2. by : by : Power Grid Corporation of India Ltd

3. POWERGRID AT A GLANCE Central Transmission Utility of India & Operator of RLDCs. (TSO) One of the largest transmission utility in the world Operating –48,000 CKms of EHV transmission lines –82 EHVAC & HVDC sub-stations –47,000 MVA transformation capacity Emerged as leading consultancy Organisation in Power Sector Catalytic Role in Power Sector Reforms (APDRP) Diversified in Telecom

4. POWERGRID FUNCTIONS TSO RLDCs CTU FUNCTIONS Inter-state Transmission Services P O W E R G R I D LICENSEES NON-CTU FUNCTIONS Telecom, Consultancy, Distribution

5. Development of ABT Mechanism On site administrator of the Tariff Study in Feb.,94 by International Consultant M/s ECC Inc., USA Co-ordinated the study and mooted the idea of frequency linked tariff to ECC Basic frame work developed RTFs/ NTF deliberations ABT is a commercial mechanism linked to frequency CERC hearings with utilities Clarifications on issues CERC issued Order on 04.01.2000

6. ABT implementation at Regional Level – POWERGRID ’ s Expertise More than 150 presentations to –SEBs –Generators –Central / State Government –Other Utilities In-house development of softwares for –Scheduling –Energy Accounting –Time tested and proven software Legal issues resolved Only Utility in the world having experience to develop and implement

7. POWERGRID ’ S Expertise in ABT Only Utility having proven capability in –Development of ABT –Implementation of ABT –Actual Operating experience Pioneers and leaders in ABT mechanism Capability to implement ABT mechanism Expertise to train the personnel Experience in development and implementation of –Scheduling Procedure –Energy Accounting Development of Special Energy Meters Development of Metering Scheme Experience in Operation of Pool Accounts for UI and reactive Charges

8. Development of Energy Meters Foreseen the requirement of a New Meter for ABT Tailor made meter specifications for ABT tariff Prototype development followed by field trials Vendor Development Main features of SEMs –Tamper proof and low cost –Developed and manufactured indigenously –Accuracy of class 0.2 –Static Meters to record energy transmittals in 15 min. time block –Reactive power measurement in pre-specified voltage conditions Establishment of Data Collection and Data transfer infrastructure

9. WR took lead for ABT implementation 01.01.2003 Other Regions followed 01.07.2002 01.04.2003 01.11.2003 01.12.2002 ABT implemented in All Five Regions. POWERGRID co-ordinated and provided all infrastructure for ABT implementation. Pool Accounts Operated by RLDCs.

10. Experience in intra-State ABT implementation Based on our expertise consultancy for intra- State ABT to GEB on single offer basis. Consultancy for PSEB Roadmap prepared for MSEB. Other States are approaching for consultancy

11. Expertise in Operation of Pool Account RLDC have collected and dispersed as follows: –UI Pool account : Rs. 7637 Crores (Upto Dec. ’ 04) No discrepancies, disputes raised Amount disbursed within 3 days E-banking facilities available

12. Similarity between ABT at Regional Level and intra-State level Regional ABT Regulator- CERC Central Sector Generators IPPs SEBs SEMs Day Ahead Scheduling by RLDCs Weekly Settlement of regional UI Pool Account Reactive Pool A/c Intra-State ABT Regulator- SERC State Sector Generators embedded generators Discoms SEMs Day Ahead Scheduling by SLDCs Weekly Settlement of State UI UI Pool Account Reactive Pool A/c

13. ABT Balancing Market UI mechanism takes care of this in a inherent way Cost based on frequency reflecting load generation balance in the grid No negotiations, no bidding. Flexible- anybody can inject or draw. ISO purchases balancing power and despatches Cost of balancing power based on bids which reflect notional market conditions Requires Exchanges, complicated procurement procedure and involves cost in setting up of computerised systems

14. Inadvertant exchanges priced based on frequency & price is known in advance No gaming No mechanism for pricing inadvertant exchanges before hand but is based on post facto computations Gaming is possible ABT Balancing Market

15. Gives autonomy to SLDCs. SLDCs can regulate loads ABT allows frequency variation between 49.0 and 50.5 Hz. RLDCs unilaterally decides and implements. Demand curtailment options (in India) not considered Suitable in systems abroad where frequency has to be maintained close to nominal ABT Balancing Market

16. NEED OF SCADA FOR ABT  All utilities to monitor & control the load & generation in real time  Special energy meters provide energy & average frequency for every 15 minutes time block  Data of energy meters is generally downloaded weekly  Need of real time SCADA system for energy meters telemetry

17.  SCADA process power flow on inter-state exchange points in real time basis  Monitor schedule & actual drawals  Provides information for their own generation  Reactive power management using capacitor / reactors.  Management of voltage by transformer tap adjustment SCADA APPLICATIONS FOR ABT

18. 1015 Nos. RTU SUB LDC SLDC ERLDC WRLDCNRLDCSRLDCNERLDC NLDC 29 Nos. 51 Nos. Unified Grid Operation 5 Nos. National Level Regional Level State HQ Level Group / Distt Level Plant / Sub- Station Level

19. International Practices- Balancing Market Real Time Spot Market Day Ahead Scheduling Procedure covers –Next day hourly forecast of demand –Availability of Generation –Finalisation of Day-Ahead Schedule considering transmission & generation constraints Generators and Buyers submit price bids. Deviations within a predetermined percentage limit –Penalties for deviation beyond prescribed limit Deviations to be paid as per Real Time Spot Market rates

20. 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. NEXT

21. 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.

22. ABT Structure… Three-part tariff Capacity Charges – linked to availability Variable Charges – as per schedule UI Charges – for deviations

23. –Allocations to Discoms from shared generating plants -to be notified by State government State generators Central Sector generators IPPs –Criteria to be finalised In percentages, not in MW terms No unallocated power … ABT Structure …

24. –STU’s role in collection and disbursement of transmission charges STU’s charges CTU’s charges … ABT Structure …

25. –GENCO norms of operation Financial Norms – similar to ISGS –Depreciation, Rate of return, O&M Cost, D:E ratio etc. Operational Norms – similar to ISGS –Auxiliary power consumption –Target availability Can be increased progressively in 5 years. Scheme for incentives – based on availability. … ABT Structure …

26. –Re-negotiation of existing contracts with IPPs Financial Norms – as per ISGS –Depreciation, Rate of return, O&M Cost, D:E ratio etc. –Incentives Operational Norms – as per ISGS –Auxiliary power consumption –Target availability 80% … ABT Structure …

27. APSEB TNEB KEBKSEB Inter-regional ~ ISGS1 ISGS2 ~ ~ ISGS3 ~ ISGS4 Discom 1 Discom 2 Discom 3Discom 4 Inter-state ~ ISGS1 ISGS2 ~ ~ SGS3 SGS4 ~ Inter-state STS ISTS Region State

28. ISGS: Inter State Generating Stations SGS: State Generating Stations CTU: Central Transmission Utility STU: State Transmission Utility Inter-State ABT Intra-State ABT Distribution Control Centre – One for each Discom

29. Option – 1 Single Buyer Model –All the generation including IPPs to be pooled /purchased by residual Electricity Board & all power sale / purchase from other agencies through residual Electricity Board Option – 2 Multi Buyer Model –All the generation including IPPs to be sold/purchased by DISCOMs directly & all power sale / purchase from other agencies also directly by DISCOMs Market Models

30. STATE POWER POOL : Single Buyer Model- Option 1 GEN 1 2 3 IPP 1 IPP 2 DISCOM A DISCOM B DISCOM C External Purchases s STATE GENCO THROUGH TRANSCO SYSTEM RESIDUAL EB/TRADECO TO POOL ALL GENERATION ISGS Allocations DISCOM D Dist. Iicensee-2 Dist. Iicensee –1 Power Purchases/Sales

31. STATE POWER POOL : Multiple Buyer Model Option2 GEN 1 2 3 IPP 1 IPP 2 TRANSMISSION SYSTEM OF GETCO STATE GENCO DISCOM A DISCOM B DISCOM C DISCOM D Dist. Licensee-2 Dist. Licensee-1 External Purchases ISGS Allocations TRADECO

32. Options for UI UI Rate Curve Same as inter-state UI-Rate Curve Higher inter-state UI-Rate Curve Lower inter-state UI-Rate Curve Differential Rate Curve ( for injection and drawal of UI) Different curves for CPPs and other bulk power licensee –Frequency –UI rate curve Single-slope Curve Multi-slope Curve

33. UI Rate as specified by CERC Rate of Unscheduled Drawal/Injection Frequency (Hz)Rate (p/u) Above 50.50 50.0150 49.8210 49.0 and below570

34. Special Energy Meters 0.2s class of IEC static type. Works in 3-phase, 4 wire principle Voltage from 110V secondary side VT and current from CT's of ratio 1A or 5 Amp In Model-A with 1Amp CT, model-B with 5 Amp CT. Meter will store the data in the memory for 10 days. Meter is having a optical port for tapping the stored data by using a hand held unit called DCD (data collection device)

35. SEM stores the following Net active energy (wh) in each 15 minute time- block with +/- sign. Cumulative Wh reading at each mid night. Average frequency of each 15 minute block with a 2 digit code. Integrate the reactive energy (VARh) algebrically into two separate registers, one for Vave RMS ≥ 103% and other for Vave RMS ≤ 97%, at each midnight.

36. SEM displays following Processor's identification code and model Date (year month day) Time (hour min sec) Cumulative Wh reading Average frequency of the previous block Net Wh transmittal during the previous block Average per unit voltage Reactive power (VAR) Voltage – high VARh register reading Voltage – low VARh register reading

37. AMR System : Through RS485 connection RS 232 port PSTN Modem PSTN RS 485 / RS 232 Conv. 1 1 1 Meter 31 Meter 2 Meter 1 Local Data Collection Remote Data Collection

38. Local data collection through Optical Port – as backup Meter 31 Meter 2 Meter 1 1 1 1 DCD

39.  Power flows in real time  Monitor schedule & actual drawals  Provides information on generation  Reactive power management using capacitor / reactors and by transformer tap adjustment SCADA APPLICATIONS

40. Intra-state ABT – Achieves. Unbundling of Vertically Integrated State Utilities Mechanism to price power based on Demand / Supply Harness surplus generating capacity available in state with CPPs/IPPs Operation of grid on economic principles –Merit Order Despatch Open Access in Intra-state Transmission and Distribution.

41. Intra-state ABT – achieves Generate signals for efficient grid operation at the intra-state level. –Overdrawals at low frequency by different DISCOMs to be priced. – Encourage serving of higher consumer demand –Encourage maximisation of generation during deficit conditions. –Each DISCOM and state generating station to be responsible for its actions – a profit centre

42. …Intra-state ABT – achieves. Introduce UI mechanism at the intra-state level. – UI to be applied on the deviations from the schedules of the DISCOMs/State generators/IPPs/CPPs. – State Utilities to be liable for the States’ liabilities with the regional UI pool account. –To achieve merit order operation.

43. Implementation Plan 1 st Phase Activities –Finalisation of listing of entities –Listing of Metering locations –Finalisation of quantities of SEMs, DCDs/MTEs –Finalisation of technical specifications of SEMs/DCDs –Initiate tendering process for procurement of meters

44. Implementation Plan 2 nd Phase Activities –Finsalisation of Tariff of State Generating Stations as per ABT parameters/norms –Finalisation of Reactive Charge scheme –Finalisation of commercial mechanism for CPPs, Wind farms, Wheeling and banking, Open Access Customers etc. –Determination of Allocations of different Discoms in State Genco/ ISGS/ IPPs.

45. Implementation Plan 3 rd Phase Activities –Supply and commissioning of meters at different locations –Installation of software for data processing –Installation of software for scheduling –Estimate time to implementation – 12 to 18 months

46. POWERGRID, INDIA … with clear Vision.

47. Consultancy by POWERGRID Rendering consultancy services to utilities like WBPDCL, UPPCL, UPCL,BSEB,RRVPNL, KPTCL,GRIDCO, Malana Power, Tata Power, BSES, Chandigargh, ASEB, Pondicherry, MeSEB, MPSEB, Goa, CSEB, Bhutan Telecom, THPA, MOP, D&D, DNH Turnkey Transmission Lines/Sub-stations O&M of EHV Transmission System APDRP Telecom Consultancy for project cost of about Rs. 5000 Crores.

48. Schedule Vs Actual Injection at Dadri (T) Declared Capability ά Capacity Charges Schedule ά Energy Charges Actual Injection U I Frequency NEXT

49. Schedule Vs Actual Drawal by UP Entitlement ά Capacity Charges Schedule ά Energy Charges Actual Drawal Frequency U I