2. Dr. Montek Singh Ahluwalia Dy. Chairman, Planning Commisson WELCOMES POWER GRID CORP. OF INDIA LTD.

3. 2 Generation :: Heart RLDC::Brain Sub-Transmission :: Sub-Arteries Transmission :: Main Arteries Distribution :: Capillaries An Analogy – Power System & Human Body USER

4. POWERGRID Establishment and operation of Regional and National Power Grids to facilitate transfer of power within and across the Regions with reliability, security and economy on sound commercial principles MISSION

5. POWERGRID -An Overview A neutral transmission service provider.  Started Commercial Operations from 1992-93.  Wheels 45,000 MW i.e. more than 40% of the power generated.  Operates and Maintains  50,000 circuit kms of EHV transmission System  82 nos of EHVAC & HVDC sub-stations With System Availability over 99.5%.

6. Growth of POWERGRID TRANSFORMER CAPACITY (MVA)GROSS FIXED ASSET (RS. CRORES) TURNOVER AND NET PROFIT MANPOWER * REVICED CERC TARIFF NORMS MANPOWER TRANSFERRED FROM CEA

7. Efforts made by POWERGRID to Stabilize and Commercialize Power Sector Establishment of National Grid Modernisation of RLDCs Introduction of Availability Based Tariff Mechanism to both Generators and Consumers Manning of RLDCs by Senior Level Personnel Introduction of “ Open Access ”

8. Formation of National Grid Present Capacity 9,000 MW Future Capacity –30,000MW by 2012 Investment Required by 2012 :Rs. 71,000 Crores By POWERGRID :Rs. 51,000 Crore By Pvt. Investors:Rs.20,000 Crores –This investment will also take care evacuation of Central Sector Share of generation planned till 2012. –Creation of National Grid of 30,000 MW Capacity will lead to reduction in Capacity addition of 13,000MW i.e. saving of Rs. 50,000 Crore in investments besides fuel cost saving. ………a continuous process

9. Need for Strong National Grid Generation resources in pockets and remote Load Centres dispersed and distant Multiple Loops and Rings desirable to ensure –Safety, Security and Reliability Demand fluctuations on daily/ seasonal variationDemand fluctuations on daily/ seasonal variation Economy of Operations Reduction in generation reserves

10. Derived economics of National Grid Merit Order –Pit head stations PLF increasedPit head stations PLF increased –Costly Generation - Boxed up /reducedCostly Generation –Exchange of 18,500 MUs in 2003-04 equivalent to Generating Station of 3000 MW Capacity –Estimated National Saving – Rs. 12,000 Crores in fresh investments –Rs. 1,850 Crores in fuel cost –Additional Saving in Fuel Transportation Expected exchanges in 2004-2005 ….. MUs Hydro plant usage– a paradigm shift Importance of Pumped Storage Plants achieved Harnessing of the diversity in occurrence of the Peak Demand amongst Regions, thus peak load flattenedHarnessing of the diversity in occurrence of the Peak Demand amongst Regions

11. Inter-Regional Exchanges

12. Modernisation of RLDC/SLDCs by POWERGRID RegionTaken Over from CEA ULDC Commissioning Southern01.01.199401.07.2002 Northern01.01.199601.08.2002 North-Eastern01.01.199501.08.2003 Eastern01.01.1995June 2005* Western01.01.1996March 2006* * Scheduled Target Unified Approach - Features - HierarchicalFeatures State of Art Load Despatch Centres at Regional and State/Area Level.

13. RTU SUB LDC SLDC ERLDC WRLDCNRLDCSRLDCNERLDC NLDC 23 Nos. 51 Nos. 1160 Nos. Grid Operation Hierarchy Plant/Sub Station Level Group of Distt. Level State HQ Level Region Level National Level 5 Nos.

14. AVAILABILITY BASED TARIFF (ABT) Spearheaded by POWERGRID Features:  Unique commercial mechanism linked with frequency  Fixed Charges i.e. Capacity charges  As per Plant Availability.  Variable Charges i.e. Energy charges  As per Schedule.  Unscheduled Interchange(UI) i.e. deviations from schedule ( Schedule – Actual) Unscheduled Interchange(UI) i.e. deviations from schedule ( Schedule – Actual)  Price as per prevailing system frequency Typical Schedule & Drawal

15. Achievements –Implemented between July 2002 and Nov.’2003 –Improved quality of supply.. –Unutilised capacity harnessed-Pumped StorageUnutilised capacity harnessed –Merit order Operation. – Grid discipline –Emphasis on load forecasting –Discourage overdrawals during low frequency –Facilitate bi-lateral trading –Maximisation of generation availability AVAILABILITY BASED TARIFF

16. Grid Status – Before formation of National Grid, Modernisation of RLDCs and introduction of ABT Large Frequency fluctuations  48.0Hz to 52 Hz. Low Voltages  400kV going down upto 300kV Frequent Grid Disturbances Sub-Optimal Operation High Technical loss Grid Operation on fire fighting instead of Optimisation & Economy

17. Open Access in inter-State Transmission Guidelines formulated by POWERGRID in consultation with CERC and implemented w.e.f. May’2004 Non- discriminatory / Transparent Process Freedom to buy/sell power Efficient Market Mechanism to address supply / demand mismatches Encourage investment in Transmission Overwhelming response – –More than 200 additional transactions effected from May’04 till Aug.’04 –5300 MUs transacted through Open Access besides unscheduled interchanges

18. Short Term Open Access– (upto 1 year usage) –Trading of surpluses –Subject to inherent design margins, margin available due to variation in power flow, in-built spare capacity available –Economically priced ( ¼ th of long term transmission charges) –Reliable settlement system Long Term Open Access– ( >25 year usage) –Covers allocations from Central Generating Stations –Long term contracts –Subject to System Studies and transmission planning criteria for augmentation/ new transmission Schemes –Higher Priority over Short Term Open Access MARKET DESIGN

19. Market Design… UI – Spot Market –Unscheduled exchanges with the pool. –No trader involved –Price linked to system frequency which is displayed on the users screen –Robust settlement system –No vested interest of POWERGRID Trading Long / Short term directly or through trader under bilateral contracts. Spot trading through UI.

20. International Practices Two Models –TSO (Transmission System Operator) responsible for Transmission and System development and Operation. Being practiced in U.K., South Africa,France, Malaysia, Korea & other European countries –ISO (Independent System Operator)ISO (Independent System Operator) Being practiced in USA, Germany, Spain on co- operative approach –Transmission with multiple agencies –USA now shifting towards TSO –Canada mix of TSO & ISO –China : TSO + Generation

21. CHALLENGES Right of Way becoming increasingly difficult on account of –Forest Clearance –Tree Cutting –Reduction of Land Value Being addressed as under: –Design of Compact Tower & Tall Towers as per need –Uprating & Upgrading of existing Transmission lines through Use of High Temperature Conductors Use of Series Capacitors with/without Thyristor Control Conversion from low voltage to high voltage Law & Order –J&K,NER, Telangana, Bihar Poor Health of SEBs – Commercial mechanism in force Demand Supply Gap- threatens the Grid Stability Private sector investment Time consuming process for project approval

22. Few Suggestions ……………………… to rejuvenate Power Sector.? Institution Building Network expansion –Transmission –Sub. Transmission –Distribution Augmentation of Load Despatch & Communication in distribution leading to –Transparency and Trust Building at all levels Distributed Generation Introduction of intra-State ABT Open Access in Intra State Transmission & Distribution Flattening of Load Curve leading to –Economic power supply to agriculture in odd hours Creation of robust market mechanism

24. POWERGRID, INDIA

25. Grid Incidences

26. Load Curve of Northern Region for 19-02-2003 LOAD FREQUENCY Load variation of 9000 to 19000 MW Frequency variation of 48.3 Hz to 51.5 Hz

27. Frequency Profile of SR

28. Frequency Profile of ER FREQUENCY CURVE 6th June02 6th June03 47.00 48.00 49.00 50.00 51.00 52.00 53.00 000102030405060708091011121314151617181920212223 Time (Hrs.) Frqe (Hz.)

29. 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

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

32. MERIT ORDER : UNITS BOXED UP POWER STATIONSTATE CAPACITY(M W) 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

33. ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR All constituents get the same data in real time. –Transparency & Synergy in operation. Quantum leap in visibility to operator. –Increased confidence & Focus on security and economy. Premptive, dynamic “early warning” systems. Grid less vulnerable to disturbances. Accurate and easy analysis of grid incidents Faster restoration after perturbation Comprehensive energy management system functions. –Contingency evaluation, Security assessment and State Estimation

34. UI RATE Rate of Unscheduled Drawal/Injection Frequency (Hz)Rate (p/u) Above 50.50.00 50.0150.00 49.8210.00 49.0 and below570.00

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

36. NER peak 5:30 pm ER Peak 6:00 pm WR Peak 6:45 pm Diversity of peaks

37. Schedule Vs Actual Injection at Dadri (T)

38. Schedule Vs Actual Drawal by UP

39. EUROPEAN & SOUTH AFRICAN MODEL GGG DDD T + SO G D G D This model is followed in UK by NGC, in Norway by Statenett, in Sweden by Svenska Kraftnet, in Finland by Fingrid, in Netherland by Tennet, in Denmark by Eltral/Elkrafts and in South Africa by Eskom.

40. AMERICAN MODEL GGG DDD TT G D G D G D TSO RTORTO This model is followed in USA. Based on their experience, USA is now moving towards TSO model through RTO.

41. 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 IMPROVEMENT IN VOLTAGE

42. 2002 2003

43. 13450 MW 1000 MW 6450 MW 4600 MW 1300 MW 3200 MW 30,000 MW OF INTER- REGIONAL POWER BY 2012 EASTERN REGION SOUTHERN REGION WESTERN REGION NORTHERN REGION NORTH- EASTERN REGION INTER-REGIONAL TRANSFER BY 2012

44. Inter Regional Links Present IR Capacity = 9,000 MW 700 MW 1200MW 2000MW 900 MW 30,500 MW 16,000 32,700 MW 30,500 MW 2300 1850 MW 1650 MW

45. Major inter-Regional Link Inter-Regional LinkProject Cost (Rs. in Crores) Commissioning Date ApprovedActualScheduledActual TALCHER – KOLAR (2000 MW) ER-SR 38653096June’03Dec.’02 RAIPUR-ROURKELA (1000 MW) ER-WR 237212Dec.’03Jan.’03 SASARAM-HVDC (500 MW) ER-NR 671551Dec.’01June’01

46. Technical Losses w.r.t. Voltage Power (P)= Voltage * Current = V*I Losses = (Current) 2 * Resistance = I 2 *R Power is proportional to current, voltage remaining constant. To draw the same power at low voltage, one has to draw more current e.g.; 100 MW = 400kV * 250 Amps 100 MW = 320kV * 312 Amps Losses increases by 55% for 20%reduction in voltage. Losses doubles for about 30% reduction in voltage. e.g. Loss reduction in SR by 1% has given an annual saving of about Rs 290 crores

47. INDIAN POWER SECTOR - AT A GLANCE REGIONINSTALLED CAPACITY (MW) ENERGY CONSUMPTION MUs/day PEAK DEMAND MET(MW) NORTHERN30,98050521,000 EASTERN17,2661808,000 WESTERN32,07955023,000 SOUTHERN29,39940020,000 NORTH EAST2,334251,100 TOTAL112,0582,00078,000