Issues in Open Access in interState Transmission

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Issues in Open Access in inter-State Transmission

• S. K. Soonee
• Executive Director (SO NRLDC)

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Presentation Outline

• Overview- Indian Power System
• Indian Electricity Market
• Open Access in inter-State Transmission
• Issues
• Four Pillars of Market Design
• Control Area Definition Obligation
• Transmission Transfer Capability
• Congestion Management
• NR Experience 31st January 2008
• Expectations

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Overview - Indian Power System
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Spatial Distribution Of Load
SourcePowerline (Siemens Ad), Oct-2006
14-Nov-09
POWERGRID - NRLDC
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Diversity

• Time
• Generation Resources
• Load Centers
• Long Haulage of Power
• Weather
• Seasons

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Typical Seasonal Load Curves For Northern Region
14-Nov-09
POWERGRID - NRLDC
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Typical Seasonal Load Curves For Southern Region
SUMMER
EVENING PEAK
WINTER
MONSOON
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Regional Grids Geographical
Installed Generation Capacity Current 141,080
MW Target for Year 2012 200,000 MW
Figures as on 31-Jan-2008
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Peculiarities of Regional Grids in India
Deficit Region Snow fed run-of the river
hydro Highly weather sensitive load Adverse
weather conditions Fog Dust Storm
CHICKEN-NECK
Very low load High hydro potential Evacuation
problems
Low load High coal reserves Pit head base load
plants
Industrial load and agricultural load
High load (40 agricultural load) Monsoon
dependent hydro
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N-E-W Grid
SOUTH Grid
POWERGRID - NRLDC
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International Connections

• Bhutan
• Tala HEP (1020 MW) 400 KV
• Chukha HEP (336 MW) 220 KV
• Kurichu HEP (60 MW) 132 KV
• Net import by India
• Nepal
• Over 16 links of 132/33/11 KV
• Net export to Nepal (about 10 of Nepals demand)

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Indian Electricity Market
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Evolution of Power Market in India
Capacity Market
Ancillary Market
PX 2008
Open Access 2004
ABT 2002-03
IEGC Feb.2000
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Merging of markets along with synchronization of
regions
INDIA 3,287,263 sq. km area More than 1 Billion
people (2001 census) Installed Capacity of
141.08 GW (Jan-08)
August 2006 North synchronized With Central Grid
March 2003 West synchronized With East
Northeast
NEW Grid
South Grid
October 1991 East and Northeast synchronized
Central Grid
North
East
West
Northeast
South
Five Regional Grids Five Frequencies
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INDIAN ELECTRICITY MARKET
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Open Access in Inter State Transmission System
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Open Access in Transmission
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International experience US

• FERC order 888
• FERC order 889
• FERC order 2000
• Standard Market Design
• Definition of Integrated Operation Services
• Creation of RTOs
• Creation of EROs (NERC)

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OPEN ACCESS IN INTER-STATE TRANSMISSION

• Implemented w.e.f. 6-May-2004
• Products
• Long term Access
• Short term Access
• Monthly
• Advance
• First Come First Serve
• Day ahead
• Intra day transactions
• Permits usage of spare transmission capacity
  through a transparent process
• Offers choice and freedom to buy sell power

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CERC Open Access Regulations, 2008

• Effective 01.04.2008
• Regulations cover only Short-term Open Access
• Transactions categorized as Bilateral and
  Collective (through PX)
• Earlier Products of Short-Term retained under
  Bilateral Transactions
• Nodal Agency
• Bilateral RLDCs
• Collective NLDC

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Comparison of CERC Regulations on Short-Term Open
Access (Regulation 2004, Amendment 2005 and
Regulations 2008))
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Time Line For Open Access
M1
M2
M3
M4
DOP
DL
DL-5
DL-10
DL5
DOP-4
Adv Application for M2
DOP-1
FCFS
Adv Application for M3, Approvals for M2
Adv Application for M4, Approvals for M3
Approvals for M4
Day Ahead / PX
LEGEND DOP Day of Operation
DL Last day of M1
New Open Access Regulations w.e.f.
01-April-2008
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Transparency - Information Sharing

• Available Transfer Capacity (ATC) -3 months ahead
• Past Current Transactions
• Injection Drawal Schedules
• Un-requisitioned Surplus
• Frequency Trend
• Urgent market information unit tripping, load
  crash, contingencies
• 52 week ISTS pooled losses
• STOA Rate / Procedures for capacity reservation
• much more on RLDCs websites

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Illustration of a typical Short-Term Open Access
transaction

• Injecting Utility SAIL Durgapur Steel Plant
  (DVC),ER
• Drawee Utility SAIL Bhilai Steel Plant
  (CSEB),WR
• Quantum 20 MW

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NETWORK INVOLVED
DSP/ASP CPP(260 MW)
Co-ordination for Scheduling, Settlement System
Operation by
Seller
DVC
SLDC-DVC
Seam Changes
ER ISTS
ERLDC
WR ISTS
WRLDC
CSEB
SLDC-Chattisgarh
Buyer
BSP
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Transmission System Operation Charges
BSP 2.466 Rs/kwh
DSP 2.33 Rs/kwh
DVC TSC SOC 0.034 Rs
CSEB TSCSOC0.034 Rs
2.364Rs/kwh
2.432Rs/kwh
WR ISTS TSCSOC0.034 Rs
ER ISTS TSCSOC 0.034 Rs
2.398Rs/kwh
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Transmission Losses
BSP 17.03MW
DSP 20MW
CSEB 3.93 Loss
DVC 2.82 Loss
17.73MW
19.44MW
ER ISTS 3.5 Loss
WR ISTS 5.5 Loss
18.76MW
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Short-Term Open Access

• Experience so far..

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lt--Introduction of Day-Ahead Product from
April,2005
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Trade under Short-Term Open Access
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ENERGY APPROVED(MU) - (Nodal RLDC-NRLDC)
2007-08
2006-07
2005-06
2008-09(upto May08)
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SOUTHERN REGION ENERGY APPROVED(MU)
2008-09(upto May08)
2007-08
2006-07
2005-06
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STOA Success Story

• Developed in consultation with all stakeholders
• Applications Processed (Since Beginning) gt 22,000
  No.
• Volume (Approved Energy) (Since Beginning)gt 95BUs
• Applications Approved gt 95
• Refusal/Non-consent by SLDCs gt 3 - 4
• Refusal due to system constraints lt 0.5
• Curtailment in real time lt 1
• Near Dispute free implementation
• Logistics/infrastructure -In-house
• Robust Financial Settlement System
• Confidence Building Dissemination of knowledge

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STOA Encouraging facts

• Transactions between extreme corners of the
  country
• Kerala to Punjab
• Nagaland, Arunachal, Tripura to Maharashtra, UP
• Most of the States participated.
• Market Players Simultaneous Buy Sell on same
  day
• Delhi Buy in Peak, sell in off-peak
• Transactions from few MW to hundreds of MW
• 2 MW (JP Cement Rewa,MP JP Cement,
  Ayodhya,UP)
• 800 MW (BSES Rajdhani to UP)
• Surplus during Weekend/Holidays utilised
• Budge-Budge of CESC National Award for PLF of
  99.6 in 2005-06
• Improved performance of Generating Plants
• Diversity being gainfully utilized

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Open Access Key Success Factors

• Control area demarcation boundary metering
• Robust transmission system
• Assessment of Transfer Capability
• Balancing mechanism
• Methodology for transmission charge sharing
• Treatment of transmission losses
• Streamlined scheduling and settlement mechanism
• Transparency and non-discriminatory
  implementation
• Compliance
• Dispute redressal mechanism
• Congestion management

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Issues
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Four Pillars of Market Design
ELECTRICITY MARKET
IMBALANCES
CONGESTION MANAGEMENT
ANCILLARY SERVICES
SCHEDULING DISPATCH
Making Competition Work in Electricity, Sally
Hunt
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Control Area Definition and Obligations
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Transmission Capacity vs Transfer Capability
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Example of congestion management in Northern
Region through application of congestion charge

• Event date 31st Jan 2008

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Angular Separation Vs Inter Regional Tie line
flow on 31st Jan 2008 Morning
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Angular Separation Vs Intra Regional Tie line
flow on 31st Jan 2008 Morning
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Voltage dip in the NR grid
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TTC Violation and Application of Congestion
Charges for the 1st time in NR on 31st Jan 2008
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Issues

• Mismatch between market development and
  compliance of reliability standards
• Ancillary services market
• Congestion management
• Capacity market vs energy market
• High growth
• Financial discipline

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Logistics

• Energy Management System
• Market Management and Monitoring System
• Asset Management System
• Communication Network Management System
• Knowledge Management System
• Automation

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Human Capacity Building

• Attracting retaining talent
• Training and re-training
• Operator Certification
• Domain knowledge
• Other related areas
• Analytical abilities
• Mentoring
• Knowledge Management

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Expectations

• Focus on reliability of the physical system
• Designing markets that complement reliability
• Appreciation of System Operation as an important
  function
• Allocation of resources
• Automation
• Capacity building
• Grid security comes before Economics
• No economic theory, no legislation, no regulation
  can repeal the Laws of Physics

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Thank you