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NEW TRENDS OF ELECTRICAL POWER INDUSTRY OPEN ACCESS & DE-REGULATION
WELCOME TO ALL OF YOUWELCOME TO ALL OF YOU
Present scenario of Indian electric power industry
How can we manage power system efficiently?
Electricity act 2003
Concept of open access
Why open access?
De-regulation in power system
Effect of De-regulation
Role of regulatory commission
WHAT I AM GOING TO PRESENT-WHAT I AM GOING TO PRESENT-
Present scenario of Indian electric power industry
30,500 MW
16,00042,420 MW
39,175 MW
37,486 MW
19,416 MW
2,506 MW
RECENT INDIAN NETWORK DATARECENT INDIAN NETWORK DATA
GROWTH IN TRANSMISSION LINEGROWTH IN TRANSMISSION LINE
FEATURES OF THE ELECTRICITY ACT, 2003
An Act relating to generation, transmission, distribution,
trading and use of electricity to development of electricity
industry, promoting competition, protecting interest of
consumers and supply of electricity to all areas,
rationalization of electricity tariff, ensuring transparent
policies regarding subsidies, promotion of efficient and
environmentally policies constitution of Central Electricity
Authority,
WHAT IS OPEN ACCESS?
One of the significant provisions of the Electricity Act is “OPEN ACCESS”.
Open Access” means the non-discriminatory provision for the use of transmission lines or
distribution system or associated facilities with such lines or distribution system by any licensee or
consumer or a person engaged in generation in accordance with the regulations specified by the
appropriate Commission.
To invite private sector to invest in the power industry
To promote competition among the generating companies
To facilitate consumers to buy power directly from generators
To lead to availability of cheaper and reliable power supply
WHY OPEN ACCESS?
CATEGORY OF OPEN ACCESS-
(i) Long term open access userOpen access agreement for more than 2 years.
Nodal agency – State Transmission Utility (STU)
(ii) Short term open access userOpen access agreement for less than or = 1 year.
Nodal agency – State Load Dispatch Centre (SLDC).
Ensuring the capacity in transmission and distribution system
Creating a multi buyer/multi seller environment
Determining cross-subsidy surcharges based on economic principles
Determination of transmission/wheeling prices
Determination of rules and regulations for power trading
Categorizing the consumers as LTOA and STOA
and determining the charges based on category
Determination of priority depending on category and congestion
KEY ISSUES FOR OPEN ACCESS-
Gives freedom to user to buy power from any suplier
Assessment of Transfer Capability
Balancing mechanism
Methodology for transmission charge sharing
Treatment of transmission losses
Transparency and non-discriminatory implementation
Congestion management
ADVANTAGES OF OPEN ACCESS-ADVANTAGES OF OPEN ACCESS-
Deregulation in power sector is a process by which
government remove or reduce restriction
on power industry and invite private sector
to invest in the power industry.
WHAT IS DE-REGULATION?
Generation Transmission Distribution
Electrical Power System
Power industry is undergoing restructuring throughout the world.
The traditional vertically monopolistic structure has been deregulated
and replaced by Gencos, Transcos and Discos with competition
introduced to Gencos and Discos in order to reach higher efficiency
in electricity production and utilization.
A lot of power markets have been established for the purpose.
WHAT IS DE-REGULATION ?
INITIAL SET UPINITIAL SET UP
GENERATION
TRANSMISSION
DISTRIBUTION
SINGLE MANAGEMENT
GENERATION
TRANSMISSION
DISTRIBUTION
SINGLE MANAGEMENT
RESTRUCTURED SET UP OF DEREGULATION
GENERATIONCOMPANY-1
GENERATIONCOMPANY-1
GENERATIONCOMPANY-2
GENERATIONCOMPANY-2
GENERATIONCOMPANY-3
GENERATIONCOMPANY-3
DISTRIBUTIONCOMPANY-1
DISTRIBUTIONCOMPANY-1
DISTRIBUTIONCOMPANY-2
DISTRIBUTIONCOMPANY-2
DISTRIBUTIONCOMPANY-3
DISTRIBUTIONCOMPANY-3
GOVT.
OWNED
TRANSMISSION
COMPANY
GOVT.
OWNED
TRANSMISSION
COMPANY
INDEPENDENT POWER REGULATOR
INDEPENDENT POWER REGULATOR
SchedulingCoordinator
ISO
TransmissionOwner
Utility DistributionCompany
Generator Generatorsand Utilities
Energy ServiceProvider
Power Exchange
To attract various investments to power systems through open-access and fair competition so that power supply can meet the fast growth of demand in developing countries.To reduce government commitment to power industry,To encourage efficient electricity production andutilization through competition and electricity pricingMechanismSo the purpose of de-regulation or in practical term re-regulation is to re-structure the Indian power network so the power generation can reach to customer in a competitive way under regulatory framework
WHY DE-REGULATION?
MonopolisticPower Market
CompetitivePower Market
Cost reductionCost reduction
Security problem due to the nonutility companiesSecurity problem due to the nonutility companies
Need of Actual Transfer Capability Analysis
Need of Exact Model of Power SystemsUnder Deregulated Environment
ROLE OF REGULATORY COMMISSION
Electricity reform process in India is already in action although in a slow Pace, several state electricity boards are being unbundled into three separate corporations namely Gencos, Transcos and Discos.The distribution system is privatized for better efficiency in metering, billing and revenue collection.The distribution company has option to purchase power from any generation utility through the existing transmission networkWe can say that open access and de-regulation make the power systemmore reliable, efficient and flexible.The open access market can improve the Indian power industry and Indian economy also.
ConclusionConclusion
