Presentation on theme: "Gujarat Power Market Development"— Presentation transcript:
1Gujarat Power Market Development Dr. KETAN SHUKLA (IFS),SECRETARY,GUJARAT ELECTRICITY REGULATORY COMMISSION
2New Avenues in Power Sector The Electricity Act, 2003 and Gujarat Electricity Industries (Reorganisation and Regulation) Act, envisages various activities for taking conducive measures toAllow development of power marketEnvisage competitionProtect interest of consumers and supply of electricity to all areasRationalize electricity tariffPromote efficient and environmentally benign policiesOpen Access in Transmission and DistributionPower TradingImplement Availability Based Tariff
3Making Competitive Power Market National Electricity Policy (2005) enjoins upon Appropriate Commission to undertake development of power marketPower / Energy Exchanges introduced in India enabling market to discover a uniform market clearing price and market clearing volumeTo make electricity market competitive following elements are necessarySeveral buyers and sellers to avoid exercise of market powerDemand and supply responsiveness to priceEqual access to essential facilities transmission and distributionLiquid and efficient market placesApplication of Open Access in phased manner
4Power Sector of Gujarat Total Installed Capacity (Including Central Generation)12, 258 MWInstalled capacity for Wind Power1,790 MWCaptive Generating Plant (Grid Connected)3,033 MWCaptive Generating Plant (Off the Grid)2,531 MWPotential for Solar Power- 300 days of clear sun- solar radiation 5.6 to 6 kWh per Sq. Mt. per daySources: Submissions by Licensees during their filing of ARR, 2010
5Power Sector of Gujarat Total Installed Capacity12,258 MWProjected Peak Demand in 2012 (As per 17th EPS 6% Growth)14,374 MWInstalled Capacity Required by 2012 (at 80% PLF)18,428 MWPlanned Capacity Addition by 20128,900 MWCapacity Available by 201218764 MWSurplus /(Deficit) by 2012+ 336 MW
6Capacity to double at the end of XI Plan The Commission has approved Power Procurement for 6000 MW through Competitive Bidding in various orders to be purchased by GUVNLSugen Power Project of 1100 MW established by Torrent Power Ltd. to reduce the power deficiency in the State.Targeted addition of 3110 CKM of Transmission Lines and 60 number of Substations for by GETCOIn Distribution, Constant improvement in reducing the gap between Average realization and the average cost to serveYearStateCentralPrivateTotalCum.Add.Capacity as on was986409-10700407214732541311810-1110604212181152998603832222346518764 Total2620121150698900
7Role of Gujarat Electricity Regulatory Commission GERC - established under Electricity Regulatory Commission Act, since April ,1999.Continued functioning according to first proviso of section 82 of the Electricity Act, 2003.Tasks before the Commission:Gradual rationalization of electricity tariff so that they reflect cost of service.Improvement in quality of supply of power and better customer service.Availability of electricity at reasonable rates to the consumers.Commercial viability of the Discoms.Development of a competitive environment for efficient operations of the power sector in the state and for creating favorable conditions for investment in this sector to unlock its large potential. Introduction of open access in phased manner.Promote renewable energy sources
8Open AccessOpen Access to transmission and distribution networks for third party use and to increase competition, promote the trading of electricityHelps Captive Generating Plants to run their power projects in efficient manner and sale of their surplus power in the market at better price – where utilities benefits to bridge demand- supply gapHigh Contracted Load consumers are able to procure power at cheaper rate through Open Access from the sources where it is available at cheaper rate.Initiation by GERCCapacity granted for Open Access increased from 551 MW to 750 MW.Reduced the cross subsidy charges from Rs per Unit in to Rs per Unit inRationalized Transmission and wheeling charges
9Intra-state Availability Based Tariff (ABT) Mechanism ABT – Brought about the effective day ahead scheduling and frequency sensitive charges for the deviation from the schedule for efficient real-time balancingABT - Mechanism brings grid discipline and improve efficiency of the power systemGERC Initiative:GERC is among the first regulators to introduce ABT mechanismImplementation of Intra-state ABT with effect from 5th April which is applied to generators, distribution licensees, Captive Power Plants connected with grid.
10Multi Year Tariff Introduction MYT Tariff introduced for the period for FY to FY to bring in more predictable and transparent tariff rates in the StateDistribution Loss trajectory for the control period of MYT is given for all the Distribution LicenseesRe-oriented tariff structure to bring in more clarity and reliabilityWide participation by stakeholders during Public HearingsEmphasis the promotion of efficiency link with gain/loss based on performance of the utilities
11Promoting Renewable Sources of Energy GERC notified the regulation on Procurement of Energy from Renewable SourcesRenewable Power obligation revised - Specified Minimum Percentage of the total consumption of its consumers including T&D losses during year (for Distribution Licensees)YearMinimum Quantum of Purchase (in %) from renewable energy sources (in terms of energy in kWh)TotalWindSolarBiomass, bagasse and others5.00%4.50%0.25%6.00%0.50%7.00%5.50%1.00%Separate RPO for wind, solar and other renewable energy based on the availability of such sourcesRPO applicable to the Captive and Open Access consumers/users as and when a separate notification is issued by the Commission.
12REC IntroductionGERC is the First State Regulatory Commission to incorporate Renewable Energy Certificate in its Regulations of 2010Necessary provisions in the Procurement of Energy from Renewable Sources Regulations, 2010 for Renewable Energy Certificate (REC)Sale of Renewable Energy under REC RegimeSale of conventional Electricity Component to Local Distribution LicenseesREC Component to Obligated EntitiesGujarat Energy Development Agency (GEDA) as the State Nodal AgencyFor accreditation and recommending the renewable energy projects for registrationFunction in accordance with the directions issued by the Commission andto act in accordance to the CERC (Terms and conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010
13Rs. 3.56 per Unit for project life of 25 years GERC Order No.RE SourceTariff RateCapital Cost per MWOrder 1 of 2010 dated 30/01/2010WindRs per Unit for project life of 25 yearsRs. 500 Lakhs per MWOrder No. 2 / 2010 dated 29/01/2010Solar PVFixed Tariff of Rs. 15 per Unit for first 12 years and Rs. 5 per Unit for next 13 yearsRs Lakhs per MWSolar ThermalFixed Tariff of Rs. 11 per Unit for first 12 years and Rs. 4 per Unit for the next 13 years.Rs Lakhs per MWOrder dated 17/05/2010BiomassSingle Part Tariff: Rs per unit with accelerated DepreciationRs Lakhs per MWSingle Part Tariff: Rs per Unit without accelerated DepreciationFor developers adopting two part tariff, the Commission has determined the two-part tariff for Biomass based projects to be commissioned during the years , and separately.Order dated 31/05/2010Bagasse based co-genSingle Part Tariff: Rs per unit with accelerated DepreciationRs. 444 Lakhs per MWSingle Part Tariff: Rs per Unit without accelerated DepreciationFor developers adopting two part tariff, the Commission has determined the two-part tariff for Bagasse based co-gen projects to be commissioned during various years of the Control period.For Hydel Projects the rate is Rs 3.29 per unit for and escalated at 3% - For it comes to Rs per unit
14Recent Developments in RE GERC notified the regulation for Procurement of Energy from Renewable Sources Regulations, 2010GERC determined the tariff rates for procurement of power from various RE sourcesPower Purchase Agreements for 365 MW Solar Projects were signed by 31st May 2010Clinton Climate Initiative (CCI) have initiated and announced to implement a 3,000 MW Solar Park Project in the state.Under the Solar Power Policy 2009, the State Govt. allotted 716 MW of Solar Power Capacity to 34 national and international project developersOut of 716 MW, the share of Solar Photovoltaic and Solar Thermal Technologies is 365 MW and 351 MW respectively