1. OPEN ACCESS EXPERIANCES AND WAY AHEAD ON 28-04-2008 V K Agrawal, General Manager IN WORKSHOP ON GRID SECURITY AND MANAGEMENT

2. MILESTONES : TRANSMISSION SECTOR 1989 Unbundling of CS transmission from generation (Formation of Power Transmission Corporation (Formation of Power Transmission Corporation.. now POWERGRID).. now POWERGRID) 1991 Generation opened to Private Sector 1995 Unbundling process started in States -Orissa Regulatory Commission Act introduced -Orissa Regulatory Commission Act introduced -State unbundled into Gencos, Transco & Discoms -State unbundled into Gencos, Transco & Discoms 1998 Electricity Regulatory Commission Act passed 2000 Process initiated for a comprehensive legislature 2003 Electricity Act 2003 enacted in June 2003 2004 CERC Order and Regulations on OPEN ACCESS

3. OPEN ACCESS IN INTER-STATE TRANSMISSION CERC has issued Regulations and the Open Access in Inter State Transmission implemented w.e.f. 6-May-2004. CERC has amended the above Regulations and the amended Regulations are implemented w.e.f 01-04-2005. CERC has amended the Regulations on 25-01-2008 and the new Regulations are implemented w.e.f 01-04-2008.

4. Transmission Pricing : Objective Promote efficient day-to-day operation of the bulk power market including power tradingPromote efficient day-to-day operation of the bulk power market including power trading Give Economic signal for efficient use of transmission resourcesGive Economic signal for efficient use of transmission resources Give economic signal for transmission investmentGive economic signal for transmission investment Give economic signal for location of new generation and loadsGive economic signal for location of new generation and loads Compensate the owner of the transmission systemCompensate the owner of the transmission system Be simple and practicalBe simple and practical

5. Diversity details of Regional Grids in India SOUTHERN REGION WESTERN REGION EASTERN REGION NORTHERN REGION NORTH- EASTERN REGION REGIONAL GRIDS Deficit Region Snow fed – run-of –the –river hydro Highly weather sensitive load Adverse weather conditions: Fog & Dust Storm Very low load High hydro potential Evacuation problems Industrial load and agricultural load Low load High coal reserves Pit head base load plants High load (40% agricultural load) Monsoon dependent hydro CHICKEN-NECK

6. Transmission Capacity Is a coordinated exercise Transmission system developed as –Generation linked Associated Transmission System –Inter-regional schemes –Grid strengthening schemes Beneficiaries identified apriori –Transmission system can be constructed only with commitment N-1 criterion adopted Optimum capacity Inherent design margin available in the transmission system –To accommodate the variation of 15% unallocated power –Skewed dispatch scenarios Actual margins available in the system –Generation outages, unbalanced load growth –Laws of physics prevail

7. Transmission Capacity vs Transfer Capability Transmission CapacityTransfer Capability 1Is a physical property in isolationIs a collective behaviour of a system 2Depends on design onlyDepends on design, topology, system conditions, accuracy of assumptions 3DeterministicProbabilistic 4Constant under a set of conditionsAlways varying 5Time independentTime dependent 6Non-directionalDirectional 7Determined directly by designEstimated indirectly using simulation models 8Declared by designer/ manufacturerDeclared by the Grid Operator 9Understood by allFrequently misunderstood 10Considered unambiguous & sacrosanctSubject to close scrutiny by all stakeholders

8. Total Transfer Capability Voltage Limit Thermal Limit Stability Limit Total Transfer Capability Total Transfer Capability is the minimum of the Thermal Limit, Voltage Limit and the Stability Limit Time Power Flow

9. Total & Available Transfer Capability ATC = TTC – TRM – CBM Transfer Reliability Margin (TRM) Capacity Benefit Margin (CBM) Long Term Open Access (LTOA) Short Term Open Access (STOA) TTC ATC

10. 10 INTER REGIONAL CAPACITIES Inter regional Link MW capacity NER-ER 1,240 ER-NR 6,020 ER-SR 1,120 ER-WR 1,760 SR-WR 1,680 WR-NR 2,080 Other 132 KV Links 200 Talcher Kolar HVDC Bipole 2,500 Total17,000 Target for 2012 37,700 30,500 MW 16,000 42,420 MW 39,175 MW 37,486 MW 19,416 MW 2,506 MW

11. OPEN ACCESS: DEFINITION AS PER ELECTRICITY ACT, 2003 Section 2 (47) “Open access” means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission;” “Open access” means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission;”

12.  Nondiscriminatory provision for use of transmission line or distribution system or associated facilities with such line or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission.  Under sub-section (2) of Section 38, CTU is obliged to provide nondiscriminatory open access to its transmission system for use by (i) any licensee or generating company on payment of transmission charges; or (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of Section 42, on payment of transmission charges and a surcharge thereon as may be specified by the Central Commission “ Open Access ’ means

13. OPEN ACCESS IN INTER-STATE TRANSMISSION Products – – –Long term Access – –Short term Access Monthly – –Advance – –First Come First Serve – –Day ahead – –Same Day transactions

14. CATEGORY OF OPEN ACCESS CUSTOMERS LONG TERM : TWENTYFIVE YEARS AND ABOVE – –Life of the Assets about 25 years – –Existing beneficiaries of a regional transmission system owned or operated by CTU- deemed long term customers – –New Long Term Open Access customers: Require BPTA for inter-State transmission SHORT TERM : WHICH IS NOT LONG TERM - Essentially a Non firm service – – The service may be curtailed if system security demands.

15. CERC Open Access Regulations, 2008 3. Subject to any other regulations specified by the Commission, the long-term customer shall have first priority for using the inter-State transmission system for the designated use. These Regulations shall apply for utilization of surplus capacity available thereafter on the inter-State transmission system by virtue of- (a) Inherent design margins; (a) Inherent design margins; (b) Margins available due to variations in power flows; (c ) Margins available due to in-built spare transmission capacity created to cater to future load growth or generation addition:

16. CERC Open Access Regulations, 2008 Effective 01.04.2008Effective 01.04.2008 Regulations cover only Short-term Open AccessRegulations cover only Short-term Open Access Transactions categorized as Bilateral and Collective (through PX)Transactions categorized as Bilateral and Collective (through PX) Earlier Products of Short-Term retained under Bilateral TransactionsEarlier Products of Short-Term retained under Bilateral Transactions Nodal AgencyNodal Agency –Bilateral : RLDCs –Collective : NLDC

17. CERC Open Access Regulations, 2008 Transmission Charges moved from “Contract Path” to “Point of Connection”Transmission Charges moved from “Contract Path” to “Point of Connection” Both Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission lossesBoth Buyers and Sellers of Collective transactions to bear transmission charges and absorb transmission losses Inter-Regional links -No Separate treatment.Inter-Regional links -No Separate treatment. Emphasis on “Scheduling” rather than “Reservation”Emphasis on “Scheduling” rather than “Reservation” SLDC consent mandated along with applicationSLDC consent mandated along with application In case of Congestion – e-Bidding without Price CapIn case of Congestion – e-Bidding without Price Cap Exit Option provided with payment of up to 5 days open access charges.Exit Option provided with payment of up to 5 days open access charges. Moving towards empowerment of SLDCsMoving towards empowerment of SLDCs

18. Regulation 2004 of CERC Regulations on Short-Term Open Access Open Access Duration - Up to One year maximum -single application possible ST Rate - in Rs/MW/Day - Min. Charges for one day Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 25% of Long Term Charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 3000/day for each SLDC involved c. Handling &Service Charges - 2% of total charges (06.05.2004 to 31.03.2005)

19. Regulation 2004 (Amendment 2005)of CERC Regulations on Short Term Open Access Open Access Duration - Up to three months -single application possible ST Rate - in Rs/MW/Day - Charges as per continuous block of up to 6 hours, 12 hours, and more than 12 hours Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 50% of Long Term Charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 1000/day for each RLDC involved c. Handling &Service Charges - Nil ( 01.04.2005 to 31.03.2008)

20. Regulation 2008 of CERC Regulations on Short Term Open Access Open Access Duration - Bilateral -Up to 3 months separate application for each month - Bilateral -Up to 3 months separate application for each month - Collective: -Only Day ahead ST Rate - in Rs/MWh - Based on Scheduled Energy - in Rs/MWh - Based on Scheduled Energy Transmission Charges Bilateral: Bilateral: Rs.30/MWh – intra- regional Rs.60/MWh – Between adjacent regions Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal (From 01.04.2008)

21. Regulation 2008 of CERC Regulations on Short Term Open Access Operating Charges Bilateral: Bilateral: a. Application fee – Rs. 5000/- a. Application fee – Rs. 5000/- b. Scheduling Charges b. Scheduling Charges – Rs. 2000/day for each RLDC involved – Rs. 2000/day for each RLDC involved – Rs. 2000/day for each SLDC involved – Rs. 2000/day for each SLDC involved c. Handling & Service Charges –Nil c. Handling & Service Charges –Nil Collective Transactions: a. Application fee – Rs. 5000/- b. Scheduling Charges b. Scheduling Charges – Rs. 5000/day to NLDC for each State involved ; – Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs -NLDC to Share with RLDCs Contd …

22. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) S.No. Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 1. 1. Open Access Duration - Up to One year maximum - single application possible Open Access Duration - Up to Three Months max. - single application possible Open Access Duration Bilateral -Up to 3 months -separate application for each month -Collective: -Only Day ahead 2. 2. ST Rate - in Rs/MW/Day - Min. Charges for one day ST Rate - in Rs./MW/Day -Charges as per continuous block of up to 6 hours, 12 hours, and more than 12 hours Rate -in Rs/MWh - Based on Scheduled Energy

23. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) S. N o. Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) 3. 3. Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter Regional – 25% of Long Term Charges Transmission Charges a. Intra Regional – 25% of Long Term Charges b. Inter-Regional - 50% of Long Term Charges Transmission Charges: Bilateral: -Rs.30/MWh – intra- regional -Rs.60/MWh – Between adjacent regions -Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal 4. 4. Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 3000/day for each SLDC involved c. Handling &Service Charges - 2% of total charges Operating Charges a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 3000/day for each RLDC involved – Rs. 1000/day for each RLDC involved c. Handling & Service Charges – Nil Operating Charges Bilateral: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 2000/day for each RLDC and SLDC involved c. Handling & Service Charges -Nil Collective Transactions: a. Application fee – Rs. 5000/- b. Scheduling Charges – Rs. 5000/day to NLDC for each State involved ; -NLDC to Share with RLDCs

24. ER-NR NER-ER WR-NR SR-WR SR-ER EASTERN REGION SOUTHERN REGION WESTERN REGION NORTHERN REGION NORTH- EASTERN REGION STOA RATES 2004 AND 2005 AND 2008 ER-WR 700.91 313.93 649.86 339.98 919.71 1462.44 881.49 967.58 233.32 460.41 270.49 614.15 434.42 516.03 359.68 2433.39 1128.39 447.73 1795.11 859.05 433.09 200420052008 Scheduling Charges (Rs/Day) RLDCs SLDCs 3000 1000 2000 Handling Charges2%NIL Transmission Charges: Bilateral: Rs.30/MWh – intra- regional Rs.60/MWh – Between adjacent regions Rs90/MWh – Wheeling through one or more region Collective Transactions (Px): -Rs. 30/MWh for each point of injection and drawal

25. All India basis

28. STOA – EXPERIANCES Applications Processed Applications Processed (Since Beginning) > 20,000 No. (Since Beginning) > 20,000 No. Volume (Approved Energy) Volume (Approved Energy) (Since Beginning) > 90BUs (Since Beginning) > 90BUs Applications Approved > 95 % Applications Approved > 95 % Refusal/Non-consent by SLDCs Refusal/Non-consent by SLDCs > 3 - 4% Refusal due to system constraints Refusal due to system constraints < 0.5 % < 0.5 %

29. STOA – EXPERIANCES Transactions between extreme corners of the country Transactions between extreme corners of the country RGCCPP ( Kayamkulam) to PSEB Arunachal Pradesh(NER) to PSEB TNEB to J&K Large number of Captive Generating plants used STOA and helped in enhancing the power availability in grid. Large number of Captive Generating plants used STOA and helped in enhancing the power availability in grid. Ugar Sugars (KAR) - JAIPUR (RAJASTHAN) Godavari Sugars (KAR) - MSEDCL NCS Sugar(ANDHARA) – GUVNL Indorama ( MAH) – APPCC ( ANDHRA) Indorama ( MAH) – APPCC ( ANDHRA)

30. STOA – EXPERIANCES Due to High demand in the regions, the costly power has been traded through STOA Due to High demand in the regions, the costly power has been traded through STOA RGCCPP ( Kayamkulam) (NAPTHA) to PSEB BSES(KERALA) (DIESEL) to NDMC (DELHI) Diversity being gainfully utilised by Market players under STOA Diversity being gainfully utilised by Market players under STOA Generators PLF has also increased. Generators PLF has also increased.

31. Issues Skewed load – generation levels Skewed load – generation levels Increased line loading Increased line loading Consents by STU/SLDC for injection of power by embedded customers Consents by STU/SLDC for injection of power by embedded customers Telemetry Telemetry Metering Metering Scheduling Scheduling PPAs PPAs

32. Empowering SLDCs UI Settlement of Intra state entities UI Settlement of Intra state entities Before the Implementation of Open Access Regulations 2008, for deviations Various STU/SLDCs are charging differently for embedded customers. In the New Open Access Regulations the issue is addressed Before the Implementation of Open Access Regulations 2008, for deviations Various STU/SLDCs are charging differently for embedded customers. In the New Open Access Regulations the issue is addressed Functional Autonomy of SLDC Functional Autonomy of SLDC

33. Typical Approvals- Captive Power Plants Typical Approvals- Captive Power Plants Captive Power Plant Quantum( MW) Eastern Region NBVL(OPTCL)27 SAIL-DSP(DVC)20 TISCO(DVC)60 Bhushan Steel 25 J.P Cement (Rewa) 5 Western Region Indo Rama synthetics 22 PSKL10-30 Southern Region Renuka Sugar 25 Vishwanath Sugar 7.5 Godavari Sugar 25 Ugar Sugar 25 Jindal Steel 200 Nav Bharat 50 NCS Sugar 13 Back

34. TYPICAL STOA CASE TYPICAL STOA CASE KAYAMKULAM RGCCPP, NTPC to PSEB 150 MW for 31 days on Round the Clock basis

35. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA INJECTING UTILITY KYCPP,KSEB TRADER: NVVNL KAYAMKULAM RGCCPP NTPC) DRAWEE UTILITYPSEB CAPACITY APPROVED 150 MW DAILY PERIOD 0000-2400 HRS CUSTOMER: NVVNL WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR INTERVENING REGION WR INTERVENING REGIONAL LINK SR-WR WR-NR INTERVENING STATE TRANSMISSION UTILITYKSEB

36. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR EXPORT AT RGCCPP BUS150 MW PSEB RECIEVES 134.4 MW AT KERALA PERIPHERY 148.9 MW LOSSES IN KERALA 0.75% LOSSES IN SR 3.12% AT SR-WR PERIPHERY 144.3 MW LOSSES IN WR 4.0% AT WR-NR PERIPHERY 138.5 MW LOSSES IN NR 3.0%

37. SR STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 700.91FOR CTU-SR 2.Rs 881.49FOR SR-WR LINK 3.Rs 339.98FOR CTU-WR 4.Rs 233.32FOR WR-NR LINK 5.Rs 649.86 FOR CTU-NR 6.Rs 672.07 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC 3.Rs 3000FOR NRLDC 4.Rs 3000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 15.12Ps Payments as per Regulation 2004 of CERC

38. SR KERALA KAYAMKULAM RGCCPP(NTPC) WR NR HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MW PER DAY 1.Rs 843FOR CTU-SR 2.Rs 1311FOR SR-WR LINK 3.Rs 357FOR CTU-WR 4.Rs 600FOR WR-NR LINK 5.Rs 594 FOR CTU-NR 6.Rs 672.07 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 3000FOR SRLDC 2.Rs 3000FOR WRLDC 3.Rs 3000FOR NRLDC 4.Rs 1000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 18.5Ps Payments as per Regulation 2004 Amendment 2005) of CERC STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days PSEB

39. SR KERALA KAYAMKULAM RGCCPP(NTPC) WR NR PSEB HVDC BACK TO BACK AT VINDHYACHAL IN WR HVDC BACK TO BACK AT BHADRWATHI IN WR APPLICATION PROCESSING FEE Rs 5000 PER TRANSACTION TRANSMISSION CHARGES PER MWHR 1.Rs 90FOR Bilateral Wheeling through one or more region 1.Rs 30 FOR KSEB SCHEDULING CHARGES PER DAY 1.Rs 2000FOR SRLDC 2.Rs 2000FOR WRLDC 3.Rs 2000FOR NRLDC 4.Rs 2000FOR KSEB TOTAL TRANSMISSION CHARGES PER UNIT 12.2Ps STOA OF KSEB(RGCCPP) - PSEB 0000 HRS – 2400 HRS 150MW AT RGCCPP EXBUS POINT for 31 days Payments as per Regulation 2008 of CERC

40. Comparison of CERC Regulations on Short-Term Open Access (Regulation 2004, Amendment 2005 and Regulations 2008) Old Regulations Old Regulations (06.05.2004 to 31.03.2005) Amended Regulations Amended Regulations (w.e.f. 01.04.2005 to (w.e.f. 01.04.2005 to 31.03.2008) 31.03.2008) Regulations, 2008 (w.e.f. 01.04.2008) Total STOA Charges Paisa/Unit 15.12 Total STOA Charges Paisa/Unit 18.5 Total STOA Charges Paisa/Unit 12.2 Back

41. STOA OF NBVL(ORISSA) - APPCC (0000 – 2400 HRS ) MW AT INJECTION POINT FROM 01.03.08 to 31.03.08 STOA OF NBVL(ORISSA) - APPCC (0000 – 2400 HRS ) 50 MW AT INJECTION POINT FROM 01.03.08 to 31.03.08 ORISSA SR CTU HVDC BACK TO BACK AT GAZUWAKA IN SR ER EXPORT AT NBVL(ORISSA)50 MW AT ER-SR PERIPHERY 47.05 MW LOSSES IN ER 3% LOSSES IN SR 3.12% TOTAL LOSSES FOR TRANSACTION 4.42 MW APPCC RECEIVES 45.58 MW ANDHRA PRADESH LOSSES IN OPTCL SYSTEM 3% AT ER PERIPHERY 48.50 MW NBVL

42. NAVABHARAT(NBVL) (ORISSA)(ER) to APPCC (ANDHRA)(SR) 50 MW for 31 days on Round the Clock basis Consent was not given by OPTCL by citing the following Reasons As per provision under chapter 4.11,10.5 of OGC Rule 2006 and order dated 29.10.2007 passed by Hon’ble OERC, the real time data of the CGP,(M/s NBVL) is yet to be received at the SLDC, Control Room. In absence of real time data monitoring facility, SLDC cannot comply the OGC provision under chapter 3.4(9) during contingency condition. Due to the above reasons the Request for Consent is not accepted.

43. Consent was not given by KPTCL by citing the following Reasons The Sugar companies started trading of the surplus power by applying through open access. But initially KPTCL has not consented by citing the reason that the sugar companies are having PPA with ESCOMs. Later the Sugar companies have approached CERC and CERC allowed them to trade under open access. Aggreived by the order of CERC, KPTCL has approached the Appellate Tribunal. The Tribunal said that if any petition is filed, the state commission shall consider the same. But the existing open access arrangement to continue.