1. W E L C O M E Power Grid Corporation of India Limited

2. AVAILABILITY BASED TARIFF: EAST SOUTH INTER-REGIONAL LINK TALCHER-KOLAR UNIFIED LOAD DESPATCH SCHEME CHINA EXPERIENCE

3. AVAILABILITY BASED TARIFF – AN INTRODUCTION CAPACITY AND ENERGY CHARGES - DE-ALIENATED CAPACITY CHARGES LINKED TO AVAILABILITY. ENERGY CHARGES AS PER SCHEDULE. PRICING FOR DEVIATIONS FROM SCHEDULE LINKED TO FREQUENCY

4. ADVANTAGE ABT. SIMPLE TO IMPLEMENT DOES NOT REQUIRE ANY ADDITIONAL INVESTMENT MAKES USE OF INDUSTRIES PSYCHOLOGY EXHIBITS ALL PROPERTIES OF GAME THEORY. TANGIBLE SHIFT FROM COMMAND AND CONTROL CULTURE TOWARDS CONTRACTUAL CULTURE

5. MAXIMISATION OF GENERATION AVAILABILITY- MEET MORE CONSUMER DEMAND ECONOMY IN OPERATION – REDUCE COSTS RESULT :- IMPROVED QUALITY OF SUPPLY. HIDDEN CAPACITY HARNESSED. MERIT ORDER IN GENERATION. G GRID DISCIPLINE

6. POST ABT SCENARIO DRAMATIC IMPROVEMENT IN THE FREQUENCY HYDRO GENERATION OPTIMISED PUMPED STORAGE UTILISED DIURNALLY LOAD CURVE FLATTENED INCREASED BILATERAL TRADING NEYVELI TO PONDY KERALA TO TAMILNADU ER POWER TO WR THROUGH SR EFFICACY OF ABT MECHANISM IS GLOBALLY APPLAUDED. COMPARISION 3D DEMAND EXCERPTS

7. POST ABT SCENARIO ENHANCED ASSISTANCE TO WESTERN REGION ON OPPORTUNITY BASIS ONCE ABT IS IMPLEMENTED IN EASTERN REGION OTHER REGIONS WOULD FURTHER AVAIL SURPLUS POWER OF EASTERN REGION. COST OF IMPORTS WOULD REDUCE. BILATERAL(FIRM) TRANSACTIONS POISED TO INCREASE. CAPACITY UTILISATION OF GENERATING STATIONS INCLUDING CAPTIVE POWER PLANTS WOULD INCREASE.

8. AVAILABILITY BASED TARIFF – CHRONOLOGY 1980’sCONCIEVED BY SHRI BHANU BUSHAN DURING HIS TENURE IN NTPC 1991PRESENTED BY POWERGRID AS A SOLUTION FOR TECHNICAL AND COMMERCIAL PROBLEMS IN REGIONAL GRID OPERATION IN INDIA DEVELOPMENT OF SPECIAL ENERGY METERS INITIATED BYPOWERGRID WHICH WAS INSTRUMENTAL FORIMPLEMENTATION OF ABT 1993EXAMINED AND ENDORSED BY WORLD BANK / ADB APPOINTED CONSULTANTS (ECC OF USA) 1994ACCEPTED BY GOVT.OF INDIA.. IMPLEMENTATION DELAYED DUE TO MIS-APPREHENSIONS AND INCONCLUSIVE DISCUSSION 1999REFFERED BY GOI TO CERC. 2000 JANNOTIFIED BY CERC-DEFFERED DUE TO STIFF OPPOSITION FROM SOME PARTIES 2000DECREVISED NOTIFICATION ISSUED BY CERC- IMPLEMENTATION HELD UP DUE TO STAYS OBTAINED IN HIGH COURT BY SOME SEB’s

9. 01-07-2002: IMPLEMENTED IN WESTERN REGION. 01-07-2002: IMPLEMENTED IN WESTERN REGION. 01-12-2002: IMPLEMENTED IN NORTHERN REGION 01-12-2002: IMPLEMENTED IN NORTHERN REGION 01-01-2003: IMPLEMENTED IN SOUTHERN REGION 01-01-2003: IMPLEMENTED IN SOUTHERN REGION

10. ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME. TRANSPARENCY. SYNERGY IN OPERATION. NO “PASSING THE BUCK” APPROACH. QUANTUM LEAP IN VISIBILITY TO OPERATOR. INCREASED CONFIDENCE. FOCUS ON SECURITY AND ECONOMY. SOME ULDC PICTURES

11. ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR PREMPTIVE, DYNAMIC “EARLY WARNING” SYSTEMS. LOAD ANGLE. ALARMS CONTINGENCY ANALYSIS GRID LESS VULNERABLE TO DISTURBANCES. ANALYSIS OF GRID INCIDENTS – ACCURATE AND EASIER RESTORATION AFTER PERTURBATION BECOMES MUCH FASTER.

12. ULDC LOAD FORECASTING. LOAD FORECASTING. HYDRO SCHEDULING. HYDRO SCHEDULING. HYDRO THERMAL CO-ORDINATION. HYDRO THERMAL CO-ORDINATION. UNIT COMMITMENT. UNIT COMMITMENT. LOAD MANAGEMENT. LOAD MANAGEMENT.

13. POST ULDC SCENARIO FREQUENCY OF WR & ER AVAILABLE TO OPERATOR IN SR TO DECIDE WHEN HOW WHERE FROM/TO EXCHANGE POWER OPERATORS OF ALL REGIONS CAN ACT IN CONJUNCTION TO GET THE BEST FOR THE COUNTRY AS A WHOLE.

14. POST KOLAR HVDC SCENARIO SUBSTANTIAL IMPROVEMENT IN THE VOLTAGE PROFILE FOR THE REGION. TRUNK LINE LOADINGS EASED – INCREASED TRANSFER MARGIN. IMPORT FROM ER AROUND 800 MW M MORE DEMAND CAN BE MET. DEPLETED HYDRO RESERVES CAN BE CONSERVED. AVERAGE COST OF POWER IS BROUGHT DOWN ABOUT 250 MU WORTH RS 40 Cr. IMPORTED FROM ER IN DEC02 INCREASED TRANSACTIONS POWER IS BEING WHEELED FROM ER TO WR VIA SR. TRANSACTION BASED ON DIFFERENTIAL PRICE BETWEEN WR AND SR

15. MORE TO COME….. 1000MW POLE-II LIKELY TO BE COMMISSIONED BY FEB-2003 1000MW POLE-II LIKELY TO BE COMMISSIONED BY FEB-2003 ADDITIONAL POWER TRANSFER BETWEEN ER AND SR ADDITIONAL POWER TRANSFER BETWEEN ER AND SR MORE ROOM FOR WHEELING BETWEEN ER-WR MORE ROOM FOR WHEELING BETWEEN ER-WR VIJAYAWADA-MADRAS LINK IS LIKELY TO BE COMMISSIONED BY FEB 2003 VIJAYAWADA-MADRAS LINK IS LIKELY TO BE COMMISSIONED BY FEB 2003 VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER. VOLTAGE PROFILE LIKELY TO IMPROVE FURTHER. TRUNK LINE LOADING CONSTRAINTS WOULD BE FURTHER EASED. TRUNK LINE LOADING CONSTRAINTS WOULD BE FURTHER EASED. MORE MARGIN FOR TRANSFER FROM ER/WR. MORE MARGIN FOR TRANSFER FROM ER/WR. MORE COMPETITION POSSIBLE AMONGST GENERATORS. MORE COMPETITION POSSIBLE AMONGST GENERATORS. IMPROVED STABILITY. IMPROVED STABILITY.

16. BACK TO SLIDE

20. 01-JAN-03 01-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

21. 02-JAN-03 02-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

22. 03-JAN-03 03-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

23. 04-JAN-03 04-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

24. 05-JAN-03 05-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

25. 06-JAN-03 06-JAN-02 FREQUENCY COMPARISION SOUTHERN REGION

26. FREQUENCY COMPARISION JAN 2002 AND JAN 2003 JANUARY 2002 JANUARY 2003

27. RANGEJAN-02JAN-03 49 TO 50.5 (HZ) 30 %97 % COMPARSON OF FREQ JAN-02 & JAN-03 20 days

28. JAN-02JAN-03 ENERGY IN MUs 10.10616.940 COMPARSON OF KADAMPARI PUMPED ENERGY 20 days

30. 3D VIRTUAL REALITY SR FREQ JAN 03 SR FREQ DEC 02 SR FREQ JAN 02 SR FREQ MAR 02 SR DEMAND JAN 03 SR DEMAND DEC 02 SR DEMAND JAN 02 SR DEMAND MAR 02 AP DEMAND JAN 03 KER DEMAND JAN 03 KAR DEMAND JAN 03 TN DEMAND JAN 03 BLR VOLT JAN 03 SPARE BLR VOLT JAN 02 SPARE