THE INDIAN POWER SYSTEM PECULIARITIES, PROBLEMS AND SOLUTIONS

SYSTEM EVOLUTION LIKE ALL MAJOR POWER SYSTEMS, THE INDIAN POWER SYSTEM EVOLVED BY INTEGRATING SMALL ISOLATED SYSTEMS LIKE ALL MAJOR POWER SYSTEMS, THE INDIAN POWER SYSTEM EVOLVED BY INTEGRATING SMALL ISOLATED SYSTEMS PRESENTLY, THREE MAJOR GRIDS ARE IN OPERATION – CONNECTED ASYNCHRONOUSLY – MEETING A DEMAND OF OVER MW PRESENTLY, THREE MAJOR GRIDS ARE IN OPERATION – CONNECTED ASYNCHRONOUSLY – MEETING A DEMAND OF OVER MW TARGET – A NATIONAL GRID BY 2010 TARGET – A NATIONAL GRID BY 2010

SOUTHERN REGION WESTERNRE GION EASTERN REGION NORTHERN REGION NORTH- EASTERN REGION ‘ ELECTRICAL’ REGIONS SAME FREQUENCY FROM GUJARAT TO ARUNACHAL PRADESH WITH EFFECT FROM MARCH 2003 ABOUT 2800 KMS! APART

SOUTHERN REGION WESTERNRE GION EASTERN REGION NORTHERN REGION NORTH- EASTERN REGION ‘ELECTRICAL’ REGIONS 1 2 WITH THE COMMISSIONING OF THE TALA PROJECT CONNECTING THE EASTERN AND NORTHERN GRIDS, INDIA WILL HAVE ONLY TWO GRIDS

13450 MW 1000 MW 6450 MW 4600 MW 1300 MW 3200 MW 30,000 MW OF INTER- REGIONAL POWER BY 2012 EASTERN REGION SOUTHERN REGION WESTERN REGION NORTHERN REGION NORTH- EASTERN REGION INTER-REGIONAL TRANSFER BY END OF 11 th PLAN (2012) ER

INSTALLED CAPACITY AND DEMAND GROWTH

MONSOONS SOUTH WEST MONSOON NORTH EAST MONSOON

OPERATING IN THE REAL TIME

GRID OPERATION IN THE PAST LARGE FREQUENCY FLUCTUATIONS LARGE FREQUENCY FLUCTUATIONS FREQUENCY REMAINED AT 48 HZ AND BELOW FOR MOST PART FREQUENCY REMAINED AT 48 HZ AND BELOW FOR MOST PART LOW VOLTAGE OPERATION LOW VOLTAGE OPERATION VOLTAGE AT BANGALORE DIPPED TO AS LOW AS 300 Kv!!!! VOLTAGE AT BANGALORE DIPPED TO AS LOW AS 300 Kv!!!! NR EXAMPLE? NR EXAMPLE? FREQUENT GRID DISTURBANCES FREQUENT GRID DISTURBANCES A DISTURBANCE ALMOST EVERY MONTH A DISTURBANCE ALMOST EVERY MONTH IMMENSE FINANCIAL LOSSES FOR INDUSTRY IMMENSE FINANCIAL LOSSES FOR INDUSTRY LOADS FREQUENTLY CUT OFF DUE TO RELAY OPERATION LOADS FREQUENTLY CUT OFF DUE TO RELAY OPERATION INCREASED ELECTRICAL LOSSES INCREASED ELECTRICAL LOSSES INEFFICIENT OPERATION OF ELECTRIC EQUIPMENTS INEFFICIENT OPERATION OF ELECTRIC EQUIPMENTS INEFFICIENT UTILISATION OF PIT HEAD PLANTS INEFFICIENT UTILISATION OF PIT HEAD PLANTS GRID OPERATION FOCUSSED ON FIRE-FIGHTING RATHER THAN OPTIMISATION AND ECONOMY GRID OPERATION FOCUSSED ON FIRE-FIGHTING RATHER THAN OPTIMISATION AND ECONOMY

GRID OPERATION: A TIGHT ROPE WALK BLACK-OUT VOLTAGE COLLAPSE IN-ECONOMIC OPERATION INSTABILITY POWER SWINGS INCREASED LOSSES

PECULIARITIES THE GRID SPATIAL DISTRIBUTION OF RESOURCES AND LOADS SPATIAL DISTRIBUTION OF RESOURCES AND LOADS COAL IN EAST, HYDRO IN NORTH-EAST, LOADS SPREAD OVER COAL IN EAST, HYDRO IN NORTH-EAST, LOADS SPREAD OVER LONG LINES – MIX OF HVAC AND HVDC LONG LINES – MIX OF HVAC AND HVDC MORE LIKE CANADA, US AND ERSTWHILE USSR GRIDS MORE LIKE CANADA, US AND ERSTWHILE USSR GRIDS GRID DESIGNED FOR EVACUATION NOT FOR SKEWED GENERATION/DRAWAL PATTERNS GRID DESIGNED FOR EVACUATION NOT FOR SKEWED GENERATION/DRAWAL PATTERNS POLICY OF ASYNCHRONOUS REGIONAL GRIDS TILL RECENTLY POLICY OF ASYNCHRONOUS REGIONAL GRIDS TILL RECENTLY

PECULIARITIES COMMERCIAL MECHANISM ANTIQUATED AND UNSCIENTIFIC SETTLEMENT/TARIFF TILL RECENTLY ANTIQUATED AND UNSCIENTIFIC SETTLEMENT/TARIFF TILL RECENTLY AVAILABILITY BASED TARIFF CHANGED ALL THAT AVAILABILITY BASED TARIFF CHANGED ALL THAT SCIENTIFIC SETTLEMENT SCIENTIFIC SETTLEMENT INCENTIVISE GOOD BEHAVIOUR IN GRID INCENTIVISE GOOD BEHAVIOUR IN GRID SPOT AND BALANCING MARKET SPOT AND BALANCING MARKET INCENTIVES TO GENERATORS STILL BASED ON PLF INCENTIVES TO GENERATORS STILL BASED ON PLF

PECULIARITIES GOVERNANCE AND REGULATION REGULATORY STRUCTURE IN PLACE REGULATORY STRUCTURE IN PLACE STRONG POLITICAL DOMINANCE STRONG POLITICAL DOMINANCE ECONOMICS SOMETIMES TAKES A BACKSEAT ECONOMICS SOMETIMES TAKES A BACKSEAT INVESTMENT SOMETIMES ALIGNED TO THE VOTE BANK INVESTMENT SOMETIMES ALIGNED TO THE VOTE BANK FREE POWER POLICIES FREE POWER POLICIES DEBT RIDDEN SEB’s DEBT RIDDEN SEB’s CULTURE DILEMMA CULTURE DILEMMA COMMAND AND CONTROL :- NOT EASILY ACCEPTED COMMAND AND CONTROL :- NOT EASILY ACCEPTED CO-OPERATIVE :- FREQUENT BREAKDOWN – CURSE OF THE COMMONS CO-OPERATIVE :- FREQUENT BREAKDOWN – CURSE OF THE COMMONS CONTRACTUAL : YET TO TAKE FIRM FOOTING CONTRACTUAL : YET TO TAKE FIRM FOOTING ANCILARY PRICING MECHANISM YET TO BE DEVELOPED ANCILARY PRICING MECHANISM YET TO BE DEVELOPED

LEGISLATION,REGULATION AND GOVERNANCE REGULATOR RLDC RPC STAKEHOLDERS DISCOM TRANSCO SEB LICENCEE CPP,IPP GENCO ISGS SLDC’s REGULATOR CTU MERCHANT GEN. NLDC

PECULIARITIES REAL TIME OPERATION CONCEPT OF LOOSE POWER POOL CONCEPT OF LOOSE POWER POOL ASYNCHRONOUS GRIDS ASYNCHRONOUS GRIDS SCOPE FOR ARBITRAGE SCOPE FOR ARBITRAGE NO TIGHT CONTROL OF FREQUENCY NO TIGHT CONTROL OF FREQUENCY A DEVELOPING MARKET MECHANISM A DEVELOPING MARKET MECHANISM NASCENT OPEN ACCESS MARKET NASCENT OPEN ACCESS MARKET NO SERIOUS REPURCUSSIONS FOR LOSS OF LOAD OR GRID VIOLATION NO SERIOUS REPURCUSSIONS FOR LOSS OF LOAD OR GRID VIOLATION ESTABLISHED GRID SECURITY MECHANISMS LIKE FGMO, SPINNING RESERVES ETC YET TO BE FULLY IMPLEMENTED ESTABLISHED GRID SECURITY MECHANISMS LIKE FGMO, SPINNING RESERVES ETC YET TO BE FULLY IMPLEMENTED

SOLUTIONS? NEEDS TO BE TAILORED TO OUR ‘PECULIARITIES’ NEEDS TO BE TAILORED TO OUR ‘PECULIARITIES’ CANNOT LOOK WEST FOR ANSWERS CANNOT LOOK WEST FOR ANSWERS ABT FOR EXAMPLE IS A ‘DESI’ SOLUTION ABT FOR EXAMPLE IS A ‘DESI’ SOLUTION WHY WAS IT SO OVERWHELMINGLY SUCCESSFUL? WHY WAS IT SO OVERWHELMINGLY SUCCESSFUL?

CARDINAL EVENTS AVAILABILITY BASED TARIFF AVAILABILITY BASED TARIFF THE IEGC THE IEGC NATIONAL GRID INTERCONNECTS NATIONAL GRID INTERCONNECTS SYSTEM AUGMENTATION SYSTEM AUGMENTATION SOME NR EXAMPLES? SOME NR EXAMPLES?

ABT SLIDES HERE

IEGC SLIDES HERE

WHY NATIONAL GRID? STRONG BACKBONE ‘ANYWHERE TO ANYWHERE’ ’ WHEELING STRONG BACKBONE ‘ANYWHERE TO ANYWHERE’ ’ WHEELING ECONOMIC OPERATION ECONOMIC OPERATION OPTIMAL UTILISATION OF SCARCE NATIONAL RESOURCE OPTIMAL UTILISATION OF SCARCE NATIONAL RESOURCE OPTIMAL UTILISATION OF SCARCE NATIONAL RESOURCE OPTIMAL UTILISATION OF SCARCE NATIONAL RESOURCE HARNESS DIVERSITY HARNESS DIVERSITY HARNESS DIVERSITY HARNESS DIVERSITY SAVING OF MORE THAN 500 MW TODAY SAVING OF MORE THAN 500 MW TODAY SAVING OF 13,000 MW BY YEAR 2012 SAVING OF 13,000 MW BY YEAR 2012 RS 2000 CR SAVING TO WESTERN REGION RS 2000 CR SAVING TO WESTERN REGION ADDED STABILITY ADDED STABILITY BOUNDARY-LESS OPERATION BOUNDARY-LESS OPERATION HUB AND SPOKE ARRANGEMENT HUB AND SPOKE ARRANGEMENT HUB AND SPOKE ARRANGEMENT HUB AND SPOKE ARRANGEMENT GENERATORS HAVE READY EVACUATION PATH GENERATORS HAVE READY EVACUATION PATH

765 KV RING MAIN SYSTEM THE POWER ‘HIGHWAY’ CHEAP HYDRO POWER FROM THE NORTH-EAST AND PIT HEAD THERMAL POWER FROM THE EAST ENTERS THE RING AND EXITS TO POWER STARVED REGIONS

OPTIMAL RESERVE UTILISATION USING TIME/LOAD DIVERSITY WESTERN REGION NORTH- EASTERN REGION EASTERN REGION WESTERN REGION NORTH- EASTERN REGION EASTERN REGION AT 1830 HRS AT 2000 HRS 600 MW 1200 MW EASTERN REGION HELPS WESTERN REGION WESTERN REGION HELPS EASTERN REGION

REAL TIME OPERATION IEGCABT REAL TIME OPERATION REAL TIME OPERATION STANDS ON TWO FIRM FOOTINGS REAL TIME OPERATION STANDS ON TWO FIRM FOOTINGS IEGC – THE INDIAN ELECTRICITY GRID CODE IEGC – THE INDIAN ELECTRICITY GRID CODE ABT – AVAILABILITY BASED TARIFF ABT – AVAILABILITY BASED TARIFF

INDIAN ELECTRICITY GRID CODE (IEGC) SIMPLE, COMPREHENSIVE AND EFFECTIVE SIMPLE, COMPREHENSIVE AND EFFECTIVE JUST ABOUT 50 PAGES JUST ABOUT 50 PAGES DYNAMIC DOCUMENT DYNAMIC DOCUMENT ADAPTIVE TO GRID REQUIREMENTS ADAPTIVE TO GRID REQUIREMENTS CLARITY IN ROLES OF STAKE HOLDERS CLARITY IN ROLES OF STAKE HOLDERS

IEGC ENCOMPASSES….. Role of Stakeholders, statutory bodies and their Organisational linkages Role of Stakeholders, statutory bodies and their Organisational linkages Planning Code for Inter State Transmission Planning Code for Inter State Transmission Connection Conditions Connection Conditions Operating Code for Regional Grids Operating Code for Regional Grids Scheduling and Despatch Code Scheduling and Despatch Code Management of Indian Electricity Grid Code Management of Indian Electricity Grid Code

AVAILABILITY BASED TARIFF

A RATIONAL TARIFF STRUCTURE A RATIONAL TARIFF STRUCTURE SCIENTIFIC SETTLEMENT SYSTEM SCIENTIFIC SETTLEMENT SYSTEM COMPLEMENTS GRID RELIABILITY COMPLEMENTS GRID RELIABILITY ENCOURAGE THOSE WHO HELP THE GRID AND DISCOURAGE THOSE WHO UNDERMINE RELIABILITY ENCOURAGE THOSE WHO HELP THE GRID AND DISCOURAGE THOSE WHO UNDERMINE RELIABILITY SIMPLE AND EFFECTIVE SIMPLE AND EFFECTIVE IMPLEMENTED SUCCESSFULLY IN INDIA

WHAT IS AVAILABILITY TARIFF? FIXED COST α PLANT AVAILABILITY. FIXED COST α PLANT AVAILABILITY. VARIABLE COST α SCHEDULED GENERATION VARIABLE COST α SCHEDULED GENERATION DEVIATIONS :- UNSCHEDULED INTERCHANGE(UI), ATTRACT A FREQUENCY LINKED CHARGE. DEVIATIONS :- UNSCHEDULED INTERCHANGE(UI), ATTRACT A FREQUENCY LINKED CHARGE.

CHALLENGES

FLATTENING THE LOAD CURVE: INNOVATIONS WORLDWIDE TOD METERING TOD METERING ‘PROGRAMMABLE SWITCH’ TO BRING ON STORAGE WATER HEATER AT LEAN ‘PROGRAMMABLE SWITCH’ TO BRING ON STORAGE WATER HEATER AT LEAN REMOTE CYCLING OF AIR CONDITIONING REMOTE CYCLING OF AIR CONDITIONING INCENTIVES INCENTIVES EXPORT ARRANGEMENTS EXPORT ARRANGEMENTS

SHIFTING THE AGRICULTURAL LOADS TO LEAN HOURS ‘FLATTER’ LOAD CURVE ‘FLATTER’ LOAD CURVE BETTER UNIT COMMITMENT BETTER UNIT COMMITMENT PEAK BECOMES LESS SHARP PEAK BECOMES LESS SHARP BETTER ECONOMICS – PRICE IS LOWER AT LEAN BETTER ECONOMICS – PRICE IS LOWER AT LEAN HYDRO CONSERVATION HYDRO CONSERVATION GOOD FOR GRID SECURITY GOOD FOR GRID SECURITY HIGH VOLTAGE PROBLEM MITIGATED AS THESE LOADS ARE REACTIVE INTENSIVE HIGH VOLTAGE PROBLEM MITIGATED AS THESE LOADS ARE REACTIVE INTENSIVE LINE OPENINGS ON OVER VOLTAGE REDUCED, HENCE LOSSES ARE REDUCED, STABILITY INCREASES LINE OPENINGS ON OVER VOLTAGE REDUCED, HENCE LOSSES ARE REDUCED, STABILITY INCREASES FREQUENCY RESPONSIVE LOAD – AN IN-BUILT DEFENSE MECHANISM FREQUENCY RESPONSIVE LOAD – AN IN-BUILT DEFENSE MECHANISM

THE ‘KINKY’ LOAD CURVE ASSOCIATED PROBLEMS LOW LOAD AT LEAN HOURS LOW LOAD AT LEAN HOURS BACKING DOWN OF GENERATORS BACKING DOWN OF GENERATORS HIGH VOLTAGE PROBLEMS HIGH VOLTAGE PROBLEMS LINES OPENED OUT, INCREASED LOSSES LINES OPENED OUT, INCREASED LOSSES THREAT TO GRID SECURUTY THREAT TO GRID SECURUTY HIGH FREQUENCY HIGH FREQUENCY PRICE OF POWER BECOMES LOW PRICE OF POWER BECOMES LOW PROBLEMS IN UNIT COMMITMENT FOR MERIT ORDER PROBLEMS IN UNIT COMMITMENT FOR MERIT ORDER SHARP PEAK SHARP PEAK POWER BECOMES COSTLY POWER BECOMES COSTLY SHARPER THE PEAK, THE COST ESCALATES SHARPELY SHARPER THE PEAK, THE COST ESCALATES SHARPELY LOW PF FOR SOME PLANTS LOW PF FOR SOME PLANTS TECHNICAL LIMITATIONS TECHNICAL LIMITATIONS HYDRO RESERVES GET DEPLETED HYDRO RESERVES GET DEPLETED

FLATTENING THE LOAD CURVE: ‘DESI’ SOLUTION WHAT LOADS CAN BE SHIFTED TO THE LEAN HOURS? WHAT LOADS CAN BE SHIFTED TO THE LEAN HOURS? INDUSTRIAL LOAD INDUSTRIAL LOAD OTHER RAMIFICATIONS OTHER RAMIFICATIONS WILL AFFECT REVENUE WILL AFFECT REVENUE DOMESTIC LOAD DOMESTIC LOAD FLEXIBLE : ONLY TO A CERTAIN EXTENT FLEXIBLE : ONLY TO A CERTAIN EXTENT COMMERCIAL LOAD COMMERCIAL LOAD IN-FLEXIBLE IN-FLEXIBLE MAY AFFECT REVENUE MAY AFFECT REVENUE AGRICULTURAL LOAD AGRICULTURAL LOAD MOST FLEXIBLE MOST FLEXIBLE

THE GRID INTERCONNECTED SYSTEMS WITH THOUSANDS OF KILOMETERS OF LINES AND HUNDREDS OF GENERATORS OPERATING WITH SPLIT SECOND SYNCHRONISM IS THE GREATEST SCIENTIFIC ACHIEVEMENT OF THE MILLENIUM INTERCONNECTED SYSTEMS WITH THOUSANDS OF KILOMETERS OF LINES AND HUNDREDS OF GENERATORS OPERATING WITH SPLIT SECOND SYNCHRONISM IS THE GREATEST SCIENTIFIC ACHIEVEMENT OF THE MILLENIUM THE LARGEST SINGLE MACHINE EVER CREATED THE LARGEST SINGLE MACHINE EVER CREATED

POWER SYSTEM OPERATION IS IT AN ART? IS IT AN ART? IST IT A TECHNOLOGY? IST IT A TECHNOLOGY? IS IT SCIENCE? IS IT SCIENCE? ………. IT IS A MULTI-DISCIPLINARY SUBJECT!!! ………. IT IS A MULTI-DISCIPLINARY SUBJECT!!!

POWER SYSTEM OPERATOR THE SYSTEM OPERATOR SHOULD POSSESS THE DISCIPLINE OF A MONK INSTINCTS OF A FOX EMOTIONS OF A ROCK SKILLS OF A SURGEON PATIENCE OF A FLAMINGO DO YOU HAVE IT IN YOU?

THE POWER SYSTEM POWER SYSTEM IS A MANIFESTATION OF SOCIETY POWER SYSTEM IS A MANIFESTATION OF SOCIETY WE HAVE DONE LOTS OF WE HAVE DONE LOTS OF “LOAD FLOWS” NOW’S THE TIME TO DO NOW’S THE TIME TO DO “COST FLOWS”. “COST FLOWS”.

CARDINAL RULES FOR A SYSTEM OPERATOR UNDERSTAND THE DIFFERENCE UNDERSTAND THE DIFFERENCE PUBLIC GOODS PUBLIC GOODS PRIVATE GOODS PRIVATE GOODS PUBLIC SERVICE PUBLIC SERVICE PRIVATE SERVICE PRIVATE SERVICE UNDERSTAND THE DIFFERENCE UNDERSTAND THE DIFFERENCE PUBLIC HAT AND A PRIVATE HAT PUBLIC HAT AND A PRIVATE HAT

POOL GOVERNANCE THE CHALLENGE IS TO DESIGN A GOVERNANCE SYSTEM THAT LUBRICATES THE DAY TO DAY OPERATION, FACILITATES CONSTRUCTIVE CAPITAL INVESTMENT AND CHANNELS POLITICAL ENERGY IN A CONSTRUCTIVE WAY

WHAT IS GOVERNANCE? WHAT DECISIONS ARE MADE? WHAT DECISIONS ARE MADE? WHO MAKES THEM? WHO MAKES THEM? HOW ARE DECISIONS ENFORCED? HOW ARE DECISIONS ENFORCED? HOW ARE DISPUTES RESOLVED? HOW ARE DISPUTES RESOLVED?

THE GOALS THE POOL AND SYTEM OPERATOR IS NOT CONTROLLED BY ANY SINGLE MARKET PARTICIPANT OR CLASS OF MARKET PARTICIPANT THE POOL AND SYTEM OPERATOR IS NOT CONTROLLED BY ANY SINGLE MARKET PARTICIPANT OR CLASS OF MARKET PARTICIPANT THE MARKET IS FAIR THE MARKET IS FAIR THE GRID ACHIEVES TARGETED RELIABILITY LEVELS THE GRID ACHIEVES TARGETED RELIABILITY LEVELS THE DECISION MAKING PROCESS IS TRANSPARENT THE DECISION MAKING PROCESS IS TRANSPARENT THE POOL RULES CAN BE CHANGED IN A RASONABLE PERIOD OF TIME THE POOL RULES CAN BE CHANGED IN A RASONABLE PERIOD OF TIME THE COST OF GOVERNANCE IS MINIMISED THE COST OF GOVERNANCE IS MINIMISED

BASIC GOVERNANCE MODELS MULTI-CLASS STAKEHOLDER BOARD MULTI-CLASS STAKEHOLDER BOARD NON STAKEHOLDER BOARD NON STAKEHOLDER BOARD SINGLE CLASS BOARD SINGLE CLASS BOARD FOR-PROFIT CORPORATION NOT AFFLIATED WITH MARKET PARTICIPATION FOR-PROFIT CORPORATION NOT AFFLIATED WITH MARKET PARTICIPATION SINGLE-TIER MODEL TWO-TIER MODEL

STRATEGIES FOR RELIABILITY ROBUST TRANSMISSION PLANNING AND INVESTMENT FRAMEWORK ROBUST TRANSMISSION PLANNING AND INVESTMENT FRAMEWORK SYSTEM AUGMENTED EXCLUSIVELY FOR RELIABILITY AND STABILITY SYSTEM AUGMENTED EXCLUSIVELY FOR RELIABILITY AND STABILITY AGGRESSIVE CONSTRUCTION SCHEDULES AGGRESSIVE CONSTRUCTION SCHEDULES SCHEDULING AND SETTLEMENT MECHANISM COMPLEMENTS GRID SECURITY. SCHEDULING AND SETTLEMENT MECHANISM COMPLEMENTS GRID SECURITY.

STRATEGIES FOR RELIABILITY GRID CONTROL CENTERS MANNED BY SPECIALISED SENIOR PERSONNEL GRID CONTROL CENTERS MANNED BY SPECIALISED SENIOR PERSONNEL TRAINED IN ALL ASPECTS (TECHNICAL, MANAGEMENT AND COMMUNICATION SKILLS) TRAINED IN ALL ASPECTS (TECHNICAL, MANAGEMENT AND COMMUNICATION SKILLS) EMPOWERED FOR EXIGENCIES EMPOWERED FOR EXIGENCIES LOOSE POWER POOL PHILOSOPHY LOOSE POWER POOL PHILOSOPHY FLEXIBILITY IN OPERATION FLEXIBILITY IN OPERATION