

ULDC LOAD FORECASTING. LOAD FORECASTING. HYDRO SCHEDULING. HYDRO SCHEDULING. HYDRO THERMAL CO-ORDINATION. HYDRO THERMAL CO-ORDINATION. UNIT COMMITMENT. UNIT COMMITMENT. LOAD MANAGEMENT. LOAD MANAGEMENT.

POST ULDC SCENARIO FREQUENCY OF WR & ER AVAILABLE TO OPERATOR IN SR TO DECIDE WHEN HOW WHERE FROM/TO EXCHANGE POWER OPERATORS OF ALL REGIONS CAN ACT IN CONJUNCTION TO GET THE BEST FOR THE COUNTRY AS A WHOLE.

POST KOLAR HVDC SCENARIO SUBSTANTIAL IMPROVEMENT IN THE VOLTAGE PROFILE FOR THE REGION. TRUNK LINE LOADINGS EASED – INCREASED TRANSFER MARGIN. IMPORT FROM ER AROUND 800 MW M MORE DEMAND CAN BE MET. DEPLETED HYDRO RESERVES CAN BE CONSERVED. AVERAGE COST OF POWER IS BROUGHT DOWN ABOUT 250 MU WORTH RS 40 Cr. IMPORTED FROM ER IN DEC02 INCREASED TRANSACTIONS POWER IS BEING WHEELED FROM ER TO WR VIA SR. TRANSACTION BASED ON DIFFERENTIAL PRICE BETWEEN WR AND SR

MORE TO COME… MW POLE-II LIKELY TO BE COMMISSIONED BY FEB MW POLE-II LIKELY TO BE COMMISSIONED BY FEB-2003 ADDITIONAL POWER TRANSFER BETWEEN ER AND SR ADDITIONAL POWER TRANSFER BETWEEN ER AND SR MORE ROOM FOR WHEELING BETWEEN ER-WR MORE ROOM FOR WHEELING BETWEEN ER-WR VIJAYAWADA-MADRAS LINK IS LIKELY TO BE COMMISSIONED BY FEB 2003 VIJAYAWADA-MADRAS LINK IS LIKELY TO BE COMMISSIONED BY FEB 2003 VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER. VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER. TRUNK LINE LOADING CONSTRAINTS WOULD BE FURTHER EASED. TRUNK LINE LOADING CONSTRAINTS WOULD BE FURTHER EASED. MORE MARGIN FOR TRANSFER FROM ER/WR. MORE MARGIN FOR TRANSFER FROM ER/WR. MORE COMPETITION POSSIBLE AMONGST GENERATORS. MORE COMPETITION POSSIBLE AMONGST GENERATORS. IMPROVED STABILITY. IMPROVED STABILITY.

BACK TO SLIDE

01-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

02-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

03-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

04-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

05-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

06-JAN JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

FREQUENCY COMPARISION JAN 2002 AND JAN 2003 JANUARY 2002 JANUARY 2003

RANGEJAN-02JAN TO 50.5 (HZ) 30 %97 % COMPARSON OF FREQ JAN-02 & JAN days

JAN-02JAN-03 ENERGY IN MUs COMPARSON OF KADAMPARI PUMPED ENERGY 20 days

3D VIRTUAL REALITY SR FREQ JAN 03 SR FREQ DEC 02 SR FREQ JAN 02 SR FREQ MAR 02 SR DEMAND JAN 03 SR DEMAND DEC 02 SR DEMAND JAN 02 SR DEMAND MAR 02 AP DEMAND JAN 03 KER DEMAND JAN 03 KAR DEMAND JAN 03 TN DEMAND JAN 03 BLR VOLT JAN 03 SPARE BLR VOLT JAN 02 SPARE

On the invitation of State Power Corporation of China, Senior Officials from POWERGRID and Ministry of Power visited their various establishment in the first week of January,2003 Different aspects of the development of Power sector in both the countries were discussed and need for mutual co-operation was recognized

POWER SCENARIO IN CHINA China Power System comprises mainly of 6 Regional Grid and 29 Provincial Grid Present Installed capacity - 338,000 MW ( 76% Thermal, 23% hydro, & 1% Nuclear) Energy Consumption TWH Average Annual growth : 10% Impressive Growth in generation from 50,000 MW in 1978 to 338,000 MW in 2001

Transmission Voltage : 500kV, 330kv, 220kV & 110kV First long distance HVDC line in China : +500kV, 1200MW HVDC between Gezhouga Hydro Station to east China Power Network. Commissioned in Flexible AC Transmission (FACTS) devices are being provided Total Ckt km ( Above 220kV): 176,610 km  Including 330kV and 500kV of 38,392 ckm) Transmission Network in China

Contingency of outage of one parallel transmission line for most of the transmission corridors is considered In critical Transmission Corridors, outage of two lines is also being considered Frequency maintained between 49.8 and 50.2 Hz The state transmission company Owns and Operates some hydro generation stations, having capacity of about 7% of total installed capacity in China, to take care of Frequency Variation and to maintain Security and stability Voltages are maintained within limits (more than 98.5% time in a year) Insulators and equipment in substations and lines are cleaned regularly Polymer insulators are being used in highly polluted areas Operation & Maintenance of Grid in China

Uneven distribution of Energy resources like India  Coal deposits in north and south-west  Hydro potential in south-west  Load centers located in Central and coastal areas Need of bulk power transfer over long distance from one region to other Nation wise interconnection program begin with establishment of first HVDC line of 1200MW in Further interconnection of different regions is under different stage of implementation along with “Three Gorges” hydro power station Future Development in China

Three Gorges hydro power station :18200MW (26x700MW)  Transmission system comprises of HVDC bipoles (2 nos. 3000MW capacity) and several 500kV AC lines interconnecting Central China with East China & Sichuan network  Provides strong interconnections of different regions which ultimately lead to formation of National Grid. In long-term, more large hydro power stations requiring power transfer of 6000MW and above over long distances  High capacity AC lines like 800kV, 1200kV & HVDC lines are being examined Future Transmission Network

Objectives Improve efficiency by breaking monopoly and introducing competitiveness Optimized power tariff structure Future Structure  Vertically integrated power sector in China segregated into Generation and Transmission & Distribution  Two different Transmission & Distribution Co. - State Power Grid Corporation South China Power Grid Corporation  Separate Regional Power Trading Center  Design, engineering and construction activities being identified separately  Independent Regulatory Body All above under the umbrella of China Electric Power Regulatory Commission – Formation in nascent stage State Transmission Co. responsible for operation of National Grid – No Independent System Operator(ISO) Reforms & Restructuring of Power Sector in China

Indian Power System Following Major aspects deliberated during the Visit Projected Peak Demand- 157,000 MW (as per 16 th EPS) Capacity addition envisaged –  In 10 th Plan ( )- 45,000 MW  In 11 th Plan ( )- 55,000 MW (Approx MW Capacity Addition per Year) Major Resources for Capacity Addition  Hydro potential in J&K, HP & NER  Coal potential in Bihar, Orissa

Plan for National Grid Development of National Grid in India in three phases –  Phase-I : Most of the regions are interconnected through HVDC links and present cumulative capacity is about 8000MW  Phase-II : Different regions are planned to be inter-connected through high capacity 800kV and 400kV Ac lines and also through HVDC bipole lines.  Phase-III : Further Strengthening through 800kV and HVDC lines The cumulative power transfer capacity of the National Grid would be 30,000MW. By the end of

Load Desptach and Communication facilities  Details of State of Art Load Desptach and Communication facilities including SCADA and Advanced Energy Management system being established by POWERGRID.  Program for National Load Despatch center. Restructuring and Reforms in Indian Power Sector – Status of following was explained  Amendment of Electricity Act and the Implementation of Electricity regulatory Commission Act,1998  Formation and functions of Central and State Regulatory Commissions and Central and State transmission utilities  Status of unbundling of Vertically integrated Power Utilities in separate generation and transmission & Distribution companies  Development of rational tariff Mechanism Other Aspects - deliberated

 Experience of China in operation and maintenance of transmission Grid  India can assist In the development of transmission system like adoption of New technologies viz., 800 kV AC and Load Desptach & Communication facilities  As India is quite advanced in Restructuring and Reform program, the experience of India can be of help to China  Both the countries agreed for the close co- operation in Power sector development  A MOU between two countries is being contemplated Areas of Mutual Co-Operation

INTER- REGIONAL LINKS (Existing/New Approved Scheme)