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Gujarat Power Market Development

Learn how Gujarat is promoting a competitive power market through the Electricity Act, 2003 & groundbreaking initiatives by the Gujarat Electricity Regulatory Commission.

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Gujarat Power Market Development

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  1. Gujarat Power Market Development Dr. KETAN SHUKLA(IFS), SECRETARY, GUJARAT ELECTRICITY REGULATORY COMMISSION

  2. New Avenues in Power Sector • The Electricity Act, 2003 and Gujarat Electricity Industries (Reorganisation and Regulation) Act, 2003 envisages various activities for taking conducive measures to • Allow development of power market • Envisage competition • Protect interest of consumers and supply of electricity to all areas • Rationalize electricity tariff • Promote efficient and environmentally benign policies • Open Access in Transmission and Distribution • Power Trading • Implement Availability Based Tariff

  3. Making Competitive Power Market • National Electricity Policy (2005) enjoins upon Appropriate Commission to undertake development of power market • Power / Energy Exchanges introduced in India enabling market to discover a uniform market clearing price and market clearing volume • To make electricity market competitive following elements are necessary • Several buyers and sellers to avoid exercise of market power • Demand and supply responsiveness to price • Equal access to essential facilities transmission and distribution • Liquid and efficient market places • Application of Open Access in phased manner

  4. Power Sector of Gujarat Sources: Submissions by Licensees during their filing of ARR, 2010

  5. Power Sector of Gujarat

  6. Capacity to double at the end of XI Plan • The Commission has approved Power Procurement for 6000 MW through Competitive Bidding in various orders to be purchased by GUVNL • Sugen Power Project of 1100 MW established by Torrent Power Ltd. to reduce the power deficiency in the State. • Targeted addition of 3110 CKM of Transmission Lines and 60 number of Substations for 2009-10 by GETCO • In Distribution, Constant improvement in reducing the gap between Average realization and the average cost to serve

  7. Role of Gujarat Electricity Regulatory Commission • GERC - established under Electricity Regulatory Commission Act, 1998 - since April ,1999. • Continued functioning according to first proviso of section 82 of the Electricity Act, 2003. • Tasks before the Commission: • Gradual rationalization of electricity tariff so that they reflect cost of service. • Improvement in quality of supply of power and better customer service. • Availability of electricity at reasonable rates to the consumers. • Commercial viability of the Discoms. • Development of a competitive environment for efficient operations of the power sector in the state and for creating favorable conditions for investment in this sector to unlock its large potential.  • Introduction of open access in phased manner. • Promote renewable energy sources

  8. Open Access • Open Access to transmission and distribution networks for third party use and to increase competition, promote the trading of electricity • Helps Captive Generating Plants to run their power projects in efficient manner and sale of their surplus power in the market at better price – where utilities benefits to bridge demand-supply gap • High Contracted Load consumers are able to procure power at cheaper rate through Open Access from the sources where it is available at cheaper rate. • Initiation by GERC • Capacity granted for Open Access increased from 551 MW to 750 MW. • Reduced the cross subsidy charges from Rs. 1.80 per Unit in 2005-06 to Rs. 0.51 per Unit in 2008-09 • Rationalized Transmission and wheeling charges

  9. Intra-state Availability Based Tariff (ABT) Mechanism • ABT – Brought about the effective day ahead scheduling and frequency sensitive charges for the deviation from the schedule for efficient real-time balancing • ABT - Mechanism brings grid discipline and improve efficiency of the power system • GERC Initiative: • GERC is among the first regulators to introduce ABT mechanism • Implementation of Intra-state ABT with effect from 5th April 2010. which is applied to generators, distribution licensees, Captive Power Plants connected with grid.

  10. Multi Year Tariff Introduction • MYT Tariff introduced for the period for FY 2008-09 to FY 2010-11 to bring in more predictable and transparent tariff rates in the State • Distribution Loss trajectory for the control period of MYT is given for all the Distribution Licensees • Re-oriented tariff structure to bring in more clarity and reliability • Wide participation by stakeholders during Public Hearings • Emphasis the promotion of efficiency link with gain/loss based on performance of the utilities

  11. Promoting Renewable Sources of Energy • GERC notified the regulation on Procurement of Energy from Renewable Sources • Renewable Power obligation revised - Specified Minimum Percentage of the total consumption of its consumers including T&D losses during year (for Distribution Licensees) • Separate RPO for wind, solar and other renewable energy based on the availability of such sources • RPO applicable to the Captive and Open Access consumers/users as and when a separate notification is issued by the Commission.

  12. REC Introduction • GERC is the First State Regulatory Commission to incorporate Renewable Energy Certificate in its Regulations of 2010 • Necessary provisions in the Procurement of Energy from Renewable Sources Regulations, 2010 for Renewable Energy Certificate (REC) • Sale of Renewable Energy under REC Regime • Sale of conventional Electricity Component to Local Distribution Licensees • REC Component to Obligated Entities • Gujarat Energy Development Agency (GEDA) as the State Nodal Agency • For accreditation and recommending the renewable energy projects for registration • Function in accordance with the directions issued by the Commission and • to act in accordance to the CERC (Terms and conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010

  13. For Hydel Projects the rate is Rs 3.29 per unit for 2007-08 and escalated at 3% - For 2010-11 it comes to Rs. 3.60 per unit

  14. Recent Developments in RE • GERC notified the regulation for Procurement of Energy from Renewable Sources Regulations, 2010 • GERC determined the tariff rates for procurement of power from various RE sources • Power Purchase Agreements for 365 MW Solar Projects were signed by 31st May 2010 • Clinton Climate Initiative (CCI) have initiated and announced to implement a 3,000 MW Solar Park Project in the state. • Under the Solar Power Policy 2009, the State Govt. allotted 716 MW of Solar Power Capacity to 34 national and international project developers • Out of 716 MW, the share of Solar Photovoltaic and Solar Thermal Technologies is 365 MW and 351 MW respectively

  15. THANK YOU Visit Our Website: www.gercin.org secretary@gercin.org

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