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GETTING THE CPP/IPP INTO THE GRID

GETTING THE CPP/IPP INTO THE GRID. REGULATORY ASPECTS. Harnessing Maximum Potential from Non-Convetional Energy Sources. SUITABLE PROMOTIONAL MEASURES FOR NON CONVENTIONAL ENERGY RESOURCES. EXTRACTS FROM ELECTRICITY ACT 2003 Para 3(1) NATIONAL ELECTRICITY POLICY AND PLAN:

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GETTING THE CPP/IPP INTO THE GRID

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  1. GETTING THE CPP/IPP INTO THE GRID REGULATORY ASPECTS

  2. Harnessing Maximum Potential from Non-Convetional Energy Sources

  3. SUITABLE PROMOTIONAL MEASURES FOR NON CONVENTIONAL ENERGY RESOURCES EXTRACTS FROM ELECTRICITY ACT 2003 Para 3(1) NATIONAL ELECTRICITY POLICY AND PLAN: The Central Government shall, from time to time, prepare the national electricity policy and tariff policy, in consultation with the State Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy.

  4. SUITABLE PROMOTIONAL MEASURES FOR ON CONVENTIONAL ENERGY RESOURCES EXTRACTS FROM NATIONAL ELECTRICITYPOLICY Para 3.2. ENVIRONMENTAL CONSIDERATIONS SHALL BE KEPT IN MIND WHILE SELECTING/SUGGESTING: -- AREA / LOCATIONS FOR CAPACITY ADDITION -- FUEL CHOICES Para 5.2.20 NON CONVENTIONAL ENERGY RESOURCES EFFORTS WOULD BE MADE TO ENCOURAGE PRIVATE SECTOR PARTICIPATION THROUGH SUITABLE PROMOTIONAL MEANS

  5. Wind Energy POSSIBLE OPTIONS FOR SALE OF WIND ENERGY: - Short Term Open Access - Unscheduled Interchange(UI) - Through Tariff determined by Regulator

  6. ISSUES OF IMPORTANCE IN CASE ENCOURAGEMENT TO SOURCES LIKE WIND ENERGY IS TO BE GIVEN - FAVOURED ACCESS / WHEELING CHARGES - POSSIBILITY OF BANKING - EXEMPTION FROM MERIT ORDER - MUST RUN STATUS POSSIBLY SIMILAR TREATMENT IS TO BE MOOTED TO SUCH OTHER RENEWABLE SOURCES VIZ. MINI / MICRO HYDEL ETC.

  7. HOW TO GET CPP INTO THE GRID

  8. AN EVERY DAY EXAMPLE CONNECTIVITY CONDITIONS 1) 30 MW MINIMUM DEMAND 2) 70 MW MAX DEMAND FOR 2 MONTHS SEB CPP + STEEL PLANT CAPACITY : 2X65 MW RATE : 180p/UNIT REQUIREMENT : 120±10 MW CAPABILITY : 120 MW AVAILABILITY: FULL FOR 10 MONTHS, ONE UNIT ON OVERHAUL FOR 1 MONTH EVERY YEAR REPURCUSSIONS: FOR 10 MONTHS THE CPP RUNS AT PART LOAD OF 90 MW DUE TO CONDITION 1) ABOVE

  9. HARNESSING CPPs • SEB/TRANSCO’S CONCERN:- • OVERLOADING OF LINE • COMPENSATION FOR LOSSES • WHEATHER ACCESS MECHANISM IN FORCE • CPPs NEED • RELAXED CONSTRAINTS ON PLANT OPERATION • HIGH AVAILABILITY OF EVACUATION PATH • ‘OPEN ACCESS’

  10. LET’S TALK MONEY…… • THE CPP MUST GET A PRICE BETTER THAN HIS INCREMENTAL COST • THE PURCHASER SHOULD GET THE POWER AT THE BEST PRICE • THE SEB’S/TRANSCO/DISCOM’S ARE THE INEVITABLE INTERFACE – THEIR SUPPORT IS VITAL TO THE SUCCESS OF THE DEAL

  11. DIFFERENT CURVES FOR BUYING AND SELLING • INSULATES THE TRANSCO FROM LOSSES AND OTHER CHARGES • SIMPLE AND TRANSPARENT PROCEDURE • SEAMLESS OPERATION FOR CPPs • RESIDUAL UI:- SOME WAY OF APPORTIONING CAN BE WORKED OUT

  12. WHAT THE REGULATOR CAN FURTHER DO TO BRING THE CPPs INTO THE GRID FOR BILATERAL TRADES • TRANSMISSION FLOOR RATES IN SEB PERIPHERY TO BE RATIONALISED • TIME BOUND PROCEDURES FOR APPROVING OA TRANSACTIONS FOR TRADES IN THE SPOT MARKET • MAKE CPPs REPRESENTATIVES MEMBERS OF FORUMS/COMMITTEES • MAKE THE UI CURVE STEEPER • VARIABLE COST OF CPPs ARE AROUND Rs 3-5, THIS WOULD HELP DESPATCH THEM EARLIER • REGULATE THE ‘BUFFERED’ CURVES ON CASE TO CASE BASIS

  13. LINKS CPP SCHEDULING DASHBOARD 11 MAY 05 VARIABLE COST AND UI CHANGE EFFECT OPPORTUNITY DURING CRISIS CPP SCHEDULING DASHBOARD 25 MAY 05 UI PRESENT AND HYPOTHETICAL

  14. HARNESSING CPPs WHAT IS REQUIRED :- • ROBUST SETTLEMENT SYSTEM • UI:- SPOT MARKET IN PLACE • FINE TUNING OF UI CURVE - Buffered Buy/Sell Curve - Further Rationalisation of slope ESC TO EXIT

  15. O U T H A N K Y

  16. SALE OF WIND ENERGY THROUGH STOA: - NOT A REAL TIME DISPATCHABLE ENERGY; - AVAILABLE ON SEASONAL BASIS; - TO BE TAPPED WHENEVER AVAILABLE - APPLICATION OF ACCESS CHARGES (Access Charges could very from 10 -25 %) HENCE POSSIBILITY OF SELLING WIND ENERGY THROUGH STOA IS NOT VERY ENCOURAGING.

  17. SALE OF WIND ENERGY THROUGH UI - CANNOT REGULATE THE GENERATION DEPENDING ON FREQUENCY AVG. UI RATE COMES IN THE RANGE OF AROUND Rs. 2.25 - 2.50/ Per unit HENCE POSSIBILITY OF SELLING THROUGH UI IS ALSO NOT MUCH ENCOURAGING. DETAILS

  18. EXTRACTS FROM KERC ORDER DATED 18TH JAN 2005 IN THE MATTER OF DETERMINATION OF TARIFF IN RESPECT OF RENEWABLE SOURCES OF ENERGY.

  19. EXTRACTS FROM APERC ORDERS IN THE MATTER OF DETERMINATION OF TARIFF IN RESPECT OF RENEWABLE SOURCES OF ENERGY.

  20. GENERATOR ACCESS CHARGES UNDER STOA CONSUMER DISCOM 1 STU DISCOM 2 CASE 1 WHEN BOTH GENERATOR AND CONSUMER ARE EMBEDDED CUSTOMER OF DISCOMS

  21. ACCESS CHARGES UNDER STOA CONSUMER GENERATOR STU DISCOM 2 CASE 2 WHEN ONLY CONSUMER IS EMBEDDED CUSTOMER OF DISCOM

  22. ACCESS CHARGES UNDER STOA CONSUMER GENERATOR STU CASE 3 WHEN BOTH GENERATOR AND CONSUMER ARE DIRECTY CONNECTED TO STU

  23. WHY UNBUNDLE ? REGULATOR POLITICAL COSTS TRADER DEMAND FORECAST DEMAND SHORTAGE

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