The 14th Regulators & Policymakers Retreat1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Issues in Transmission
Alok RoyCEO, Reliance Power Transmission Ltd.
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
How Balanced Are We??
Transmission
GenerationDistribution
ISTS Growth : 8.5%
Intra State Growth : 3.6 %
T&D losses are greater
than 30%
Current ScenarioGeneration
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Transmission
Current
Envisaged (12th plan)
Only Rs 16,000 Cr projects being implemented by private sector
Source: Draft NEP
Source: Existing Capacity as on 31st January 2013, CEA
Source: Report of Working Group 12th plan
Envisaged (12th plan)
Current Scenario – Project Costs
Levelized Tariff Increase : Indicates rising implementation cost
Decreasing participation in power transmission sector
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Issues –Bid Process
Guidelines envisaged a 240 day bidding process
442 days - Avg time taken by PFC/REC till date introducing an avoidable risk factor due high variability in metal prices, forex and reducing revenue period
Improvement seen in last few bids; No relief to successful bidders in previous bids due to these delays
Finds mention in Draft NEP# for 12th Plan - While selecting the transmission projects for competitive bidding, the lead time requirement of about one year for completing the bidding process has to be kept in view - Source: CEA
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Issues – Right of Way
•Inordinate Delays in Securing the clearance
•States still lack Sec 164 mechanism
Section 164•Mass
Agitations
•Intimidation to construction staff
•Escalation of cases to high court/district courts
Securing RoW
•Lengthy delays
•Increased Project Cost
Environmental Clearances
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Issues – Underdeveloped Risk Sharing Mechanism
CTU executed Cost – Plus
projects
Tariff Based Projects
Commodity Risk
Currency and Interest Rate risk
Forest Clearances, Right of Way
Other Clearances such as PTCC
All extrinsic risks – pass through
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Issues – Technology
Opportunity to learn from challenges faced by developed countries
Bring latest technology and best practices at a relatively lower cost to the country
Pre-empt problems and limitations and achieve improved performance
Micro Specifications restricting developers to achieve any of the above
1. Optimization of global energy resources
2. Intercontinental transmission highway with UHV technology
3. Win-win platform and innovative development for global power industry
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Global Thoughts
Rapid Readjustment of Energy Structure Featuring Clean Energy
Sustainable energy supply requires:
Clean and efficient use of conventional energy
Scaled development of renewable
energies
IGCC with CCS ( http://www.cleancoalillinois.com )
Copyright c 2012 SGCC All Rights Reserved.
( BP: Energy outlook 2030 )
4
UHV DC
Cost-efficient and technically
mature
Capable of long-distance
delivery of renewable energy to
Europe
Effective backup for European
energy security
Voltage
±1100kV
±800kV
Capacity : 8000MW Current : 5000A
Capacity : 11000MW Current: 5000A Conductor : 8*1000 mm2
Energy loss : 3.7% ~ 6.3% Economic distance: 2500~5000km
Conductor : 6*1000mm2
Environmentally friendly Energy loss : 3.1% ~ 5.5% Economic Distance: 1100~2500km
1100 2500 5000km
UHV DC Economic Transmission Distance
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Global Thoughts – UHV DC Technology
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Global Thoughts – Direct Transmission (Option I)
4715km
Ekibastuz ( Kazakstan) ~ Berlin
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Global Thoughts – Direct Transmission (Option II)
4600km
Siberia ~ St. Petersburg ~ Berlin
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Global Thoughts – Relay Transmission (Option III)
With European Super Grid: Renewable Electricity UHV Power Grid European Super Grid Countries in Europe
With breakthroughs in energy efficiency, new materials and energy storage:
We can transmit massive renewable power from Central Asia, Mid-east, and North Africa to Europe
SuperGrid Desertec(http://www.friendsofthesupergrid.eu/) (http://www.desertec.org)
Global Thoughts – Future Outlook
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
Sensitization of liberalized transmission planning through power ministers conference and Regular interaction at power secretary level of States
Basin wise development of Hydro-Electric power of NER and providing long term soft loans and/or VGF for transmission schemes to have lower transmission charges
All Inter State Transmission System (ISTS) be declared by MOP as Central Government projects to get the same benefits as Govt Companies. MOP to issue Notification
In Tariff based bidding, SPV acquisition by developer be done along with Transmission License from CERC and Section 164 & Section 68 from MOP. To be coordinated by BPC
General Network Access Tariff Mechanism be introduced for ISTS. MOP to take up with CERC
In order to ensure matching development of intra state transmission and sub transmission systems, state planning to be captured in the planning process of CEA/CTU. CEA to monitor compliance of the same
Suggested Measures
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
The 14th Regulators & Policymakers Retreat 1st – 4th August, 2013, Goa Marriott Resort & Spa, Goa
THANK YOU