Evolution of Indian Power GridEvolution of Indian Power Grid

• Phenomenal expansion since Independence

Generation : 1349 MW 101,866 MW (in 1947) (in 2001)

Grid :

Local grid – at the time of Independence.

State Grids – emerged in 1960s.

Regional Grids – in 1970s.

Five Regional Grids – Northern, Western, Southern,

Eastern & North-eastern

National Grid – under progress.

Power Scenario – at a GlancePower Scenario – at a Glance

Existing• Installed capacity - 101,866 MW Coal – 71%

Hydro – 25 Nuclear & others – 4%

• Peak demand Peak power - 78,000 MW

Energy (average) - 1395 MU/day

• Availability Peak power - 68,000 MW

Energy (average) - 1288 MU/day

• Shortage Peak power - 10,000 MW (12.8%)

Energy - 107 MU/day (7.7%)

Power Scenario – at a GlancePower Scenario – at a Glance All figs. are in MW

Region Peak Installed Peak Demand Capacity

Surplus/Deficit

Northern 21,000 27, 000 - 2,100Western 25,000 30,800 - 4,500Southern 20,400 24,800 - 2,600Eastern 7,800 15,700 + 2,000North-eastern 950 1,800 - 25

• Limited exchange of power between Regions --- Main reasons:

– Inadequate interconnectors, especially from Eastern Region– Lack of proper Commercial and administrative mechanisms

Need for National GridNeed for National Grid• Uneven disposition of energy resources

Major Hydro resources in NER & NRCoal reserves mostly in Bihar/Orissa/West Bengal

Cost of power transmission (1.11 cents/kwh) lower than cost of fuel transportation (3.33 cents/kwh).

• Some Regions are no longer Self-sufficient

Major resources in SR exhausted In NR, mainly hydro resources having long gestation period

• Unbalanced Growth of different Regions

Some regions are surplus and some are deficit.

• Optimisation of generation capacity additionUtilising time diversitySpinning reserve optimisation

Power Transfer Envisaged from ER and Power Transfer Envisaged from ER and NER by 2012NER by 2012

Table

Development of National Grid – Major Development of National Grid – Major Considerations Considerations

• Development in a phased manner – commensurate with

generation/ load growth

• Conservation of Right-of-Way - especially in areas with

scarcity of ROW ---- viz. area near hydro, chicken-neck area,

forest area, town etc.

In forest area with rich flora & fauna, construction of line with high

towers ---- no forest cutting required.

• Minimisation of transmission cost - immediate as well as long-term basis.

• Flexible enough to accommodate change in load-generation pattern.

Plan for National GridPlan for National Grid PHASE-I (By 2002):

Interconnection through HVDC Back-to-Back links-

North – West: 500MW Vindhyachal Back-to-Back Under

West – South: 1000MW Chandrapur Back-to-Back Opera-

East – South: 500MW Gazuwaka Back-to-Back tion East – North: 500MW Sasaram Back-to-Back – expected by

(AC line of this project in operation 2002--- transferring 350 MW in radial mode)

With the completion of Sasaram HVDC Back-to-back link, framework of National Grid would be completed.

MAP

Plan for National GridPlan for National GridPHASE-II (By 2007):

• High capacity “Transmission highways” envisaged alongwith major generation projects-

East-South 2000 MW HVDC bipole between Talcher-Kolar - 2003.Augmentation of Gazuwaka HVDC back-to-back by 500MW - 2004.

East – North

High capacity 400 kV link from Tala to Delhi - 2004.2500 MW HVDC bipole between Hirma – Jaipur- 2005

East – West 400kV AC link between Rourkela and Raipur –2003400kV AC link between Hirma and Raipur & Sipat - 2005.

.

MAP

Plan for National GridPlan for National Grid

PHASE-III (By 2012):

Establishment of a ring of 765kV lines traversing across Northern, Western and Eastern Regions

Construction of various sections of Ring progressively along with major generation projects viz. Barh, Kahalgaon, North Karanpura etc.

Strengthening of East-South interconnection through another 2500MW bipole

MAP

National Grid: Cost-benefit analysisNational Grid: Cost-benefit analysisCost

Investment required Rs. 23,000 crores

Benefits Reduction in capacity addition requirement by about 13750 MW--- hence

saving on investment of Rs. 55,000 crore. (due to peak time diversity and

saving in spinning reserve)

Transmission highway would enable setting up of large pit head stations

having lower cost of energy

Savings on account of this - Rs. 9000 crores per annum.

In addition, Nation’s investment towards fuel transportation infrastructure

could be avoided.

Better overall hydro-thermal mix

Very low for ER and WR ( ER – 15 : 85, WR - 17 : 83 ) – affecting grid

operation

With National Grid, it would become 33 : 67 on all India basis. .

Major Challenges & their RedressalMajor Challenges & their Redressal

Mobilisation of Funds

Considerable investment required for creation of National Grid

Investment requirement in : Rs. 70,000 Cr Central transmission sector (including National Grid) by the year 2011-12

Investment by POWERGRID : Rs. 39,000 Cr

Investment by Private Sector : Rs. 31,000 Cr

POWERGRID facilitating private sector participation in transmission

sector through Joint Venture and Independent Private Transmission

Companies (IPTCs) routes

Major Challenges & their RedressalMajor Challenges & their Redressal ...contd....contd.

Private Sector Participation• Joint Venture Route

– Project specific Shell company for obtaining statutory approvals to offer bankable projects to private sector

– Transmission system identified India portion for Tala Hydro Electric project (1020 MW) in Bhutan

with an Estimated cost of Rs. 1,200 Cr – Proposed equity participation to the tune of 26%– NIT issued for Selection of JV partner through ICB

• IPTC Route– Selection of the promoter through two stages (RfQ & RfP) ICB based

on Transmission Service Charges (TSC)– International consultant appointed under the technical

assistance(TA) of ADB– Transmission licensee to establish the project under BOOT– A pilot project to be taken up shortly.

Major Challenges & their RedressalMajor Challenges & their Redressal ...contd....contd.

Realisation of Investment

Total Charges of SEBs due to POWERGRID is about 1385Cr.

Including surcharge of 317cr. as on July 2001.

As National Grid is planned on long term basis, its utilisation in initial

period will be less --- hence, transmission charges would be on higher

side. SEBs may be reluctant to pay higher transmission charges.

Poor recovery can affect health of POWERGRID --- hence future development of transmission system.

Perceived Solution: Special methodology need to be adopted for recovery of tr. charges of Transmission highways.

Major Challenges & their RedressalMajor Challenges & their Redressal ...contd...contd

Proper Load Despatch & Communication Facilities POWERGRID is implementing ULDC schemes in all five regions with

state-of-art- SCADA, EMS and dedicated Communication system at an investment of US $468 million. Schemes for NR & SR under implementatin, expected by Jun’2002.

Establishment of National Load Despatch Centre (NLDC) by

interconnecting all the regions.

Integrated Grid Operation Strict adherence to grid discipline to maintenance of voltage and

frequency.

Operation of generating units in free governor mode.

Implementation of “Availability Tariff” having provision of penalties and incentives to encourage grid discipline.

Comprises of:Capacity chargeEnergy chargeUnscheduled interchange charge

Dependent on Actual Plant Availability & generation / drawal

No provision regarding deemed generation No year-end commercial adjustments Perpetual incentive for maximizing generation &

reducing drawal during deficit, but no incentive to over generate during surplus

Availability based TariffAvailability based Tariff

Defines responsibilities between Utilities, RLDCs and REBs

Defines scheduling mechanism for day ahead scheduling of Generation and Drawal

Specified frequency bands for operation of regional grids

Frequency stabilization through free governor mode of generating units

Defines charge for Reactive Energy drawal

Indian Electricity Grid CodeIndian Electricity Grid Code

Eastern Region – Power ScenarioEastern Region – Power Scenario Effective Installed Capacity : 15,958 MW

Demand

Peak : 7800 MW (persists for 3-4 hrs a day).

Off-peak : 4500 MW (persists for 20 hrs a day).

Surplus Available -

In peak hours : 2000 MW

Extent of max. surplus : 3500 MW

Additional surplus power would be available with injection of power from Ranganadi HEP (405MW – expected by March 2002).

Eastern Region – Power Eastern Region – Power Scenario ..Scenario ..contd.contd.

Surplus Available with 68% average PLF -

In peak hours : 4500 MW

Extent of max. surplus : 6000 MW

At the end of X - Plan -

Likely increase in Installed Capacity : 6500 MW

Likely increase in Load : 2500 MW

Likely increase in Surplus power : 3000 MW

Therefore, the surplus scenario is likely to continue in future also.

Reasons for Surplus PowerReasons for Surplus Power

Poor load growth - 5% as compared to national average of 9% due to -

Non-completion of state sector transmission scheme approved long back.

Inadequate sub-transmission & distribution facilities.

Overall slow economic growth of the Region.

Adequate Inter- regional transmission links were not planned – as power was to be consumed in ER only.

On-Going SchemesOn-Going Schemes

Link Capacity (MW) Expected comm.

ER to NR

Sasaram HVDC B-t-B

(AC line is being utilised for transfer of 300MW, with HVDC 500MW would be transferred on regular basis)

500 Dec, 2002

ER to WR

Rourkela – Raipur 400kV D/c(Award placed)

700 Dec, 2002

Additional Links - ProposalAdditional Links - Proposal Feasible Capacity to

evacuate Surplus Power

(MW)

 Estimated Cost

(Rs. in Crs.)

I. Tala-Delhi Transmission System 2000 2000

II. Gazuwaka – II ; augmentation by 500MW block

500 790

III. Series Capacitor on Raipur – Rourkela 400kV D/c

  Raipur-Chandrapur 400 kV D/c

500 260

IV. Sasaram – II ; augmentation by 500MW block

500 350

V. Ib Valley – Jaipur HVDC Bipole of Hirma Tr. system

2500 3300

VI. Meramundali – Hosur 2000MW HVDC bipole

2000 3500

Total 8000 10,200

DEVELOPMENT OF NATIONAL GRID

NER

ER

NR

WR

SR

EXISTING

500MW

MW1000

MW500

GAZUWAKA

CHANDRAPUR

VINDHYACHAL

SASARAM

UNDERCONST.

EXISTING

400 kV

220 kV

BONGAIGAONBIRPARA

MALDA

KORBA BUDHIPADAR

KOLHAPUR

BELGAUM

U.SILERU

BALIMELA

DEHRISAHUPURI

MALANPUR

AURAIYA

PHASE-I(By 2002)

Back

ROURKELA

RAIPUR HIRMA

TALCHER

JAIPUR

NER

ERWR

NR

SR

B'SHARIF

ALLAHABAD

SIPAT

GAZUWAKA

JEYPORECHANDRAPUR

SINGRAULI

VINDHYA-

1000MW

500MW

LUCKNOW

CHICKEN NECK

KRISHNA

TEESTA

MISA

KATHAL-GURI

LEGEND

765 KV LINES

400 KV LINES

HVDC B/B

HVDC BIPOLE

EXISTING/ X PLAN

ZERDA

HISSAR

BONGAIGAON

DEVELOPMENT OF NATIONAL GRID

KOLHAPUR

NARENDRA

KAIGA

MANGALORE

PONDA

IX PLAN

MARIANI

N.K.

KAHALGAON

RANGANADI

SEONI

CHEGAON

BHANDARA

DEHGAM

KARAD

LONIKAND

VAPI

GANDHAR/

TALA

BANGLA

BALLABGARH A'PUR(DELHI RING)

BANGALORE

KOZHIKODE

COCHIN

KAYAMKULAM

TRIVANDRUM

PUGALUR

KAYATHAR

KARAIKUDI

CUDDALORE

SOUTH CHENNAI

KRISHNAPATNAM

CHITTOOR

VIJAYAWADA

SINGARPET

PIPAVAV

LIMBDI

KISHENPUR

DULHASTI

WAGOORA

MOGA

URI

BHUTAN

RAMAGUNDAM

RAVI

JULLANDHAR

DESH

NAGAR

VARANASI

/UNNAO

M'BAD

PURNEA

KORBA

NAGDA

SILIGURI/BIRPARA

TEHRI

MEERUT

BHIWADI

BINA SATNA

MALANPURSHIROHI

KAWAS

PHASE - II(By 2007)

SIRSI

CHAL

JETPURAMRELI

BOISARPADGHE

DHABOL

KOYNA

/BARH

G'PUR

HOSUR

Back

ROURKELA

RAIPUR HIRMA

TALCHER

JAIPUR

NER

ERWR

NR

SR

B'SHARIF

ALLAHABAD

SIPAT

GAZUWAKA

JEYPORECHANDRAPUR

SINGRAULI

VINDHYA-

1000MW

500MW

LUCKNOW

DIHANG

CHICKEN NECK

KRISHNA

TEESTA

TIPAIMUKH

BADARPUR

MISA

DAMWE

KATHAL-GURI

LEGEND

765 KV LINES

400 KV LINES

HVDC B/B

HVDC BIPOLE

EXISTING/ X PLAN XI PLAN

ZERDA

HISSAR

BONGAIGAON

DEVELOPMENT OF NATIONAL GRID

KOLHAPUR

NARENDRA

KAIGA

MANGALORE

PONDA

IX PLAN

MARIANI

N.K.

KAHALGAON

RANGANADI

SEONI

CHEGAON

BHANDARA

DEHGAM

KARAD

LONIKAND

VAPI

GANDHAR/

TALAARUN

BANGLA

BALLABGARH A'PUR(DELHI RING)

BANGALORE

KOZHIKODE

COCHIN

KAYAMKULAM

TRIVANDRUM

PUGALUR

KAYATHAR

KARAIKUDI

CUDDALORE

SOUTH CHENNAI

KRISHNAPATNAM

CHITTOOR

VIJAYAWADA

SINGARPET

PIPAVAV

LIMBDI

KISHENPUR

DULHASTI

WAGOORA

MOGA

URI

BHUTAN

RAMAGUNDAM

SATLUJRAVI

JULLANDHAR

DESH

NAGAR

VARANASI

/UNNAO

M'BAD

PURNEA

KORBA

NAGDA

SILIGURI/BIRPARA

PHASE - III

TEHRI

MEERUT

BHIWADI

BINA SATNA

MALANPURSHIROHI

KAWAS

AMRAVATI

AKOLA

(By 2012)

AGRA

SIRSI

CHAL

JETPURAMRELI

BOISARTARAPUR

PADGHE

DHABOL

KOYNA

/BARH

G'PUR

HOSUR

Back

Demand-Availability Scenario – by 2011-12Demand-Availability Scenario – by 2011-12

Assumptions: • Demand – as per 16th Electric Power Survey Report (EPS).• Capacity addition – as per information available from MoP & CEA.• Generation availability (average) – 75%.

All figs. are in MW

Region Demand Installed Availability Deficit/ Capacity Surplus

Northern 49000 52354 39265 - 9735

Western 46000 53343 40007 - 5993

Southern 42000 50075 37556 - 4444

Eastern+North-east 19000 44275 33206 + 14206

````````````````````

Sl. NO.

Tariff Parameter

Norms as per GOI Notification (Existing Norms)

Norms Recommended by CERC

Fin. Impact (2001-02) Rs. Crs.

1. ROE 16% 16% -

2. DEP T/L-5.27%, S/s-7.84%, PLCC-12.77%, BLDG-3.02%

T/L-2.57%, S/s-3.6% (-)355.68

3. O&M 1.5% for plain and 2% for hilly terrain

On the basis of actual O&M in last 5 years

(-)4.48

4. FERV As per actual. To be billed annually To be capitalized and charged in tariff. FERV on

interest also allowed.

(-)62.17

5. Treatment of

Corporate Tax

Grossing up of income-tax permitted

Tax recovery on actual basis, to be calculated in advance and billed on monthly basis.

(-)4.02

6. Normative availability & incentive

95% for recovery of full transmission charges 1% increase

on ROE for each % point of increase in availability beyond 95%

98% for recovery of full transmission charges.

(-)59.81