INDIAN POWER SECTOR

INDIAN POWER SECTORINDIAN POWER SECTOR

India has a FEDERAL structureIndia has a FEDERAL structure

Electricity a concurrent subject – Both Central Electricity a concurrent subject – Both Central and State Govts. responsible for its developmentand State Govts. responsible for its development

INDIAN POWER GRIDSINDIAN POWER GRIDS

SOUTHERNSOUTHERN

REGIONREGION

(29,000 MW(29,000 MW))

NATIONAL GRID

NORTHERNNORTHERN

REGION REGION

(29,000 MW)(29,000 MW)

. . . . SG SG. . . . SG SG

WESTERN WESTERN REGIONREGION

(31,500 MW)(31,500 MW)

EASTERN EASTERN REGION REGION

(16,000 MW)(16,000 MW)

NORTH-NORTH-EASTERN EASTERN

REGIONREGION

(2500 MW)(2500 MW)

SYNCHRONOUSLY LINKEDSYNCHRONOUSLY LINKED

INSTALLED CAP :50,000 MW , LENGTH : 2500 Kms INSTALLED CAP :50,000 MW , LENGTH : 2500 Kms

. . . . SG SG. . . . SG SG . . . . SG SG

INSTALLED CAPACITY : 1,08,000 MWINSTALLED CAPACITY : 1,08,000 MW PEAK DEMAND: 82,000 MWPEAK DEMAND: 82,000 MW

TOTAL STATE GRIDS (SG) : 33TOTAL STATE GRIDS (SG) : 33

INDIAN POWER SECTOR PRIOR TO REFORMSINDIAN POWER SECTOR PRIOR TO REFORMS

Structure Structure

SEBs vertically integrated: Generation, Transmission SEBs vertically integrated: Generation, Transmission

and Distribution under one umbrella.and Distribution under one umbrella.

Administrative MechanismAdministrative Mechanism

Power sector administrated by GoI, REBs & SEBsPower sector administrated by GoI, REBs & SEBs

Planning & project approval through GoI/CEAPlanning & project approval through GoI/CEA

Tariff setting of central sector utilities by GoI/CEATariff setting of central sector utilities by GoI/CEA

Licensing function by the state Govts Licensing function by the state Govts

Grid operation by RLDCs Grid operation by RLDCs

In 1991, private sector participation in generation allowedIn 1991, private sector participation in generation allowed

In 1998, Central Electricity Regulatory Commission (CERC) for the In 1998, Central Electricity Regulatory Commission (CERC) for the

centre and State Electricity Regulatory Commissions (SERC) for centre and State Electricity Regulatory Commissions (SERC) for

the states setupthe states setup

In 1998, Transmission recognized as a distinct activity In 1998, Transmission recognized as a distinct activity

• Private sector participation in transmission also allowedPrivate sector participation in transmission also allowed

• POWERGRID notified as Central Transmission Utility (CTU) POWERGRID notified as Central Transmission Utility (CTU)

• State Govt. to notify State Transmission Utility (STU)State Govt. to notify State Transmission Utility (STU)

In 1991, private sector participation in generation allowedIn 1991, private sector participation in generation allowed

In 1998, Central Electricity Regulatory Commission (CERC) for the In 1998, Central Electricity Regulatory Commission (CERC) for the

centre and State Electricity Regulatory Commissions (SERC) for centre and State Electricity Regulatory Commissions (SERC) for

the states setupthe states setup

In 1998, Transmission recognized as a distinct activity In 1998, Transmission recognized as a distinct activity

• Private sector participation in transmission also allowedPrivate sector participation in transmission also allowed

• POWERGRID notified as Central Transmission Utility (CTU) POWERGRID notified as Central Transmission Utility (CTU)

• State Govt. to notify State Transmission Utility (STU)State Govt. to notify State Transmission Utility (STU)

POWER SECTOR REFORMSPOWER SECTOR REFORMS

Un-bundling & corporatisation of SEBs to make separate Un-bundling & corporatisation of SEBs to make separate corporations for Generation, Transmission and distribution for corporations for Generation, Transmission and distribution for better accountabilitybetter accountability

Formation of Power Trading Corporation (PTC) to facilitate Formation of Power Trading Corporation (PTC) to facilitate trading of power especially providing payment security to IPPstrading of power especially providing payment security to IPPs

In Distribution sector, Accelerated Power Development Reform In Distribution sector, Accelerated Power Development Reform Program (APDRP) undertaken for upgrading of sub-transmission Program (APDRP) undertaken for upgrading of sub-transmission and distribution networkand distribution network

Indian Electricity Act,2003 promulgated, consoliding previous Indian Electricity Act,2003 promulgated, consoliding previous Acts and moreActs and more

POWER SECTOR REFORMSPOWER SECTOR REFORMS CONTD CONTD

POWER SECTOR DEVELOPMENTPOWER SECTOR DEVELOPMENT

1950’s 1970’s 1990’s

STATEProvince

REGIONAL

NATIONAL

• Constitution of CEA as NATIONAL PLANNER

• CEA to concur power projects

• Constitution of Vertically integrated SEBs for development on state level

• Constitution of CEA as NATIONAL PLANNER

• CEA to concur power projects

• Constitution of Vertically integrated SEBs for development on state level

• Development on Regional basis

• Constitution of REBs for regional grid operation

• Central Gen. cos. Constituted to develop big project on regional basis

• Development on Regional basis

• Constitution of REBs for regional grid operation

• Central Gen. cos. Constituted to develop big project on regional basis

• Formation of CTU

• CTU assigned the role of Grid operation (TSO)

• Formation of Regulatory bodies CERC & SERC

• Formation of CTU

• CTU assigned the role of Grid operation (TSO)

• Formation of Regulatory bodies CERC & SERC

CENTRAL GEN Cos./ IPPsCENTRAL GEN Cos./ IPPs

POWERGRIDPOWERGRID

CTU & Grid Operator ( RLDCs)CTU & Grid Operator ( RLDCs)

CEACEA

Central GovtCentral Govt

State GovtsState Govts

STUsSTUsTRANSMISSION TRANSMISSION

LICENCEESLICENCEES

INDIAN POWER SECTOR – CENTRAL LEVELINDIAN POWER SECTOR – CENTRAL LEVEL

RegulatorRegulator

(CERC)(CERC)

GENERATING COS.GENERATING COS.

STUs/ Grid Operator ( SLDCs)STUs/ Grid Operator ( SLDCs)

STATE GOVTs.STATE GOVTs.RegulatorRegulator

(SERC)(SERC)

DISCOMsDISCOMs

CENTRAL GOVTs.CENTRAL GOVTs.

INDIAN POWER SECTOR – STATE LEVELINDIAN POWER SECTOR – STATE LEVEL

FUNCTIONS OF VARIOUS PLAYERSFUNCTIONS OF VARIOUS PLAYERS

Central GovernmentCentral Government

To prepare & publish National Electricity Policy and To prepare & publish National Electricity Policy and Tariff Policy in consultation with State Govts. and CEA Tariff Policy in consultation with State Govts. and CEA for development of power system based on optimal for development of power system based on optimal utilisation of resourcesutilisation of resources

Formulate a National Policy, in consultation with State Formulate a National Policy, in consultation with State Govts. and state commissions, for rural electrificationGovts. and state commissions, for rural electrification

Central govt. to establish an Appellate TribunalCentral govt. to establish an Appellate Tribunal

Appellate TribunalAppellate Tribunal

To hear appeals against the orders of the adjudicating To hear appeals against the orders of the adjudicating officer or the appropriate commission.officer or the appropriate commission.

Appellate Tribunals to have all powers of civil courtAppellate Tribunals to have all powers of civil court

Appeal against Judgment of Appellate tribunal only in Appeal against Judgment of Appellate tribunal only in Supreme courtSupreme court

FUNCTIONS OF VARIOUS PLAYERSCONTD

Central Electricity Authority (CEA)Central Electricity Authority (CEA)

To prepare National electricity plan in accordance with To prepare National electricity plan in accordance with the National electricity policy of Central Govt. and notify the National electricity policy of Central Govt. and notify the samethe same

Specify technical standard for construction, operation Specify technical standard for construction, operation & maintenance of electrical plants, electric lines and & maintenance of electrical plants, electric lines and connectivity to the gridconnectivity to the grid

Advice the appropriate Govt./Commission on all Advice the appropriate Govt./Commission on all technical matters related to Generation, transmission technical matters related to Generation, transmission and distributionand distribution

FUNCTIONS OF VARIOUS PLAYERSFUNCTIONS OF VARIOUS PLAYERSCONTD CONTD

Central Electricity Regulatory Commission (CERC)Central Electricity Regulatory Commission (CERC)

To regulate tariff of central generating companies To regulate tariff of central generating companies

To determine the tariff & regulate inter-state transmission of To determine the tariff & regulate inter-state transmission of electricity electricity

To issue licensees to function as transmission licensees To issue licensees to function as transmission licensees (other than CTU) and electricity trader with respect to inter-(other than CTU) and electricity trader with respect to inter-state operationstate operation

Aid & Advice the Central Govt. for formulation of National Aid & Advice the Central Govt. for formulation of National electricity policy & Tariff policy.electricity policy & Tariff policy.

To specify the Grid CodeTo specify the Grid Code

Develop appropriate policies & procedures for Develop appropriate policies & procedures for Environmental regulation of the power sectorEnvironmental regulation of the power sector


Regional Load Despatch Center (RLDC)Regional Load Despatch Center (RLDC)

Apex body to ensure integrated operation of the power Apex body to ensure integrated operation of the power system in the regionsystem in the region

Give directions and exercise supervision and control Give directions and exercise supervision and control which is required for integrated operation to achieve which is required for integrated operation to achieve maximum economy and efficiencymaximum economy and efficiency

Scheduling/Re-scheduling of generation and contigency Scheduling/Re-scheduling of generation and contigency analysisanalysis

System restoration following Grid disturbancesSystem restoration following Grid disturbances

Metering & Data collectionMetering & Data collection

Compiling & furnishing data pertaining to system Compiling & furnishing data pertaining to system operationoperation


Central Transmission Utility (CTU)Central Transmission Utility (CTU)

Discharge all functions of planning & co-ordination for Discharge all functions of planning & co-ordination for inter-state transmission system with state transmission inter-state transmission system with state transmission utilities, Central Govt., State Govt., Generating utilities, Central Govt., State Govt., Generating companies, Authority, Licensees etccompanies, Authority, Licensees etc

To ensure development of an efficient, coordinated To ensure development of an efficient, coordinated and economical system of inter-state transmission and economical system of inter-state transmission lines for smooth flow of electricity from generating lines for smooth flow of electricity from generating stations to load centersstations to load centers

To exercise supervision & control over the inter-state To exercise supervision & control over the inter-state transmission systemtransmission system

To ensure integrated operation of the regional grids To ensure integrated operation of the regional grids through RLDCsthrough RLDCs


State Electricity Regulatory Commission (SERC)State Electricity Regulatory Commission (SERC)

To determine the tariff for electricity within the stateTo determine the tariff for electricity within the state

To regulate operation of power system within the To regulate operation of power system within the statestate

Issue licensees for Transmission, distribution & Issue licensees for Transmission, distribution & trading of electricity within the statetrading of electricity within the state

To specify State Grid Code consistent with Grid CodeTo specify State Grid Code consistent with Grid Code

Advice state Govt. on matters like promotion of Advice state Govt. on matters like promotion of competition, efficiency, investment and economy in competition, efficiency, investment and economy in the electrical industry the electrical industry


POWER SECTOR WORLD-WIDEPOWER SECTOR WORLD-WIDE

U.K ELECTRICITY STRUCTUREU.K ELECTRICITY STRUCTURE

PowerGen National Power

Independent Generators

British Energy

National Electric Grid & Pool

Regional Electricity Companies

Generators/Suppliers

Other Licensed Suppliers

Small Users (<100 kW)

Large Users (>100 kW)

Regulator (OFFER)

48 Generators

Private Tx. Co TRANSENER

6 REGIONAL Co. National Electricity Regulatory Agency (ENRE)

Independent System Operator (ISO) , CAMMESA

CAMMESA Looks after the National Load Dispatch Center

CAMMESA Looks after the National Load Dispatch Center

Scenario after 1992 UNBUNDLING in Power Sector

Scenario after 1992 UNBUNDLING in Power Sector

ARGENTINA POWER SECTORARGENTINA POWER SECTOR

RTE

(TSO)

Producer EDF

Other Producers

Foreign Producers & suppliers

Foreign TSOs

Distributor

EDF

Foreign TSOs Foreign

consumers

Eligible consumers

Non eligible consumers

FRANCE POWER SECTORFRANCE POWER SECTOR

Other Distributors

REGULATOR

POWER SYSTEM MODELS- SCHEMATICPOWER SYSTEM MODELS- SCHEMATIC

G GG

D DDT + SO

G

D

G

D

I.I. EUROPEAN, SOUTH AFRICA & INDIAN MODELEUROPEAN, SOUTH AFRICA & INDIAN MODEL

II.II. FRENCH MODELFRENCH MODEL

T + SOG

D EdF

RTE

POWER SYSTEM MODELSPOWER SYSTEM MODELS -SCHEMATIC-SCHEMATIC Contd Contd

III.III. MALAYSIAN AND KOREAN MODELMALAYSIAN AND KOREAN MODEL

IV.IV. AMERICAN MODELAMERICAN MODEL

G GG

T + SO D +

G G G

D D D

T T

G

D

G

D

G

D

TSO SORTO

INDEPENDENT SYSTEM OPERATOR (ISO)INDEPENDENT SYSTEM OPERATOR (ISO)

• System operation is independent of the function of System operation is independent of the function of transmission system development transmission system development

• ISO prevalent when there are multiple transmission ISO prevalent when there are multiple transmission agenciesagencies

TRANSMISSION SYSTEM OPERATOR (TSO)TRANSMISSION SYSTEM OPERATOR (TSO)

• Grid operation as well as transmission system Grid operation as well as transmission system development with single entitydevelopment with single entity

• TSO prevalent where unbundling has taken place and TSO prevalent where unbundling has taken place and there is one transmission utility there is one transmission utility

SUMMARY – POWER SYSTEM MODELSUMMARY – POWER SYSTEM MODEL

ADVANTAGES OF TSOADVANTAGES OF TSO

• TSO, having no interest in generation and trading of TSO, having no interest in generation and trading of electricity is impartial and has same interest as that of electricity is impartial and has same interest as that of system operator.system operator.

• On-hand experience of systems constraints, direct control On-hand experience of systems constraints, direct control over planning and development of transmission system. over planning and development of transmission system. Can therefore take immediate measures for system Can therefore take immediate measures for system improvement schemes on short-term and long-termimprovement schemes on short-term and long-term

• More coordinated approach towards development and More coordinated approach towards development and operation of gridsoperation of grids

• No duplication of assets and expertiseNo duplication of assets and expertise

Documents

INDIAN POWER SECTOR