1. Electric Entities: New Models
Sh. R.P. Singh
CHAIRMAN & MANAGING DIRECTOR
POWER GRID CORPORATION OF INDIA LIMITED

2. Power Sector Reforms Worlwide
DEVELOPING COUNTRIES
To mobilise private investment efficiently and quickly to meet rapid growth in demand
To improve efficiency and quality of service.
DEVELOPED COUNTRIES
To keep downward pressure on costs and prices
To increase efficiency through competition.

3. Power Sector Reforms: the Trend
Unbundling into Generation, Transmission and Distribution
Regulation of monopolistic segments
Introduction of competition
Establishment of predictable, transparent and unambiguous regulatory framework

4. VARIOUS MODEL ADOPTED WORLD OVERUK
Foremost country to restructure
Vertically integrated CEGB unbundled. Transmission & Grid operation
entrusted to NGC (TSO)
Australia
Went for unregulated Merchant Transmission
Not met with much success and reverted back to regulated status
United States
Generation, transmission & distribution unbuindles and many utilities
setup
Independent System Operator (ISO)
USA is now moving towards TSO model through RTO
French model
Canadian model

5. UK & South African ModelG G G G G
T SO D D D D D
This model is also followed in other European countries like Norway, Sweden, Finland, Netherland, Denmark etc.

6. G G G G G G RTO SO T T T SO D D D D D D
American Model G G G G G G
RTO SO T T T SO D D D D D D
This model is followed in USA. Based on their California experience, USA is now moving towards TSO model through RTO.

7. G T + SO D RTE EdF French Model
This model is followed in France, wherein Transmission and System Operation functions have been delegated to RTE. EdF is responsible for the Generation and the Distribution.

8. G G G G T T T SO TA D D D D Canadian Model
This model is followed in Alberta, Canada. In this model, since, there are more than one main transmission companies, an independent System Operator and Transmission Administrator exist.

9. Indian Electricity Market; Evolution
Electricity Act, 1887
First legislation on Electricity in India.
Basic legal frame work for Electricity Supply Industry was provided.
Electricity Act, 1910
Electricity (Supply) Act, 1948
Dealt with Statutory Powers and functions of CEA, SEBs and Generating Companies.
State Electricity Boards were formed as vertically integrated utilities.
1948
Country demarcated into five regions and Regional Electricity Boards established.
1963
1975
Central Sector generating Utilities like NTPC, NHPC were established.
Policy decision taken by GoI to form a National Grid
1981
Cont …

10. Indian Electricity Market; Evolution
…Cont.
1989
POWERGRID was formed.
Power Sector reforms introduced in a limited way
1991
Private Sector Participation in Power Generation was opened .
1998
Private Sector participation in transmission was opened.
Electricity Regulatory Commission Act, 1998 promulgated.
CERC at Central level & SERCs at State level to be established.
1998
Power Sector reforms gained momentum in a bid way
2003
Electricity Act 2003 was enacted, repealing all previous Acts.

11. Indian Electricity Market; Evolution
Electricity Act, 2003 – salient points:
Delicensing of generation,
Transmission, Distribution & Power trading – licensed activity
More than one distribution licensee in the same area
Facilitating open access to transmission & distribution
Metering of all electricity with stringent theft penalties
Power producers to choose credit worthy buyers
CPPs to sell additional capacity through “open access”

12. Open Access Greatly misunderstood Does not mean “Free for all”
Phenomenal cost to build the Transmission Network to transfer any quantum of power from one point to the other,
Transmission facilities to transfer power from definite sources to defined customers
Only some operational margins available. Can be used to transfer economic power to bridge demand-supply gap

13. Inter-State Long-term Open Access
Central Transmission Utility (CTU) ; Nodal agency
Period of Applicability ; 25 years or more
Procedure, guidelines and Terms and conditions formulated and available at POWERGRID web-site
System studies to determine whether system strengthening required or not.

14. Short - Term Open Access
Short Term Access– upto 1 year usage
Nodal Agency - RLDC of the region in which the importing utility is located.
Trading of surpluses
Approval subject to transfer capacity available
Reduced priority then long-term
Economically priced ( ¼ th of long term )
Allotment based on e-bidding, in case of congestion in Transmission corridor

15. Role of POWERGRID
POWERGRID, the Central Transmission Utility to take up construction, operation and maintenance of major EHV transmission network and for operation of Regional and National Grid.
Investment of Rs. 70,000 crores planned during for supporting generation capacity addition of 100,000 MW and for National Grid

16. Role of POWERGRID Development of National Grid
Interregional power transfer capacity enhanced to 8500 MW
Planned to further enhance it to 2300 MW by and 30,000 MW by

17. POWERGRID in Southern Region
Power situation in SR had various problems
poor frequency, poor voltage
depleted natural resources
POWERGRID evacuating power from 4500 MW Central Generating units in SR over 6700 Ckt Kms & 15 S/S
SR greatly benefited by Inter-regional Links like
1000 MW at Chandrapur between WR & SR
500 MW at Gajuwaka between ER & SR
2000 MW HVDC bipole between ER & SR’
Further investment of 7500 Crore planned during next 5 yrs
POWERGRID’s telecom network extends upto Cochin

18. POWERGRID & Grid Management
Many Milestones Achieved
Three of the RLDCS (SR, NR & NER) modernised to improve effective Grid Operation
NO MAJOR GRID DISTURBANCE IN DUE TO
proactive approach in grid management
commercial mechanism under ABT
modernisation of RLDCS
implementation of inter-regional links
deployment of expert manpower
round the clock vigil

19. ISO Vs. TSO; A Debate
UK has kept Transmission & System Operation together
In North America, FERC introduced RTOs by bringing together system operators and transmission providers
Their not being under one umbrella was identified as one of the major reasons for recent grid collapses
In China and South Africa also, transmission and Load Despatch Centres are retained together after restructuring.

20. ISO Vs. TSO; A Debate
INDEPENDENT SYSTEM OPERATOR (ISO)
System operation is independent of the function of transmission system development
ISO prevalent when there are multiple transmission agencies
TRANSMISSION SYSTEM OPERATOR (TSO)
Grid operation as well as transmission system development with single entity
TSO prevalent where unbundling has taken place and there is one transmission utility

21. ISO Vs. TSO ; A Debate
In India, Transmission and system operation being under one umbrella is one of the major reasons for the outstanding performance of Indian grid
Convenient to identify transmission congestion and make decisions to adopt suitable technology for power transfer

22. Economic Power Supply to Agriculture
Reforms have laid special emphasis on improving distribution sector and rural electrification
Endeavor to provide secure, reliable and economic power to agriculture
Agriculture extends a helping hand in maintaining Grid Stability
Flattening of Load Curve; reduces the gap between off-peak & peak
Contains high voltage during off-peak
Non-supply of agriculture during off peak will lead to hostile load, frequency & voltage curve and high cost of energy to meet peak load

24. Economic Power Supply to Agriculture
Enough scope is available to supply economic power to agriculture without burdening the exchequer
Disproportional losses in Power Sector not on account of agriculture but due to rampant theft
Cheaper power from the neighboring regions can be important during off peak time
Availability based Tariff leads to very less cost of energy during off peak time

25. Conclusion – Challenges and Issues
MAJOR ISSUES WITH REGARD TO REFORMS
commercial interest takes precedence over public interest
development of environmental friendly generation capacity and provision of electricity for rural areas does not remain a consideration
GOVERNMENTS’ ROLE VERY IMPORTANT IN TERMS OF SETTING UP REGULATORY FRAMEWORKS SO THAT THESE ISSUES ARE ADDRESSED