2. 1 by : by : Power Grid Corporation of India Ltd APTRANSCO,VIDYUTH SOUDHA,HYDERABAD 01 st JULY 2005

3. 2 Contents ABT at Regional Level Need for Intra-State ABT Similarities at State Level Options for Market Models Options for UI Features of Special Energy Meters Allocations from PPAs Regulatory Issues Achievement of Intra-State ABT Implementation Plan

4. 3 01.01.2003 01.07.2002 01.04.2003 01.11.2003 01.12.2002 ABT implemented in All Five Regions. POWERGRID co-ordinated and provided all infrastructure for ABT implementation. Pool Accounts Operated by RLDCs.

5. 4 AVAILABILITY BASED TARIFF (ABT) Spearheaded by POWERGRID Features: Unique commercial mechanism linked with frequency. Fixed Charges i.e. Capacity charges  As per Plant Availability. Variable Charges i.e. Energy charges  As per Schedule. Unscheduled Interchange (UI)  Price as per prevailing system frequency

6. 5 ABT implementation – activities involved Scheduling ( Pre –Despatch Activities) Real time operation Settlement System (Post – Despatch Activities)

7. 6 Scheduling (Pre –Despatch Activities)

8. 7 SRLDC NLC STAGE2/1 NLC TS1 EXPTALCHER ST2 RSTPS NLC STAGE2/2 ISGS MAPSKGS DESPATCH SCHEDULE TO ISGS AVAILABILITY DECLARATION BY ISGS AP TRANSCO KPTCL KSEB TNEBPONDYGOANLCMINES BENEFICIARIES ENTITLEMENTS FROM ISGSs REQUISITION FROM ISGSs and STOAs DRAWAL SCHEDULE TO BENFICIARIES SCHEDULING AT SRLDC Legend

9. 8 ABT implementation - Pre-Despatch Activities Day- Ahead Scheduling  Demand forecasting  Availability Declaration – ISGS  Scheduling of ISGSGeneration and Bilaterals  In Southern Region - 5 ISGS stations - 10 Notional control areas - 5 bilateral and inter State open access transactions per day

10. 9 Real time operation

11. 10

12. 11

13. 12

14. 13

15. 14 Settlement System (Post – Despatch Activities)

16. 15 ABT in SR-----Settlement system Monthly Accounts for Fixed Charge and Energy Charge payments to ISGS Weekly Account for UI and Reactive Energy (Monday-Sunday) Operation of Pool Account by SRLDC (UItransactions)

17. 16 METERING LOCATIONS IN SR Total No Of SEMS in SR USED FOR REA 350 No.s Total No Of SEMS in APTRANSCO USED FOR REA127 No.s SR METERING DIAGRAM

18. 17 INTER STATE LINES METERING LOCATIONS

19. 18 Intra–State ABT

20. 19 Intra–State ABT : Power Grid Expertise - Implementation of Intra-State ABT in Gujarat and Punjab - Preparation of Roadmap for Intra-State ABT in Maharastra - Consultancy Proposals under consideration for other states

21. 20 Need for intra-State ABT To empower the utilities to take decisions in their interest. Management of UI –To identify agencies responsible for Overdrawal / Underdrawal, Overgeneration / Undergeneration resulting in UI payment to regional pool. Proper Demand forecast and management by DISCOMs Generation Availability of GENCOs To establish a framework for bilateral trading at intra-State level To achieve overall merit order operation.

22. 21 Issues need to be addressed for intra-State ABT Identification of entities for intra-State ABT Metering Arrangements Scheduling Principles & Procedures Commercial Principle Treatment of existing Agreements Organisational Development Regulatory Issues

23. 22 ISGS: Inter State Generating Stations SGS: State Generating Stations CTU: Central Transmission Utility STU: State Transmission Utility Inter-State ABT Intra-State ABT Distribution Control Centre – One for each Discom

24. 23 WR ER KARNATAKA TAMILNADU ANDHRA PRADESH KERALA INTER STATE ABT Inter-regional IST INTRA STATE ABT APNPDCL APCPDCL APSPDCL APEPDCL ANDHRA PRADESH ISGS1 SGS2 SGS3 SGS4 SGS5 SGS1 STU Inter-regional CTU SGS6

25. 24 Option – 1 Single Buyer Model –All the generation including IPPs to be pooled /purchased by residual Electricity Board & all power sale / purchase from other agencies through residual Electricity Board Option – 2 Multi Buyer Model –All the generation including IPPs to be sold/purchased by DISCOMs directly & all power sale / purchase from other agencies also directly by DISCOMs Market Models

26. 25 STATE POWER POOL : Single Buyer Model- Option 1 GEN 1 2 3 IPP 1 IPP 2 APCPDCL APNPDCL APSPDCL External Purchases s APGENCO THROUGH TRANSCO SYSTEM RESIDUAL EB/TRADECO/HOLDING CO. TO POOL ALL GENERATION ISGS Allocations APEPDCL Power Purchases/Sales

27. 26 STATE POWER POOL : Multiple Buyer Model Option2 GEN 1 2 3 IPP 1 IPP 2 TRANSMISSION SYSTEM OF APTRANSCO APGENCO APCPDCL APNPDCL APSPDCL APEPDCL External Purchases ISGS Allocations TRADE CO / HOLDING CO.

28. 27 Options for UI UI Rate Curve Same as inter-state UI-Rate Curve Higher inter-state UI-Rate Curve Lower inter-state UI-Rate Curve Differential Rate Curve ( for injection and drawal of UI)Differential Rate Curve ( for injection and drawal of UI) Different curves for CPPs and other bulk power licensee –Frequency –UI rate curve Single-slope Curve Multi-slope Curve

29. 28 Options for different market participants CPPs/Co-gens DISCOM-A DISCOM-B CPP/ Co-Gen Case-I Case-II Case-III Case- ICPP embedded in same DISCOM No intra-State ABT (in future, can be in intra-DISCOM ABT) Case- IICPP located in One DISCOM, self use in the host DISCOM and in other DISCOM also Intra-State ABT Case- IIICPP located in one DISCOM, self use in other DISCOM Intra-State ABT

30. 29 Special Energy Meters & Metering philosophy

31. 30 Special Energy Meters 0.2s class of IEC static type. Works in 3-phase, 4 wire principle Voltage from 110V secondary side VT and current from CT's of ratio 1A or 5 Amp In Model-A with 1Amp CT, model-B with 5 Amp CT. Meter will store the data in the memory for 10 days. Meter is having a optical port for tapping the stored data by using a hand held unit called DCD (data collection device)

32. 31 SEM stores the following Net active energy (wh) in each 15 minute time-block with +/- sign. Cumulative Wh reading at each mid night. Average frequency of each 15 minute block with a 2 digit code. Integrate the reactive energy (VARh) algebrically into two separate registers, one for Vave RMS ≥ 103% and other for Vave RMS ≤ 97%, at each midnight.

33. 32 SEM displays following Processor's identification code and model Date (year month day) Time (hour min sec) Cumulative Wh reading Average frequency of the previous block Net Wh transmittal during the previous block Average per unit voltage Reactive power (VAR) Voltage – high VARh register reading Voltage – low VARh register reading

34. 33 Local data collection through Optical Port – as backup Meter 31 Meter 2 Meter 1 1 1 1 DCD

35. 34 AMR System : Through RS485 connection RS 232 port PSTN Modem PSTN RS 485 / RS 232 Conv. 1 1 1 Meter 31 Meter 2 Meter 1 Local Data Collection Remote Data Collection

36. 35 A CASE STUDY CONDUCTED FOR GUJARAT Metering Location Philosphy

37. 36 Metering Location Philosphy Alternatives: 1.Metering at actual boundary points (66/11kV Xers) 2.Metering at 132/66 or 220/66kV Xers 3.Metering at 220/132 or 220/66kV substations 4.Metering at notional boundarires

38. 37 Assessment of Meters/DCDs - Alternatives Alternative 1 : Discom boundary at 11 kV feeder from 66/11 kV X’ers –Metering at 11 kV side of 66/11 kV Xers. –More meters and data recording at lower voltage level would add to inaccuracies. –Data collection would be exhaustive and unnecessary. Since 66kV network is owned by GETCO, proportionate losses would be borne by all Discoms. –Lot of bulk customers are connected above 11kV and are consumers of Discoms. Metering requirement would be high. –No. of meters exceed 3600 Nos. (incl 20% spares) –No. of DCDs/MTEs would be high

39. 38 No of meters>3600

40. 39 Assessment of Meters/DCDs - Alternatives Alternative 2 : Metering at 66kV side of X’ers of 220/66kV, 132/66kV. –Losses in 66kV transmission network included in actual drawal. –Inter-discom lines 66kV and below to be metered. –Customers connected at 132kV and above to be metered ….? –No. of meters 1195 (incl 20% spares) –No. of DCDs 203 ( incl 20% spares)

41. 40 No of meters = 1195

42. 41 Assessment of Meters/DCDs - Alternatives Alternative 3 : Metering at 220kV side of 220/66kV, 220/132kV X’ers. –Inter-Discom lines at 132kV and below to be metered. –Bulk customers connected at 220kV to be metered. –Losses below 132kV and 66kV network included in the drawal –No. of meters 772 (incl 20% spares) –No. of DCDs 133 (incl 20% spares)

43. 42 No of meters = 772

44. 43 Assessment of Meters/DCDs - Alternatives Alternative 4 : RECOMMENDED ALTERNATIVE Metering at Discom’s boundaries (the network dedicated to Discom) –Metering at GETCO (Dedicated to Discom) – GETCO (dedicated to other discom) –Metering at inter-Discom, Discom-to-Genco, Discom-to-IPP, Discom-to-CPP feeders Advantages –Cost of metering and infrastructure for data communication would reduce drastically. –Losses of dedicated overlayed GETCO network included in Discom drawal, which anyway has to be apportioned. –Losses of common GETCO network shall be pooled. –As such differences between estimated and actual losses becomes negligible. –No. of meters reduces to 614 (incl 20% spares) –No. of DCDs 114 (131 with 20% spares 131)

45. 44 No of meters = 614

46. 45 Alternative 1Alternative 2Alternative 3Alternative 4 No. Of Meters >36001195772614 No. Of DCDsVery High203133114 Comparison with 4 Alternatives

47. 46 Metering Location Philosphy Recommended option : Option 4 –Logical, –cost-effective –easy-to-administer

48. 47

49. 48 Allocations from PPAs Options 1.Pro-rata allocation in the ratio of demands at the time of restructuring. fixed for complete period of PPA or life of shared generating stations. 2.Differential allocation based on ‘Capacity to pay’ More allocation from cheaper power stations to Discoms with higher percentage of low-revenue loads (agriculture/social etc.). Reviewed at intervals depending on consumer mix of Discoms Consistent with principles on which consumer tariff is based Recommended: Differential allocation based on ‘Capacity to pay’

50. 49 Regulatory issues

51. 50 Regulatory issues 1.ABT Structure and inter-utility tariff scheme. 2.Generation Tariff SERC to notify principles for fixation of tariff for SGS. Cost-plus Market based (may be explored in future) If cost-plus tariff, then fixing profit Return on Equity Return on Capital Employed Norms of Operation for SGSs for Thermal & Hydro, Gas, Wind Generators Target availability Specific oil consumption Gross Heat Rate Auxiliary Power Consumption Financial Norms for existing and new SGSs RoE Interest on Working Capital Norms for O&M Expenses Debt:Equity allowed for new power stations Interest on loan component

52. 51 Regulatory issues If market based tariff (in future) Procedures for ‘Long-term Procurement through Competitive bidding’

53. 52 3.Transmission Tariff SERC to notify principles for fixation of tariff for STS i.e., for STU and the private licensees. Cost-plus Procedure for owner’s profit Return on Equity Return on Capital Employed Norms of Operation for STS Target availability Financial Norms for STS RoE Interest on Working Capital Norms for O&M Expenses Debt:Equity allowed for new power stations Interest on loan component Regulatory issues

54. 53 4.Approval of Grid code and its enforcement. i.Procedure for scheduling with time flow diagram.Provision related to revision of schedules ii.Provision related to demonstration of declared capability. iii.Provision related to frequency linked despatch guidelines. iv.Impermissibility of schedules due to ramp up/down restrictions or network constraints. v.Estimated losses vi.Definition and demarcation of notional control areas. vii.Settlement system and pool accounts for UI and REC. viii.Interest on delayed UI and REC payments. ix.Broad specifications and requirements of Energy meters. x.Treatment of bilateral agreements and open access transactions. xi.State Energy Accounting xii.Reactive energy charges. Regulatory issues

55. 54 Approval of Grid code and its enforcement.(…contd.) xiii.Meter data collection, processing and billing – intervals and responsibility. xiv.Time frame for verification of schedules and accounts by the stake holders. xv.Reduction of schedules of gas turbines due to variations in frequency and temperature – post factor revisions. xvi.Gaming by Generators. xvii.Minimum generation levels of thermal units. 5.Payment default 6.Open Access in Distribution Regulatory issues

56. 55 Intra-state ABT – Specific Benefits

57. 56 Intra-state ABT – Achieves. Mechanism to price power based on Demand / Supply Harness surplus generating capacity available in state with CPPs/IPPs Operation of grid on economic principles – Merit Order Despatch Open Access in Intra-state Transmission and Distribution.

58. 57 Intra-state ABT – achieves Generate signals for efficient grid operation at the intra-state level.  Deviations from schedule by different DISCOMs to be priced.  Encourage maximisation of generation during deficit conditions.  Each DISCOM and state generating station to be responsible for its actions – a profit centre.

59. 58 …Intra-state ABT – achieves. Introduce UI mechanism at the intra-state level.  UI to be applied on the deviations from the schedules of the DISCOMs/State generators/IPPs/CPPs.  State Utilities to be liable for the States’ liabilities with the regional UI pool account.

60. 59 Intra-state ABT – Implementation Plan

61. 60 Implementation Plan  1 st Phase Activities Listing of Metering Locations Specification Of SEMs  2 nd Phase Activities Tariff for SGS/IPPs and CPPs Allocating the PPAs  3 rd Phase Activities Supply and commissioning of SEMS Scheduling methods and Accounting System

62. 61 Implementation Plan 1 st Phase Activities –Finalisation of listing of entities –Demarcation of DISCOM boundaries –Listing of Metering locations –Finalisation of quantities of SEMs, DCDs/MTEs –Finalisation of Reactive Charge scheme –Finalisation of technical specifications of SEMs/DCDs –Initiate tendering process for procurement of meters –Explanation of Intra-state ABT

63. 62 Implementation Plan 2 nd Phase Activities –Finsalisation of Tariff of State Generating Stations as per ABT parameters/norms –Determination of Allocations of different Discoms in State Genco/ ISGS/ IPPs. –Formulation of market structure –Conversion of existing PPAs into ABT-compliant form –Finalisation of commercial mechanism for CPPs, Wind farms, Wheeling and banking, Open Access Customers etc.

64. 63 Implementation Plan 3 rd Phase Activities Supply and commissioning of meters at different locations. –Training the field staff for meter reading/data collection –Installation of software for data processing –Installation of software for scheduling –Organising UI and REC Pool Account Operation

65. 64

66. 65 Scope of Work Listing of entities on whom ABT/UI principles would apply Listing of metering locations for each above listed entities Preparation of complete list of SEMs required, assigning location code, type of meters etc. Finalisation of quantity of SEMs, DCDs, Meter Testing Equipment Finalisation of technical specifications of SEMs/DCDs /MTEs. Association during installation and commissioning of SEMs(five locations)

67. 66 Presentation/ discussions of new commercial mechanism, scheduling procedure to all concerned Association during allocation to different DISCOMs from SGSs and allocations from CGSs Formulation of Commercial mechanism for power supply to DISCOMs from SGSs and Share from CGSs Conversion of existing PPAs into two-part tariff Formulation of New Commercial Mechanism to Licensees, large Industries, CPPS, IPPs Knowledge transfer to staff for weekly meter reading (five locations) and transferring data to SLDCs ……..Scope of Work

68. 67 Finalising the daily scheduling procedure, establish at SLDCs and use of software Organising the operation of Pool Account at SLDC Tailoring of software used at RLDC for regional energy accounting and scheduling purpose for needs specific to SLDCs ……..Scope of Work

69. 68 ABT in NR—Real time operation Frequency linked despatch guidelines Optimisation of storage hydro Reactive Power Management and voltage control SCADA/EMS facilities ---the eyes and ears of the system operator

70. 69

71. 70 BACK

72. 71 BACK

73. 72 50.5 HZ 49.5 HZ 50 HZ UI PRICE CURVE – SINGLE SLOPE 49 HZ 50.5 HZ 49.5 HZ 50 HZ 49.5 HZ CORRESPONDS TO RS.2.80 BACK

74. 73 UI Rate as specified by CERC Rate of Unscheduled Drawal/Injection Frequency (Hz) Rate (p/u) Above 50.5 0 50.0150 49.8210 49.0 and below 570 BACK