1. 1 ABT WORK SOUTHERN REGION EXPERIENCE

2. 2 "If a path to the better there be, it begins with a full look at the worst." -- Thomas Hardy

3. 3 GRID OPERATION IN THE PAST LOW FREQUENCY PROBLEMS LOW FREQUENCY PROBLEMS FREQUENCY REMAINED AT 48 HZ AND BELOW FOR MOST PART FREQUENCY REMAINED AT 48 HZ AND BELOW FOR MOST PART LOW VOLTAGE OPERATION LOW VOLTAGE OPERATION VOLTAGE AT BANGALORE DIPPED TO AS LOW AS 300 Kv!!!! VOLTAGE AT BANGALORE DIPPED TO AS LOW AS 300 Kv!!!! FREQUENT GRID DISTURBANCES FREQUENT GRID DISTURBANCES A DISTURBANCE ALMOST EVERY MONTH A DISTURBANCE ALMOST EVERY MONTH IMMENSE FINANCIAL LOSSES FOR INDUSTRY IMMENSE FINANCIAL LOSSES FOR INDUSTRY LOADS FREQUENTLY CUT OFF DUE TO RELAY OPERATION LOADS FREQUENTLY CUT OFF DUE TO RELAY OPERATION INCREASED ELECTRICAL LOSSES INCREASED ELECTRICAL LOSSES INEFFICIENT OPERATION OF ELECTRIC EQUIPMENTS INEFFICIENT OPERATION OF ELECTRIC EQUIPMENTS INEFFICIENT UTILISATION OF PIT HEAD PLANTS INEFFICIENT UTILISATION OF PIT HEAD PLANTS MERIT ORDER AND ECONOMY TAKE A BACKSEAT MERIT ORDER AND ECONOMY TAKE A BACKSEAT ARCHAIC SETTLEMENT SYSTEM ARCHAIC SETTLEMENT SYSTEM GRID OPERATION FOCUSSED ON FIRE-FIGHTING RATHER THAN OPTIMISATION AND ECONOMY GRID OPERATION FOCUSSED ON FIRE-FIGHTING RATHER THAN OPTIMISATION AND ECONOMY

4. 4 PROBLEMS IN THE PAST AN INSIGHT THE ‘LOGIC OF THE COMMONS’ WORKS AS LONG AS ‘THE COMMONS’ ARE VAST AND HAVE UNLIMITED RESOURCE THE ‘LOGIC OF THE COMMONS’ WORKS AS LONG AS ‘THE COMMONS’ ARE VAST AND HAVE UNLIMITED RESOURCE THE ‘LOGIC OF THE COMMONS’ BREAKS DOWN WHEN RESOURCES PER USER GETS CONSTRAINED THE ‘LOGIC OF THE COMMONS’ BREAKS DOWN WHEN RESOURCES PER USER GETS CONSTRAINED GAME THEORY ON THE OTHER HAND GIVES A VALUABLE INSIGHT INTO THE ‘PLAYERS’ IN THE COMMONS GAME THEORY ON THE OTHER HAND GIVES A VALUABLE INSIGHT INTO THE ‘PLAYERS’ IN THE COMMONS EVERY ‘PLAYER’ TRIES TO MAXIMISE HIS OWN PAYOFFS EVERY ‘PLAYER’ TRIES TO MAXIMISE HIS OWN PAYOFFS CONSEQUENTLY THE ‘COMMONS’ GETS DENUDED RAPIDLY CONSEQUENTLY THE ‘COMMONS’ GETS DENUDED RAPIDLY WE END UP WITH ‘THE TRAGEDY OF THE COMMONS’ SCENARIO WE END UP WITH ‘THE TRAGEDY OF THE COMMONS’ SCENARIO KNEE-JERK REGULATORY ACTIONS FOLLOW – MORE HARMFUL THAN SALUTARY KNEE-JERK REGULATORY ACTIONS FOLLOW – MORE HARMFUL THAN SALUTARY AN ASTONISHING PARALLEL CAN BE FOUND IN THE ‘ELECTRIC GRID’ AND ITS EQUILIBRIUM SCALAR-‘FREQUENCY’ AN ASTONISHING PARALLEL CAN BE FOUND IN THE ‘ELECTRIC GRID’ AND ITS EQUILIBRIUM SCALAR-‘FREQUENCY’

5. 5 FREQUENCY CONTROL FREQUENCY IS THE MESSENGER-NOT THE MESSAGE FREQUENCY IS THE MESSENGER-NOT THE MESSAGE FREQUENCY HAS TO BE COLLECTIVELY CONTROLLED AND DEMOCRATICALLY STABILISED FREQUENCY HAS TO BE COLLECTIVELY CONTROLLED AND DEMOCRATICALLY STABILISED

6. 6 BEHAVIOUR IN AN INTER-CONNECTED SYSTEM THE INTER CONNECTED OPERATION IS A PRECARIOUS ENTERPRISE, RARELY PERFECT, OFTEN FRAGILE AND SOMETIMES YOU WONDER IF IT IS WORTH THE EXPERIENCE THE INTER CONNECTED OPERATION IS A PRECARIOUS ENTERPRISE, RARELY PERFECT, OFTEN FRAGILE AND SOMETIMES YOU WONDER IF IT IS WORTH THE EXPERIENCE A PRUDENT CONSTITUENT SHOULD TAKE ACTION IMAGINING THAT HE IS ISLANDED – THEN THE GRID WILL COME TO HIS RESCUE A PRUDENT CONSTITUENT SHOULD TAKE ACTION IMAGINING THAT HE IS ISLANDED – THEN THE GRID WILL COME TO HIS RESCUE

7. 7 HOW DID ABT ADDRESS THE ‘CURSE OF THE COMMONS’? ABT DIS-INCENTIVISED GREED ABT DIS-INCENTIVISED GREED ABT RE-DEFINED HOW THE STAKEHOLDERS INTERACT WITH THE COMMONS ABT RE-DEFINED HOW THE STAKEHOLDERS INTERACT WITH THE COMMONS THE USERS OF THE COMMONS COULD BENEFIT FROM ‘TAKING’ AS WELL AS ‘GIVING’ TO THE COMMONS THE USERS OF THE COMMONS COULD BENEFIT FROM ‘TAKING’ AS WELL AS ‘GIVING’ TO THE COMMONS ABT OBVIATES THE NEED FOR ELABORATE REGULATORY MEASURES ABT OBVIATES THE NEED FOR ELABORATE REGULATORY MEASURES

8. 8 ABT AND THE NASH EQUILIBRIUM

9. 9 Basic Ideas of Game Theory GAME THEORY IS THE GENERAL THEORY OF STRATEGIC BEHAVIOR. GAME THEORY IS THE GENERAL THEORY OF STRATEGIC BEHAVIOR.  GENERALLY DEPICTED IN MATHEMATICAL FORM.  PLAYS AN IMPORTANT ROLE IN MODERN ECONOMICS.

10. 10 Rules, Strategies, Payoffs, and Equilibrium ECONOMIC SITUATIONS ARE TREATED AS GAMES. ECONOMIC SITUATIONS ARE TREATED AS GAMES.  THE RULES OF THE GAME STATE WHO CAN DO WHAT, AND WHEN THEY CAN DO IT.  A PLAYER'S STRATEGY IS A PLAN FOR ACTIONS IN EACH POSSIBLE SITUATION IN THE GAME.

11. 11 Rules, Strategies, Payoffs, and Equilibrium ECONOMIC SITUATIONS ARE TREATED AS GAMES. ECONOMIC SITUATIONS ARE TREATED AS GAMES.  A PLAYER'S PAYOFF IS THE AMOUNT THAT THEPLAYER WINS OR LOSES IN A PARTICULAR SITUATION IN A GAME.  A PLAYERS HAS A DOMINANT STRATEGY IF THAT PLAYER'S BEST STRATEGY DOES NOT DEPEND ON WHAT OTHER PLAYERS DO.

12. 12 Nash Equilibrium OCCURS WHEN EACH PLAYER'S STRATEGY IS OPTIMAL, GIVEN THE STRATEGIES OF THE OTHER PLAYERS. OCCURS WHEN EACH PLAYER'S STRATEGY IS OPTIMAL, GIVEN THE STRATEGIES OF THE OTHER PLAYERS.  A PLAYER'S BEST RESPONSE (OR BEST STRATEGY) IS THE STRATEGY THAT MAXIMIZES THAT PLAYER'S PAYOFF, GIVEN THE STRATEGIES OF OTHER PLAYERS.  A NASH EQUILIBRIUM IS A SITUATION IN WHICH EACH PLAYER MAKES HIS OR HER BEST RESPONSE.

13. 13 THE INDIA ELECTRICITY MARKET TIME LINE REAL TIME 15 MT BLOCKS LONG TERM LOAD FORECAST FUND MOBILISATION 10-5 YEARS POWER PURCHASE AGREEMENTS CAPACITY COMMITTMENT 1-5 YEARS SHORT TERM LOAD FORECAST DAY-AHEAD SCHEDULING WEEK TO DAY AHEAD

14. 14 ABT AND GAME THEORY THE THREE GAMES LONG TERM CAPACITY BOOKING:- LONG TERM CAPACITY BOOKING:- ONE TIME GAME ONE TIME GAME DAY AHEAD SCHEDULING DAY AHEAD SCHEDULING SPOT MARKET (UI) SPOT MARKET (UI)

15. 15 THE BRASS TACKS

16. 16 IMPROVEMENTS IN GRID OPERATION POWER SYSTEM PARAMETERS POWER SYSTEM PARAMETERS FREQUENCY IMPROVED FREQUENCY IMPROVED FREQUENCY IMPROVED FREQUENCY IMPROVED VOLTAGES STABLE ACROSS THE GRID VOLTAGES STABLE ACROSS THE GRID VOLTAGES STABLE ACROSS THE GRID VOLTAGES STABLE ACROSS THE GRID OPTIMAL OPERATION OPTIMAL OPERATION LOSSES REDUCED BY 1-1.5 % THROUGHOUT THE GRID LOSSES REDUCED BY 1-1.5 % THROUGHOUT THE GRID LOSSES REDUCED BY 1-1.5 % THROUGHOUT THE GRID LOSSES REDUCED BY 1-1.5 % THROUGHOUT THE GRID SAVINGS OF ABOUT Rs 450 CRORES EVERY YEAR!!! SAVINGS OF ABOUT Rs 450 CRORES EVERY YEAR!!! NO MAJOR DISTURBANCE FOR THE PAST 2 YEARS NO MAJOR DISTURBANCE FOR THE PAST 2 YEARS NO MAJOR DISTURBANCE FOR THE PAST 2 YEARS NO MAJOR DISTURBANCE FOR THE PAST 2 YEARS SPECIAL PROTECTION SCHEME EVOLVED SPECIAL PROTECTION SCHEME EVOLVED ULDC HELPS SAVE MANY GRID DISTURBANCES ULDC HELPS SAVE MANY GRID DISTURBANCES ULDC HELPS SAVE MANY GRID DISTURBANCES ULDC HELPS SAVE MANY GRID DISTURBANCES MERIT ORDER OPERATION :- OPTIMISATION MERIT ORDER OPERATION :- OPTIMISATION MERIT ORDER OPERATION :- OPTIMISATION MERIT ORDER OPERATION :- OPTIMISATION

17. 17 IMPROVEMENTS IN GRID OPERATION HYDRO CONSERVATION HYDRO CONSERVATION HYDRO CONSERVATION HYDRO CONSERVATION HEALTHY RESERVOIR LEVELS HEALTHY RESERVOIR LEVELS USE HYDRO GENERATION FOR PEAKING AND RESERVE USE HYDRO GENERATION FOR PEAKING AND RESERVE PUMP MODE OPERATION AT KADAMPARAI PUMP MODE OPERATION AT KADAMPARAI PUMP MODE OPERATION AT KADAMPARAI PUMP MODE OPERATION AT KADAMPARAI TALCHER – KOLAR LINK TALCHER – KOLAR LINK INTER REGIONAL POWER :- 10530MUs/1600MW MAX INTER REGIONAL POWER :- 10530MUs/1600MW MAX UTILISATION OF COMMERCIAL MECHANISM UTILISATION OF COMMERCIAL MECHANISM TURNOVER OF 5143 MU ON UI WORTH MORE THAN 900 CRORES TURNOVER OF 5143 MU ON UI WORTH MORE THAN 900 CRORES COSTLY GENERATION REDUCED. COSTLY GENERATION REDUCED.

18. 18 IMPROVEMENTS IN THE SR GRID: AN ANALYSIS DEMAND vs FREQSCATTER DIAGRAMFREQ COMPARISION SCROLL FREQ HISTOGRAM3D FREQ JAN 2002VOLTAGE SCROLL3D FREQ JAN 20043D FREQ JAN 20033D DEMAND SR NOV-04

19. 19 UI – ITS MANY AVATARS!

20. 20 UNSCHEDULE INTERCHANGE It's more than what meets the eye!!!!

21. 21 WHAT’S OUR OBJECTIVE? ECONOMIC OPERATION OF THE GRID ECONOMIC OPERATION OF THE GRID PROMOTE TRADE PROMOTE TRADE STABILITY OF THE GRID STABILITY OF THE GRID ROBUST SETTLEMENT SYSTEM ROBUST SETTLEMENT SYSTEM COMMERCIAL MECHANISM WHICH COMPLEMENTS SECURITY COMMERCIAL MECHANISM WHICH COMPLEMENTS SECURITY SEAMLESS CHANGE PROCESS SEAMLESS CHANGE PROCESS FREEDOM FREEDOM

22. 22 LET’S SEE HOW THE UI MECHANISM OF ABT TAKES ON MANY AVATARS The fox knows many things, but the hedgehog knows one big thing …… —Greek poet Archilochus

23. 23 THE MANY AVATARS PROMOTING TRADE PROMOTING TRADE COMPETITIVE ENVIRONMENT COMPETITIVE ENVIRONMENT OPEN ACCESS OPEN ACCESS BALANCING/SPOT MARKET BALANCING/SPOT MARKET ROBUST SETTLEMENT MECHANISM ROBUST SETTLEMENT MECHANISM NASH EQUILIBRIUM NASH EQUILIBRIUM ULTIMATE OPTIMISER ULTIMATE OPTIMISER OPEN AND FAIR MARKET PLACE OPEN AND FAIR MARKET PLACE WIN-WIN PLATFORM WIN-WIN PLATFORM

24. 24 IT’S SIMPLICITY ITSELF! INEXPENSIVE TO IMPLEMENT INEXPENSIVE TO IMPLEMENT MINIMUM LOGISTICS MINIMUM LOGISTICS METERING IN PLACE IN MOST PLACES METERING IN PLACE IN MOST PLACES PRICE SIGNAL AVAILABLE AT ANY POWER OUTLET ! PRICE SIGNAL AVAILABLE AT ANY POWER OUTLET ! EASY SETTLEMENT EASY SETTLEMENT EASE OF REGULATION EASE OF REGULATION EASY TO UNDERSTAND AND IMPLEMENT EASY TO UNDERSTAND AND IMPLEMENT

25. 25 THE PROBLEMS EARLIER…. ERRATIC FREQUENCY ERRATIC FREQUENCY LOW VOLTAGES LOW VOLTAGES FREQUENT DISTURBANCES FREQUENT DISTURBANCES OVER/UNDER DRAWALS CAUSING CONSTRAINTS OVER/UNDER DRAWALS CAUSING CONSTRAINTS INDISCIPLINED SYSTEM OPERATION INDISCIPLINED SYSTEM OPERATION ARCHAIC SETTLEMENT SYSTEM ARCHAIC SETTLEMENT SYSTEM 2002-2003-04 FREQ

26. 26 THE AVATARS OF UI TRADITIONAL TRADITIONAL SETTLEMENT OF DEVIATIONS SETTLEMENT OF DEVIATIONS GRID DISCIPLINE GRID DISCIPLINE PRICE/OPTIMISATION VECTOR PRICE/OPTIMISATION VECTOR SPOT MARKET SPOT MARKET BALANCING MARKET BALANCING MARKET MERIT ORDER OPERATION MERIT ORDER OPERATION REGULATION REGULATION EASY TO REGULATE EASY TO REGULATE SINGLE VECTOR SINGLE VECTOR ACCOUNTABILITY OF ALL STAKEHOLDERS ACCOUNTABILITY OF ALL STAKEHOLDERS ‘RIGGING’ PROOF ‘RIGGING’ PROOF SEAMLESS CHANGE PROCESS SEAMLESS CHANGE PROCESS

27. 27 THE AVATARS OF UI SETTLEMENT FRAMEWORK SETTLEMENT FRAMEWORK PUMPED STORAGE PUMPED STORAGE MERCHANT GENERATOR MERCHANT GENERATOR CAPTIVE POWER PLANT CAPTIVE POWER PLANT DISCOMS DISCOMS ARBITRAGE ARBITRAGE CATALYST FOR COALITION CATALYST FOR COALITION CO-OPERATION THROUGH NON-CO-OPERATION CO-OPERATION THROUGH NON-CO-OPERATION SELF HEALING MECHANISM’ SELF HEALING MECHANISM’ TRANSPARENCY TRANSPARENCY IMPOSSIBLE TO RIG PRICES IMPOSSIBLE TO RIG PRICES NEUTRALITY NEUTRALITY PSEUDO COMPETITOR PSEUDO COMPETITOR PAYMENT SECURITY THROUGH THE POOL PAYMENT SECURITY THROUGH THE POOL FREEDOM OF CHOICE FREEDOM OF CHOICE ELIMINATES ELABORATE CONTRACTUAL AGREEMENTS ELIMINATES ELABORATE CONTRACTUAL AGREEMENTS

28. 28 FREQ COMPARISION 3 YEARS HISTOGRAM OF FREQ SCROLL DMD VS FREQ

29. 29 THE BASIC PREMISE OF UI HELPING THE GRID GETS REWARDED, HURTING THE GRID IS PENALISED UI Mechanism presumes constraint-less transmission system and ignores the losses. UI Mechanism presumes constraint-less transmission system and ignores the losses. UI market of a few crores regulates a market more than 100 times its size. UI market of a few crores regulates a market more than 100 times its size.

30. 30 QUESTIONS CAN IT BE OPTIMISED FURTHER? CAN IT BE OPTIMISED FURTHER? WHAT IS THE FREQUENCY BAND WE WOULD LIKE TO MAINTAIN? WHAT IS THE FREQUENCY BAND WE WOULD LIKE TO MAINTAIN? WILL THE NEW VECTOR STILL PRESERVE THE STRONG EQUILIBRIUM? WILL THE NEW VECTOR STILL PRESERVE THE STRONG EQUILIBRIUM? IS IT KEEPING PACE WITH MARKET MATURITY? IS IT KEEPING PACE WITH MARKET MATURITY? DOES IT ENCOURAGE NEW INVESTMENT? DOES IT ENCOURAGE NEW INVESTMENT? DOES IT PROVIDE FLEXIBILITY TO THE SYSTEM OPERATOR ? DOES IT PROVIDE FLEXIBILITY TO THE SYSTEM OPERATOR ? COULD IT CAUSE FURTHER ECONOMY IN REAL TIME OPERATION ? COULD IT CAUSE FURTHER ECONOMY IN REAL TIME OPERATION ? SHOULD IT NECESSARILY HAVE TO BE SAME FOR ALL THE REGION (GENERATION COST AND LOAD AND SEASONS ARE DIFFERENT) ? SHOULD IT NECESSARILY HAVE TO BE SAME FOR ALL THE REGION (GENERATION COST AND LOAD AND SEASONS ARE DIFFERENT) ? UI ACTS AS REFERENCE FOR THE PRICE OF BILATERAL TRADE – IS THAT GOOD? UI ACTS AS REFERENCE FOR THE PRICE OF BILATERAL TRADE – IS THAT GOOD? IS THE UI PRICE TOO HIGH OR TOO LOW ? IS THE UI PRICE TOO HIGH OR TOO LOW ? DOES IT ENCOURAGE OR DOES IT HINDER TRADE? DOES IT ENCOURAGE OR DOES IT HINDER TRADE?

31. 31 UI : REFINEMENTS CHANGE THE SLOPE CHANGE THE SLOPE CHANGE THE FREQUENCY RANGE CHANGE THE FREQUENCY RANGE DIFFERENT CURVES FOR BUY/SELL DIFFERENT CURVES FOR BUY/SELL DIFFERENT CURVES FOR DIFFERENT SEASON DIFFERENT CURVES FOR DIFFERENT SEASON MULTI SLOPE/ KINKS MULTI SLOPE/ KINKS TIME-OF-DAY ELEMENT TIME-OF-DAY ELEMENT

32. 32 CHANGING THE SLOPE FREQUENCY WOULD BE IN A TIGHTER RANGE (49.6 TO 50 HZ.) FREQUENCY WOULD BE IN A TIGHTER RANGE (49.6 TO 50 HZ.) WOULD HELP FGMO - AS UNITS ON BARS ON FGMO WOULD FACE LESS VARIATIONS. WOULD HELP FGMO - AS UNITS ON BARS ON FGMO WOULD FACE LESS VARIATIONS. SCOPE FOR COSTLIER UNITS TO GET DESPATCHED SCOPE FOR COSTLIER UNITS TO GET DESPATCHED ARBITRAGE WOULD BECOME DIFFICULT AS PRICE CHANGES WOULD BE RAPID. ARBITRAGE WOULD BECOME DIFFICULT AS PRICE CHANGES WOULD BE RAPID.

33. 33

34. 34 CHANGE THE FREQUENCY RANGE DURING PEAK MONTHS, THE SR FREQUENCY LIES BETWEEN 49.6 HZ. TO 49.0 HZ. MOST OF THE TIME. SQUEEZING THE FREQUENCY RANGE FROM 49.0 HZ. TO 50.5 HZ. TO 49.5 HZ. TO 50.3 HZ. RANGE WOULD HAVE THE FOLLOWING IMPACT: DURING PEAK MONTHS, THE SR FREQUENCY LIES BETWEEN 49.6 HZ. TO 49.0 HZ. MOST OF THE TIME. SQUEEZING THE FREQUENCY RANGE FROM 49.0 HZ. TO 50.5 HZ. TO 49.5 HZ. TO 50.3 HZ. RANGE WOULD HAVE THE FOLLOWING IMPACT: FREQUENCY VARIATIONS WOULD COME DOWN – GOOD FOR FGMO FREQUENCY VARIATIONS WOULD COME DOWN – GOOD FOR FGMO EFFECTIVELY CHANGING SLOPE EFFECTIVELY CHANGING SLOPE

35. 35

36. 36 MULTIPLE SLOPE PROVIDE ‘KNEE POINT’ WHERE FREQUENCY WOULD PROBABLY CONCENTRATE FOR MOST PERIODS PROVIDE ‘KNEE POINT’ WHERE FREQUENCY WOULD PROBABLY CONCENTRATE FOR MOST PERIODS KNEE POINT CAN BE DECIDED BASED ON GENERATION MIX, SEASONAL PATTERNS KNEE POINT CAN BE DECIDED BASED ON GENERATION MIX, SEASONAL PATTERNS CAN BE USED TO ‘FOCUS’ ON INTER- REGIONAL TRADING – PROMOTE ‘GLOBAL ECONOMY’ CAN BE USED TO ‘FOCUS’ ON INTER- REGIONAL TRADING – PROMOTE ‘GLOBAL ECONOMY’ CONCEPT OF SOFT AND HARD RANGE MECHANISM CONCEPT OF SOFT AND HARD RANGE MECHANISM

37. 37

38. 38 DIFFERENT CURVES FOR BUYING AND SELLING TO INSULATE THE TRANSCO FROM LOSSES AND OTHER CHARGES TO INSULATE THE TRANSCO FROM LOSSES AND OTHER CHARGES MAKE THE PROCEDURE SIMPLER MAKE THE PROCEDURE SIMPLER NO POST-FACTO CALCULATION:LOSS IS IN- BUILT NO POST-FACTO CALCULATION:LOSS IS IN- BUILT BOTH CURVES CAN BE OFF-SET BY A SMALL AMOUNT, SAY 15-20 PS. BOTH CURVES CAN BE OFF-SET BY A SMALL AMOUNT, SAY 15-20 PS. ENABLE CPPS TO OPERATE SEAMLESSLY. ENABLE CPPS TO OPERATE SEAMLESSLY. PROVIDES FOR LOSSES – REDUCE POSSIBILITY OF GAMING (CFD-CONTRACT FOR DIFFERENCE) PROVIDES FOR LOSSES – REDUCE POSSIBILITY OF GAMING (CFD-CONTRACT FOR DIFFERENCE) MECHANISM EXISTS TO TAKE CARE OF DIFFERENCE BETWEEN PAYABLES- RECEIVABLES MECHANISM EXISTS TO TAKE CARE OF DIFFERENCE BETWEEN PAYABLES- RECEIVABLES

39. 39

40. 40 SEASONAL UI CURVES TWO PREDOMINANT SEASONS : RAINY SEASON (JUNE-SEPT.) AND PEAK (OCT. – MAY) TWO PREDOMINANT SEASONS : RAINY SEASON (JUNE-SEPT.) AND PEAK (OCT. – MAY) GENERATION MIX SHOULD BE DIFFERENT FOR BOTH THESE SEASONS TO ENABLE OPTIMUM USE OF RUN-OF- THE-RIVER AND SHALLOW STORAGE PLANTS GENERATION MIX SHOULD BE DIFFERENT FOR BOTH THESE SEASONS TO ENABLE OPTIMUM USE OF RUN-OF- THE-RIVER AND SHALLOW STORAGE PLANTS PRICE SIGNAL SHOULD REFLECT THIS PRICE SIGNAL SHOULD REFLECT THIS

41. 41

42. 42 3D UI CURVE ‘TIME-OF-THE-DAY’ ELEMENT IS INTRODUCED ‘TIME-OF-THE-DAY’ ELEMENT IS INTRODUCED TOD, TFOD,FTOD,FODUI TOD, TFOD,FTOD,FODUI OVER/UNDER DRAWAL AT DIFFERENT TIME OF THE DAY IS CHARGED DIFFERENTLY OVER/UNDER DRAWAL AT DIFFERENT TIME OF THE DAY IS CHARGED DIFFERENTLY SCOPE FOR MORE REALISTIC DISPATCH SCOPE FOR MORE REALISTIC DISPATCH WOULD WORK IN NARROW FREQUENCY BAND WOULD WORK IN NARROW FREQUENCY BAND HELPS IN UNIT COMMITMENT HELPS IN UNIT COMMITMENT BRINGS MORE CERTAINTY TO UI PRICE BRINGS MORE CERTAINTY TO UI PRICE WOULD HELP IN FGMO50.5 WOULD HELP IN FGMO50.5 RETAINS ALL GOOD FEATURES OF EXISTING UI RATE RETAINS ALL GOOD FEATURES OF EXISTING UI RATE

43. 43 3 D UI OF THE FUTURE? 49.0 50.5 49.6 300 600 500 400 UI RATE

44. 44 GAME THEORY CONCEPTS MATHEMATICAL ANALYSIS FOR INTERACTIONS BETWEEN PEOPLE. MATHEMATICAL ANALYSIS FOR INTERACTIONS BETWEEN PEOPLE. THESE INTERACTIONS ARE CALLED GAMES. THESE INTERACTIONS ARE CALLED GAMES. GAMES ARE PLAYED BY RATIONAL PEOPLE. GAMES ARE PLAYED BY RATIONAL PEOPLE. RATIONAL PLAYERS IN A GAME LOOK TO MAXIMISING THEIR INDIVIDUAL PAY-OFF’s. RATIONAL PLAYERS IN A GAME LOOK TO MAXIMISING THEIR INDIVIDUAL PAY-OFF’s. AN EQUILIBRIUM POINT IS REACHED WHEN ANY PLAYER CANNOT INCREASE HIS PAYOFF UNILATERALLY. AN EQUILIBRIUM POINT IS REACHED WHEN ANY PLAYER CANNOT INCREASE HIS PAYOFF UNILATERALLY. THIS IS REFFERED TO AS A ‘NASH’ EQUILIBRIUM AFTER ITS PROPONENT JOHN NASH. THIS IS REFFERED TO AS A ‘NASH’ EQUILIBRIUM AFTER ITS PROPONENT JOHN NASH. SOME OF THE TYPES OF GAMES ARE SOME OF THE TYPES OF GAMES ARE ZERO SUM GAME ZERO SUM GAME CO-OPERATIVE/NON CO-OPERATIVE GAMES CO-OPERATIVE/NON CO-OPERATIVE GAMES REPETITIVE GAMES REPETITIVE GAMES GAME THEORY CONCEPTS ARE USED TO MODEL HUMAN BEHAVIOUR/STRATEGIES IN A COMPETITIVE MARKET GAME THEORY CONCEPTS ARE USED TO MODEL HUMAN BEHAVIOUR/STRATEGIES IN A COMPETITIVE MARKET THESE CONCEPTS CAN FIND PARALLELS IN THE UI MARKETPLACE THESE CONCEPTS CAN FIND PARALLELS IN THE UI MARKETPLACE

45. 45 GAME THORY AND UI ZERO SUM GAME :- Σ OF EVERY PLAYERS UI IS ZERO ZERO SUM GAME :- Σ OF EVERY PLAYERS UI IS ZERO REPETITIVE GAME :- PLAYED EVERY 15 MTS (ONE TIME BLOCK OF ABT) REPETITIVE GAME :- PLAYED EVERY 15 MTS (ONE TIME BLOCK OF ABT) NON-CO-OPERATIVE GAME :- EVERY PLAYER LOOKS TO MAXIMISING PAYOFF – ‘…. ITS’ HUMAN TO WANT MORE….!!!’ NON-CO-OPERATIVE GAME :- EVERY PLAYER LOOKS TO MAXIMISING PAYOFF – ‘…. ITS’ HUMAN TO WANT MORE….!!!’ EQUILIBRIA IS REACHED BETWEEN 49 AND 50.5 HZ- STEADY STATE FREQUENCY EQUILIBRIA IS REACHED BETWEEN 49 AND 50.5 HZ- STEADY STATE FREQUENCY MULTIPLE EQUILIBRIUM POINTS IN THE RANGE MULTIPLE EQUILIBRIUM POINTS IN THE RANGE THIS EXPLAINS WHY AN UI MARKET OF A FEW CRORES REGULATES A MARKET MORE THAN A THOUSAND TIMES ITS SIZE! THIS EXPLAINS WHY AN UI MARKET OF A FEW CRORES REGULATES A MARKET MORE THAN A THOUSAND TIMES ITS SIZE!

46. 46

47. 47

48. 48 FREQUENCY PROFILE 2002, 2003 & 2004

49. 49 REALITY BITE: FARMERS IN KARNATAKA ARE HAPPY WITH FEWER HOURS OF QUALITY POWER!!. EFFICIENCY OF PUMPS AT TG HALLI WATER WORKS IMPROVED! COMPARISION OF BANGALORE VOLTAGE-TYPICAL DAY BETTER VOLTAGE PROFILE MEANS LESS ELECTRICAL LOSSES

50. 50 WATER SUPPLY TO BANGALORE LOW VOLTAGE PROBLEMS AROUND BANGALORE HAMPERED WATER SUPPLY EARLIER WITH BETTER VOLTAGE NOW, PUMPING EFFICIENCY HAS IMPROVED 400 KV STATION AT MYSORE BEING COMMISSIONED ON WAR FOOTING TO FURTHER FORTIFY THIS PART OF THE GRID PUMPING LOSSES REDUCED ENORMOUS SAVINGS TO THE STATE MOTOR BURNING AND MAINTENANCE COSTS ALSO CAME DOWN DRASTICALLY

51. 51

52. 52

53. 53 MERIT ORDER : UNITS BOXED UP POWER STATIONSTATE CAPACITY(MW) FUEL VARIABLE COST TATA DIESELKARNATAKA 79 DIESEL308 RAYALSEEMA DGPPKARNATAKA 27 DIESEL360 YELEHANKA DIESELKARNATAKA 128 DIESEL314 THANRBHAVIKARNATAKA 220 NAPTHA325 SUB-TOTAL 454 BRAHAMPURAM DPPKERALA 107 DIESEL275 BSESKERALA 157 NAPTHA308 KASARGODE PCLKERALA 22 NAPTHA298 KAYAMKULAMKERALA 360 NAPTHA322 SUB-TOTAL 646 BASIN BRIDGETAMIL NADU 120 NAPTHA584 P.P.NALLURTAMIL NADU 330 NAPTHA415 SUB-TOTAL 450 TOTAL 1550

54. 54 OPTIMAL RESERVOIR UTILISATION IDUKKI IN KERALA KERALA SAVED RS 50 CRORES BY EFFICIENT UTILISATION OF THE RESERVOIRS AT IDUKKI! POWERGRIDs 400 KV MADURAI- TRIVANDRUM LINE WILL HELP KERALA SAVE EVEN MORE ENERGY IN THE COMING YEAR PLANT OPERATORS AT IDUKKI THINK OF THE RESERVOIR LEVEL IN RUPEES RATHER THAN IN FEET!!! Rs.

55. 55 KADAMPARAI PUMP OPERATION GENERATOR MODE PUMP SAVINGS OF RS 40 LAKHS EVERY DAY INVESTMENT OF 1600 CRORES SAVED

56. 56 HARNESSING DIVERSITY AN EXAMPLE IN CENTRAL GRID WESTERN REGION NORTH- EASTERN REGION EASTERN REGION WESTERN REGION NORTH- EASTERN REGION EASTERN REGION AT 1830 HRS AT 2000 HRS 600 MW 1200 MW EASTERN REGION HELPS WESTERN REGION WESTERN REGION HELPS EASTERN REGION

57. 57

58. 58

59. 59 HVDC STATION KOLAR (KARNATAKA ) TALCHER ORISSA ) TALCHER KOLAR HVDC LINE LENGTH:1400 KMS

60. 60 TALCHER KOLAR LINK ONE OF THE LONGEST HVDC LINES IN THE WORLD ONE OF THE LONGEST HVDC LINES IN THE WORLD DESIGNED TO EVACUATE 2000 MW DESIGNED TO EVACUATE 2000 MW COMMISSIONED IN ADVANCE TO UTILISE NON- PEAK SURPLUS POWER OF EASTERN REGION COMMISSIONED IN ADVANCE TO UTILISE NON- PEAK SURPLUS POWER OF EASTERN REGION COMMISSIONED 9 MONTHS AHEAD OF SCHEDULE COMMISSIONED 9 MONTHS AHEAD OF SCHEDULE COST INCURRED Rs 3,100 CRORES AGAINST APPROVED COST OF Rs 3,866 CRORES:- SAVING OF NEARLY 800 CRORE RUPEES COST INCURRED Rs 3,100 CRORES AGAINST APPROVED COST OF Rs 3,866 CRORES:- SAVING OF NEARLY 800 CRORE RUPEES THE PROJECT HAS USED APPROXIMATELY 90,000 TONNES OF STEEL AND 16,000 KM OF CABLES THE PROJECT HAS USED APPROXIMATELY 90,000 TONNES OF STEEL AND 16,000 KM OF CABLES

61. 61 ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME. ALL CONSTITUENTS GET THE SAME DATA IN REAL TIME. TRANSPARENCY. TRANSPARENCY. SYNERGY IN OPERATION. SYNERGY IN OPERATION. QUANTUM LEAP IN VISIBILITY TO OPERATOR. QUANTUM LEAP IN VISIBILITY TO OPERATOR. INCREASED CONFIDENCE. INCREASED CONFIDENCE. FOCUS ON SECURITY AND ECONOMY. FOCUS ON SECURITY AND ECONOMY. INCREASED SCOPE FOR TRANSACTIONS WITH OTHER REGIONS INCREASED SCOPE FOR TRANSACTIONS WITH OTHER REGIONS PREMPTIVE, DYNAMIC “EARLY WARNING” SYSTEMS. PREMPTIVE, DYNAMIC “EARLY WARNING” SYSTEMS. GRID LESS VULNERABLE TO DISTURBANCES. GRID LESS VULNERABLE TO DISTURBANCES. ACCURATE AND EASY ANALYSIS OF GRID INCIDENTS ACCURATE AND EASY ANALYSIS OF GRID INCIDENTS FASTER RESTORATION AFTER PERTURBATION FASTER RESTORATION AFTER PERTURBATION COMPREHENSIVE ENERGY MANAGEMENT SYSTEM FUNCTIONS. COMPREHENSIVE ENERGY MANAGEMENT SYSTEM FUNCTIONS. PROJECT COST:Rs 6840 MILLION ----COMPLETED SIX MONTHS AHEAD

62. 62 HVDC STATION KOLAR (KARNATAKA ) TALCHER ORISSA ) SASARAM PROJECT RAIPUR-ROURKELA

63. 63 Generation PLF (Thermal) ER Utility2002-03 % PLF 2003-04 % increase DVC394412 Orissa647517 WBPDCL55562 CESC68725 DPL405641 NTPC687612 Region52568

64. 64 Generation Performance ER Utility2002-03(MU)2003-04(MU) % increase Orissa93881310739% West Bengal 26062283578% DVC8939984510% NTPC204582263511% Region (TH) 59841646378% Region(Hyd)4657741359% Region( Tot) 645067205611%

65. 65 HOW DID THE LOSSES GET REDUCED IN THE SOUTHERN REGION? VOLTAGE IMPROVEMENT IS THE MAIN REASON VOLTAGE IMPROVEMENT IS THE MAIN REASON POWER = VOLTAGE X CURRENT POWER = VOLTAGE X CURRENT LOSS ≈ CURRENT 2 LOSS ≈ CURRENT 2 FOR EXAMPLE FOR EXAMPLE 440 W = 220 VOLTS X 2 AMPS 440 W = 220 VOLTS X 2 AMPS LOSS ≈ 4 WATTS LOSS ≈ 4 WATTS 440 W = 160 VOLTS X 2.75 AMPS ( AT REDUCED VOLTAGE) 440 W = 160 VOLTS X 2.75 AMPS ( AT REDUCED VOLTAGE) LOSS ≈ 7.6 WATTS ( NEARLY DOUBLE!) LOSS ≈ 7.6 WATTS ( NEARLY DOUBLE!)

66. 66 765 KV RING MAIN SYSTEM THE POWER ‘HIGHWAY’ CHEAP HYDRO POWER FROM THE NORTH-EAST AND PIT HEAD THERMAL POWER FROM THE EAST ENTERS THE RING AND EXITS TO POWER STARVED REGIONS

67. 67 MAJOR AND MINOR DISTURBANCES SINCE 1994 NO DISTURBANCES DESPITE LOSING ENTIRE SUPER GENERATING PLANTS LIKE RAMAGUNDAM,VIJAYAWADA,KOTHAGUDEM, NORTH CHENNAI, SHARAVATHY ETC

68. 68

69. 69 DEEP VALLEY SHARP PEAK