Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010

1. Central Electricity RegulatoryCommission (Indian Electricity Grid Code) Regulations, 2010 Electricity is really just organized lightning.- George Carlin

2. Plan for Discussion • Focus on IEGC Provisions related to SLDCs , RLDCs and NLDC

3. WHAT IS GRID CODE • The Indian Electricity Grid Code (IEGC) is a Regulation made by the Central Commission in exercise of powers under clause (h) of sub-section (1) of Section 79 read with clause (g) of sub-section (2) of Section 178 of the Act. • IEGC lays down the rules, guidelines and standards to be followed by various persons and participants in the system to plan, develop, maintain and operate the power system, in the most secure, reliable, economic and efficient manner, while facilitating healthy competition in the generation and supply of electricity.

4. Regulation -What and Why • Regulation is "controlling human or societal behaviour by rules or restrictions." Regulation can take many forms: legalrestrictions promulgated by a government authority, self-regulation by an industry such as through a trade association, social regulation (e.g. norms), co-regulation and market regulation. • One can consider regulation as actions of conduct imposing sanctions (such as a fine). This action of administrative law, or implementing regulatory law, may be contrasted with statutory or case law • Regulations can be seen as implementation artefacts of policystatements.

5. Historical Background IEGC, 2000 • CTU prepared this Grid Code in pursuance of CERC directions issued, on 31st March, 1999, • Became effective from 1st Feb,2000 through an ordder by CERC. • A document of CTU, approved by CERC. • Main objective - to bring discipline in the operation of the ISTS so as to enable power to flow at an optimum level while maintaining good quality. • Violations were to be treated as violations of the Commission's orders and subject to penalties.

6. Historical Background---Contd. IEGC, 2006 • As per Electricity Act 2003, (the Act) ,which came into force from 10. 6.2003, one of the functions assigned to the Commission under sub-section (1) of Section 79 the Act of was to specify Grid Code having regard to Grid Standards. • Pending finalization of the Grid Standards by CEA ,IEGC was notified by CERC on 14.03.2006, which came into effect from 01.04.2006. • Addition of a new chapter on “Inter-regional Energy Exchanges” • Deletion of Chapter on “Management of IEGC” • SLDCs were assigned more responsibilities. • REA and UI Account were to be issued by RLDCs in stead of REBs (RPCs) , which was reversed by first amendment in IEGC,2006, notified on 22.08.2006, and the responsibility of REA and UI accounts was again assigned to REBs.

7. Historical Background---Contd. Amendments in IEGC,2006 • Amendments in IEGC,2006 were made vide notification dated 11.12.2006, 18.04.2007 , 11.09.2008 and 30.03.2009. The most comprehensive were that of 30.03.2009. • Narrowing down of frequency range from 49.0-50.5 Hz. to 49.2-50.3 Hz. • Provisions related to NLDC. • Provisions related to scheduling from Tariff Regulations 2004-09 • Defining control area jurisdiction of RLDC and SLDC. •  Scheduling of Collective Transaction after operationalisation of Power Exchanges. • Aligning IEGC with CEA and CERC Regulations specially- with CEA Connectivity Standards and CERC UI Regulations. • Omission of Chapter 7 and Annex-2 of Chapter 6

8. Historical Background---Contd. IEGC,2010 • The new Regulation on IEGC i.e. Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 were notified by CERC on 28.04.2010 • Became effective from 03.05.2010. • These regulations superseded IEGC,2006. • One amendment in these regulations vide notification dated 05.03.2012 has been made • Amendment was to be made effective from 02.04.2012 , but actually got implemented w.e.f 17.09.2012, due to court case.

9. Key Features of IEGC,2010 • Focus on Renewable integration, Grid Discipline, Coherence with other Regulations, Market development, Multiple players with multiple Contracts, • Forecasting, Scheduling of Wind & Solar • Deviation Settlement -RRF Mechanism • Tightening of frequency band ‘49.2- 50.3 Hz.’ to ‘49.5 - 50.2 Hz’. • Alignment with various Regulations • Control Area Jurisdiction -Redefined • Stricter provisions for Grid discipline • Automatic Demand Management schemes and Contingency Procedures.

10. Legal Provisions in the Act,2003 • Section 79 (1) (h) - CERC entrusted with the function of specifying Grid Code having regard to Grid Standards, specified by CEA. • Section 178 (g) – CERC empowered to specify Grid Code under sub-section (2) of section 28. • Sub-section (2) of section 28- RLDC shall comply with such principles, guidelines and methodologies in respect of the wheeling and optimumscheduling and despatch of electricity as the Central Commission may specify in the Grid Code. • Section 86 (1) (h) - State Grid Code specified by SERC should be consistent with IEGC

11. ISGS • “Inter-State Generating Station (ISGS)” means a Central generating station or other generating station, in which two or more states have Shares; • “Share” means percentage share of a beneficiary in an ISGS either notified by Government of India or agreed through contracts and implemented through long term access;

12. ISTS • “Inter-State Transmission System (ISTS)” includes i) Any system for the conveyance of electricity by means of a main transmission line from the territory of one State to another State ii) The conveyance of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-state transmission of energy (iii) The transmission of electricity within the territory of State on a system built, owned, operated, maintained or controlled by CTU;

13. Contents • Part - 1 :General – Objective, Scope, Compliance etc. • Part - 2 :Role of various organizations and their linkages • Part - 3 :Planning Code for Inter - State Transmission • Part - 4 :Connection Code • Part - 5 :Operating Code • Part - 6 :Scheduling and Despatch Code • Part - 7 :Miscellaneous

14. OBJECTIVE To brings together a single set of technical and commercial rules, encompassing all the Utilities connected to/or using ISTS and provide : • Documentation of the principles and procedures which define the relationship between the various Users of the inter-State transmission system (ISTS), National Load Despatch Centre, as well as the Regional and State Load DespatchCenters • Facilitation of the optimal operation of the grid, facilitation of coordinated and optimal maintenance planning of generation and transmission facilities in the grid and facilitation of development and planning of economic and reliable National / Regional Grid • Facilitation for functioning of power markets and ancillary servicesby defining a common basis of operation of the ISTS, applicable to all the Users of the ISTS. • Facilitation of the development of renewable energy sources by specifying the technical and commercial aspects for integration of these resources into the grid.

15. SCOPE • AllUsers, SLDCs, RLDCs, NLDC, CEA, CTU, STUs, licensees, RPCs and Power Exchanges. • “User” - a person such as a Generating Company including Captive Generating Plant or Transmission Licensee ( other than the Central Transmission Utility and State Transmission utility) or Distribution Licensee or Bulk Consumer, whose electrical plant is connected to the ISTS at a voltage level 33kV and above. • DVC - similar to a SEB, with its own SLDC at Maithon. • BBMB and SSP - intra-State generating stations, though their transmission systems a part of the ISTS. • Scheduling and despatch of BBMB/ SSP generation -by BBMB/ Narmada Control Authority (NCA), in coordination with the respective RLDC and the beneficiaries.

16. Compliance of IEGC,2010 • Mainly RLDCs to report non-compliance to CERC for taking action against defaulting person, in accordance with provisions of the Act.- A number of Petitions Filed • In case of non-compliance by NLDC, RLDC, RPC, SLDC and by any other person, the non-compliance may be reported to CERC by any person through petition. • RLDC to report to the Commission instances of serious or repeated violation of any of the provisions of the IEGC and incidences of persistent non-compliance of the directions of the RLDCs issued in order to exercise supervision and control required for ensuring stability of grid operations and for achieving the maximum economy and efficiency in the operation of the power system in the region under its control.

17. IEGC Compliance-Cont. • Compliance Oversight  (Earlier Non-Compliance) • Role of RPC and RLDC reversed based on past experience and legal cases. • Earlier RPC was assigned task of reporting to Commission cases of Grid discipline violation, but due to their constitution and consensus based deliberation ,no case was reported in past. • Now this shall be primarily responsibility of RLDCs to report serious /repeated violation.

18. Compliance of IEGC,2010 -- - Contd. • The Regional Power Committee (RPC) in the region has to continuously monitor the instances of non-compliance of the provisions of IEGC and try to sort out all operational issues and deliberate on the ways in which such cases of non-compliance are prevented in future by building consensus. The Member Secretary, RPC may also report any issue that cannot be sorted out at the RPC forum to the Commission. - No Report Till Date • The Commission may initiate appropriate proceedings upon receipt of report of RPCs or RLDCs. The Commission, may also take suo-motu action against any person, in case of non-compliance of any of the provisions of the IEGC.

19. Compliance of IEGC,2010 -- - Contd. • The cases of non-compliance of IEGC are normally undertaken by CERC under section 142 of the Act. • A number of cases of non-compliance of IEGC have been taken up by CERC under suo-motu proceedings or after reporting by RLDCs. • Till now , most of the cases had been related to grid indiscipline and penalty up to about Rs. 4.5 Crores were imposed in many cases. • The cases of non-compliance of RLDC directions are normally dealt under section 29 & 143 of the Act. • Penalties up to several Lakhs of Rupees, in the adjudication cases under section 29 &143 of the Act, had also been imposed by the Commission.

20. INDICATIE LIST OF PROCEEDINGS BY CERC UNDER SECTION 142 OF ELECTRICITY ACT, 2003

21. INDICATIVE LIST OF PROCEEDINGS BY CERC UNDER SECTION 29 and 143 OF ELECTRICITY ACT,2003

22. Role of NLDC • According to notification dated 2nd March 2005, by the Ministry of Power, Government of India, under Section 26(2) of the Act, NLDC is the apex body to ensure integrated operation of the national power system. • NLDC is the nodal agency for collective transactions. • NLDC would act as the Central control room in case of natural & man made emergency/disaster where it affects the power system operation. • Any other function as may be assigned by the Commission by order or regulations from time to time – Implementing Agency for REC, RRF, PoC Charges, PSDF Management.

23. Role of RLDC • Function under sections 28 and 29 of Electricity Act, 2003. • Apex body to ensure integrated operation of the power system in the concerned region. • Responsible for optimum scheduling and despatch of electricity within the region, in accordance with the contracts entered into with the licensees or the generating companies operating in the region; • monitor grid operations; • keep accounts of quantity of electricity transmitted through the regional grid; • exercise supervision and control over the Inter-State transmission system • responsible for carrying out real time operations for grid control and despatch of electricity within the region through secure and economic operation of the regional grid in accordance with the Grid Standards and the Grid Code.

24. Role of RLDC -- - Contd. Exclusive functions of RLDCs • System operation and control including inter-state transfer of power, covering contingency analysis and operational planning on real time basis; • Scheduling / re-scheduling of generation; • System restoration following grid disturbances; • Meter data processing; • Compiling and furnishing data pertaining to system operation; • Operation of regional UI pool account, regional reactive energy account and Congestion Charge Account • Operation of ancillary services

25. Role of SLDC 2.7.1 Role of SLDC ( Reg-2.7.1) In accordance with section 32 of Electricity Act, 2003 : (1) The State Load Despatch Centre shall be the apex body to ensure integrated operation of the power system in a State. (2) The State Load Despatch Centre shall - (a) be responsible for optimum scheduling and despatch of electricity within a State, in accordance with the contracts entered into with the licensees or the generating companies operating in that State; (b) monitor grid operations; (c) keep accounts of the quantity of electricity transmitted through the State grid; (d) exercise supervision and control over the intra-State transmission system; and • be responsible for carrying out real time operations for grid control and despatch of electricity within the State through secure and economic operation of the State grid in accordance with the Grid Standards and the State Grid Code.

26. Role of SLDC 2.7.1 Role of SLDC 2.7.2- In accordance with section 33 of the Electricity Act,2003 • the State Load Despatch Centre in a State may give such directions and exercise such supervision and control as may be required for ensuring the integrated grid operations and for achieving the maximum economy and efficiency in the operation of power system in that State. • Every licensee, generating company, generating station, sub-station and any other person connected with the operation of the power system shall comply with the directions issued by the State Load Depatch Centre under sub-section (1) of Section 33 of the Electricity Act,2003. • The State Load Despatch Centre shall comply with the directions of the Regional Load Despatch Centre. .

27. Role of SLDC 2.7.3 - In case of inter-state bilateral and collective short-term open access transactions having a state utility or an intra-state entity as a buyer or a seller, SLDC shall accord concurrence or no objection or a prior standing clearance, as the case may be, in accordance with the Central Electricity Regulatory Commission (Open Access in inter-state Transmission) Regulations,2008 , amended from time to time.

28. Role of CTU • Section 38 of Electricity Act, 2003 • undertake transmission of electricity through inter-State transmission system; • discharge all functions of planning and co-ordination relating to inter-State transmission system withdifferent agencies • ensure development of an efficient, co-ordinated and economical system of inter-State transmission lines for smooth flow of electricity from generating stations to the load centers • provide non-discriminatory open access to its transmission system for use by any licensee or generating company on payment of the transmission charges; or any consumer.

29. Role of CTU- - - - Contd. • Ministry of Power vide its notification dated 27.9.2010 notified that POSOCO shall operate the five Regional Load Despatch Centres (RLDCs) and the National Load Despatch Centre (NLDC) w.e.f. 1.10.2010. • Presently, POSOCO is a subsidiary of Power Grid. • CTU can not engage in the business of generation of electricity or trading in electricity. • In case of Inter-state Transmission System, Central Transmission Utility shall be the nodal agency for the connectivity, long-term access and medium –term open access .

30. Role of STU • Section 39 of Electricity Act, 2003 • undertake transmission of electricity through intra-State transmission system; • discharge all functions of planning and co-ordination relating to intra-State transmission system withdifferent agencies • ensure development of an efficient, co-ordinated and economical system of intra-State transmission lines for smooth flow of electricity from generating stations to the load centers • provide non-discriminatory open access to its transmission system for use by any licensee or generating company on payment of the transmission charges; or any consumer.

31. Role of STU- Contd. • Until a Government company or any authority or corporation is notified by the State Government, the State Transmission Utility shall operate the State Load Despatch Centre.

32. Part-3 PLANNING CODE CEA would formulate perspective transmission plan for inter­-State transmission system as well as intra-State transmission system. In formulating perspective transmission plan the transmission requirement for evacuating power from renewable energy sources shall also be taken care of. The transmission system required for open access shall also be taken into account in accordance with National Electricity Policy so that congestion in system operation is minimized. 32

33. Part-3 PLANNING CODE • Task force for integration of renewable into Grid indicated that N-1 contingency planning for renewable shall be uneconomical and CEA must take need of renewable while planning nearby transmission system . • Also earlier planning based on Associated generating station Tr system, now open access has increased upto 20% , and many times congestion is being experienced in power market operation as well as real time operation. 33

34. Part-3 PLANNING CODE The CTU shall carry out planning process from time to time as per the requirement for identification of inter-State transmission system including transmission system associated with Generation Projects, regional and inter-regional system strengthening schemes which shall fit in with the perspective plan developed by CEA. 34

35. Part-3 PLANNING CODE CTU during planning shallconsider following : i) Perspective plan formulated by CEA. ii) Electric Power Survey of India published by the CEA. iii) Transmission Planning Criteria and guidelines issued by the CEA iv) Operational feedback from RPCs v) Operational feedback from NLDC/RLDC/SLDC vi) Central Electricity Regulatory Commission ( Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-state Transmission and related matters)- Regulations , 2009. vii) Renewable capacity addition plan issued by Ministry of New and Renewable Energy Sources ( MNRES), Govt of India 35

36. 3.PLANNING CODE • In case of associated transmission system where all PPAs have not yet been signed, and where agreement could not be reached in respect of system strengthening schemes, the CTU may approach CERC for the regulatory approval in accordance with Central Electricity Regulatory Commission (Grant of Regulatory Approval for Capital Investment to CTU for execution of Inter-State Transmission Scheme) Regulations. • As per new Regulation on Regulatory approval • Regulatory approval for several schemes has already been granted by CERC. 36

37. 3.PLANNING CODE For voltage management in inter-state transmission of energy, special attention shall be accorded, by CTU, for planning of capacitors, reactors, SVC and Flexible Alternating Current Transmission Systems (FACTS), etc. Similar exercise shall be done by STU for intra-State transmission system to optimize the utilistion of the integrated transmission network. Based on Plans prepared by the CTU, State Transmission Utilities (STU) shall have to plan their systems to further evacuate power from the ISTS and to optimize the use of integrated transmission network. 37

38. 3.PLANNING CODE In case Long -Term Access Applications require any strengthening in the intra-State transmission system to absorb/evacuate power beyond ISTS, the applicant shall co­ordinate with the concerned STU. STU shall augment the intra-state transmission system in a reasonable time to facilitate the interchange of such power. The Inter-State Transmission System and associated intra-State transmission system are complementary and inter-dependent and planning of one affects the other's planning and performance. Therefore, the associated intra-State transmission system shall also be discussed and reviewed before implementation during the discussion for finalizing ISTS proposal. 38

39. 3.PLANNING CODE • In case of associated transmission system where all PPAs have not yet been signed, and where agreement could not be reached in respect of system strengthening schemes, the CTU may approach CERC for the regulatory approval in accordance with Central Electricity Regulatory Commission (Grant of Regulatory Approval for Capital Investment to CTU for execution of Inter-State Transmission Scheme) Regulations. • As per new Regulation on Regulatory approval • Regulatory approval for several schemes has already been granted by CERC. 39

40. Planning Criteria • The planning criterion is based on the security philosophy on which the ISTS has been planned. The security philosophy may be as per the Transmission Planning Criteria and other guidelines as given by CEA. • As a general rule, the ISTS shall be capable of withstanding and be secured against the following contingency outages without necessitating load shedding or rescheduling of generation during Steady State Operation: - Outage of a 132 kV D/C line or, - Outage of a 220 kV D/C line or, - Outage of a 400 kV S/C line or, - Outage of single Interconnecting Transformer, or - Outage of one pole of HVDC Bipole line, or one pole of HVDC back to back Station or - Outage of 765 kV S/C line

41. Planning Criteria • The above contingencies shall be considered assuming a pre-contingency system depletion (Planned outage) of another 220 kV D/C line or 400 kV S/C line in another corridor and not emanating from the same substation. • The planning study would assume that all the Generating Units operate within their reactive capability curves and the network voltage profile are also maintained within voltage limits specified. • The ISTS shall be capable of withstanding the loss of most severe single system infeed without loss of stability.

42. Planning Criteria • Any one of these events defined above shall not cause: i. Loss of supply ii. Prolonged operation of the system frequency below and above specified limits. iii. Unacceptable high or low voltage iv. System instability v. Unacceptable overloading of ISTS elements. • In all substations (132 kV and above), at least two transformers shall be provided. .

43. Reactive Power Planning • CTU has to carry out planning studies for Reactive Power compensation of ISTS including reactive power compensation requirement at the generator’s /bulk consumer’s switchyard and for connectivity of new generator/ bulk consumer to the ISTS in accordance with Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-state Transmission and related matters) Regulations, 2009.

44. Special Protection Scheme • Suitable System Protection Schemes may be planned by NLDC/RLDC in consultation with CEA, CTU, RPC and the Regional Entities, either for enhancing transfer capability or to take care of contingencies • Experience of system protection scheme in NR where for any pole outage of Rihand –Dadri HVDC , backing down Generation in Singrauli Rihand Complex and shed equivalent load in various states. • Similar schemes exist for Talcher-Kolar HVDC Tr. Line 44

45. Part - 4 Connection Code • Specifies to comply with CEA (Technical Standards for connectivity to the Grid) Regulations, 2007 which gives the minimum technical and design criteria and CERC (Grant of Connectivity, Long-term Access, Medium-term Open Access and Short-term Open access in inter-state Transmission and related matters) Regulations,2 009. • Also specifies Responsibilities for safety, Cyber Security and schedule of assets.

46. 4.CONNECTION CODE • The objective of the code is : a) To ensure the safe operation, integrity and reliability of the grid. b) basic rules for connectivity are complied with in order to treat all users in a non-discriminatory manner. c) Any new or modified connections, when established, shall neither suffer unacceptable effects due to its connectivity to the ISTS nor impose unacceptable effects on the system of any other connected User or STU. d) Any person seeking a new connection to the grid is required to be aware, in advance, of the procedure for connectivity to the ISTS and also the standards and conditions his system has to meet for being integrated into the grid. 46

47. Connection Code • Reliable and efficient speech and data communication systems are to be provided to facilitate necessary communication and data exchange, and supervision/control of the grid by the RLDC, under normal and abnormal conditions. • All Users, STUs and CTU should provide Systems to telemeter power system parameter such as flow, voltage and status of switches/ transformer taps etc. in line with interface requirements and other guideline made available by RLDC. • The associated communication system to facilitate data flow up to appropriate data collection point on CTU’s system, are also to be established by the concerned User or STU as specified by CTU in the Connection Agreement. • All Users/STUs in coordination with CTU have to provide the required facilities at their respective ends as specified in the Connection Agreement.

48. Connection Code • Recording instruments such as Data Acquisition System/Disturbance Recorder/Event Logging Facilities/Fault Locator (including time synchronization equipment) are to be provided and are always to be kept in working condition in the ISTS for recording of dynamic performance of the system. • All Users, STUs and CTU have to provide all the requisite recording instruments and have always to keep them in working condition.

49. Part - 5 Operating Code Specifies the operational rules and procedures to maintain secure, efficient, and reliable grid operation.

50. Operating philosophy. • The primary objective of integrated operation of the National/ Regional grids is to enhance the overall operational reliability and economy of the entire electric power network spread over the geographical area of the interconnected system. • Overall operation of the National / inter-regional grid are to be supervised from the National Load Despatch Centre (NLDC). • Operation of the Regional grid shall be supervised from the Regional Load Despatch Centre (RLDC). • Detailed operating procedures to be developed by NLDC and RLDC for the National grid and regional grid , respectively. 50