Lecture # 1 - 2

EE:431 Power System Analysis

Dr. Muhammad Shoaib Khalid

Associate Professor, EE
FAST NU
Introduction
1882
• The first electric network (powered by DC generators and
distributed by underground cables) was established in New
York, United States by Thomas Edison in 1882.

• In the same year first Water-Wheel Driven Generator was

installed at Wisconsin.

• Edison companies could delivery energy over short distance

from their stations (due to excessive power loss (I2R) at low
voltage).
Introduction
1885
➢ Invention of Transformer by William Stanley

1888
➢ Invention of Induction Motor by Nikola Tesla

➢ Advantage of AC system
More power can be produced at higher voltages
Introduction
Single Phase AC System
➢ First installed at Oregon City
➢ Power was generated by two 300hp
water wheel turbine
➢ Transmission at 4 kV to Portland
Introduction
Three Phase AC System
➢ First installed at Southern California in
1893
➢Transmission at 2.3 kV
Introduction
Miscellaneous

❑ Individual companies were operating at different frequencies

(25 Hz to 133 Hz)

❑For parallel operation and interconnection 60 Hz were adopted

in US.

❑Most of the European countries selected 50 Hz.

❑ HVAC - Transmission voltages risen rapidly, EHV in commercial

use was 765 kV in 1969
Introduction
HVDC

1. HVAC to HVDC
2. Transmit power over two lines
3. Advantageous if the distance is over 500 km or more.
4. DC lines have no reactance and are cable of transferring more power for the same conductor
size than AC lines.
5. The DC transmission tie line acts as an asynchronous link between the two rigid systems
eliminating the instability problem inherent in the AC links.
6. Main disadvantage of the DC link is the production of harmonics which requires filtering and
large amount of reactive power compensation required at both ends of the line.
7. The first +- 400 kV dc line in the US was the Pacific Intertie, 850 miles long between Oregon
and California built in 1970.
8. In an interconnected system, fewer generators are required as a reserve for peak load and
spinning reserve.
9. Interconnection makes the energy generation and transmission more economical and
reliable and at times cheaper.
Power System
Basic Components

• Generation
• Transmission
• Distribution
• Loads
Power System
Generation

❑ Three Phase AC Generator/Synchronous Generator/Alternators

❑ Two synchronously rotating fields
❑ One field produced by the rotor driven at synchronous speed and
excited by DC current (provided by the excitation system)
❑ The other field is produced in the stator winding by the three phase
armature current.
❑ The dc current for the rotor winding is provided by the
excitation system
❑ The generator excitation system maintains generator voltage
and controls the reactive power flow
Power System
Generation
❑ Three Phase AC Generator/Synchronous Generator/Alternators
❑ Two synchronously rotating fields
❑ One field produced by the rotor driven at synchronous speed and excited by DC current (provided by the
excitation system)
❑ The other field is produced in the stator winding by the three phase armature current.
❑ The dc current for the rotor winding is provided by the excitation system
❑ The generator excitation system maintains generator voltage and controls the reactive power flow
❑ N = 120f/P (where; N=Speed in rpm, f=frequency in Hertz, P=No of Poles)
❑ Steam turbines operate relatively at high speed while hydraulic turbines particularly those operating
with low pressure operate at low speed (more number of Poles)
❑ Installed capacity per capita = total installed electric generating capacity/total population
❑ Power Slave = Installed capacity per capita/Average power of a person
 Total Installed Capacity

Power System 24,953 MW

Pakistan Power Sector – Installed Capacity

Private Sector Public

Private Sector
IPPs 9,273 37
Public Sector Sector, Hydel,
K-E 2,422 10 11695, 7013,
MW % 47% 28%
Total 11,695 47
Hydel 7,013 28
Thermal 5,458 22
Public
Nuclear 787 3 Sector
Total 13,258 53 Nuclear, Thermal
787, 3% , 5458,
22%
Power System
Transmission and Sub-transmission
❑ Linked with Economic Dispatch within
regions during normal conditions and transfer
of power between regions during
emergencies.
Power System
Distribution

❑ Distribution system connects distribution substation to

consumers.
❑ Primary distribution lines are usually 11 kV in Pakistan and
small industrial customers are served directly by the primary
feeders.
❑ The secondary distribution network reduces the voltage
(0.4 kV) for utilization by commercial and residential
consumers.
❑ Distribution systems are both overhead and underground.
Power System
Loads
❑ Divided into industrial, commercial and residential
❑ Very large industrial loads may be served from transmission system
❑ Large industrial loads are served directly from the sub-transmission network
❑ Small industrial loads are served from the primary distribution network
❑ Industrial loads are composite load (containing induction motor loads) and use more
reactive power
❑ Commercial and residential loads (lighting, heating and cooling) consume negligibly small
reactive power

❑ In order to assess the usefulness of the generating plant the load factor is defined
❑ Load Factor = Average Load/Peak Load
❑ Daily Load Factor = Average Load X 24 hr/Peak Load
❑Annual Load Factor = Total Annual Energy/Peak Load X 8760 hr

❑ Typical System Load Factors are in the range of 55 to 70 percent

Power System
Strategic Decision in Power Sector in Pakistan

❑In 1994 the government decided to unbundle power wing of WAPDA into 8 DISCOS, 4 Gencos
and NTDC was established
❑Before 18th amendment (2010) the power generation, transmission & distribution was the sole
responsibility of Federal Govt. (WAPDA)
❑After that the provincial Govt. was also empowered to take power generation, transmission &
distribution and to make their own policies
Power System
Regime of Power Policies in Pakistan
❑Power Policy 1994
❑Hydropower Policy 1995
❑Power Policy 1998
❑Power Policy 2002
❑Renewable Energy Policy 2006
❑National Policy for Co-Generation 2008
❑National Power Policy 2013
❑Power Generation Policy 2015
Power System
Scope of Power Policies in Pakistan
• 2002 Power Policy dealt
2002 & 2015 Power Policies power projects with
capacity above 50 MW
• Private Sector Power Projects
• 2015 Power Policy
• Public Sector Power Projects entertains power projects
are any capacity
• Public-Private Partnership Power
Projects • 2015 Power Policy
accounts for development
• Power Projects developed by Public of already initiated power
Sector and subsequently divested projects by
provinces/AJK/GB through
tri-partite arrangement
Power System
Power Policy 1994
• Investment oriented policy was announced by GOP to put up new generation plants in private
sector.
• Upfront Tariff of US Cent 5.91/KWh was given for the project life time in the policy.
• As a result no Load shedding in the country during the years 1998-2004.
• It called for reorganizing the power sector into autonomous companies responsible for
generation, transmission, and distribution; separating WAPDA’s hydropower functions from
those companies;
• Setting up an independent regulatory body; and privatizing thermal generation and distribution
assets in a phased manner.
• The policy combined the incentives, consents, and processing procedures into one document.
Power System
Power Policy 1998
• Bidders were expected to tender through international competitive bidding on the basis of
power tariffs. Selection would be based on the minimum levelized tariff.
• Detailed feasibility studies would be prepared before the bidding
• There were same tax incentives but fewer than in 1994
• The policy did not attract any investment
Power System
Power Policy 2002
• Policy structure designed to be more investor friendly
• Instead of upfront tariff, Competitive bidding was announced in the policy.
• Federal Govt. was make responsible for projects more than 50 MW
• Provincial Govt. were made responsible for projects less than 50 MW
• Proposals on raw site or without feasibility study welcomed
• Thrust on development of power projects based on indigenous resources and fuels especially
coal & renewables
Power System
Power Policy 2013
• The 2013 power policy aimed to achieve several goals by the end of 2017.
• It seeks to eliminate the supply-demand gap by investing in new power generation capacity;
• Reduce the cost of generation from the current US$0.12/kWh to below US$0.10;
• Reducing distribution and transmission losses from 23 % to below 16 %
• Increase the collection of bills from consumers; 85% to 95 %
• It announced to add generation projects about 16,000 MW by 2018.
• The policy also calls to improve the efficiency of the utilities and reduce the cost of power, in
part by privatizing the distribution companies.
Power System
Power Policy 2015 – Salient Features
• Exemption from Corporate Income Tax, Turnover Tax, Withholding Tax and Sales Tax

• Only 5% concessionary Import Duty on plant & equipment not manufactured locally

• GOP Guarantees obligations of power purchaser & provinces

• GOP provides protection against Political Force Majeure, Change in Law and Change in Duties &
Taxes

• For Hydro Power Projects; WUC will be paid @ Rs. 0.425/kWh to the province where the project is
located.

• Power Purchaser to bear Hydrological Risk for Hydro projects

Power System
Power Policy 2015 – Salient Features
• GOP will provide guarantee for payment obligations.

• The Government protection against (i) specific force majeure risk and (ii) changes in certain
taxes and duties

• All tariff payments will be in Pak Rupees (PKR)

• The projects will be allowed indexation in line with tariff indexation available to the IPPs
developed under the 2002 Power Policy

• Withholding tax on dividends @ 7.5%

Power System
Power Policy 2015 – Trans. Line Policy
• This was issued in 2015
• Transmission projects may be offered to Private Sector.
• Award of Projects through ICB and Upfront Tariff
• Policy to cover Transmission Line & Grid Station projects of 220 kV voltage level and above
(EHVAC & HVDC)
• Land & Right of way to be provided by NTDC
• Project Term: 25 years on BOOT basis
• NTDC to pay a fixed Transmission Service Charge, regardless of the quantum of energy
transmitted
• Exemption from Corporate Income Tax for first ten years including turnover rate tax and
withholding tax on imports
• Standardized Security Package (IA & TSA)
Power System
Power Policy 2015 – Trans. Line Policy
• GOP will provide guarantee for payment obligations of the (NTDCL).

• The Government protection against (i) specific force majeure risk and (ii) changes in certain taxes
and duties

• Import plant and equipment upon payment of reduced Customs Duty of 5%

• All tariff payments will be in Pak Rupees (PKR)

• The projects will be allowed indexation in line with tariff indexation available to the IPPs developed
under the 2002 Power Policy

• Withholding tax on dividends @ 7.5%

Power System
Energy Crisis – Issues in Power Sector
• Shortfall of 3000-5000 MW
• Increased dependence on Furnace Oil
• Poor Thermal Efficiency
• Poor Governance & Regulations
• Delay in Hydropower Projects
• High Transmission and Distribution (T & D) Losses
• Circular Debt
Power System
Way Forward
• Realizing the criticality of energy for economic growth, it is the main focus of
Pakistan on Vision 2025.
• The vision aims at ensuring uninterrupted access to affordable and clean
energy for all sections of the population and aimed at resolving structural
changes within the energy sector are fundamental to future economic
prospects. The main elements are given on next slide;
Power System
Vision
• Optimize energy supply mix–economic, scalable, indigenous by 2025
• Reduce “cost per unit”
• Reduce supply gap by 2018 and exceed demand gap by 2025
• Create and encourage culture of conservation and efficiency in the usage of
energy
Power System
Way Forward - Steps Taken by AEDB
• AEDB has undertaken a number of supportive measures in order to promote
ARE technologies and to attract private sector investments, which include;
• Identification of new corridors for wind and solar
• energy projects development. Resource assessment of these corridors is
underway.
• National Grid Code for wind power projects has been amended. Grid
Integration Plan 2010 -2015 for wind power projects has been developed by
AEDB to support NTDC.
Power System
Way Forward
• Local manufacturing of micro wind turbine has been started Manufacturing for
large wind turbines is also being encouraged. M/s DESCON has setup a wind
turbine tower manufacturing facility and has provided towers for the first wind
project in Pakistan. M/s Three Gorges Corporation / CWE (China) has also
established a tower manufacturing facility which will be upgraded to wind
turbine assembling facility in future.
• Issues related to financing of projects have been resolved and now leading
financing agencies like International Finance Corporation (IFC), Asian
Development Bank (ADB), Overseas Private Investment Corporation (OPIC),
Economic Cooperation Organization (ECO), Trade Bank etc. are offering
financing to wind power projects in Pakistan.
Power System
Way Forward
• Government has emphasizes on establishing new highly efficient plants in
Pakistan and simultaneously is embarking upon the efficiency improvement
and capacity restoration of existing power plants.
• Public and Private sector has also followed it and in process of implementing
the most efficient thermal plants (based on gas) with efficiency as high as 58%
to 62%.
• In addition, the policy also encourages the development of alternate energy
(power generation through biomass, solar, wind etc.).
Thanks