1. “Efficient & Cost Effective Power Purchase Planning”
MYT of 3rd Control Period : Meeting to review implementation of Program/Works – Interactive Session thereof.
“Efficient & Cost Effective Power Purchase Planning”
A PRESENTATION BY HPSEB LTD.
Venue: HPERC March 25, 2014

2. INDEX INDEX Peculiar Conditions
Availability & Demand – Some Statistics
Actuals FY 11-12, & FY (up to Feb. 14)
Projections FY 14-15
Observations of HPERC
Comments of HPSEBL
Conclusions

3. Peculiar Power Conditions in HP
Power in Himachal Pradesh is predominantly Hydro with the availability comprising of:
Own Generation ( 100 % Hydro) – 477 MW
Central Sector/bilateral shares (10 to 15% thermal) – total approx MW
This results in HPSEB being surplus in power during the summer/monsoon months, and extreme deficits in winter months since
Our own generation reduces almost to % due to lean water discharge
Similar reduction happens with our Central Sector Shares from Hydro in the region.
There is an increase in demand due to the cold weather

4. Typical Annual Availability & Demand Pattern for HP
Our Annual Availability and Demand
Typical Annual Availability & Demand Pattern for HP
Monthly Availability (MU) MW
Monthly Demand (MU)

5. Availability of Power – Various Sources
Own Generation
Purchase from Private Sector with in State
Purchase from Other sources:
Central Sector
Joint Sector
Shared Generation
Go HP
Un-allocated
Banking/ UI/ Contingency Purchase

6. Source Wise Availability For FY 14-15
INDEX
Sr.No.
Source
MUs 1
Own Generation
1930 5
Private Sector
2420 2
Shared Generation
1165 6
GoHP Power
2026 3
Central Sector
2098 7
Unallocated 70 4
Joint Venture
368
TOTAL
10079

7. Nature Of Availability for FY 14-15
INDEX
Nature
Hydro
Thermal
Nuclear
Solar
Total
MUs
8409
1473
177 20
10079

8. Month Wise Details of Surplus/Deficit of Energy (FY 14-15)
MUs

9. Availability V/s Demand Curve for a typical Summer Day
( ) MW

10. Availability V/s Demand Curve for a typical Winter Day (17.01.2014)MW

11. Availability from Various Sources for a typical Summer Day (30. 08MW

12. Availability from Various Sources for a typical Winter Day (17. 01MW

13. Committed Shares in Generation – Purchases thereof
Sr. No.
Name of Station
Installed Capacity (MW)
HPSEBL's Share
Unit Rate FY 15 (In Paise) % MW I.
BBMB STATIONS 
Bhakra old HP share -
1.2 LU /day
10.00 94
Bhakra complex
7.19
84.23 56
Dehar
990
56.83 79
Pong
396
11.77 34
SUB TOTAL I.
162.83
II.
NHPC STATIONS 
Chamera-I
540
2.9
15.66
172
Chamera-II
300
3.67
11.01
323
Chamera-III
231
3.36
7.75
450
Tanakpur
120
3.84
3.62
256
Salal
690
0.99
6.83
146
Uri
480
2.71
13.01
198
Dhauliganga
280
336
SUB TOTAL II.
2641
67.88

14. Committed Shares in Generation – Purchases thereof
Sr. No.
Name of Station
Installed Capacity (MW)
HPSEBL's Share
Unit Rate FY 15 (In Paise) % MW
III.
NTPC PROJECTS 
Rihand-I
1000
3.5
35.00
228
Rihand-II
3.3
33.00
235
Rihand-III
3.37
33.70
402
Unchahar-I
420
1.67
7.00
392
Unchahar-II
2.86
12.00
416
Unchahar-III
210
3.8
8.00
450
Kahalgaon -II
1500
1.53
22.95
386
Anta Gas
419.33
3.58
15.01
489
Auraiya Gas
663.36
3.32
22.02
513
Dadri Gas
829.78
3.01
24.98
487
SUB TOTAL III.
7462.5
213.66
IV.
UJVNL/UPJVNL STATIONS 
Dhakrani (UJVNL)
33.69 25
8.42 74
Dhalipur (UJVNL) 51
12.75
Chibro (UJVNL)
240
60.00
Khodri (UJVNL)
120
30.00
Kulhal (UJVNL) 30 20
6.00
Khara (UP) 72
14.40
SUB TOTAL IV.
546.69
131.57

15. Committed Shares in Generation – Purchases thereof
Sr. No.
Name of Station
Installed Capacity (MW)
HPSEBL's Share
Unit Rate FY 15 (In Paise) % MW V.
PSEB STATIONS 
Shanan 60
Fixed
1.00 44
Shanan Extn. 50 -
8.57 23
SUB TOTAL V.
110
9.57 VI
NPCIL PROJECTS 
Narora
440
3.18
13.99
300
RAPS (5&6)
3.41
15.00
414
SUB TOTAL VI.
880
28.99
VII
JOINT VENTURE PROJECTS 
Nathpa Jhakri
1500
2.47
37.05
309
Tihri HEP (THDC)
1000
2.8
28.00
538
Koteshwar (THDC)
400
2.51
8.04
481
SUB TOTAL VII
2900
73.09

16. Power Purchase during FY 2011-12
S.No.
Source
Energy (In Mus)
Amount (In Crs)
Rate (Paise/unit) 1
NTPC
438.47
293 2
NHPC
316.58
71.60
226 3
NPCIL
211.37
65.70
311 4
Shared Generation
935.57
49.25 53 5
Joint Sector
698.25
279.68
401 6
Private Sector (Baspa)
325.02
266 7
GoHP
748.59
221.58
296 8
Contingency Purchase
229.65
101.27
441 9 UI
209.95
73.91
352
TOTAL
268

17. Power Purchase during FY 2012-13
S.No.
Source
Energy (In Mus)
Amount (In Crs)
Rate (Paise/unit) 1
NTPC
432.72
297 2
NHPC
353.30
92.93
963 3
NPCIL
242.96
74.48
307 4
Shared Generation
64.34 56 5
Joint Sector
333.17
124.01
372 6
Private Sector (Baspa)
325.94
302 7
GoHP
316.64
290 8
Contingency Purchase
61.89
20.48
331 9 UI
211.57
38.72
183
TOTAL
249

18. Power procurement Comparison during FY 2010 to 13
All Figs in MUs

19. Power procurement Comparison during FY 2010 to 13
All Figs in MUs

20. Power procurement Comparison during FY 2010 to 13
All Figs in MUs

21. Power procurement Comparison during FY 2010 to 13
All Figs in MUs
Total Power Purchase

22. Power Purchase during FY 2013-14 (up to Feb. 2014)
S.No.
Source
Energy (In MUs)
Amount (In Crs)
Rate (Paise/unit) 1
NTPC
385.00
335 2
NHPC
284.49
77.32
271 3
NPCIL
225.22
69.09
306 4
Shared Generation
67.59 57 5
Joint Sector
494.17
179.46
275 6
Private Sector (Baspa)
291.92
254 7
GoHP
382.84
292 8
Contingency Purchase
100.81
30.52
303 9 UI
188.87
30.00
158
TOTAL
249

23. Projections vs Actual for FY 2013-14
Source
Projections
(As per ARR Dt )
Actual (up to Feb. 2014)
Including UA
NTPC
NHPC
374.70
284.49
NPCIL
151.16
225.22
Shared Generation
Private Sector
Joint Sector
308.84
494.17
Go HP
Banking Purchase
1068
Unallocated
424.73
Remarks:- Actual Share received includes Unallocated quantum.

24. Projection Vs Actual FY 13-14
Sr. No.
Description
Estimation for FY 13-14
Anticipation Viz.viz. Actual April, 13 to Dec. 13
Diff.
Estimation
Actual 1
Own Generation
1794
1742
1690
-52 2
IPP owned SHEPs
1206
1087
1060
-27 3
Baspa
1195
931
995 64 4
Central Sector Shares
1894
1431
1284
-147 5
Joint Sector
332
241
308 67 6
Shared Generation
1262
1002
1012 10 7
GoHP Power
1668
1593
1345
-248 8
Unscheduled Interchange (UI)
175 9
Banking
1214
109
IEX 95 11
OA Purchase by Consumers 47
Total
10565
8027
8120 93

25. Projection Vs Actual FY 13-14
Sr. No.
Description
Estimation for FY 13-14
Anticipation Viz.viz. Actual April, 13 to Dec. 13
Diff.
Estimation
Actual 12
Requirement of State
8682
7126
6393
-733 13
Total Surplus/Shortage (+/-)
1883
901
1727
826 14
Sale through UI
112 15
Sale through IEX
524 16
Sale through Banking
1312
1116
1306
190 17
Sale through REC Mechanism
324
282
-282
Total Sale
1636
1942

26. Month wise %age rise in Requirement
Percentage Rise

27. Power Supply Position FY 12 to 14
All Figs in MUs
Description
FY-12
FY-13
FY-14
Total availability at HPSEBL periphery
9469
9791
10652
Power required at HPSEBL periphery for Intra State Sales
8007
8363
8682
Net Surplus
1461
1429
1970

28. Trend of Disposal of Surpluses FY 12 to 14
All Figs in MUs
Description
FY-12
FY-13
FY-14
Net Surplus
1461
1429
1970
Banking sale / Return at Discom Periphery
971
877
1312
Interstate Sales at Periphery (UI/IEX)
490
552
658

29. Anticipated Power Supply Position FY 14-15
All Figs in MUs
Description
Summer
Winter
Total
Total Availability at HPSEBL periphery
7346
2427
9773
Power Required at HPSEBL periphery for Intra State Sales
5166
3937
9103
Net Surplus
2180
-1510
670

30. Proposal for Disposal of Surpluses FY 14-15
All Figs in MUs
S.No.
Description
Quantum 1
Net Surplus
2180 2
Previous Year Obligation
375 3
Contra Banking
1125 4
Sale of Renewable Power
391 5
Sale through Open Tender
200 6
Contingent Surplus 84

31. Mitigating Winter Deficit FY 14-15
All Figs in MUs
S.No.
Description
Quantum 1
Net Deficit
-1510 2
Contra Banking
1197 3
Forward Banking
450 4
Contingent Surplus
137

32. Observations of HPERC (iv) Prudence in failure long term PPAs:
Demonstrative calculations by Commission on managing disposal of surplus power & procurement of deficit power.
During estimated loss on account of Inter State Sale of 675 MUs of 1.82 per unit against purchase rate of Rs.4.90 per unit is amounting to Rs. 200 Cr.

33. Interstate Sale of 675 MUs FY 14-15
Proposal of HPSEBL:
Disposal as Renewal Power: 393 MUs
Sale through Open Tender: 200 MUs
Contingent surplus to the extent of 82 MUs
(3 to 5% of demand in compliance to the Directions of Hon’ble Commission through MYT dated )
Therefore loss as projected by HPERC is not likely for the fact that tenders for sale of power under renewals have been published & it is pertinent to mention here that during FY 12-13, 257 MUs were disposed Rs per unit through open tender under renewal power.

34. Interstate Sale of 675 MUs FY 14-15
Transaction under UI are per force so as the case of transactions under IEX as when ever such unexpected surpluses are available on day to day basis there are no other avenue generally available for such sale to be effected.
Sale rate during FY 13-14:
Under UI Rs per unit
Under IEX Rs.2.16 per unit
Also HPERC has compared two un-equals i.e. for sale of power average rate of UI / IEX has been considered and for the purposes of purchases highest rate of the committed shares has been taken into consideration whereas the fact remains the average rate of purchases during FY has been Rs.2.49 only against Rs.4.90 being mentioned

35. Submissions of HPSEBL on Banking Transactions:
Observations of HPERC : (ii) If we bank the power on equal quantum return basis from the surplus as against buying winter power available at Rs.2.0 per, less on account of banking transaction of 1542 MUs presuming costliest power rate per unit that is Rs.385 Cr.:
Submissions of HPSEBL on Banking Transactions:
HPSEBL has surpluses in the monsoon only and experience shows that rate of sale of power during that time is lower than the purchase rate during winter months when we are grossly deficit.
HPSEBL had invited tenders for sale of its surplus power during summer/monsoon months and also for purchase of power for deficits of winter months during FY and the above fact was found true and the same was brought to the notice of Hon’ble Commission during that period.
However, this time also, HPSEBL proposes to invite tenders for such transactions for FY and in case the reverse trend is observed, the banking transactions shall be prune down to equivalent levels.

36. Observations of HPERC : (ii) If we bank the power on equal quantum return basis from the surplus as against buying winter power available at Rs.2.0 per, less on account of banking transaction of 1542 MUs presuming costliest power rate per unit that is Rs.385 Cr.:
However, banking transactions continues to be one formidable arrangement in the present times;
Being cashless transactions as most of the DISCOMs have the liquidity issue.
Flexibility of reduction & increase with mutual consent (up to 20%) as per requirements and fluctuations in the loads etc .
To take care the base load requirements in the most effective manners.
The suggestion by buying such big quantum through UI/ IEX platform formidably may not hold good as these platforms generally provide power in varying quantum to meet the contingent deficits and probably meeting the continued demand of deficit at Rs.2.00 per unit may be is not right and then comparing the same with highest purchase rate (Rs.4.50 per unit) of the committed shares for such quantum i.e MUs and calculating the loss may not hold good. Moreover during this year up till February the average rate of IEX is Rs per unit and also the power is available in small quantum in varying hours of the day.

37. Observations of HPERC : (ii) If we bank the power on equal quantum return basis from the surplus as against buying winter power available at Rs.2.0 per, less on account of banking transaction of 1542 MUs presuming costliest power rate per unit that is Rs.385 Cr.:
Though the Open Access Consumers are availing power from Energy Exchanges as they have arrangements from DISCOM fall back, if they fails.
Pursuance to the suggestions of Hon’ble Commission, HPSEBL proposes to invite tenders before putting these transactions under banking arrangement into practice for FY

38. Observations of HPERC : (iii) The proposed planning for next MYT period needs to be done professionally to avoid disaster to HPSEBL’s finances, because imprudent cost cannot be passed on to consumers:
In order to reduce the burdens on purchases following prudent practices are being followed;
Surrendering of power on merit order basis during real time operations as may be noted from the fact that HPSEBL has surrendered shares under RF/LF to the tune of MUs of power during FY and MUs of power during FY up till February 2014 amounting to Rs Cr. and Rs Cr. respectively.
Optimization of generation resources during lean flows by over drawing from the Grid whenever frequency is favourable and the rates are low resulting in saving and also buying power through IEX under such circumstances.
Day ahead scheduling in 96 blocks being carried out for assessment and effecting such contingent purchases or transaction of power and also under banking.

39. (v) Disposal of surpluses under existing PPAs item (a) to (i)
(a) & (b) Due cognizance shall be given
(c) Banking operations are being carried out on premium only as in respect of contra with Delhi & UP we are getting 5% extra and in case of Punjab & Haryana though it is on equilateral basis we get power in advance during winter months under forward banking to be returned in the next summer from these States.
(d) For transfer of SOR share to GoI for first few years for projects like Tehri, Koteshwar and Chamera-III has been tried for one year, however GoI remained silent but the same shall pursued for more years and for more projects during FY 14-15
(e), (f), (g), (h) & (i) Due cognizance shall be given

40. Conclusions
HPSEBL’s endeavor shall be to minimize the burdens on purchases of costly power and to mitigate the shortages through most efficient manner.
Also, the day to day management control and regulation of power shall be undertaken in the most effective manner.
The above goals shall be achieved under the able guidance and support from the Hon’ble HPERC.
With deregulation atmosphere building up, complicacy in the business shall call for its death.

41. your attention & valuable time
for sparing
your attention & valuable time