ankit anil gupta power trading assignment 1(09020243008)

8/7/2019 Ankit Anil Gupta Power Trading Assignment 1(09020243008)

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NEW TRENDS OF ELECTRICALPOWER INDUSTRY

OPEN ACCESS & DEREGULATION of

POWER SECTOR

Ankit Anil Gupta

PRN 09020243008Energy & Environment SIIB


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Introduction to Electricity India

Countrys power generation capacity approx reaching 161300 MW

Peak Electricity Demand exceeds Supply by 13.3% and Base

Demand Load deficient by 11% approximately

Over 60% of power from Thermal sources and around 22% by

Hydro Power Plants and remaining is contributed by the Nuclear

and the Renewable Sources of Energy

Indias commercial energy supply needs to grow by about 12% -

15% per annum to sustain 9 % GDP growth (Sources: Infraline

Magazine)

Various Programmes have been launched for increasing the

generating capacity Solar National Mission (NAPCC)

Nuclear Mission 2020

UMPP (Ultra Mega Power Plants Thermal Based

Promotion for Biogas, Bag-gas, Wind and Tidal Sources forpower


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What is Open Access??

Open Access is Provision in Electricity Act 2003 for Generator,

Distributor and for consumers (Power Trading)

Defined under section 2 (47) Of Indian Electricity act-2003

Open Access means non-discriminatory provision for the use of

transmission lines or distribution system or associated facilities with

such lines or system by any licensee or consumer or a person engaged

in generation in accordance with the regulations specified by the

Appropriate Commission


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Why Open Access??

To remove the monopoly nature on Networks

Introduction of competition by introducing various

private players and orthodox public sector company

Open Access Regulation is for providing powersupply to one and all after completing the pre-

requisite of the regulation on non-discriminationbasis.

Better Service quality in power sector (Good Qualityof Power)


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Sections in Open Access

Section number in Open Access Name of Section

Section 9 (2) Captive Generation

Section 38 (2) (d) Function of CTU

Section 39 (2) (d) Function of STU

Section 42 (2) Wheeling Charges

Section 42 (4) Additional Surcharges


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Charges in Open Access

1. Cross Subsidy Surcharge

2. Additional Surcharge

3. Transmission Charges

4. Wheeling Charges

5. Default Supply Charge

6. Balancing Market Charge

7. OA Application Charges

8. SLDC Charges

9. Reactive Energy Charges


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Classification in Open Access


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Emerging Open Access Regulation

Contract Demand for the Consumer Date on which the Open Access will be

allowed under Sub Section (2) of Section

42 of the Act

Not less than 5 MVA Publication in the official Gazette

Document

Not Less than 2 MVA but Less than 5 MVA April 1, 2006

Less than 1 MVA April 1, 2007


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CERC Regulations for Short term

Open AccessRegulations Date. 30.01.04

Charges applicable in time blocks - 25% up to 6 hrs, 50% for6-12hrs,100% for 12-24 hrs

Transmission charges @ 25% of previous year average, perMW basis

Charges applicable on MW basis for corridor booked

RLDC charges @ Rs 3000 and SLDC charges @ Rs.1000 perday

Charges for interregional system revised to 50% of averageprevious year long term charges

(Amendment date. 21.02.05 - effective from 1.04.05)

CERC discussion paper dt.13.02.07 proposing elimination of

short term open access charges


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Cont..,Regulation Dt. 25.01.08

Transmission charges applicable for each Regional

system @ Rs. 30/MWH (revised to Rs. 80/MWH vide

amendment date. 20.05.09)

No transmission charges applicable for inter-regionalsystem

Operating Charges revised to Rs 2000 per day for eachRLDC/SLDC

Applicant to obtain SLDC consent in advance


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Procedure for Scheduling ofBilateral Transactions

(Issued by CTU on 28.01.2008)

SLDC consent to be obtained for each specific transaction inbooking of open access, first-come-first-serve booking, day-ahead scheduling etc.

In case of transmission constraints, bilateral transactionswould generally be curtailed first followed by collectivetransaction (Para 12.2)

In case a State Utility is Buyer or Seller, the operating chargesand transmission charges shall not include the charges forthat state network (Para 13.1.4)

Vertical disintegration of state utilities need to be recognized


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For Long Term and Medium termOpen Access in Inter State

Transmission(Regulation Dated: 7.08.09)

Open access , SLDC charges in line with long term open

access as notified from time to time

Scheduling to be done on day ahead basis

Medium Term Open Access introduced for period of 3 monthsto 3 years

Long term period reduced from 25 years to 12 years


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What is Deregulation in Power

Sector Deregulation in power sector is a process by which

government remove or reduce restriction on power

industry and invite private sector to invest in the

power industry. Power industry is undergoing restructuring

throughout the world. The traditional vertically

monopolistic structure has been deregulated and

replaced by Gencos, Transcos and Discos withcompetition introduced to Gencos and Discos in

order to reach higher efficiency in electricity

production and utilization. A lot of power markets

have been established for the purpose.


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RESTRUCTURED SET UP OF

DEREGULATION

GENERATIONCOMPANY-1

GENERATIONCOMPANY-2

GENERATIONCOMPANY-3

DISTRIBUTIONCOMPANY-1



GOVT.

OWNED

TRANSMISSION

COMPANY

INDEPENDENT POWER REGULATOR


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Deregulation Process

SchedulingCoordinator

Government/Regulatory Commission

Transmission

OwnerUtility Distribution

Company

Generator Generators

and Utilities

Energy ServiceProvider

Power Exchange


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Effects of Deregulation

MonopolisticPower Market

CompetitivePower Market

Cost reduction

Security problem due to the nonutility companies

Need of Actual Transfer Capability Analysis

Need of Exact Model of Power SystemsUnder Deregulated Environment


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Conclusion Open access help in development of power market to renewable power ,

CPPs, Merchant Power Plants etc.

Open Access charges / losses based on commercial principles to optimizeuse of existing assets and to encourage investment.

Power trading in India is in infant stage and has high potential for growth

Open Access is a small step towards for power market with high growthpotential.

Freedom to generators is an essential part of the process.

Commercial mechanism for deviation in scheduling (settlementmechanism) need to be introduced at all levels, including the consumerslevel.

Electricity reform process in India is already in action although in a slow

Pace, several state electricity boards are being unbundled into three

separate corporations namely Gencos, Transcos and Discos.

The distribution system is privatized for better efficiency in metering,

billing and revenue collection.

The distribution company has option to purchase power from any

generation utility through the existing transmission network

We can say that open access and de-regulation make the power systemmore reliable, efficient and flexible.


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THANK YOU

ankit anil gupta power trading assignment 1(09020243008)

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