1. POWER SCENARIO IN HIMACHAL PRADESH
Venue: East Bourne, Shimla
Dated: 5sth Nov, 2011

2. CONTENTS Overview of Indian Power Sector
The Blue Planet & Benefits of Hydro Power
Overview of HP Power Sector
Stake Holders
Peculiar Conditions of HP
Power Supply Position – Projections
Experience with Energy Exchanges – Energy & REC Trading
Future Trends

3. PHILOSOPHY
Power is an essential requirement and critical infrastructure on which socio economic development and its global competitiveness hinges on the availability of reliable & quality power on competitive rates. The demand of power in an ever growing economy like India is enormous and is growing steadily.

4. GROWTH IN INDIA’S INSTALLED CAPACITY SINCE 1947
From a generation capacity of GW in 1947, India has grown to having an installed capacity of more than 179 GW in 2011

5. Indian Power Sector Long Term Trends
Source: World Bank, International energy outlook 2006, Working Group of Power for eleventh Plan 2007

6. FUEL WISE INSTALLED CAPACITY - INDIA

7. Installed Capacity of India (As on 1.7.2011)
Thermal power comprises 64 % of this total generation, while Hydro Power constitutes 22 % of the installed capacity. The rest is made up by Nuclear, Wind, solar and other sources

8. PECULIARITIES OF REGIONAL GRIDS IN INDIA

9. PECULIARITIES OF REGIONAL GRIDS IN INDIA

10. DEVELOPMENT OF THE NEW & NATIONAL GRID BY 2012
Formation of a National Grid helps in optimal utilization of resources by enabling transmission of power from Surplus areas to Deficit areas, it also adds the risks that are associated with the operations of very large Grid.

11. An Interregional Transfer Capacity of 37000 MW is envisaged by 2012
NORTHERN
REGION
WESTERN
REGION
An Interregional Transfer Capacity of MW is envisaged by 2012
Source: CEA

12. PER CAPITA CONSUMPTION OF INDIA
VIS-À-VIS THE WORLD
The target for Per Capita Consumption for India has been set as kWHr by 2012

13. The “Blue” Planet 71% Water, 29% Solid Mass (2% Ice tops, 1% water)
Studies suggests that there has been no quantum change in the 1% surface water during last 50 years

14. HYDRO POWER BENEFITS
“Hydro is a powerful source of electrical generation with powerful story. Hydropower provides one fifth of worlds electricity along with non power benefits, Yet we can’t leave it to chance that those outside this industry grasp unique significance of what hydro provides our world.” . 14 14

15. HYDRO POWER BENEFITS
Fossil based fuels are depleting at a faster rate & it is presumed that another 50 years there would not be enough fossil based fuel to meet the electricity demand of the world.
Therefore every where around the world there is an increased emphasis on renewable energies
Countries like Spain, France have already started utilizing renewable source based electricity as a major portion of their total electricity demand.

16. STATUS OF POWER POTENTIAL
Identified Power Potential
23000 MW
(600Projects)
Commissioned till date
7858
(93Projects)
Under Implementation
13640
(479 Projects)
Abandoned
690
(6 Projects)
Balance to be Allotted
812
(22 Projects)

17. STAKE HOLDERS IN THE HP POWER SYSTEM
GENERATION
HPSEBL
HPPCL
IPPs
TRANSMISSION
HPPTCL(STU)
PGCIL
IPP-PGCIL Consortium
DISTRIBUTION
CONTROLLING /
REGULATORY BODIES
DOE
HPERC
Chief Electrical Inspectorate
FRGC
Electricity Ombudsman
SYSTEM OPERATORS
SLDC Under HPLDS
ALDC under HPSEBL

18. 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 =
Sutlej basin =
Beas basin =
Ravi basin =
Chenab basin =
Mini micro =
Projects
Total = At 60 % Load factor =

19. IDENTIFIED HYDRO POTENTIAL - HP BASIN
2251 MW
Chenab basin MW
Ravi basin MW
Beas basin MW
Sutlej basin MW
Yamuna basin

20. PECULIAR GEOGRAPHIC & DEMOGRAPHIC CONDITIONS OF HP
Himachal Pradesh is a hilly state with a population of around 68,56,509 Lakhs as per 2011 census
HPSEB Ltd. services about 20 Lac consumers spread out in 56,000 sq. km. of area of the Pradesh.
All this has been achieved in spite of the diversity in Geographical & Demographic conditions in the state which has a population density of 367 person/sq.km in Hamirpur District to 2-12 person/sq.km. in Lahul Spiti and Kinnaur Distt. The altitudes vary from 300 mtrs. above MSL to 7000 mtrs. above MSL. 20 20

21. PECULIAR POWER CONDITIONS OF HP
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
This results in HPSEB being surplus in power during the summer months, and extreme deficits in winter Our own generation reduces almost to % 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

22. MAJOR ACHIEVEMENTS
First hilly state in the country to achieve 100% electrification of villages in 1988.
Highest household coverage ratio in the country.
Electrification of highest inhabited village in the World.
Construction of Power House at the highest Altitude in the World.
Unique distinction of 100% metering, billing & collection.
7th rank in State Power Sector Performance ratings by CRISIL & ICRA in June,2006

23. CATEGORY WISE CONSUMPTION (%)
Category wise consumers in %age
Total consumption: 4038 MUs

24. POWER SCENERIO 2008-09 to 2010-11 DEMAND VS SUPPLY

25. PROJECTED GROWTH FOR DEMAND & AVAILABILITY (MU)

26. ENERGY REQUIREMENT (MU)
PROJECTED GROWTH FOR
ENERGY REQUIREMENT (MU)

27. PROJECTED GROWTH IN
AVERAGE DEMAND (MW)

28. HYDRO POWER DEVELOPMENT IN THE STATE
(Above 5MW)
State
Central & joint
Private
Commissioned
446 (10)
5491 (9)
1621 (8)
7558 (27)
Under investigation
2088 (14)
775 (1)
3319 (34)
6182 (49)
Obtaining clearances
538 (3)
66 (1)
961 (30)
1565 (34)
Under construction
522 (7)
2763 (5)
576 (16)
3861 (28)
Others
0 (0)
1095 (5)
Abandoned
735 (6)
Total
3594 (35)
9095 (16)
8308 (99)
(149)

29. UPCOMING HYDRO POWER STATIONS (CENTRAL SECTOR & IPPs)
Name of Project
Capacity (MW)
HPSEBL's
Share
GoHP Free Power (12%)
Koldam
800
142 --
Chamera-III
231 41
Parbati-II 22
Parbati-III
520 14
Karcham-Wangtoo
1000
120
Budhil 70
8.4
Kasang-I 65
7.8
TOTAL
219
136.2

30. UPCOMING THERMAL POWER STATIONS
Name of Project
Capacity (MW)
HPSEBL's Share
Rihand-III
1000 34
Barh-I
1980 --
130
Barh-II
1320 20
North Karnpura 30
Meja 19
Singrauli Stage-III
500 18
Tanda Stage-II 46
Orissa-I UMPP
4000
100
Tamil Nadu-II UMPP 45
Gidderbaha
2640 40
Emta Power
250
TOTAL 54
678

31. UPCOMING HYDRO POWER STATIONS OF HPPCL
Name of Project
Capacity (MW)
HPSEBL's Share
Sawra Kudu
111 -- 59
Sainj
100 53
Sontong karchham
402
212
Tidong 60 32
Chirgaon Majhgaon 42 22
Kasang-I 65 34
Kasang II&III
130 69
Kasang- IV 48 25
Renuka Dam 40 21
Total
315

32. UPCOMING HYDRO POWER STATIONS OF HPSEBL
Name of Project
Capacity (MW)
HPSEBL's Share
Bhaba Augmentation --
Ghanvi-II 10
8.8
Uhl-III
100 88
TOTAL
96.8
HPSEBL intends to invest Rs.174 crores for generation works during the first year of the control period , and Rs.596 crores during the balance control period

33. SOURCE WISE PROJECTED POWER AVAILABILITY (MW)

34. INSTALLED CAPACITY IN THE STATE OF HP

35. Allotment Policy & Milestones
- Well Defined and Transparent
- Through International Competitive Bidding (above 5 MW)
Practicable time frame for milestones & penalties for delay
- DPR preparation & submission
- Signing of IA
- TEC/Statutory clearances
- Start of Construction work
- SCOD

36. LOCAL AREA DEVELOPMENT FUND
Revised Guidelines for LADF Management
Clarity in objectives & utilization of 1.5% of the total project cost.
Effective Institutional Management
Parameters for allocation of Funds
Clarity on shelf of schemes
1% additional free power for LADF (Cash transfer to the families located in project affected area with additional benefit to BPL families)

37. ENVIRONMENT ASPECT OF HYDRO POWER DEVELOPMENT–
Fragile Ecology & Invariably Forest Land Is Required
Strictly Following the Guidelines of MoEF for forest and Environment clearances
NBWL/Supreme Court permission being obtained in Projects falling in wild life sanctuaries
MoEF wants holistic/realistic Basin wise approach
CEIA for Satluj basin awarded to ICFRE and for Chenab is under Process
Impacts on Flora, Fauna, Population, Catchment Area, watersheds and their mitigation measures to be covered under CEIA studies

38. RE-ASSESSMENT OF POWER POTENTIAL
Work awarded to Lahmeyer International (I) Pvt. Ltd, for:
–     
Identification of balance Power Potential
Basin-wise Digitization of Power Potential
Marking of Project Domains

39. REAL TIME DIFFICULTIES
Inspite of the best planning real time operation of the power system in HP is difficult because
Hydro Generation is hard to predict & is highly dependent on weather conditions which are even harder to predict
Similarly demand in the state is highly dependent on weather conditons which makes it difficult to predict
Inherent difficulties in load forecasting & demand management 39

40. POWER EXCHANGES
Power Exchanges have provided the last mile in planning by providing a platform to
dispose surpluses
Meet shortages
of power when the same appear even after due diligence in long term & short term planning. 40

41. Energy Trading – Future Strategy
Presently two Power Exchanges are in operation in India since mid of August, 2008
HPSEB Ltd. is Direct Member of both the Power Exchanges and is operating for energy transactions
During due to heavy rains and more availabilities of power, the rates has been volatile/low
However as only 2-3% energy is being transacted in India at exchanges platform and market is still maturing may for stable trading of rates in the market
These shares as per GoI initiatives for IPPs is likely to go up to 15% in the next five years, which shall play a major role in meeting the day to day demand and disposal of surpluses in more matured and stable manner 41 41

42. REC TRADING – OPPORTUNITY
“Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO). It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO).”
Most State Regulatory Commisions have now specified the RPO obligations for their respective States
RECs have begun to be traded on the platform of Power Exchanges since Mar, 2011 42 42

43. RPO OBLIGATION State RE Source FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Karnataka
BESCOM
10%
MESCOM
CESC
HESCOM 7%
GESCOM
Hukeri Society
Rajasthan
wind
6.75%
7.50%
Biomass
1.75%
2.00%
Total
8.50%
9.50%
Madhya Pradesh
Non-solar
0.80%
2.10%
3.40%
4.70%
6.00%
Solar
0.20%
0.40%
0.60%
1.00%
2.50%
4.00%
5.50%
7.00%
Punjab 4%
Haryana
Meghalaya
Wind
0.10%
0.15%
0.30%
Others
0.50%
0.75%
Bihar
1.50%
Chhattisgarh
3.75% -
others
1.25%
0.25%
West Bengal
WBSEB
3.00%
DVL
DPSC
DVC

44. RPO OBLIGATION State RE Source FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Gujarat
Wind
4.50%
5.00%
5.50%
Solar
0.25%
0.50%
1.00%
others
Total 5% 6% 7%
Maharashtra
Non-solar
5.75%
6.75%
7.75%
8.50% 8% 9%
Uttaranchal
3.75% 4%
Manipur
Non solar
1.75%
2.75%
4.75% 2% 3%
Mizoram
Jammu & Kashmir 1%
Uttar Pradesh
Tripura
0.10%
Jharkhand
2.50%
3.00%
Himachal Pradesh 0%
10%
11%
125
10.10%
11.10
12.10%
Orissa
0.15%
0.20%
1.20%
1.40%
1.60%
1.80%
Co-gen
3.50%
3.70%
3.95%
4.20%
4.45%
6.50%
Assam
0.05%
2.80%
4.25
5.60%
Tamil Nadu
14%
 14%
Delhi
Andhra Pradesh

45. REC - OPPORTUNITIES FOR IPPS
Freedom to sell power to Distribution licensee of the area or any other licensee or any open access consumer
Due to RPO Obligations the demand for RECs would increase nation wide and IPPs stand to gain by registering as a RE generator and becoming a part of the REC mechanism. The Floor & Forbearance Price have been specified as below:
Non solar REC
Solar REC
Forbearance Price
3,900
17,000
Floor Price
1,500
12,000

46. 46

47. 47

48. 48

49. 49

50. 50

51. HP ENERGY TRANSACTION THROUGH POWER EXCHANGES
LUs 51

52. FUTURE TRENDS
The power market is maturing & more products are anticipated in the future to facilitate Grid operational security
Instead of using UI mechanism as a means for meeting deficits & disposing surpluses utilities will increasingly use the platform of power exchanges for the same
More products especially long term are expected in the future
REC trading would come to the fore as RPO is mandatory not only for distribution companies but captive power and open access companies as well
Power Exchanges can be expected to replace Bilateral agreements/ LTA by utilities to cater to the demand in their control area.

53. Understanding the
Power System
A Small Video Clip

54. ISSUES OF CONCERN
Timely finalization of basin –sub basin wise transmission plan to generate confidence in IPPs with regards to connectivity and the specific time lines for availability of connectivity
Expeditious re-identification of hydel power projects of HPSEBL
Point of connection tariff related issues
Dissemination of knowledge amongst stakeholders
Getting clearances & Arranging Finances is still a major hurdle

55. CONCLUSION
To support the projected GDP growth rate of 8 to 10% the Indian power sector not only needs to grow & harness all available renewable resources expeditiously but also the Indian Power Market needs to evolve newer value added production service
Let us pledge and move forward to achieve this ‘Cherished Dream’
Demerits of others may not be construed as merit of yours

56. THANK YOU