Dr. Montek Singh Ahluwalia Dy. Chairman, Planning Commisson

1. POWER GRID CORP. OF INDIA LTD. WELCOMES Dr. Montek Singh Ahluwalia Dy. Chairman, Planning Commisson

2. An Analogy – Power System & Human Body RLDC::Brain Generation :: Heart USER Voltage::BP Frequency::Heartbeat Sub-Transmission :: Sub-Arteries Transmission :: Main Arteries Distribution :: Capillaries

3. Establishment and operation of Regional and National Power Grids to facilitate transfer of power within and across the Regions with reliability, security and economy on sound commercial principles POWERGRID MISSION

4. A neutral transmission service provider. Started Commercial Operations from 1992-93. Wheels 45,000 MW i.e. more than 40% of the power generated. Operates and Maintains 50,000 circuit kms of EHV transmission System 82 nos of EHVAC & HVDC sub-stations With System Availability over 99.5%. POWERGRID -An Overview

5. Growth of POWERGRID TRANSFORMER CAPACITY (MVA) GROSS FIXED ASSET (RS. CRORES) TURNOVER AND NET PROFIT MANPOWER * MANPOWER TRANSFERRED FROM CEA * REVICED CERC TARIFF NORMS

6. Establishment of National Grid Modernisation of RLDCs Introduction of Availability Based Tariff Mechanism to both Generators and Consumers Manning of RLDCs by Senior Level Personnel Introduction of “Open Access” Efforts made by POWERGRID to Stabilize and Commercialize Power Sector

7. Generation resources in pockets and remote Load Centres dispersed and distant Multiple Loops and Rings desirable to ensure Safety, Security and Reliability Demand fluctuations on daily/ seasonal variation Economy of Operations Reduction in generation reserves Need for Strong National Grid

8. Present Capacity 9,000 MW Future Capacity –30,000MW by 2012 Investment Required by 2012 :Rs. 71,000 Crores By POWERGRID :Rs. 51,000 Crore By Pvt. Investors :Rs.20,000 Crores This investment will also take care evacuation of Central Sector Share of generation planned till 2012. Creation of National Grid of 30,000 MW Capacity will lead to reduction in Capacity addition of 13,000MW i.e. saving of Rs. 50,000 Crore in investments besides fuel cost saving. Formation of National Grid ………a continuous process

9. Merit Order Pit head stations PLF increased Costly Generation - Boxed up /reduced Exchange of 18,500 MUs in 2003-04 equivalent to Generating Station of 3000 MW Capacity Estimated National Saving Rs. 12,000 Crores in fresh investments Rs. 1,850 Crores in fuel cost Additional Saving in Fuel Transportation Expected exchanges in 2004-2005: 22,000 MUs Hydro plant usage– a paradigm shift Importance of Pumped Storage Plants achieved Harnessing of the diversity in occurrence of the Peak Demand amongst Regions , thus peak load flattened Derived economics of National Grid

10. Inter-Regional Exchanges

11. Modernisation of RLDC/SLDCs by POWERGRID * Scheduled Target Unified Approach - Features - Hierarchical State of Art Load Despatch Centres at Regional and State/Area Level.

12. Grid Operation Hierarchy SLDC SLDC SLDC SUB LDC SUB LDC SUB LDC RTU RTU RTU NLDC National Level Region Level ERLDC WRLDC NRLDC SRLDC NERLDC 5 Nos. State HQ Level 23 Nos. 51 Nos. Group of Distt. Level 1160 Nos. Plant/Sub Station Level

13. Spearheaded by POWERGRID Features: Unique commercial mechanism linked with frequency Fixed Charges i.e. Capacity charges As per Plant Availability. Variable Charges i.e. Energy charges As per Schedule. Unscheduled Interchange(UI) i.e. deviations from schedule ( Schedule – Actual) Price as per prevailing system frequency AVAILABILITY BASED TARIFF (ABT) Typical Schedule & Drawal

14. Achievements Implemented between July 2002 and Nov.’2003 Improved quality of supply. Unutilised capacity harnessed-Pumped Storage Merit order Operation. Grid discipline Emphasis on load forecasting Discourage overdrawals during low frequency Facilitate bi-lateral trading Maximisation of generation availability AVAILABILITY BASED TARIFF

15. Large Frequency fluctuations 48.0Hz to 52 Hz. Low Voltages 400kV going down upto 300kV Frequent Grid Disturbances Sub-Optimal Operation High Technical loss Grid Operation on fire fighting instead of Optimisation & Economy Grid Status – Before formation of National Grid, Modernisation of RLDCs and introduction of ABT

16. Guidelines formulated by POWERGRID in consultation with CERC and implemented w.e.f. May’2004 Non- discriminatory / Transparent Process Freedom to buy/sell power Efficient Market Mechanism to address supply / demand mismatches Encourage investment in Transmission Overwhelming response – More than 200 additional transactions effected from May’04 till Aug.’04 5300 MUs transacted through Open Access besides unscheduled interexchanges Open Access in inter-State Transmission

17. Short Term Open Access– (upto 1 year usage) Trading of surpluses Subject to inherent design margins, margin available due to variation in power flow, in-built spare capacity available Economically priced ( ¼ th of long term transmission charges) Reliable settlement system Long Term Open Access– ( >25 year usage) Subject to System Studies and transmission planning criteria for augmentation/ new transmission Schemes Higher Priority over Short Term Open Access MARKET DESIGN

18. UI – Spot Market Unscheduled exchanges with the pool. No trader involved Price linked to system frequency which is displayed on the users screen Robust settlement system No vested interest of POWERGRID Trading Long / Short term directly or through trader under bilateral contracts. Market Design…

19. Two Models TSO (Transmission System Operator) responsible for Transmission and System development and Operation. Being practiced in U.K., South Africa,France, Malaysia, Korea & other European countries ISO (Independent System Operator) Being practiced in USA, Germany, Spain on co-operative approach Transmission with multiple agencies USA now shifting towards TSO Canada mix of TSO & ISO China : TSO + Generation International Practices in Grid Operation

20. Right of Way becoming increasingly difficult on account of Forest Clearance Tree Cutting Reduction of Land Value Being addressed as under: Design of Compact Tower & Tall Towers as per need Uprating & Upgrading of existing Transmission lines through Use of High Temperature Conductors Use of Series Capacitors with/without Thyristor Control Conversion from low voltage to high voltage Law & Order J&K,NER, Telangana, Bihar Demand Supply Gap- threatens the Grid Stability Private sector investment Time consuming process for project approval CHALLENGES

21. Institution Building Network expansion Transmission Sub. Transmission Distribution Augmentation of Load Despatch & Communication in distribution leading to Transparency and Trust Building at all levels Distributed Generation Introduction of Intra-State ABT Open Access in Intra State Transmission & Distribution Flattening of Load Curve leading to Economic power supply to agriculture in odd hours Creation of robust uniform market mechanism Few Suggestions ……………………… to rejuvenate Power Sector.?

22. POWERGRID THE NATIONAL INTEGRATOR ELECTRICALLY & CULTURALLY THE FLAG BEARER OF THE POWER SECTOR

23. POWERGRID, INDIA Thank You

24. Excluding NER Grid Incidences

25. Load Curve of Northern Region for 19-02-2003 Frequency variation of 48.3 Hz to 51.5 Hz FREQUENCY LOAD Load variation of 9000 to 19000 MW

26. Frequency Profile of SR NEXT

27. FREQUENCY CURVE 53.00 6th June02 52.00 51.00 Frqe (Hz.) 50.00 6th June03 49.00 48.00 47.00 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Time (Hrs.) Frequency Profile of ER

28. 765 KV RING MAIN SYSTEM THE POWER ‘HIGHWAY’ CHEAP HYDRO POWER FROM THE NORTH-EAST AND PIT HEAD THERMAL POWER FROM THE EAST ENTERS THE RING AND EXITS TO POWER STARVED REGIONS

30. Generation PLF (Thermal) ER

31. MERIT ORDER : UNITS BOXED UP-SR

32. All constituents get the same data in real time. Transparency & Synergy in operation. Quantum leap in visibility to operator. Increased confidence & Focus on security and economy. Premptive, dynamic “early warning” systems. Grid less vulnerable to disturbances. Accurate and easy analysis of grid incidents Faster restoration after perturbation Comprehensive energy management system functions. Contingency evaluation, Security assessment and State Estimation ULDC-THE EYES AND EARS OF THE SYSTEM OPERATOR

33. UI RATE Rate of Unscheduled Drawal/Injection

34. KADAMPARAI PUMP OPERATION SAVINGS OF RS 40 LAKHS EVERY DAY INVESTMENT OF 1600 CRORES SAVED GENERATOR MODE PUMP PUMP

35. 68 72 76 88 92 96 80 84 INDIA GEO POLITICAL J&K POWER REGIONS HP PUNJAB HARIANA NER N BHUTAN NEPAL SKM DELHI NG NE ASSAM RAJASTHAN UP ME BIHAR MNP B’ DESH- E TRP MIZ MP MYANMAR JKND WB GUJARAT W L CTGR ORISSA MAHARASHTRA DIU DAMAN S GOA AP PONDICHERY KARNATAKA A&N TAMIL NADU LAKSHADWEEP SRI LANKA Diversity of peaks NER peak 5:30 pm ER WR Peak 6:00 pm Peak 6:45 pm

36. Declared Capability ά Capacity Charges Schedule Vs Actual Injection at Dadri (T) U I Actual Injection Schedule ά Energy Charges Frequency NEXT

37. U I Schedule Vs Actual Drawal by UP Schedule ά Energy Charges Actual Drawal Entitlement ά Capacity Charges Frequency

38. EUROPEAN & SOUTH AFRICAN MODEL G G G G G T + SO D D D D D This model is followed in UK by NGC, in Norway by Statenett, in Sweden by Svenska Kraftnet, in Finland by Fingrid, in Netherland by Tennet, in Denmark by Eltral/Elkrafts and in South Africa by Eskom. NEXT

39. AMERICAN MODEL G G G G G G RTO SO T T T SO D D D D D D This model is followed in USA. Based on their experience, USA is now moving towards TSO model through RTO.

40. 2003 2002

41. NORTHERN REGION 11,700 MW 4,900 MW NORTH-EASTERN REGION 5,850 MW 2,650 MW WESTERNREGION 1,200 MW 3,700 MW SOUTHERN REGION INTER-REGIONAL TRANSFER BY 2012 EASTERN REGION 30,000 MW OF INTER-REGIONAL POWER BY 2012

42. Inter Regional Links 1650 MW 700 MW 1850 MW 900 MW 30,500 MW 2300 16,000 700 MW 32,700 MW 1200MW Present IR Capacity = 9,000 MW 30,500 MW 2000MW Next

43. Major inter-Regional Link

44. Technical Losses w.r.t. Voltage • Power (P)= Voltage * Current = V*I • Losses = (Current)2 * Resistance = I2*R • Power is proportional to current, voltage remaining constant. • To draw the same power at low voltage, one has to draw more current e.g.; 100 MW = 400kV * 250 Amps 100 MW = 320kV * 312 Amps Losses increases by 55% for 20%reduction in voltage. Losses doubles for about 30% reduction in voltage. e.g. Loss reduction in SR by 1% has given an annual saving of about Rs 290 crores

45. POWER GRID CORPORATION OF INDIA LTD.NEW DELHI