Operating the Indian Electricity Grid Challenges and Future Outlook R.P.Singh Chairman and Managing Director Power Grid Corporation of India Limited

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.2 Indian Power System Overview Guiding principles –Sufficient Quality Reliable and Affordable power Generation –Owned by Central sector, State sector and Private sector Transmission –Transmission & System Operator (TSO) –Five Geographical Regions, Three Electrical Regions –Non-discriminatory Open Access in Transmission Distribution –State owned utilities, Private utilities, Cooperative societies Moving towards distributed generation and distribution

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.3 Coal Hydro Hydro potential in North east and upper part of Northern Region Coal reserves mainly in Eastern Region Distribution of energy resources and consumption centres are extremely unbalanced Necessitate power transfer over long distances Energy Resource Map

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.4 TRANSMISSION VOLTAGE OWNERSHIPTOTAL CENTRALSTATE Circuit Kilometer kV HVDC 4,3721,5045, kV charged at 400 kV , kV40,85422,60763, kV9,22098,521107, kV*2,15293,12695,278 Total57,515216,167273,682 EHV Infrastructure (as on ) * 132 kV network as on

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.5 30,500 MW 16,000 34,543 MW 35,511 MW Installed capacity & Inter regional links Inter regional Link MW capacity NER-ER1,850 ER-NR700 ER-SR1,200 ER-WR1,650 SR-WR1,200 WR-NR900 Talcher Kolar HVDC Bipole 2,000 Total as on ,500 Target for ,000 Three synchronous systems -North, Central & South 33,142 MW 16,561 MW 2,443 MW Installed Generation Capacity As on : 122,200 MW Target for Year 2012 : 200,000 MW

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.6 All India Generation (as on ) Coal (67,688 MW) Hydro (31,745 MW) Gas (12,171 MW) Diesel (1,201 MW) Nuclear (3,310 MW) Renewable (6,158 MW) Total Installed Capacity: 1,22,275 MW Total market size587.3 BU Thermal486.0 BU Hydro84.5 BU Nuclear16.8 BU Market Composition State Sector long term PPA46 % Central Sector long term PPA 37 % IPP generation9 % Electricity Trading3 % Balancing market5 %

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.7 Domestic 84 kWh Commercial 26 kWh Industrial 117 kWh Public Lighting 4 kWh Traction 9 kWh Agricultural 81 kWh Others 71 kWh Predominantly Agricultural & Domestic Highly weather sensitive Wide variation in peak & off peak demand Behavior of each state different from others Per capita consumption Load Characteristics

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.8 Planning Philosophy Year 1975 to 2000 –Regional self-sufficiency –Asynchronous Inter regional links for emergency assistance and limited transfer of operational surplus –Focus on evacuation of Power plants Post Year 2000 –National optimization of resources –Stage wise development of transmission capacity –Focus on stability, system strengthening –Emphasis on distributed generation Macro Planning –Centralized Perspective Plans by Central Electricity Authority (CEA) Micro Planning –By Central Transmission Utility (CTU) in the interstate level –By State Transmission Utility (STU) in the intrastate level

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.9 Challenges in Planning Achieving capacity adequacy –In Generation & Transmission Optimization of power transmission corridors –400 kV multi circuit, 765 kV AC, kV HVDC Bipole Enhancing transfer capability of existing lines using –Series compensation –System Protection Schemes –Phasor Measuring Units (Wide Area Measurement) Formation of National Grid by 2012 –Total investment required: INR 710 Billion (US $ 15.7 Bn) –Investment by POWERGRID: INR 500 Billion (US $ 11.1 Bn) –Investment by private investors: INR 210 Billion (US $ 4.6 Bn) Address deficiencies in sub-transmission system –High Voltage Distribution System, Distribution Management System Managing international power transactions

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.10 Regional Grid Management Grid Operation philosophy –Decentralized Operation & Control (Loose power pool) –State power system treated as Notional (flexible) Control Area –Very tight control of actual interchange by utilities not mandated –Deviations from pre-committed schedules appropriately priced Unity of Command –National Load Despatch Centre (NLDC) –Regional Load Despatch (RLDC) apex body within the region –State Load Despatch Centre (SLDC) apex body within the state

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.11 Ensuring System Security & Stability Protection Coordination at Regional level –Under frequency, df/dt relays, under voltage relays Hybrid operation of Long HVDC & EHV AC system Use of Dynamic Compensation- FACTS, SVC Frequency Controller on HVDC Back to Back Using Advanced tools of System Visualization –SCADA, EMS, Unified Network Database Dedicated communication system Real-time Balancing by operator complemented by –Frequency linked Pricing for Active Power imbalance –Voltage linked Pricing for Reactive Power imbalance

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.12 Open architecture based unified data acquisition system Moving towards operation by exception through –Intelligent alarm processing –Drawing operator attention through blinking/colored/dotted displays –Utilization of classical energy management tools Thrust on use of enhanced visualization techniques –Geographical maps & 3-dimensional displays Simplification of navigation in application software –Ease-of-use end result Improving system data reliability through –Quality flags –Ensuring availability of communication network Seamless confluence of SCADA and the MIS Skill enhancement through training, simulator exercises –Experienced Operators work with fresh engineers Empowering the grid operator

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.13 NLDC RTU SUB LDC SLDC RLDC 23 Nos. 51 Nos Nos. 5 Nos. Plant/Sub Station Level Group of District Level State HQ Level Region Level National Level Data Acquisition & Communication System Dedicated communication system For data and speech

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.14 Compressing gestation period of transmission projects –Satellite imaging for detailed survey & route alignment –Standardization of tower design Enhancing transfer capability on existing line –Series Compensation, Flexible AC Transmission system –Reconductoring using aluminum alloy conductors Optimization of power transmission corridors –400 kV multi circuit, 765 kV AC, kV HVDC Bipole Adoption of higher voltages for loss reduction Installation of switched shunt reactors Gas insulated substations Switching over to numerical relays Convergence of Communication & Transmission –Optical Fibre Ground Wire (OPGW) Applying technology

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.15 Grid performance Number of Grid Disturbances have come down Inter regional Power exchanges have increased manifold

Monday, October 24, 2005POWER GRID CORPORATION OF INDIA LTD.16 Challenges in Grid operation Secure & Reliable operation of large synchronous system –Synchronous operation of Northern Region with Central Grid –By 2006 we shall have only two electrical regions Development of a competitive power market Harmonizing interests of stake holders Building mutual trust Ensuring the ‘Right Man’ behind-the- wheels Capturing wealth of operator experience in form of expert systems SOUTHE RN REGION WESTER NREGIO N EASTER N REGION NORTHER N REGION NORTH- EASTER N REGION ELECTRICAL REGIONS Same frequency from Gujarat to Arunanchal Pradesh with effect from March 2003 About 2800 kilometers apart

Thank you for your attention Namaskar !!!