1. UTILISATION OF IDLING CAPACITY OF CAPTIVE POWER PLANTS-A VIABLE ALTERNATIVE BHANU BHUSHAN DIRECTOR(OPERATION),POWERGRID

2. POWER SECTOR TODAY……. POWER SHORTAGES LOAD SHEDDING ROSTERING POWER CUTS BROWN OUTS BUT STILL OUR CAPTIVE AND CO-GENERATION REMAIN UNDER UTILISED

3. CAPTIVE AND CO- GENERATION PLANTS GETTING THEM INTO THE GRID

4. LET’S TALK MONEY…… THE CPP MUST GET A PRICE BETTER THAN HIS INCREMENTAL COST THE PURCHASER SHOULD GET THE POWER AT THE BEST PRICE THE SEB’S/TRANSCO/DISCOM’S ARE THE INEVITABLE INTERFACE – THEIR SUPPORT IS VITAL TO THE SUCCESS OF THE DEAL

5. WHAT WAS STOPPING US BEFORE? MONOPOLISTIC ATTITUDE/MINDSET ABSENCE OF COMMERCIAL FRAMEWORK ARCHAIC RULES AND REGULATIONS

6. THE SEB’S CONCERNS THE TRANSMISSION SYSTEM MUST NOT GET OVERLOADED LOSSES MUST NOT INCREASE SEB MUST NOT LOSE FINANCIALLY

7. THE AVAILABILITY BASED TARIFF – A FRAMEWORK FOR FACILITATING TRADE

8. AN EVERY DAY EXAMPLE SEB CPP + STEEL PLANT CAPACITY: 2X65 MW RATE: 100p/UNIT REQUIREMENT: 120±10 MW CAPABILITY: 120 MW AVAILABILITY: FULL FOR 10 MONTHS, ONE UNIT ON OH FOR 1 MONTH EVERY YEAR CONDITIONS 1)30 MW MINIMUM DEMAND 2)70 MW MAX DEMAND FOR 2 MONTHS REPURCUSSIONS: FOR 10 MONTHS THE CPP RUNS AT PART LOAD OF 90 MW DUE TO CONDITION 1) ABOVE

9. A POSSIBLE SOLUTION SEB AND CPP AGREE ON A SCHEDULE – SAY 70 MW FOR 2 MONTHS AND 30 MW FOR REST OF THE YEAR. ANY DEVIATION FROM THE ABOVE WOULD ATTRACT A FREQUENCY LINKED UI RATE.

10. A WIN-WIN SITUATION IN CASE THE FREQUENCY IS LOW: –CPP GENERATES MORE AND BENEFITS FROM THE UI. –SEB BENEFITS BECAUSE IT DOES NOT HAVE TO DRAW FROM THE GRID AT HIGH PRICE. –MORE LOAD IS SERVED.

11. A WIN-WIN SITUATION IN CASE THE FREQUENCY IS HIGH: –CPP GENERATES LESS. –SEB BENEFITS BECAUSE IT DRAWS POWER FROM THE GRID AT A LOW PRICE. –MERIT ORDER IS ACHIEVED. THE CPP CAN DECIDE LEVEL OF GENERATION DEPENDING ON THE FREQUENCY AND ITS NETT INCREMENTAL COST

12. ADVANTAGES FOR CPP SIMPLICITY – A FREQUENCY METER IS ALL THAT IS REQUIRED NO TELEMETRY OR COMMUNICATION WITH SLDC/SEB NO PRICE TO BE NEGOTIATED CPP DOES NOT HAVE TO SEARCH FOR BUYER CPP CAN MAKE A REASONABLE PROFIT.

13. ADVANTAGES FOR SEB IMPARTIAL AND UNBIASED SYSTEM NEED NOT WORRY ABOUT CPP UNDER-GENERATING AT LOW FREQUENCY AND OVER- GENERATING AT HIGH FREQUENCY FRAMEWORK FOR SETTLEMENT IS ALREADY AVAILABLE

14. A POSITIVE APPROACH IS ALL THAT IS NEEDED