WELCOME TO POWER SECTOR BUDGET ZONE
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Transcript of WELCOME TO POWER SECTOR BUDGET ZONE
AgendaAgenda
2012 POWER SECTOR BUDGET2012 POWER SECTOR BUDGET
BUDGET EXPECTATIONSBUDGET EXPECTATIONS
Need for ReformsNeed for Reforms
Reforms in Power Sector Reforms in Power Sector
BUDGET MEASUREBUDGET MEASURE
RegulationsRegulations
ImpactImpact
Role of ITRole of IT
System OverviewSystem Overview
2012 POWER SECTOR BUDGET2012 POWER SECTOR BUDGET Over the past few quarters, the power Over the past few quarters, the power
sector has seen hard times given the sector has seen hard times given the severe liquidity crunch that hit existing severe liquidity crunch that hit existing as well as new projects. And as such, as well as new projects. And as such, the sector once again saw capacity the sector once again saw capacity addition that was way below the targets addition that was way below the targets set out as part of the XIth Five Year set out as part of the XIth Five Year Plan. While the situation on the funding Plan. While the situation on the funding side has improved considerably since side has improved considerably since the middle of 2008, companies are the middle of 2008, companies are stepping up on new projects with stepping up on new projects with utmost caution. This is especially given utmost caution. This is especially given that linkage for fuel (especially coal and that linkage for fuel (especially coal and gas) is becoming a tough nut to crack. gas) is becoming a tough nut to crack. However, rural electrification continues However, rural electrification continues to get a boost in each passing budget to get a boost in each passing budget and so is the improvement in the T&D and so is the improvement in the T&D network. Budget 2011 was no different, network. Budget 2011 was no different, as it allocated higher funds for the as it allocated higher funds for the development of the power sectordevelopment of the power sector with a with a view of speeding up the expansion of view of speeding up the expansion of new generation capacities new generation capacities
BUDGET EXPECTATIONSBUDGET EXPECTATIONS
Need for ReformsNeed for Reforms Objective of integrated National GridObjective of integrated National Grid
• 5 regional grids working at varying grid frequency5 regional grids working at varying grid frequency
• Integration needs Frequency Normalization means proactive Integration needs Frequency Normalization means proactive
load managementload management
• Alternative – Insulation thro’ HVDC links – ExpensiveAlternative – Insulation thro’ HVDC links – Expensive
Regional surplus & shortagesRegional surplus & shortages
• Surplus in east and shortage in southSurplus in east and shortage in south
Continued functioning at non-standard grid frequencyContinued functioning at non-standard grid frequency
• Damage to Generator & End User equipmentDamage to Generator & End User equipment
• Hidden cost passed to customer in long termHidden cost passed to customer in long term
Central Vs State GeneratorsCentral Vs State Generators
• Capital cost Vs Variable costCapital cost Vs Variable cost
Beneficiaries not liable to pay fixed cost for their Beneficiaries not liable to pay fixed cost for their
allocated share if not drawing allocated share if not drawing
• Increased cost of energy for beneficiaries drawing energyIncreased cost of energy for beneficiaries drawing energy
Generation even without demandGeneration even without demand
• High grid frequencyHigh grid frequency
Need for ReformsNeed for Reforms (contd…)(contd…)
Reforms in Power SectorReforms in Power Sector
Reforms in tariff structure of bulk powerReforms in tariff structure of bulk power
• Better system operationsBetter system operations
• Better grid disciplineBetter grid discipline
through commercial incentives & through commercial incentives &
disincentivesdisincentives
Ideal Grid Frequency = 50 HzIdeal Grid Frequency = 50 Hz
ObjectiveObjective
ReformsReforms
Electricity Act 2003Electricity Act 2003
• Replaced Electricity (Supply) Act 1948Replaced Electricity (Supply) Act 1948
Regulations Regulations
• Availability Based Tariff (ABT)Availability Based Tariff (ABT)
• Merit Order Dispatch (MOD)Merit Order Dispatch (MOD)
• Plant PerformancePlant Performance
• Energy ManagementEnergy Management
SEB TrifurcationSEB Trifurcation
RegulationsRegulations
Availability Based Tariff (ABT)Availability Based Tariff (ABT)
Deals with tariff structure for bulk powerDeals with tariff structure for bulk power
Performance based tariffPerformance based tariff for supply based tariff for supply based tariff
System of rewards and penalties seeking to enforce day System of rewards and penalties seeking to enforce day
ahead ahead pre-committed schedulespre-committed schedules (One & One-half hours in (One & One-half hours in
advance)advance)
Promote Promote responsibilityresponsibility & & accountabilityaccountability in power generation in power generation
Paradigm shift from Paradigm shift from maxmax powerpower to to maxmax reliabilityreliability
A path to deregulated power marketA path to deregulated power market
ABT ComponentsABT Components
Capacity charges (Fixed)Capacity charges (Fixed)
Payable against declared capacity of station for Payable against declared capacity of station for allocated capacityallocated capacity
rather than rather than actual consumptionactual consumption
Full fixed charges payable at PLF of 68.49%Full fixed charges payable at PLF of 68.49%
Incentive @ 0.4 % of equity for each percentage increase between 70-Incentive @ 0.4 % of equity for each percentage increase between 70-
85%. Beyond 85% it is 0.3%85%. Beyond 85% it is 0.3%
Energy charges (Variable)Energy charges (Variable)
As per actual consumptionAs per actual consumption
Unscheduled Interchange (UI) charges: Penalty that depends on severity of Unscheduled Interchange (UI) charges: Penalty that depends on severity of
deviation. Payable/recoverable if:deviation. Payable/recoverable if:
Generator generates more, thereby increasing frequency;Generator generates more, thereby increasing frequency;
Generator generates less than the schedule, thereby decreasing Generator generates less than the schedule, thereby decreasing
frequency;frequency;
Beneficiary overdraws power, thereby decreasing frequency;Beneficiary overdraws power, thereby decreasing frequency;
Beneficiary under draws power, thereby increasing frequencyBeneficiary under draws power, thereby increasing frequency
Merit Order DispatchMerit Order Dispatch
Objective from Objective from maximum productionmaximum production to to optimal productionoptimal production
Multiple unit power plant to Multiple unit power plant to identify optimum loadingidentify optimum loading for for
each unit to save on operational costseach unit to save on operational costs
Identify units to bring online / offline to meet plant demand Identify units to bring online / offline to meet plant demand
at at minimum operating costminimum operating cost
Dispatching Dispatching least cost powerleast cost power in preference to more costly in preference to more costly
powerpower
TrifurcationTrifurcation
State Electricity Boards (SEBs) trifurcated as shown –State Electricity Boards (SEBs) trifurcated as shown –
Holding Company
Generation Company
Transmission Company
Distribution Company
Impact of ABT – TRANSCO Impact of ABT – TRANSCO
Improved and efficient transmission systemsImproved and efficient transmission systems
• More generation capacity being addedMore generation capacity being added
• Bottleneck in transmission to be avoidedBottleneck in transmission to be avoided
Better forecasting systemsBetter forecasting systems
• Vested with role of coordination between consumers & generatorsVested with role of coordination between consumers & generators
Better communication and information systemsBetter communication and information systems
• Communicate 15 min generation & consumption schedule to each partyCommunicate 15 min generation & consumption schedule to each party
• Convey any unforeseen change in such a scheduleConvey any unforeseen change in such a schedule
Improved metering & billing systemImproved metering & billing system
• Ensure adequate metering capabilities for proper implementation of tariff structureEnsure adequate metering capabilities for proper implementation of tariff structure
• Specialized energy meters that keep track of 15-min energy aggregates & frequency Specialized energy meters that keep track of 15-min energy aggregates & frequency
for each interval to take care of energy charges and UI chargesfor each interval to take care of energy charges and UI charges
Impact of ABT – GENCO Impact of ABT – GENCO
Advanced control & monitoring systems to closely monitor ex-bus Advanced control & monitoring systems to closely monitor ex-bus
output of plantoutput of plant• Generation should closely follow 15-minute scheduleGeneration should closely follow 15-minute schedule
Integrated information & communication systemIntegrated information & communication system• To capture data from all componentsTo capture data from all components
• Unscheduled downtime is not very acceptable in the ABT regimeUnscheduled downtime is not very acceptable in the ABT regime
MOD to ensure economic operation MOD to ensure economic operation • Cost of generation, ramping, start up & shut down of each unit variesCost of generation, ramping, start up & shut down of each unit varies
Performance calculation for each unit of plantPerformance calculation for each unit of plant• Corresponding optimization to be doneCorresponding optimization to be done
Pro-active management plan Pro-active management plan • Unscheduled deviation from power generation schedule incur considerable penaltiesUnscheduled deviation from power generation schedule incur considerable penalties
• Unexpected downtime of power plant should not occurUnexpected downtime of power plant should not occur
Impact of ABT – DISCOM Impact of ABT – DISCOM
Enhanced load forecasting systemEnhanced load forecasting system
• Consumer expected to stick to schedule of 96 intervals of 15-minute for each dayConsumer expected to stick to schedule of 96 intervals of 15-minute for each day
• Failure to comply will attract penalty - UI chargesFailure to comply will attract penalty - UI charges
• Basis of entering into commercial agreements with generating utilitiesBasis of entering into commercial agreements with generating utilities
Reliable communication and information infrastructureReliable communication and information infrastructure
• Load forecasting solution highly reliant on historical data for accuracyLoad forecasting solution highly reliant on historical data for accuracy
• To ensure smooth coordination with RLDCTo ensure smooth coordination with RLDC
Provision for in-house generationProvision for in-house generation
• Captive power plants - going to be more & more popular during transition to Captive power plants - going to be more & more popular during transition to
decentralized & deregulated power marketdecentralized & deregulated power market
Business ObjectiveBusiness Objective
To generate & export electricityTo generate & export electricity
Maximize output at lowest inputMaximize output at lowest input
Maximizing returns require following ABT demand curveMaximizing returns require following ABT demand curve
Efficiency
Minimize Cost Maximize Returns
Input Output
Regulations – Organization MappingRegulations – Organization Mapping
Company
Power Plants
Units
ABT, Energy Management
Merit Order Dispatch
Plant Performance
ABT RegimeABT Regime
Revenue calculation for GENCO depends onRevenue calculation for GENCO depends on
• Available capacity of plantAvailable capacity of plant
• Implemented scheduleImplemented schedule
• Grid FrequencyGrid Frequency
• Actual energy exportActual energy export
• Applicable tariff modelApplicable tariff model
To maximize revenue & minimize input costTo maximize revenue & minimize input cost
• Generation to closely follow demand scheduleGeneration to closely follow demand schedule
• Optimal loading of plant unitsOptimal loading of plant units
Role of IT Role of IT
Monitor various Monitor various online real-timeonline real-time plant parameters plant parameters
from different generating stations from different generating stations
Establish a full-fledged Generation Control Room Establish a full-fledged Generation Control Room
for for performance diagnosis performance diagnosis && optimization optimization
Provide suitable Provide suitable connectivityconnectivity between each power between each power
station & Control Roomstation & Control Room
IT SolutionIT Solution
SoftwareSoftware
HQ LevelHQ Level• ABT Optimization for UI Revenue MaximizationABT Optimization for UI Revenue Maximization
• Economic Load DispatchEconomic Load Dispatch
• Online Plant Performance MonitoringOnline Plant Performance Monitoring
Plant LevelPlant Level• Power Plant Monitoring for each UnitPower Plant Monitoring for each Unit
• Online Performance Monitoring & Calculation for each UnitOnline Performance Monitoring & Calculation for each Unit
• Merit Order Despatch (MOD) at Plant levelMerit Order Despatch (MOD) at Plant level
• Dispatch Monitoring for Switchyard Energy MetersDispatch Monitoring for Switchyard Energy Meters
ABT Optimization for UI Revenue MaximizationABT Optimization for UI Revenue Maximization
Ability to optimize tariff by maximizing UI revenueAbility to optimize tariff by maximizing UI revenue
Generate invoices on basis of total energy exported & applicable UI chargesGenerate invoices on basis of total energy exported & applicable UI charges
Account auxiliary consumption of plant for billing purposeAccount auxiliary consumption of plant for billing purpose
Account for operations of “Peak Load” plants & grid maintenanceAccount for operations of “Peak Load” plants & grid maintenance
Account for cost of operating (Supply of Reactive power, Startup/ Stop operations) Account for cost of operating (Supply of Reactive power, Startup/ Stop operations)
plant for these purposes, as & when they are made applicableplant for these purposes, as & when they are made applicable
Economic Load DispatchEconomic Load Dispatch
Calculate individual plant OLC schedule for all power plantsCalculate individual plant OLC schedule for all power plants
Provide online communication between LDC & GCR regarding generation scheduleProvide online communication between LDC & GCR regarding generation schedule
Online Plant Performance MonitoringOnline Plant Performance Monitoring
Close monitoring of power plants & generating automatic deviation alerts at Close monitoring of power plants & generating automatic deviation alerts at
appropriate timesappropriate times
HQ Level FunctionsHQ Level Functions
Plant Level Functions
Power Plant Monitoring for each Unit
Integrated information & communication system to capture unit data
Calculate various plant parameters for each unit performance.
Suggest operator for effects of varying plant parameters
Online Performance Monitoring & Calculation for each Unit
Monitor different plant parameters that may affect plant performance such as
superheat temperature, reheat temperature, inlet/ outlet temperatures, excess air
ratio etc.
Merit Order Despatch (MOD) at plant level
Support simulation facilities
Facilitate in determining optimal loading of plant units
Dispatch monitoring for switchyard energy meters
Close monitoring of switchyard energy meters to compare actual generation against
scheduled generation
Broad WorkflowBroad Workflow
Generation Capacity Estimation by Plant
Fuel Reserves Maintenance & Outage Information
Load Despatch Center
OLC
Tariff CalculationImplemented Schedule
ABT, PPA
Tariff Modeling
Generate Invoice
MOD Engine
Load Forecasting
Plant Performance
Day Ahead Schedule
Grid Management Variation
Actual Energy Export
Σ
Software Features - ABT
Open communication architecture
Easy to use configuration utility
Flexible tariff calculation & UI charges module
Invoices in user-defined format
Reports and trends
Exporting reports & other data
Collecting 15-minute block aggregate data from meters &
storing in ABT server
Monitoring actual generation Vs scheduled generation
Software features - MOD Software features - MOD
Capability to handle multiple units Capability to handle multiple units
Use of historical data to generate a best-fit cost curve for Use of historical data to generate a best-fit cost curve for
the unitthe unit
Configuring individual units with historical data and Configuring individual units with historical data and
operating constraintsoperating constraints
Unit commitment approach based on maintenance Unit commitment approach based on maintenance
schedule, minimum up and downtimes to be imposed on schedule, minimum up and downtimes to be imposed on
each uniteach unit
Allows users to perform simulationAllows users to perform simulation
Communication BackboneCommunication Backbone
HQ
Plant
Plant
Load Dispatch Center
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y U N I V E R S I T YU N I V E R S I T YU N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
U N I V E R S I T YU N I V E R S I T Y
APPLICATION INTERFACE
DATA ACCESS CONTROL
DATA LAYER
DATA STORAGEDATA STORAGE
GEN. SCH. ENGINE
GEN. TAR. ENGINE
TARIFF MOD. ENGINE
REPORTS
TARIFF CALCULATION
QUERY
DATA EXPORT MODULE
Data Layer
ABT Engine
MANUAL DATA
DCS/DAS DATA
NON-DCS DATA
Generation Control Room
Parameters fromunits in plants
System Architecture
DCS Unit ImplementationDCS Unit Implementation
Local Data Store
Communication Driver
Data Validation
Intermediate & Detailed Results Performance Calculation
Reports & Results
Manual Inputs / ConfigurationDCS / DAS
Non-DCS Unit ImplementationNon-DCS Unit Implementation
RTU 1
Terminal Server
RTU n
MOD Server
MUX
Other data
RTU 2
Signal SplitterSignal Splitter
Control Room
Analog Cards Plotters
RTU/ Data Concentrator
TransducersTransducersControllersControllers
Router
ChallengesChallenges
DCS Units:DCS Units:
OPC compliance (tag, value and timestamp)OPC compliance (tag, value and timestamp)• Tags vary from unit to unit – 1 tag list for each DCS - Depends on commissioningTags vary from unit to unit – 1 tag list for each DCS - Depends on commissioning
• Non OPC Compliant Interface Bus would require protocol gatewaysNon OPC Compliant Interface Bus would require protocol gateways
• Additional licensing cost or additional one-time licensing cost for implementing protocol gatewaysAdditional licensing cost or additional one-time licensing cost for implementing protocol gateways
Non-DCS Units:Non-DCS Units:
Synchronization between DCS & non-DCS unitsSynchronization between DCS & non-DCS units
Selecting minimum critical parameters to be monitored by GCRSelecting minimum critical parameters to be monitored by GCR• A standard parameter list for all non-DCS units will not workA standard parameter list for all non-DCS units will not work
• Parameters – Analog or DigitalParameters – Analog or Digital
Identifying location of critical analog signalIdentifying location of critical analog signal• Parallel tapping of signal with without affecting current setupParallel tapping of signal with without affecting current setup
Real time V/s Polling FrequencyReal time V/s Polling Frequency
Historical data availabilityHistorical data availability
System OverviewSystem Overview
System ComponentsSystem Components
Data Acquisition SystemData Acquisition System
Communication Infrastructure at Communication Infrastructure at
PlantPlant
Communication BackboneCommunication Backbone
Communication Infrastructure at HQCommunication Infrastructure at HQ
Software solution at plant & HQ levelSoftware solution at plant & HQ level
System in nutshellSystem in nutshell
Data AcquisitionData Acquisition
• Capturing plant parametersCapturing plant parameters
MOD CalculationsMOD Calculations
• Calculating various plant performance parameters for each unit at plant Calculating various plant performance parameters for each unit at plant
levellevel
Data capture from ABT metersData capture from ABT meters
• Monitoring performance of each unit and plant in control roomMonitoring performance of each unit and plant in control room
ABT CalculationsABT Calculations
• Calculating applicable tariff for each beneficiaryCalculating applicable tariff for each beneficiary