Day-3, Mr. Alok Roy

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


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


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


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


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


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


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


Global Thoughts – UHV DC Technology


Global Thoughts – Direct Transmission (Option I)

4715km

Ekibastuz ( Kazakstan) ～ Berlin


Global Thoughts – Direct Transmission (Option II)

4600km

Siberia ～ St. Petersburg ～ Berlin


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


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



THANK YOU