SUDHIR CHOPADE

Why to study power scenario? Why demand supply mismatch? What are the characteristics of electricity? Growth of power sector? Challenges to meet ? What is mechanism of power transfer in India? What are power sector reforms ? Electricity act 2003 Important organizations in power sector with their roles and responsibilities What is future of electricity market?

1 peta joule = 1015 joules = 238.84 x 1012 calories One billion kilowatt hour of electricity = 3.60 peta joules of energy.

Growth of demand of electricity in India

Challenges in front of power sector. In case of developing countries, the energy sector assumes a critical importance in view of the ever-increasing energy needs. Energy is one of the major inputs for the economic development of any country. It requires huge investment and proper planning and long execution time. Resources available are limited. Lot of socio-economic factors are involved. Electricity can not be stored so has to be generated when required.

Various options available to meet electricity demand and challenges

 Hydro potential in NER and upper part of NR Coal reserves mainly in ER Good amount of Wind and solar energy potential is also available all over India. Load and resources are most of the time away from one another so for optimal utilisation of resources strong National Grid

Coal reserves available in the world

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ENERGY SCENARIO

12

ENERGY SCENARIO

13

 Generation Resources Load Centers Weather Seasons

680

720

760

800 82.50 84 0

880

920

960

J&K HP PUNJA B HARIAN

A RAJASTHAN

NER NEPAL BHUTAN SKM DELHI NE NG ASSAM UP ME BIHAR MNP B MYANMAR E TRP MIZ DESHMP JKND WB GUJARAT W CTGR L MAHARASHTRA ORISSA DIU DAMAN N S
GOA AP PONDICHERY KARNATAKA TAMIL NADU SRI LANKA A&N

LAKSHADWEE P

FOR EASEY CONTROL AND MONITERING OF POWER SECTOR IT IS DEVIDED IN FIVE REGIONS WR NR SR ER NER WESTERN REGION NORTHERN REGION SOUTHERN REGION EASTEN REGION NOR TH EASTERN REGION

Deficit Region

REGIONAL GRIDS
NORTHERN REGION
EASTERN REGION

Snow fed run-of the river hydro Highly weather sensitive load Adverse weather conditions: Fog & Dust Storm Very low load

NORTHEASTERN REGION

High hydro potential Evacuation problems Low load High coal reserves

WESTERNR EGION

SOUTHERN REGION

Pit head base load plants Industrial load and agricultural load High load (40% agricultural load) Monsoon dependent hydro

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INDIA 32,87,263 sq. km area More than 120 crore people Installed Capacity of 178 GW March 2003 West synchronized With East & Northeast

August 2006 North synchronized With Central Grid

NEW Grid
South Grid

October 1991 East and Northeast synchronized Central Grid

North
East

Five Regional Grids Five Frequencies

Northeast

West South

ERLDC:POWERGRID

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The Electrical Regions

N-E-W Grid
NORTHERN REGION

1
EASTERN REGION

NORTHEASTERN REGION

WESTERNRE GION

SOUTH Grid 2

SOUTHERN REGION

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HIGHLIGHTS Thomas Alva Edison invented Electric Lamp in 1884. 18th Nov.1897 first generating station in India (Asia) started at Sidrapong (Darjiling) [ 3 X 65 KW, 1PH] Installed capacity of India as on 15th Aug 1947 was 1362 MW Generating capacity has grown from 1712 MW in 1950 to more than 200,000 MW today. The growth in the transmission lines has been from 2708 ckm in 1950 to more than 200,000 ckm today. About 90% of 587,000 villages have been electrified, balance to be electrified by 2015. 65% households have access to Electricity, balance to be covered by 2015.

Power Sector: largest contributor to GHG emissions. (58%) T&D losses: 18 to 62% High Commercial losses India: 6th Largest electricity utilizing country next to USA, China, Japan, UK, and France. India to achieve : 4th rank by next five year plan. The per capita consumption of electricity is estimated at 1000 kWh approx.

Year 1947 1966-67 End of 2st Plan 1971-72 End of 3st Plan 1976-77 End of 4rd Plan 1981-82 End of 5th Plan 1986-87 End of 6th Plan 1991-92 End of 7th Plan 1996-97 End of 8th Plan 2001-02 End of 9th Plan 2006-07 End of 10th Plan 2011-12 End of 11th Plan

All India IC (MW) 1362 10092 15254 21469 32345 49266 69065 85919 104917 144565 213069

213069

Installed Capacity
30214 1362 4653 14709

144565

104917

66086

1947 1961 1971 1981 1991 2002 2008 2012

year

Year wise power and energy deficit in India

Period 9th Plan End FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 Peak Demand (MW) 78441 81492 84574 87906 93255 100715 108866 109809 Peak Met (MW) 69189 71547 75066 77652 81792 86818 90793 94634 Surplus/Deficit MW (9252) (9945) (9508) (10254) (11463) (13897) (18073) (15175) % (11.8) (12.2) (11.2) (11.7) (12.3) (13.8) (16.6) (13.8)

Period 9th Plan End FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09

Energy Requirement (MUs) Energy Availability (MUs) 522537 545983 559264 591373 631757 690587 739345 645789 483350 497890 519398 548115 578819 624495 666007 574562

Surplus/Deficit MUs (39187) (48093) (39866) (43258) (52938) (66092) (73338) (71227) % (7.5) (8.8) (7.1) (7.3) (8.4) (9.6) (9.9) (11.0)

By the year 2012, Indias peak demand would be 157,107 MW with energy requirement of 975 BU. Capacity to increase to 212,000 MW by year 2012 to meet the peak demand of 1,57,107 MW.

Peak requirement in MW

157107 * 115705 78037 81492

year

Projected economic growth for the year 2012 of 7 to 8% Necessitates commensurate growth of commercial energy particularly electricity Present shortages of 7% in power supply and 10.6% in peak requirement Generating capacity of 2,12,000 MW required to obviate the shortages Additional capacity Requirement Indian economy is growing at a rate of approx 8% Power demand in India is growing at a rate of approx.6% Target 58,504 MW is to be added ( in 2008-2012) for achieving objective of Power for All by 2012

PLAN VI (1980-85) VII (1985-90) VIII (199297) IX (1997-02) X (2002-07) XI (2007-12)

TARGET MW 19666 22245 30538 40245 57139 58564

ACHIEVED MW 14226 22000 16422 24309 21180 -------

%ACHIEVEMET
OF TARGET

72.30 % 99.00 % 53.77 % 60.00 % 34.00% ---------

Projected installed capacity requirements in India

Installed Capacity Requirement (at 8% growth rate)
1200 Capacity (GW) 1000 800 600 400 200 0 2011-12 2016-17 2021-22 2026-27 2031-32
Year

962 655 445 206 303

Average plant load factor of Thermal power stations in the country has improved during the ninth plan. It increases from a level of 64.66% in 1996/97 to 77% approx. 21 numbers of thermal power stations with an aggregate installed capacity of 25237.5 MW operated above 90% PLF.

MW Central State Private Total

11th Plan (FY08 -12) 39,865 27,952 10,760 78,577

12th Plan (FY13 -17) 39,365 12,300 30,340 82,000

A heavily coal dependent route of sectoral development is not environmentally sustainable due to huge quantity of fly ash and Green House Gases (GHG)emissions. causes serious environmental problems and health hazards

Power sector should and perhaps would, continue to support the dominant role of Coal however Environmental and other major concerns must be addressed . Medium / long term measures need to be evolved and implemented. Coal, Power and Manufacturing groups need to work together to effectively mitigate the concerns

Power Sector was governed by Indian Electricity Act, 1910 Electricity (Supply) Act, 1948 Indian Electricity Rules, 1956 Provisions of these Acts were obsolete a new Act was required in line with present business practices. The new Act needs to provide for sector monitoring with inbuilt rewards for efficiency and penalties for violation. To address these multifaceted issues, it required: Separation (unbundling) of business activities into Generation, Transmission and Distribution to identify the inefficient and loss making business. Privatization of business, if the performance does not improve. Independent electricity regulatory mechanism for monitoring

Post Independence, power sector entities were PSUs (NTPC, PGCIL, DVC, etc.), SEBs and Private Utilities (CESC, TPC, REL, AEC, etc). Tariff fixed by Central/State Power Ministry. Minimum accountability for technical competency, efficient operations, financial viability. Poor O & M practices, political interference in SEB functioning. No independent mechanism for monitoring sector performance. Government subsidies available to SEBs only, highly subsidized tariffs to certain consumer categories. High T & D losses and huge commercial losses. By 1980s, financial condition of SEBs started deteriorating.

Electricity reforms begun in 1991 and proceeded in three phases and are still ongoing. The first phase focused on increasing investment in power generation to sustain 8% annual economic growth. In second phase states began their own reforms as unbundling of SEBs into separate entities as Generation, Transmission and Distribution to improve efficiency. This second phase of reforms included the establishment of independent State Electricity Regulatory Commissions (SERCs). A primary motivation for creating independent regulators was rationalization of tariffs. At the same time, an independent regulator, insulated from political pressure, would be in a better position to set tariffs to ensure that consumers were protected while companies profit. A third phase of reforms emerged at the end of the 1990s, as the central government attempted to coordinate a reform strategy for India as a whole which sought to improve the distribution of electricity. All states are eligible for the grants and loans, and those with the best performance in reaching specific milestones earn extra rewards

Generation de-licensed. Captive Generation encouraged through waiver of open access surcharge and connectivity to grid for evacuating surplus power. Combined Generation/Distribution de-licensed in rural areas. CEA clearance required for Hydro projects only. Rural Electrification to be done by Panchayats, Cooperative Societies, NGOs, Franchisees etc. CTU/STU to plan & develop transmission network. Private sector participation in Transmission and Distribution. Non discriminatory Transmission Open Access introduced. Distribution Open Access introduced in phases. Distribution licensees can undertake generation & vice versa. Mandatory setting up of CERC/SERC for tariff determination. State Government to pay subsidy through budget. Trading as a distinct activity, CERC/SERC to fix trading margins. Re-structuring of SEBs. Metered supply of electricity mandatory.

Perspective planning, policy formulation, processing of projects for investment decision, Administration and enactment of legislation in regard to thermal, hydro power generation, transmission and distribution. Administration of EA, 2003, the Energy Conservation Act , 2001 and issuing clarifications Undertake amendments to these Acts, in conformity with the Government's policy objectives. Rural Electrification policy. Hydro Power development. Procurement of power by distribution license through competitive bidding. National Electricity Policy and Plan. National Tariff Policy. Tariff bidding for transmission projects. Mega and Ultra Mega Power Plant.

Regulate the tariff of GENCOs owned / controlled by Central Government or GENCOs selling to more than one State. Regulate and determine tariff for inter-State transmission. Issue transmission / trading license for inter-State operations. Adjudicate upon disputes involving GENCOs or licensee and refer any dispute for arbitration; Levy fees/charges and specify Grid Code. Specify and enforce standards for quality, continuity and reliability of service by licensees. Fix trading margin for inter-State trading.

Tariff determination for intra-sate generation, transmission & distribution. Regulate power purchase and procurement process. Promote competition, efficiency and economy. Dispute resolution and arbitration between licensees.

Advise the Central Government for improving the sector. Formulate short-term and perspective plans for sector development and co-ordinate planning process. Specify technical and safety standards for construction, operation and maintenance of power plants and lines. Specify conditions for installation of meters. Assist in the timely completion of projects and specify measures for skill enhancement. Training and manpower development. Collect power sector data and carry out studies relating to cost, efficiency, competitiveness Publish sector reports and investigations. Promote research in all areas of the sector. Advise any State Government, licensees or GENCOs to enable optimum utilization of resources. Advise the appropriate Government/ CERC / SERCs on all technical matters relating to the power sector. Monitoring the implementation of power projects.