ET
Total pages 44 Volume 1 | Issue 6| July 2013 | `50
ELECTRICALS TODAY
MANAGEMENT EXPERTISE FOR THE POWER INDUSTRY
&
POLICY
TRANSFORMATIONS SINCE ELECTRICITY ACT 2003
DISTRIBUTION
SAFER BUS DUCT TECHNOLOGY MAKING INROADS
SMART INITIATOR STATE REGULATOR & MENTOR OF MAHARASHTRA SMART GRID COORDINATION COMMITTEE VL SONAVANE IS WORKING OVERTIME TO ENSURE SUCCESSFUL ROLL OUT OF THE AMBITIOUS BARAMATI PILOT PROJECT
CONTENTS
14 Cover Story The faster role out of smart grid pilot projects and addressing the demand through demand response system would help in load curtailment, improve efficiency and also incease power availability
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Policy
Transmission
Distribution
Generation
An analysis of reforms in power sector since EA 2003
By 2017 India will be worlds largest integrated grid
Safer bus duct technology catching up in India
Solar segment is slowing down in the country JULY 2013 | Electricals Today
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Editor's Note
Shedding light
ET Electricals Today
Management expertise for the power industry
Volume 1 | Issue 6 | July 2013
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ontradictory reports appearing in newspapers recently have left everyone wondering what to believe and what not to believe. Power experts – government, private sector and consultants – never tire of voicing their concern about the country’s failure to meet the target in capacity addition and, much on the same lines, a recent projection made by the Central Electricity Authority (CEA) said 17 states in the country will end up having severe power problems this year. However, on the other hand, a recent study released by rating agency Crisil claims India would not face any power shortage by the end of the 12th Five Year Plan (2017). The country targets to add 85,000 MW by 2017 and, according to Crisil, there could be a slippage of 20,000 MW. But, despite this shortfall, Crisil is confident that the country will tide over its power supply problems in the current plan period. Now, let’s study the contradictions and put things in perspective. While the CEA projection reflects the current situation in the power sector, the report released by Crisil gives numbers which are submerged in sugar coating. The argument the latter put forth to justify its position: demand for electricity in the industrial and commercial segments is on a decline while the demand from the residential segment is steadily increasing. Crisil factors a single-digit growth in economy, along with a growth rate of close to 7 per cent in electricity. However, I would take Crisil’s report with a pinch of salt. Looking at the overall situation in the country, there are states like Gujarat and Maharashtra that are registering close to 9 per cent demand growth, both in commercial and industrial segments. Any slippage in capacity could force discoms to resort to power cuts going forward. The recent rupee depreciation and other fuel constraints, clubbed with numerous existing problems in the sector, have compounded the agony in the electricity segment. If I were to take a call and decide between the CEA prediction and the Crisil report, I would prefer to err on the side of caution and believe the former. In other words, expect the expected. Yes, more load-shedding.
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Bulletin Essar Energy Improves yearly earnings
Jyotiraditya Scindia
Power bidding norms to include risk-mitigation steps The power ministry has finalised the changes to Case II competitive bidding norms for new projects. In Case II, the location of the project and fuel to be used are already decided before start of competitive bidding process. This decision has come in amid electricity producers facing issues with fuel price volatility. To address this the government is looking to ensure necessary "risk mitigation" measures. The revised guidelines would be in place once it is approved by the Empowered Group of Ministers (EGoM) headed by Defence Minister AK Antony. "We will focus on risk allocation and risk mitigation measures (in revised Case II bidding norms).In the new Power deficit in 17 states bidding norms, we will try to balance risks faced by power producers and power procurers," a Power Ministry official said. The official did not elaborate on whether higher fuel costs would be made pass through to the consumers.
19.1% 6
Essar Energy Plc reported betterthan-expected full-year earnings as improvement in refining capacity at its core oil refineries -- Vadinar in India and Stanlow in Britain -- pushed up margins. The London-listed power, oil and gas arm of privately owned Indian conglomerate Essar Group, said earnings before interest, taxation, depreciation and amortisation, on a current price basis, is US1.34 billion dollars in the year ended 31March 2013, compared to analysts' estimate of US1.17 billion. The company this year moved its year-end to March from December, making the previous comparative period a 15 month one.
REC signs MoU with NITCON The Rural Electrification Corporation Limited (REC), has signed a MoU with North India Technical Consultancy Organization Limited (NITCON), committing financial assistance under CSR initiatives. Under this scheme, job-oriented skill development programmes will be given to 250 educated persons from economically weaker sections of the society, including women, from Hoshiarpur, a district in Punjab. The skill development/ up-gradation programmes will be offered in domains related to power sector like welding technician, industrial fitter and machinist, lab technicians, basic electrician, RAC mechanics, data entry operators, CNC operators, etc., with placement assisstance.
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BULLETIN
P10
17 STATES TO FACE SIGNIFICANT POWER DEFICIT
India to face close to 20% deficit this year.
According to the latest estimates from Central Electricity Authority (CEA), as many as 17 states are expected to witness significant power supply shortages this fiscal, with Tamil Nadu projected to receive less than threefourth of its total electricity requirements. Among the 17 states, the worst hit would be the three Southern states of Tamil Nadu, Kerala and Karnataka. These states are likely to see a power deficit of 19.1 per cent in 2013-14. It signs that electricity supply is worsening in the Southern region, the power deficit would be higher this fiscal compared to deficit of 15.5 per cent during 2012-13 period. The projections come against the backdrop of
acute power shortages due to a slew of factors including fuel scarcity, poor financial health of discoms and transmission woes. Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and union territory Puducherry make up the Southern region. While the deficit in Tamil Nadu is estimated to be around 26.5 per cent, the shortage in Kerala would be around 24.8 per cent, Karnataka (23.2 per cent) and Andhra Pradesh (9.1 per cent). Puducherry is projected to have a electricity supply surplus of 9.9 per cent. Other states that are projected to see substantial electricity supply shortages include Punjab (19.7 per cent), Assam (19.7 per cent), Bihar (19 per cent), Uttar Pradesh (18 per cent), Arunachal Pradesh (17.7 per cent), Uttarakhand (15.4 per cent), Rajasthan (15.1 per cent) and Tripura (13.5 per cent). As per CEA, the planning body for the power sector, Maharashtra (9.8 per cent), Goa (4.5 per cent), Jharkhand (6.8 per cent), Nagaland (5.6 per cent) and Odisha (0.8 per cent), are also among the 17 states.
IEEE UNVEILS NEW PORTFOLIO FOR SMART GRIDS IEEE, the standard’s association, has unveiled a host of resources IEEE Smart Grid Research for the global smart grids. This is in an effort to build a comprehensive portfolio of smart gridrelated intelligence, including materials such as vision documents and research papers that address problems and challenges in both long- and short-term. “With IEEE Smart Grid Research, we are moving into the full life cycle of standards-related activities by adopting a proactive, forward-looking approach from
ALSTOM DELIVERS PGCIL'S 230 kV PROJECT IN MYANMAR Alstom T&D India has successfully delivered Power Grid Corporation of India Limited’s (PGCIL) 230 kV transmission project in Myanmar. The net worth of the project is estimated around Rs1,050 million. The contract covered supply of a turnkey substation for the 230 kV transmission project which links 3x40 MW Thahtay Chaung Hydro Power Project to the electrical grid. This project is the first of its venture into neighbouring countries and was delivered in a record three months in advance. Alstom was responsible for the design, engineering, supply, and commissioning of the substation. The full scope covered a 220/66/33kV AIS substation and associated products including substation automation systems, power transformers and network management systems and high voltage substation maintenance. The project is scheduled for commissioning in 2015. “Alstom is pleased to support Powergrid’s initiatives in transforming the energy landscape not only in India but also in neighbouring countries like Myanmar," commenting on the contract, Rathin Basu, managing director, Alstom T&D India, said.
pre-standard activities to real-world adoption and implementation. The research papers explore today’s pressing challenges, to help key stake holders advance their own work. This will enable us to create a pipeline for incubation of innovative technologies to standards development and market acceptance," said Bill Ash, strategic programme manager, IEEE Standards Association.
JULY 2013 | Electricals Today
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BULLETIN
SHOWďšşCAUSE NOTICES ISSUED The Coal Ministry has slapped fresh show-cause notices on 12 firms including the state-owned NTPC and SAIL, seeking explanation for not developing the allotted coal mines,by 30 June. Failing which the coal blocks could be de-allocated. "You are hereby called upon to show-cause, on each milestone separately, to this Ministry within a period of 20 days ... As to why the delay in the development of the coal block should not be held as violation of the terms and conditions of the allotment...Failing which... Action as appropriate would be taken against your company for de-allocation," the Ministry said in notices to firms. The show-cause notices were issued to 11 firms, including JSPL, Monnet Ispat, NTPC and GVK Power for not developing the mines allotted to them for captive use. Coal Ministry in the past had de-allocated the coal mines of those companies which failed to develop them even after two years of allocation. Apart from NTPC and SAIL, which were issued show-cause notices for failing to develop Talaipalli block and Sitanala Coking Coal block, the firms which were issued notices included TVNL, Damodar Valley Corporation, Bhushan Steel and Power, West Bengal Power Development Corporation and Madhya Pradesh and Maharashtra State Mining Corporations. Other firms which were served notices included Abhijit Infrastructure, Rungta Mines, OCL India and Ocean Ispat Ltd.
UP RAISES POWER TARIFF The announced power tariff hike by Utter Pradesh came into effect from June 9th. Domestic users in urban areas would now pay 35 per cent more for power, while the rural sector would have to pay 45 per cent more. For bills till 9 June , the old power tariff structure would be used, officials clarified. Under the rules, the hike in tariff comes automatically into effect on the seventh day of the publication of the notification for the same, officials explained. There were strong demands for a roll back of the hike, however, the state government didn’t pay any heed. Director (Commercial) of the Uttar Pradesh Power Corporation Limited (UPPCL) said all preparations have been made with regard to this. This, he added, "Would essentially mean that the changes required in the billing software have been incorporated, and the new tariff plan posted on it." Chief Minister Akhilesh Yadav, meanwhile, blamed the poor financial condition of the UPPCL for the "painful decision", and said that efforts were on to ensure better power supply to the people. He said that in times to come, the state would get more power.
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Electricals Today | JULY 2013
Companies face de-allocation of coal blocks.
OPGC SHUTS 210 MW UNIT DUE TO COAL SHORTAGE The Odisha Power Generation Corporation Ltd (OPGC) has halted electricity production at one unit of its twin power stations at Jharsuguda, as truck drivers suspended coal transportation services after a police firing on a group of agitating workers killed two and injured 10 persons. OPGC, a joint venture between the Odisha government and AES, has two units of 210 MW each in IB valley area. These plants are fed by coal produced from Lakhanpur mines of Mahanadi
Coalfields Ltd (MCL). The supply operation from the coal mine disrupted after two persons out of 12 workers injured in police firing died at different hospitals. The police had fired at the workers belonging to the RCP transportation company, as they were demonstrating in front of the company office demanding salary hike. The power producer requires about 6,500 tonne coal per day to run the two units. It is now running only one unit with the coal available in its stocks.
BULLETIN
PGCIL signs pact with NE states for network expansion
Model of the power monitor module.
Microchip Technology launches Power Monitor Module Microchip Technology Inc., a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, has launched the MPLAB REAL ICE Power Monitor Module. This enables designers to identify and eliminate code that consumes high current, in real time. Combined with the MPLAB REAL ICE in-circuit emulator and MPLAB X IDE, this development platform allows users to measure, graphically profile and optimise code power consumption for all of Microchip's more than 1000 8-bit, 16-bit and 32-bit PIC microcontrollers. Additionally, it offers unsurpassed micro-Amp current measurement, with an overall dynamic range up to 1 Amp, and a voltage range of 1.25V to 5.5V. Microchip's Power Monitor Module is significantly more cost-effective than similar tools, making it ideal for a broad range of batterypowered, digital power-supply, motor-control and metering applications. "The MPLAB REAL ICE Power Monitor Module meets our customers' need for a low-cost software optimisation tool that enables them to squeese every last drop of power efficiency out of their code," said Derek Carlson, Microchip's vice president of development tools.
State-owned transmission utility Power Grid Corporation (PGCIL) has signed an agreement with six North-Eastern states, including Assam and Manipur, for improving the region's transmission network. "Power Grid signed agreements with six NER (North-Eastern Region) states viz: Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) to provide its technical and managerial support for improvement in their respective intra- state transmission and distribution systems," the company said in a statement. The signing of the agreement took place in the presence of P Uma Shankar, secretary, Power, RN Nayak, CMD, Power Grid Corporation of India and other senior officials from Ministry of Power, etc. "These projects will improve grid connectivity and enhance states' capability to supply power to larger section of consumers with economy and reliability," the statement said. Power Grid has been appointed as "Design-cum-Implementation Supervision Consultant" by Ministry of Power. The total aggregate estimated project cost is Rs8,150.07 crore, it added.
Schneider ELECTRIC launches energy MANAGEMENT operation software Schneider Electric, a global specialist in energy management has launched StruxureWare Energy Operation, a comprehensive energy management information system. This system addresses energy challenges within large buildings. Energy Operation software automates data collection via an open, scalable, and secure energy
management information system. With the help of the Schneider Electric energy management services team, data is then turned into actionable information to enable customers to understand their facilities’ performance. “Businesses today want to improve energy efficiency to reduce and control operating expenses, especially as they
deal with volatile energy prices,” said Dr Satish Kumar, energy efficiency ambassador and VP, Schneider Electric India. Energy Operation leverages companies’ current investments in their existing systems, and can be used to communicate results and performance to a broad audience for a shared understanding throughout an organisation.
July 2013 | Electricals Today
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BULLETIN
Renewable energy roundup
Rajasthan attracts more investments in solar.
FINNISH FIRM FORTUM ACQUIRES SOLAR POWER PLANT IN RAJASTHAN According to a statement from the Finnish Energy company Fortum said it has acquired a solar power plant in Rajasthan but did not provide financial details of the deal. "Fortum has acquired a solar power plant in Rajasthan and has commenced solar power production," the company statement said. The company's short term ambition is to build a small photo-voltaic (PV) solar portfolio in order to gain experiences in different solar technologies and operating in the Indian power market, the statement added. "Solar power fits well with Fortum's other carbon free production and we believe it will play an important role in tomorrow's low carbon energy system," said Matti Kaarnakari, MD, Fortum India Pvt Ltd. The power plant was constructed as part of the Jawaharlal Nehru National Solar Mission (JNNSM), government's initiative for 22,000 MW of installed solar power generation capacity by year 2022, and it has been fully operational for one year.
STAKEHOLDERS SEEKS RESTORATION OF INCENTIVES IN WIND ENERGY The Indian Wind Power Association and the Federation of Indian Micro, Small and Medium Enterprises (FISME) have demanded immediate restoration of Accelerated Depreciation (AD) for wind energy projects, which was withdrawn a years ago. Wind energy provided a dependable and clean alternate source in many states such as Tamil Nadu, Andhra Pradesh and Odisha. The AD incentive had led a large number of private sector companies to commit investments in wind power. The AD, which allowed the investing company 80 per cent depreciation while computing taxable profits in the first year of buying wind turbines, was abolished on 1 April, 2012 by the government, causing a dip in investments after the start of the 12th Plan. The chairman of the Indian Wind Power Association, K Kasturirangan, said that withdrawal of AD has led
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Electricals Today | JULY 2013
to significant loss of capacity addition, revenue loss and adversely affected MSMEs, which tapped wind energy as a clean source to meet their requirements.
NALCO COMMISSIONS 47.6 MW WIND PLANT The National Aluminium Company (Nalco) has achieved partial commissioning of its second wind power plant with a capacity of 47.6 MW in Ludarva in Rajasthan’s Jaisalmer district. Power production has commenced from 18 turbines. The Rs283 crore project is executed through Gamesa Wind Turbines Ltd. It involves erection of 56 wind turbines of 850 kW capacity. As part of the diversification plans, this is the second green initiative by Nalco. The project is scheduled to be completed by August 2013. Earlier, the company had commissioned its first wind power plant of 50.4 MW capacity at a cost of Rs274 crore at Gandikota in Kadapa district of Andhra Pradesh on 30 December, 2012. The company is planning to set up its third wind power plant in its own mined out area of Panchpatmali bauxite deposits in Koraput district.
Wind energy producers demand AD.
EVENTS
Events
Lii 2013 to be held in Chennai
SOLARCON India 2013
Venue: KTPO Exhibition Complex, Bengaluru Date: August 1-3, 2013 The 5th edition of SOLARCON India 2013 will provide a framework to discuss the enormous role for solar power in India. From power plants to rooftops and off-grid applications this will be the place to reaffirm the need for investments and commitment in both R&D and manufacturing to address the next demand cycle.
PetroWorld India
Venue: Bombay Exhibition Center, Mumbai, Date: 22 - 24 August 2013 Organised by Pennwell Corporation, Petro World India, one of the biggest shows will have participations from the petroleum sector. An ideal networking opportunity, also gives the exhibitors a chance to understand the local market, market trends, etc. On the sidelines of the exhibition there will be a three-day conference.
7th REI 2013 expo
Venue: India Expo Centre and Mart, Greater Noida Date: 12-14 September 2013 The seventh edition of Renewable Energy India Expo being held from 12-14 September 2013 at the India Expo Centre and Mart, Greater Noida (National Capital Region of Delhi) India. Organised by UBM India, the last edition of REI was held in November 2012. According to the organisers, the renewable energy sector is growing rapidly and the Cleantech sector has the potential to generate 10 million jobs in India by 2025.
ELECTRI EXPO
Venue: HITEX Exhibition Centre, Hyderabad Date: October 3-5, 2013 The first-ever exposition in Hyderabad dedicated to low voltage electricity devices, organised by Hitex Exhibition Centre. The event will bring under one roof, energy efficient, environment friendly and sustainable devices.
ELECRAMA- 2014 Venue: BIEC, Bengaluru Date: 8-12 January 2014
ELECRAMA-2014, the 11th edition of the world’s largest power T&D confluence will be hosted in Bengaluru this year. ELECRAMA-2014 is designed to maximise the participant experience by its multilateral approach to exhibitions and allied events. According to the organisers the highlights of the show are: international reverse buyer/seller meet, international conference on transformers, innovation day and students pavilion, CEO Nite with cross stakeholder debate and awards ceremony.
Prominent speakers at Lii 2012. India’s largest lighting fair, Lii 2013 (Light India International 2013), will be organised by the Indian Society of Lighting Engineers (ISLE) from 13 to 16 September 2013. The show will be held in Chennai Trade Centre and expected to host more than 250 manufacturers, including 100 from overseas. This include 100 plus international participants mainly from China, Taiwan, Korea, Italy, Germany, USA. ISLE had earlier organised six lighting speciality trade shows in different regions including New Delhi, Mumbai, Indore, Bengaluru and Chennai. With the overwhelming response during the previous fair and the other shows in Chennai, the organisers find the city a key platform to conduct the fair. This fair will provide the exhibitors and the visitors to explore its potential growth opportunities.Chennai has been chosen for the second time as venue as the southern state and its suburbs are registering a rapid growth in lighting segment. The exhibition will showcase a wide range of products over the 16,500 sq.m. exhibition area, covering residential, commercial and retail lighting, industrial lighting, street lighting, security lighting, environmental/landscape lighting, city beautification lighting, architectural lighting, railway/metro lighting, airport & runway lighting, refineries/mines lighting, LED lighting, intelligent lighting, lighting with non-conventional energy, speciality lighting, lighting accessories and controls, power saving solutions, and testing and measuring instruments. Seminars and technical sessions; theme pavilion and special outdoor lighting will be the other salient features of the fair. Mainly a B2B event, however, the fair will be open to public in the evenings from 3pm to 7pm.
July 2013 | Electricals Today
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column / Policy
DECADE OF REFORMS From increased investor interest to limiting free power supply, a lot has changed in the power sector. However, clarity in policy can help tide over the current sluggishness
Sanjeev Aggarwal Managing director, Amplus Infrastructure
J
une 10, 2013 marked 10 years of Electricity Act 2003. From the days of initial skepticism and confusion on regulation (2003-2005) then moving into hyperdrive (2006-2010) to a substantially subdued lack of investor interest (2010-2013) – the decade has been a roller coaster ride for power sector in India.. Let us look at some of the critical aspects that the Act was expected to achieve and where do we stand today: 1) Reorganisation of the State Electricity Boards: Restructuring, reorganisation, and financial restructuring plan were the buzzwords in 2003 immediately after EA 2003 came into force. Some states like Gujarat went into voluntary restructuring mode with complete political support resulting into significant benefits to consumers and the utility alike. Some other states like Maharashtra went through a minor change pretty much leaving the situation unchanged. And some like Tamil Nadu reluctantly went through the restructuring leading to significantly deteriorated financial condition of once profitable enterprise. Verdict: Whole-hearted support by the political and bureaucratic setup led to the intended benefits of the Act in terms of bringing the desired efficiency in the system. 2) Electricity regulators: Most of the states set up the regulatory system rather quickly. However, the regulators appointed in most of the states are retired senior bureaucrats. Nothing wrong except when the regulators are more inclined to political objectives than the industry objectives. Regulators in states like Maharashtra have been fairly progressive on regulations while some other states like Tamil Nadu failed to increase tariffs for almost a decade. Verdict: Regulators need to consider electricity sector that
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Power segment witnessed considerable improvement in the last decade.
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column / policy
should work on commercial principals within the larger framework of the Act rather than being driven by political objectives. 3) Open Access: Major tussle between the industry, the incumbent utility and the regulators. The distribution companies don’t want their best paying and subsidised consumers to go away and regulators also tend to sympathise with the incumbent utility to keep the tariffs lower for the subsidised category of consumers. Consumers continue to struggle with the regulators and judicial system to get their rights. Once they get it after long legal battle, like in case of Maharashtra, regulators quickly take it away in the form of cross subsidy surcharge. Verdict: Need to clearly work on improving the open access regime of the benefit of open market mechanism as envisaged under the Act is to flow to the consumer. 4) Captive Plants: Major gainer of the whole Act. Any industry that could improve its competitiveness by generating power
Main points of the EA 2003 Generation Generation has been de-licensed and captive generation of power freely permitted in the country. That means any generating company may establish, operate and maintain a generating station without obtaining a licence under this Act with only exception that it should comply with the technical standards relating to connectivity with the grid referred to in clause (b) of section 73 of the Electricity Act. However, the hydro- electric projects would require concurrence from the Central Authority. Transmission No person shall (a) transmit electricity; or (b) distribute electricity; or (c) undertake trading in electricity, unless he is authorised to do so by a licence issued, exceptions informed by authorised commissions through notifications. Open access in transmission with provision for surcharge for taking care of current level of cross subsidy, with the surcharge being gradually phased out. Regulatory bodies Setting up state electricity regulatory commission (SERC) made mandatory. An appellate tribunal to hear appeals against the decision of CERC’s and SERC's. Distribution The state government required to unbundle State Electricity Boards. However they may continue with them as distribution licensees and state transmission utilities. Metering of electricity supplied made mandatory.
by itself has taken the path of captive power either directly or through group captive route. However, lack of domestic coal has been a major dampener to growth of captive plants in last few years. Verdict: Consumers continue to find ways to reduce their cost to maintain their competitiveness in the global arena either through open access or group captives in the renewable space. 5) Renewable Energy: Major gainer during the decade probably not so much from the Act or regulations but from the lack of domestic fossil fuel and on-ground implementation problems in implementation of large scale thermal plants. In addition, improved competitiveness of wind and solar technology has led to massive addition in these segments. Most of the regulators have taken proactive steps in increasing the feed-in tariffs and CERC has come up with a REC regime. However, the transmission bottlenecks and lack of enforcement of the Renewable Purchase Obligations (RPO) has remained a major problem. Verdict: Great progress. Way to go. On an overall basis, we have come a long way but still a long distance to be covered before the intended benefits flows down to the consumers in form of reliable, quality and competitive supply of power. Law is there and it is the time for the regulators to step up.
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smart INITIATOR
State regulator and mentor of Maharashtra Smart Grid Coordination Committee VL Sonavane is working overtime to ensure successful roll out of the ambitious Baramati pilot project BY RENJINI LIZA VARGHESE
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M
aharashtra is moving in the right direction when it comes to Smart Grid (SG) implementation. As part of the central government approved 14-pilot projects, Baramati has been chosen for rolling out smart grid in the state. Interestingly, in Maharashtra, along with the MSEDCL (the state distribution utility), member of Maharashtra Electricity Regulatory Commission, Vijay L Sonavane is also taking active role in preparing the state for a smooth roll out of the smart grid projects. Sonavane explained the logic behind constituting the Maharashtra Smart Grid Coordination Committee (MAHA-SGCC). Its main objective, he said, was to help the Maharashtra power system deploy smart grid in an efficient, cost effective and scalable manner.“Every state will need a different smart grid road map, as issues related to various states at ground level are different. The national-level smart grid road map will serve as the guideline for preparing the state-level road map. The state discoms and regulators will be able to design the smart grid in a better fashion in case they all work together and pool the resources,” Sonavane pointed out. India has close to 230 GW of installed capacity in electricity and stood fourth in the world in electricity utilisation, next to USA, China, Japan and UK. But the per capita consumption is only 25
per cent of the world average. Access to electricity is only to 75 per cent of the population. Sonavane threw light on the challenges before the distribution utilities in the state — MSEDCL, BEST, TPC-D and Rinfra-D — the need for SG for Maharashtra utilities, what should be the plans for the state, etc.. MAHA-SGCC meets on a regular basis to analyse the issues and discusses the action plans. This is the only state committee which has progressed in finding solutions for the problems. It has representation from all stakeholders like the distribution utilities both from government and private, consumer representatives, meter manufactures, academicians and consultants. The five working groups in place look into various issues from communication and IT systems to ground-level distribution hardware of SG implementation in the state as a whole and Baramati in particular. Under the India Smart Grid Forum (ISGF), a Smart Grid Mission for the country has been set. The mission is to provide quality power on demand for all by 2027. The ISGF vision is to transform the transmission and distribution sector into a secure, adoptive sustainable and digitally enabled ecosystem. This includes making the grid dynamic to adapt to the changes of feed-ins to the grid as the share of renewable energy is constantly increasing. A decade ago, the country was dealing with only a few genera-
Smart grid implementation will help control power outage.
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Every state will need a different smart grid road map, as issues at ground level are different. The national-level road map will serve as the guideline for preparing state-level road map. The discoms and regulators will be able to design the SG in a better fashion, in case they all work together and pool the resources.”
tors and majority being thermal. They were run as base load stations. The scenario is changing drastically with more and more people resorting to renewable energy generation though in a smaller scale. Increase in number of infirm generators (solar and wind are infirm power sources owing to the non predictability of availability) are creating challenges in the grid. Integration of these infirm generating points with the grid is necessary. Peakload management (demand response) through direct control of loads is assuming greater significance and also the thrust for SG which can address these issues effectively.“Frequency is a crucial player in electricity. Presently, there are only few generators and the grid is governed by the governors, so the grid frequency is comparatively stable. But with advent of additional infirm generators the load-generation balance and frequency control will be a challenging task, for which we will need smart grid,” he added. Sonavane pointed out the reason behind choosing Baramati as pilot:“Here you have the perfect mix that is required to test a smart grid application. It is an industrial area with sizable renewable energy connected to the grid. On load side, you have a combination of residential and industrial consumers. There are 25,629 customers, out of which 618 are industrial. The present peak load in this area is about 23 MW.” The industrial area in Baramati is growing at a fast pace. A number of bagasse -based power projects in the vicinity are also getting added. The Baramati smart grid project covers 60 sq. km. area and the annual input to this area is about 226 MU, which has the aggregate revenue of Rs104 crore. Four 33/11kV substations are providing electricity in this area. With the introduction of SG, it is possible to curtail load, also it will help in early tamper detection as every point of connection will be monitored by the Baramati control room. A smart grid is a transformed T and D grid which uses: a) twoway communication, b) advanced sensors, and c) distributed computers to ensure uninterrupted power supply. The aim of the SG project is to improve efficiency, increase reliability, safety of power delivery and usage. Once implemented, the major change will be in terms of metering. As a primary step, Advanced Metering Interface (AMI) will come into crore existence. Presently, Expense for Baramati project the meter reader has to visit the consumer’s premises to take the meter readings, though automatic meter reading facility is available for limited energy intensive (HT) consumers. AMI is not only automated meter reading facility, but it also makes the grid interactive. A small device attached to the smart meter will interact with the consumer from time to time, update the consumer about the power availability and give them the choice whether to use electricity or reduce consumption as power is costly at that given point. It may even instruct the consumer to manage the load by asking to switch off the heavy energy consuming equipment. The back-end equipment attached to the control room studies consumer's
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energy utilisation patterns and gives out these instructions. If the consumer ignores the request from the control room, it will also send a report to the discom. "Take for example, a large office complex, which has higher number of lifts. It is not necessary to run all the lifts throughout the day. However, in 99-percent cases, commercial complexes don’t switch off the lifts, even when they are not necessary. This is where the AMI comes into action,” explained Sonavane. If there is a large load and in case the consumer, on the request of the discom, reduces the partial load, the phenomenon is called as demand response. Maharashtra is already doing it. There are two commonly used methods of demand management — load shedding and reducing load with the help of customers. Smart grid also helps in outage management (bring down the time of interruption), improves power quality and enhances the use of distributed generation. This is possible as all the work is being done remotely, without human intervention.
T
he total expenditure expected for the approved 14 pilots is about Rs700 crore.“Out of the total expense, 51.6 per cent has been proposed for the smart meters and AMI. The Supervisory Control and Data Acquisition System (SCADA) will need 30 per cent of the project cost. And for the Baramati project, it is estimated to cost Rs25 crore,” added Sonavane. It is expected to kickstart in January 2014 and be completed in 24 months. Though the central government's final approval is in process, MERC, the state regulator, has already (in principle) approved the pilot scheme. The measured values and status information received by the SCADA will be in real time. Distribution Control Units (DCU), Remote Control Units (RCU) and modern, fast-acting Circuit Breakers will also be commissioned. The existing electromechanical relays will be replaced by fast-acting numeric relays. So down time in case of fault will be reduced to a minimum. GPRS, CDMA and RF are proposed to be used as communication system.
18
“MSEDCL has about 15,000 feeders (11KV/22KV), supplying power and has successfully completed the 'Gaothan Feeder Separation Scheme' (GFSS) of 8,000 feeders. Now, the agricultural load is on a separate feeder, as against the mixed feeder earlier. Residential/commercial/industrial load is on 'Separated Gaothan feeder.' There are over 34-lakh agricultural pump sets (each with an average capacity of 5HP/ 4 KW), and supply to agricultural feeders is now for 8/10 hours a day. (Maharashtra has the maximum number of electrified agricultural pump-sets in the country.) The total agricultural load is around 9,000 MW, which is more than 50 per cent of the peak load. One must appreciate efforts of the state-owned utility MSEDCL, as it has lion share in bringing 'Green Revolution' in Maharashtra. Having successfully carried out the feeder separation, MSEDCL is now ready to take up the execution of smart grid in Gaothan and more particularly in urban areas,” said Sonavane. According to him, the key benefits of Baramati project are:
Out of the total estimated expenses of Rs700 crore, 51.6 per cent will be for installing smart meters. The Supervisory Control and Data Acquisition System (SCADA) will need about 30 per cent of the expenses.”
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(Left to right) Cross-section of Baramati
a) quicker detection of faults resulting in lower down time; b) minimisation of losses; c) effective demand response management; and d) longevity of equipment life. If everything goes as planned, then Baramati project will be in place by December 2015. And based on success of the project, one can plan for bigger roll out of the programme across the state. This will help the utility to better address growth in demand and consumer services.
T
his is not a plan only for the pilot SG project in the state. “Once Baramati is executed, it will be easy for the distribution utilities to start work for other towns. There are about 430 towns in Maharashtra. To take SG projects to all towns will require an investment to the tune of Rs1,800-2,000 crore. This is a great opportunity for investors,” added Sonavane. The two most important equipment in electricity supply are distribution transformers and meters. Any interruption in the supply is inconvenience to the consumers and also loss to the utility, as network (line/distribution transformers, etc.) are already laid, and any non-use will make the utility lose money. If the transformers are regularly maintained, there won’t be any major disruptions in supply. Frequent interruptions in supply can develop faults in transformers and other substation equipment. If this is reduced/controlled, then the transformer has a longer life. There is a necessity to protect the transformer from over loading, hence the need to add more transformers. The revenue of discoms depends on the health of meters at consumer’s end. Any fault in meter or no proper recording of consumption means financial loss. There is a visible shift in the pattern of regular meter testing by discoms. The status of meters needs to be monitored by the utility and scrutinise such vast numbers of meters one requires advanced control system. Mumbai discoms have introduced a system called the circular/ ring feeds, he pointed out,“Every transformer has two incoming feeders from two different sources. If there is no supply from the
first source, then second feeder supplies power into the transformer. Reliability of ring system is higher as it is uninterrupted. Earlier, we used to have radial system with every transformer having only one feed. The ring system has been copied to many other towns as well. Baramati will have the ring system, in the second phase of Dist-infra projects, ensuring higher reliability for consumers. In Maharashtra, there are four distribution licensees: government owned discom, two private distribution companies and BEST, the Mumbai Corporation-owned utility. There are three generation companies, four transmission licensees and three joint venture transmission companies. Reliability in transmission lines is over 98.5 per cent. Total of over 2.5 crore customers and of which 34 lakh are agricultural pumps. After seeing the output of Baramati project, it will be interesting to roll out SG applications to at least urban Maharashtra,” said Sonavane
H
e cites a typical example followed by Tata Power (TPC-D), a utility in Mumbai to highlight the load curtailment, “Mumbai has a typical load curve (electricity Agricultural pumps utilisation pattern), in Maharashtra where demand peaks between 3.30pm and 4.30pm. City’s load is 3,300 MW and 40 per cent of it is by air-conditioners. The peak load is for five hours a day with a base load of 1,900 MW which culminates to 1320 hours in a year. The peak load power purchase had greater impact on city’s retail tariff." During 2009-10, the average power purchase price was Rs8/unit for 100 hours. With 10 per cent distribution losses the price was Rs8.90 per unit. The commercial tariff during the period was Rs6/unit. The customer was paying Rs6/unit while the power purchase cost to the utility was close to Rs9/unit, impact on tariff was 16 paise per unit. The
34 lakh
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Smart grid will help in demand management 14 approved smart grid pilot projects Sr No
Utility
Area
Proposed functions
Consumer numbers
Input energy (MU)
1
CESC Mysore, Karnataka
Mysore
AMI RI/OM/ PLM/ MG/DG
21,824
151.99
2
APCPDCL, Andhra Pradesh
Jeedemelia ind. estate
AMI R I /PLM/ OM/ PQ
11,904
146.48
Guwahati
PLM/ AMI RI /OM/ PQ/DG
15,000
90
Naroda
AMI RI /OM/ PLM/PQ
39,422
1,700 261.6
3
APDCL, Assam
4
UGVCL, Gujarat
5
MSEDCL, Maharashtra
Baramati
AMI RI/OM
25,629
6
UHBVN, Haryana
Panipat city
AMI RI/PLM
30,544
131.8
7
TSECL,Tripura
Agartala
AMI RI/PLM
46,071
128.63 533
8
HPSEB, Himachal
Nahan
AMI I/OM/PLM/PQ
650
9
Puducherri
Puducherri
AMI RI
87,031
367
10
JVVNL, Rajasthan
VKIA, Jaipur
AMI I/PLM
508
374.68
11
PSPCL, Punjab
Malimandi A’SAR
OM
9,000
29.9
Siltara
12
CSPDCL, Chandigrah
13
KSEB, Kerala
14
WBSEDCL, West Bengal
Silguru Town
AMI I/PLM
508
2,140.9
AMI I
25,078
376
AMI RI/PLM
4,404
42
AMI: Advanced Metering Infrastructure/ OM: Outage Management/ PLM: Peak Load Management/ PQ: Power Quality/ DG: Distributed Gen/ MG: Micro Grid
increase was not for the higher end customers alone, but across the board; as it was averaged out. While the high-end customers enjoyed the comfort of air-conditioning; the discom was forced to procure electricity at a higher rate. So, in the event of demand exceeding the supply availability, TPC-D instead of purchasing additional power at higher rate requested the consumers for demand reduction by reducing consumption. " Let's say, responding to the request, one consumer decides to reduce the load by 50 per cent, the impact that he saved is about 2 MW. Similarly, if 20 consumers, save 2
20
MW each during peak time, there will be 40 MW available in the grid. This is called 40 Nega-Watt capacity (Nega Watt: capacity which consumers are able to reduce temporarily on the discom’s request). Here a virtual power plant is being formed, and the utility is able to utilise this 40 MW to manage the demand. Of course, the consumer is given incentives. Presently, the pilot DR scheme by TPC-D, which has been approved by the Demand Side Management Coordination Committee (DSM-CC) has reached DR up to 22 MW capacity. “Demand curtailment in DR Scheme is a voluntary mechanism and TPC-D has carried out successful implementation. There is a plan for automatic DR Scheme, under consideration by the DSMCC. To make it feasible, we need to wait for SG scheme roll out. In Baramati pilot, the DR can be envisaged after completing the first phase,” said Sonavane. While SG will bring in more control on power theft, thereby reducing commercial losses, improve consumer services, etc.. it also calls for increased co-operation from all stakeholders and improved capacity to absorb advanced technology, as there are still doubts on the time frame of execution, standardisation of smart meters, etc.. “Efforts are being made at all levels — central/state governments to various utilities — and working groups are functional to finalise on the said issues. ISGF have constituted 10 working groups at national level. In Maharashtra we have five working groups where in IIT/VJTI professors, all utilities, consumer representatives, meter/smart equipment manufacturers and international consultants are working together to evolve a smooth process. All issues will be deliberated and addressed before Baramati pilot rolls out,” he concluded. Because of the sincere efforts by all stakeholders, Sonavane is hopeful Maharashtra will lead the way in the implementation of smart grids.
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TRANSMISSION / GRID
AIMING TO BE WORLD'S LARGEST GRID
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Electricals Today | JULY 2013
transmission / grid
From an integrated electricity grid to a national beltway for transmission, India is setting ambitious targets to improve availability of power across the country BY Renjini Liza Varghese
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ext summer, if everything goes as planned by Power Grid Corporation of India Limited (PGCIL), states will be able to draw/procure electricity from any part of the country—thanks to integration of southern grid to the national grid. The much delayed project is expected to be completed by 2014. Once the integration is in place, India will have a single network across the country, i.e; 250 GW of generation capacities will be available in this single grid. This year the Southern states faced severe shortage and were unable to buy power, though available in open market, due to lack of transmission facility. The national grid was to complete in 2012 but missed the target. RN Nayak, CMD, PGCIL ,the state-owned utility, defended it,“When we plan for grid expansion, we categorise it in three kinds — long term, medium term and short term lines — in long term the lines are built as planned, in medium term the lines are planned but not built; its construction depends on the margins available. There were enough capacity planned in south like Kudankulam, Vellore etc., which had unforeseen delays. It takes at least three years time to build a transmission line. The line which is currently operational is developed for exporting 800-900 MW to Maharashtra from Krishnapattanam and not for importing power towards south. Now because of the shortage, this line will be reversed.” Presently, the national grid is demarcated into five regional grids —Northern, Southern, Eastern, Western and North-Eastern. Except the southern grid, all other grids are operating in synch since August 2006. Currently, the inter-regional transmission capacity between West and South is 1,500 MW. With the construction of new transmission lines between Maharashtra and Karnataka, the transmission capacity will be enhanced to 5,000 MW. The total transmission capacity of PGCIL at present is 95,000 circuit kms. According to Dhananjay Ketkar, regional MD, NMS, Alstom T&D India,“The southern grid integration will enable the transfer of huge amounts of electricity from one part of the country to another as required. The augmentation of inter-regional capacity shall also facilitate the integration of a large renewable power generation in the southern region with the rest of the country. A national grid will help in meeting power demands across the country by seamless transmission of power. The 800 kV transmis-
sion link between Raichur in Karnataka and Sholapur in Maharashtra to connect the southern grid with rest of the national grid is being constructed by PGCIL. Given the strong historical references that PGCIL enjoys, it can be safely promulgated that we will achieve the stupendous task of interlinking of grids by 2014.” It is expected that the integration will address the power problem of the country to a greater extent.“Renewable energy is infirm power and integrating it in to the national grid means the infirmity will be taken care in a more effective manner. There in bringing more stability into the grid. The main idea is to make the grid available for the generators,” said Umesh Agarwal,associate director, advisory-GRID, PwC.
I
ndia’s transmission segment are plagued with issues such as acute losses, power theft, inadequate grid infrastructure, low metering efficiency and lack of awareness. Even then, when it comes to grid prowess, there seems to be a general consensus that the transmission network is way ahead of distribution network in the country. It is a common belief that power transmission is the weakest link in the power chain, and statistics only corroborate this. It is known that the overall performance of state government utilities in building intra-state transmission lines has been far poorer than that of central utility. Statistics also suggest that the build-up of power transmission infrastructure by state government agencies has simply not kept pace with the stupendous growth in power generation capacity. “Indian power system is the fourth largest in the world with an installed capacity of 205GW and the proposed target for 12th Plan (2012-17) is 95 GW (including renewables). The Indian transmission grid is one of the best in the world with most modern control centres (five regional control centres and one national control centre) and now building 1,200 kV AC and 800kV HVDC networks. PGCIL is keeping pace with technological developments and implementing smart grid solutions in transmission through Load Dispatch Centre (SLDC) upgrade projects, National Transmission Asset Management centre (NTAMC) etc. Further several projects like Renewable Control Centre implementation to monitor renewable energy and its integration to grid, WAMS project and many other are on the way of implementation. However, lot is expected
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TRANSMISSION / GRID energy generation was backed down because of the unavailability of transmission facilities.” PGCIL has undertaken several technological innovations to address issues of conserving and minimising impact on natural resources; like co-ordinated development of cost effective transmission corridor; flexibility in upgradation of transfer capacity of lines matching with power transfer requirement and development of an optimal techno-economical inter-state transmission system. These include high temperature low sag conductors, series compensation including Thyristor control, multi- circuits, GIS mapping, compact and tall towers, high surge impedance loading lines, hotline maintenance, live line washing of insulators; use of emergency restoration system, large scale automation of sub-stations, etc. It is also implementing NTAMC, equipped with state-of-the-art SCADA/EMS software, remote access system, automatic fault analysis system, video monitoring and access control system, all integrated in a seamless way. Once implemented this project will improve the reliability and security of system. Further, it will also help to take quicker decision for maintenance and operation. Plans are also under way to implement Wide AREA Monitoring System at national level, which will further enhance the security and reliability of the system.
P Indian transmission grid is one lakh circuit kms.
from state sector to make entire grids secure,” elaborated Ketkar. “The faster roll out of regulations and push for implementation of ‘time of the day tariff’, demand response system etc., would also help in load curtailment and improve efficiency,” he added. Transmission and distribution environment has seen a lot of changes and has progressed considerably. The business environment in this sector remains challenging at the same time positive due to many aspects like pricing pressure and the ever changing energy settings. Agarwal continued,“The overall scenario in transmission, though looks pleasant, faces many challenges. There are generation facilities which are on stream and the grid is not ready, both at intra-state and inter-state levels. The other issue is that a lot of Circuit kms by 2017 transmission lines were planned but got rescheduled on account of generation issues. To sight an example, some of the generation capacity planned in the southern part of the country, like Kudankulam, Krishnapattinam, etc. got delayed owing to various reasons. In case of renewable energy, especially wind, the projects takes only three months to complete but the projects are taking a hit because of non-availability of transmission grid. This is true in case of Tamil Nadu for quiet some years and now a reality with many other states as well. Renewable
1,40,000
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Electricals Today | JULY 2013
utting aside the constrains in developing the transmission lines, India has set an ambitious target to become the largest integrated network by the end of 2017, spanning across 1,40,000 circuit kilo meters. This sums up that all energy generated in the country will be available in single grid. The current transmission capacity is close to 1 lakh circuit kms. Nayak said,“We will be able to reach there by 2015-16. Though the country grid will be operational by 2014, the entire operation will take some time to attain full result. Geographically, there are couple of countries which have larger transmission lines than us, including China. However, in terms of inter-connected grid, India will be the largest.”
The southern grid integration will enable the transfer of huge amounts of electricity from one part of the country to another as required. The augmentation of inter-regional capacity shall also facilitate the integration of a large renewable power generation in the southern region with the rest of the country.
TRANSMISSION / GRID
There will be 5,000 MW inter-linked capacity once the southern grid is connected.
National Power Beltway National Power Belt Way is the long term plan for transmission grid in the country. This is the vision grid development over the next 25 to 30 years. Basically this is a transmission beltway which will be developed to transmit 200 GW of power across the country. Once developed this beltway will be the back bone of the trans-national grid-- all the four regional grids, south east Asian grid. India already has power grid links with Bhutan and Nepal, and the HVDC link between Bangladesh and India is under implementation and transmission links with Myanmar and Sri Lanka are under planning. The country imports hydro-electric power from Bhutan and Nepal. State-owned generation utility NTPC has entered into an agreement with neighboring Sri Lanka, and is in the process of developing transmission connection to Sri Lanka. This connection will be through sub-sea cables. Though no time frame was given for this line, it is expected that the transmission lines to Sri Lanka could take shape in near future. There are also talks of connecting Pakistan through a transmission capability, though this is also in a primitive stage. National Beltway is at a conceptual level now, but there is a thought process in place which will transform into implementation level, maybe by end of the current Five Year Plan.
Agarwal of PwC was quick to add,“We will be largest in terms of Mega Watt integrated grid. Also it will bring its own challenges and issues to be dealt as we move forward. Obviously, in China and US the installed capacity is more, but they have multiple grids in operation. As far as the grid being operational there will be lot of respite coming in, as the availability of power for use will be more.” While all was positive about attaining a national grid facility in the country, Ketkar pointed out what the utility should concentrate more on, “We need to dwell on how to make our grids reliable, robust, self-healing and adaptive. The idea is to make
our transmission network not just the largest but also one of the strongest and smartest in the world.” This according to him will also help towards interlinking countries of the South Asian Association for Regional Cooperation (SAARC), which groups India, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka, Afghanistan and the Maldives. The SAARC grid envisages meeting electricity demands in the region, as well as boosting economic and political ties. Transmission is expected to witness close to US$10 billion of investments till 2017. PGCIL is investing about Rs1 lakh crore till 2017. Same amount of investments will be coming from the state and private utilities.“It is unfortunate that only a few projects, which were awarded to the private players, are getting implemented. It is primarily because of the aggressive bidding. Now if you see the competition is more credible,” added Agarwal. In the case of international investors in power sector, the first segment they opt for investments is transmission segment, as it is devoid of risks that are involved in generation and distribution. That is the reason of some Spanish and European companies are by 2017 present in this segment in India. This is not as lucrative as generation or distribution in terms of profitability, but is a stable business with rate of return and if it is IPTC, then the return is derived through competitive bidding process. The operating cost is very minimal in this space. The investment will be in the form of capital investments and bringing in efficiency in constructing the lines and financing the capital cost. While more investments especially flowing from international investors, the country has already put in place a road map for the next 30 years. In short, from 2017, it will be a single grid which will allow the whole of generated power to flow from one end to the other addressing the current grid issue.
JULY 2013 | Electricals Today
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Distribution / Technology
the safer alternative Builders are turning to bus duct technology to avert the steadily increasing incidents of fire accidents in high rises
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Distribution / technology
BY ET TEAM
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ast summer was a hot one indeed, with electrical malfunction-related fires breaking out in parts of the country. The one incident that engulfed media attention though was the fire in the Mantralaya (the Maharashtra state secretariat) in June 2012. in Mumbai. Given the state of the buildings, firefighters had a tough time bringing people to safety. In all the fire accidents people lost their lives due to suffocation. The main culprit behind this is the combustible material used for insulation. On burning, this material emanates toxic gas, which proves fatal. So how does one avert these accidents? More importantly, how does one tackle the menace of toxic gas in the event of an electrical malfunction related fire? The situation is especially grim in cities with highrises as according to experts, high-rise buildings are difficult to manage in case of a fire. And in congested cities like Mumbai, for help to reach the point of accident in time is difficult. With this background, there is an increasing pressure on builders of both residential and commercial buildings to adopt safer technologies in the electrical installations. Traditionally, power cables, capable of carrying 100 amp, are used to carry the electrical current in buildings. High-rises need more power and hence have more cables, which requires more space and multiple connections, complicating matters. Thanks to the development in technology worldwide, newer and safer products/technology are in the offing. It is mandated by many states now that buildings with more than 20 floors should adapt bus duct technology. “This technology is compact in size, reduces the need for multiple connections and is fire safe. Hence, it eliminates the risk due to electrical malfunction,” said Rajesh V Nasikkar, director, EntracoBKS, an Indo-Swiss venture.
Many challanges which requires expertise in design, manufacturing and installation . Before the work begins, we need to understand the requirement and determine the approcpriate bus duct type,” said Shrikant V Nasikkar
Today, the consumption of electricity has grown multifold worldwide. Along with it, the generation sources and transmission technologies too have evolved. In the recent years, smart grid technology has helped manage bulk transmission needs. Most of the technological transformation has occurred mainly in distribution segment as the end-applications have grown and become more complicated. Globalisation has also accelerated the need for creating new opportunities for innovations. “Traditionally, cables were used in most applications within distribution. Easy availability, flexible and low-tech installations were the key benefits that worked in its favour. As the end applications became more complex, need for more secure, safe and robust solutions are required. Air-Insulated Bus Duct technology has been around for a long time to address these high-power applications. In the recent years, new types of bus ducts such as Sandwich and Cast Resin were introduced, offering more
Isolated phase bus duct at power generation plant
Air-insulated bus duct
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Distribution / Technology
Usually the end-use application dictates the type of bus duct that should be used. Currently, India is using all types of bus duct given the infrastructure, commercial and residential growth registering across the country,” said Gerd Becker. benefits and eliminating any limitations,” he added. According to Gerd Becker, co-founder of EntracoBKS and MD, BKS Stromschienen AG Switzerland, “A a number of players globally have contributed towards the evolvement of technology in this segment. Most of the bus duct technology was developed in Europe and North America. Over the years, it was further refined and modified to suit various geographical parameters and applications". Usually, the end-use application dictates the type of bus duct that should be used. Currently, India is using all types of bus duct given the infrastructure, commercial and residential growth registering across the country. Each type of bus duct has certain unique properties and/or features that suit the distribution in a given scenario. Explained Nasikkar,“There are many challenges in the implementation and it requires expertise in design, manufacturing and installation. Before the manufacturing begins, we need to understand the client requirement and determine appropriate bus duct type. The design and engineering phase is critical." He informed that Entraco collaborates with civil, consultants, site engineers, various equipment manufacturers and all other agencies directly involved in the projects for better understanding and execution. Installation is one of the challenges of service due to its various parameters. Once the bus duct is manufactured, it is installed as per the approved design and engineering to ensure the successful and smooth functioning. Entraco is a reputed name in bus ducts and is known in the industry for its experienced design and engineering along with its quality bus ducts. In coming years, the company plans to start an engineering BPO as a service for the benefit of the whole segment.
Bus duct can carry
6,000 amps
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Isolated phase bus duct
Compact sandwich and super compact cast resign bus duct
A
though power sector is going through a slow phase in the country, players in electrical segment are bullish about the market growth. “Based on our internal research, market feedback and inquiries, we are bullish on both industrial and commercial segments," said Becker. Bus duct features like low/no maintenance, safer enclosures, compact size and many others are being offered as better alternatives to traditional cables. Industrial and infrastructure projects are steadily growing. "Our bus ducts are used in various sectors such as airports and seaports, oil and gas, petrochemicals, cement factories, automobile plants, metro rail, power generations, IT parks, malls, hotels and commercial towers. Considering the physical space constrains and safety factors, many of these projects recognise the bus duct value and are investing in it. Finally, high-rise residential towers are also using bus ducts as most states have
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Distribution / technology
Isolated phase bus duct at a switching plant in Petrochemical project
Different types of bus duct technologies Air-insulated bus duct
These are used in majority of industrial projects. These projects required a solution that is economical, easy to install, yet robust and low maintenance compared to Cables
Sandwich bus duct
Sandwich variety are new types of bus ducts that are compact in size yet can carry current up to 6300 Amps. These are mostly preferred by commercial and residential projects (mainly indoor application with IP55 protection) where safety is of high priority and space is a constrain.
Cast resin bus duct
This has the highest ingress protection (IP68) which can be practically used in all applications except power generation. It is super compact in size and has numerous features that satisfy and exceed the requirement of most applications. In recent years, high rise tower projects have been using these bus ducts mainly for its fire safe feature among others.
IPBD (Isolated phase bus ducts)
IPBDS are mainly used in power generation projects. They are also used in projects where heavy substations of various voltage levels are installed such as Cement plant, Oil & Gas, Petro-chemicals and more.
mandated its use in buildings having more than 20 floors, for safety reasons,” pointed out Becker. Given the growth in per capita consumption in the recent years, these sectors are expected to register better growth rate for the foreseeable future. This demand is creating tremendous opportunities for various bus duct service providers in the country. Nasikkar said, “Realising the potential in the Indian market, many MNCs have setup their manufacturing plants here. That is not all, some of them are even forming JVs to make the most of the emerging market. We at Entraco realised the potential early on and lead the segment by concentrating more on developing expertise in bus ducts with a wide portfolio.” Every project is custom designed and has its set of unique
requirements. Becker informed that recently his company was approached to supply air-insulated bus duct for an export project. Based the initial study, his team realised that air-insulated bus ducts won't be a practical solution for their needs. So EntracoBKS suggested using compact sandwich bus ducts instead, which the clients accepted. "Our European and Gulf exposure in such projects helped us identify the issue early on, saving our client precious time and money. We were able to overcome the challenge as a team and successfully deliver the sandwich bus duct to our client's satisfaction, ” Becker said. However, there are many complexities when it comes to doing projects in India. Take for instance, this large project that Entraco handled. The installation was medium voltage cast resin bus duct, to be done for the first time in the country. The EntracoBKS team had a civil challenge and the bus duct was designed with a solution to work around it. The company was able to design, manufacture and install the bus duct to the client’s satisfaction without a hitch. Any technology comes at a cost. However, one needs to understand if it is cost effective when compared to the regular maintenance costs and replacement charges of cables. Between cables and bus duct technology, the latter is not just cost effective, but also safer. A country that has more than 70 different large generators, more than 250 projects under implementation phase and more players willing to invest, what the sector needs is proven and reliable technology to accelerate the growth in safer distribution of power. And till now, bus ducts have proven their worth.
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regulator
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regulator
role model Dr Pramod Deo recently stepped down as the longest-serving chairman of CERC. ET looks at the contribution of the man who played no small role in changing the fortune of the power sector BY Renjini Liza Varghese
D
r Pramod Deo, the longest-serving chairman of the Central Electricity Regulatory Commission (CERC), is a soft-spoken person, however, now, will be recalled as a strong regulator who accelerated growth in power sector with supporting regulatory measures. A troubled sector, electricity in India is a well regulated segment constantly needing support both from regulatory and policy levels. He took over as the chairman of the Commission in 2008; before joining CERC he served in Maharashtra Electricity Regulatory Commission (MERC) from 2001 till 2008 first as member and then as chairman. Electricity, a sector which is governed by the vote-bank politics in the country, and a tough segment to modify or bring in changes. For, historically, that backfires. The best example is the delays in tariff revisions in many states. However, in the past five years with the changing socio-economic scenario of the country, the electricity segment has evolved in a big way at the regulatory level. All thanks to Dr Deo, whose more than 20 years of experience both in policy and project management levels in the energy sector, came handy. His stint with the Ministry of Power, Department of Energy in Maharashtra and international institu-
tions like UNEP and AIT acted as an added advantage. Many analysts and some regulators in the state SERCs pointed out that the order given in the Tata Power and Adani Power’s plea, mainly a relook into the tariff for a earlier signed PPA, as one of the most courageous orders by Dr Deo. In his own words, “It was a challenging case because of the integrities of the regulatory nature of the compliant. It was in the history of the country, a case like this had come up. And we as regulator had to look into all aspects of the case before passing an order.� The petitioners approached the central regulator on the basis of the broader interpretation of the tariff determination. The case challenged a tariff which was determined and agreed by all parties involved. However, the CERC order in this case has said to be a prudent one saving the interest of the investor by not allowing too, much of a burden on the consumer. In the last five years Dr Deo, as chairman of CERC, has spearheaded many initiatives which his contemporaries look upon as major path-breakers in the field of electricity. Implementations of open access to utilities, promotion of renewable energy are some of the highly appreciated regulatory initiatives/matters. "Once consumer are given the choice of more than one electric-
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regulator
ity supplier, it can bring in competition and, hence, will improve efficiency. This was the thought that went behind formulating open access," clarifies Dr Deo. This choice was given to generators both in the inter-state and intra-state levels.“There are problems of connectivity that exist. Taking this into consideration, there was regulatory approval given to the Power Grid Corporation of India to develop transmission grids along with the generation facility. Once a grid is developed then it should be utilised 100 per cent, not 40 or 60 per cent. The completion/integration of south grid to the national grid by 2014 will bring a lot of changes in transmission. One should understand while talking about evacuation facility, that the generation share has gone up from 11 to 31 per cent in the past,” he pointed out. The implementation of Renewable Purchase Obligation (RPO) and the deprival of REC mechanism were not easy. According to Dr Deo,“My tenure in Maharashtra Energy Development Authority (MEDA) and stint as chairman MERC came handy while Highlights of Dr Deo’s achievements from 2008-2013
Terms and Conditions of Tariff Regulations for 2009-14 Grant of Connectivity, Long-Term Access and Medium-Term Open Access in Inter-State Transmission
a) Introduced provisions for medium term connectivity (3 months to 3 years) open access to inter-state grid. b) Allowed injection of infirm power into the grid for 6 months period to test and commission the units. c) Introduced UI cap rates for injection of infirm power through amendments in the UI regulations.
Regulation on Grant of Regulatory Approval for Execution of the ISTS to the CTU
a) Fulfilled the important vision of the NEP regarding requirement of CTU/STU to undertake network expansion after identifying anticipated transmission needs that would be incident on the system. b) Regulatory approval for the execution of nine high capacity power transmission corridors, which involved an investment of Rs58,000 crore.
Open Access Regulations
a) Introduced deemed concurrence of SLDC if SLDC does not respond to an OA within timeline. b) Implemented Point of Connection based transmission pricing mechanism. c) Narrowed operational frequency for improving quality of supply. Specified limits for over-drawl from the grid within the permissible operating range sending a clear message that UI is not a route for trading of electricity. d) Took stern action against those cases involved in denial of open access. Stricter norms for grid discipline-interms of overdrawls from the grid, default of UI dues. Imposed penalty.
Project side
a) Developed benchmarks of capital cost for thermal power stations and transmission elements. b) Creation of database of capital cost of projects. c) Issued guidelines for vetting of the capital cost of hydro electric projects and also empanelled independent agencies for vetting their capital cost.
Renewable Energy
a) Issued two Tariff Regulations for Renewable Energy. b) Introduced Renewable Energy Certificate (REC) mechanism. c) Also Issued orders for REC floor and forbearance price. d) Amended connectivity regulations to facilitate evacuation facility for hydro generating stations and other generating stations using renewable energy source with a capacity of 50 MW and above. e) Approved detailed procedure for the implementation of Renewable Regulatory Fund (RRF) mechanism under IEGC.
Market Development
a) Power Market regulations 2010. b) Regulations for fixing trading margins for inter-state trading. c) Market Monitoring Cell (MMC) was constituted. d) Tightened conditions for grant of trading licence (Procedure, Terms and Conditions for Grant of Trading Licence and Other Related Matters Regulations, 2009). e) Introduced price cap for 45 days to cool down the overheated market.
32
implementing this. Mumbai from the beginning, typically, had more than one licensee in electricity distribution. Along with the state-owned utility, there existed Reliance and Tata Power. When utilities wanted to add capacity in renewable energy, all the licensees found it difficult as they developed the renewable energy (wind farms) far from Mumbai. MSEB the distribution utility, had no difficulty in buying. However, they restricted themselves by capping the procurement to their requirement. This posed problems, and thus we had to implement the credit form for these generators. This was kept in mind when the RPO was announced along with the REC mechanism.”Tamil Nadu procures 11 per cent
My tenure in Maharashtra Energy Development Authority and stint as chairman of Maharashtra Electricity Regulatory Commission came handy while implementating the Renewable Energy Purchase Obligation.” from renewable energy for almost a decade now. More than 20 years of his career in key roles in MSEB, MERC, MoP, gave him an in-depth understanding of problems in distribution. He states,“Cross –subsidy surcharges are very high in distribution segment. An industry consumer who pays a higher charge does not have any encouraging measures. Majority of the subsidy burden is passed on to this segment of consumers. This is one reason which led to the formation of Forum Of Regulators (FOR).” After formation, FOR started having regular meetings and recognised the need for a coordinated forum for all the state regulators to analyse the issues, before taking up the matter in the regulatory level. RECs were launched to ensure that the customers are not over burdened with higher cost of energy generation from renewable sources. However, as expected, the market did not pick up owing to the bad financial condition of the state discoms.“As per the National Action Plan Climate Change (NAPCC) target, in 2010 it was mandated to have 5 per cent purchase obligation from renewables. Adding one per cent every year till the set target of 15 per cent is achieved,” he added. Dr Deo stepped down from the post of chairman CERC in the first week of June. The sector experts are of the hope that the successor will take forward the paths laid by Dr Deo, in favour of the electricity segment in the country from here on. India, at this point, needs a powerful and supportive regulator at the centre to encourage a fast paced growth.
Electricals Today | JUly 2013
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28-06-2013 11:28:15
GENERATION / SOLAR
Shadow over Solar 2012 was a year in which the Indian solar sector lost some of its momentum. Will things look up? BY MADHAVAN NAMpOOTHIRI
JUly 2013 | Electricals Today
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33
28-06-2013 11:31:23
GENERATION / SOLAR
T
rue, that the Phase-I of the Jawaharlal Nehru National Solar Mission (JNNSM) achieved the goal by adding almost 1,000 MW of solar power capacity, it is also noted that majority of the capacity got commissioned in 2012. The upbeat doesn’t seem to continue to the Phase-II of JNNSM. Though many of the states are adding solar capacity, the fervour appears amiss. In December 2012, Ministry of New and Renewable Energy (MNRE) released the draft guidelines for Phase- II of the JNNSM spanning from 2012 to 2017. And four months later, April 2013, the ministry released the guidelines to enhance a speedy implementation of the projects. The happy turn in the whole of JNNSM is that, solar may achieve grid parity in 2016-17 against the earlier expectation of 2022. The set target is to add 9,000 MW by the end of Phase-II. Unlike the Phase-I where the projects were put up on preferential solar tariff, Phase-II will be more on competitive bidding and also on the Renewable Purchase Obligation (RPO). In the last four years the country has witnessed a sea change in solar with regard to tariff. Under phase-I, batch-I of the JNNSM, the realised tariff was between Rs10.95 per kWh to Rs2.76 per kWh. This tariff then fell by about 28 per cent to Rs7.49 per kWh to Rs9.39 per kWh under the second batch of phase-I of the JNNSM which concluded in mid-2012. However, the realised tariff was driven down even further when allocations under the various state policies opened up. The lowest tariff rate offered for solar projects in the country
ended up at Rs6.45 per kWh for projects allocated under the Rajasthan Solar Policy. Phase-I had envisaged 200 MW of off-grid and 1,000 MW of grid connected capacity. Most of these projects were allotted under the JNNSM Phase-I Batch-I and under the Gujarat state policy. In 2011, a total of 600 MW (150 MW PV and 450 MW CSP) was allotted under JNNSM administered by the MNRE Phase-I Batch-I (PV and CSP) and about 900 MW under the Gujarat State policy. In Phase-II, the ratio of capacity addition under the central schemes and state schemes are slated to be 40:60, which translates to 3,600 MW under central schemes and 5,400 MW under the state schemes. A combination of various schemes like Generation Based Incentive (GBI), Viability Gap Funding (VGF) and Bundling schemes were proposed for the implementation of Phase-II. i) Bundling –Since there is very limited availability of conventional power from unallocated central quota, the capacity addition National Solar Mission (Target in MW) Phases
Time frame
Cumulative installed capacity
Solar PV (batch 1&2)
Solar Thermal
Phase I
2010-2013
1,000-2,000
150 & 350
470
Phase II
2013-2017
10,000
1,500*
1,500
Phase III
2017-2022
20,000
8,000
8,000
* 750 MW (PV) is scheduled to be allocated under Phase-II, Batch-I of the JNNSM
Solar may achieve grid parity by 2017 against the earlier expectation of 2022.
34
Electricals Today | JUly 2013
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28-06-2013 11:31:27
GENERATION / SOLAR
Only two solar CSP projects operational in India.
Projects dependant on the RPO goes through the REC mechanism which acts as a revenue stream. Solar projects based on REC are limited compared to the non-solar REC projects.” through this route is unlikely to be significant. ii. GBI – Total target under GBI will be 60 MW. Only those states that did not get allotment under the phase-1of the GBI scheme will be eligible. GBI assistance from the MNRE will be about Rs2-3 /kWh. iii. VGF – This will be the most prevalent mechanism under Phase-II. Under this, bids would be for viability gap funding requirement in Rs/MW and those with minimum VGF would be selected. In April 2013, the Solar Energy Corporation of India (SECI), the administer for JNNSM Phase-II, announced the guidelines for allocation of 750 MW under the VGF method. SECI or MNRE’s role would be limited in providing subsidy known as VGF. This is basically a part payment made by SECI to the project developer to make it viable. This is a new form of reverse bidding wherein the developer would no longer quote the electricity tariff but the quantum of money required to make the project 'viable'. While JNNSM has served well in providing the necessary impetus to jump-start the solar sector, long term sustenance of the sector largely depends on solar policies enacted by individual states. A very good example of this is the Gujarat state solar policy which till date has added over 850 MW of solar power (about 50 per cent of the total installed capacity) in the country. Future capacity additions are likely to be driven by state policies such as those seen in Tamil Nadu, Andhra Pradesh, Karnataka and Rajasthan. There was a mere 350 MW (all PV) allocation under the JNNSM Phase-I Batch 2, and a few other allocations at the state level. RajasHighlights of the allocation process are as follows Tariff
The tariff would be fixed at Rs5.45 per kWh for 25 years or Rs4.95 per kWh (with Accelerated Depreciation (AD) benefit)
Upper limit of VGF
30 per cent of project cost or Rs2.5 crore per MW, whichever is lower. (This is in line with the CERC estimate of Rs8 crore per MW; 30 percent of which translates to about Rs2.5 crores.)
Equity contribution
at least Rs1.5 crores per MW
Timeline for VGF disbursal
25 per cent at time of delivery of at least 50 per cent of major equipment (modules, inverters, mounting structures, switchgear and transformer) on site 50 per cent after full commissioning 25 per cent after one year of successful operation
than announced a RFP/tender but postponed it indefinitely. Even under the REC (Renewable Energy Certificate) mechanism, only a few projects were commissioned, since the RPO enforcement that the market was looking for was simply not there. The much anticipated guidelines for JNNSM Phase-II also came only towards the end of the year – in December 2012.
W
hile the sector was sombre in the first three quarters of 2012, the policy announcements from Tamil Nadu and Andhra Pradesh energised the sector. In October 2012, Tamil Nadu announced its ambitious 3 GW target for 2012-15. It was followed by release of the bid document in December 2012 for 1,000 MW. The tender however received only a lukewarm response, with developers bidding for only 499 MW. Once the financial bid opened, the 'workable' tariff (Rs6.48/kWh with 5 per cent annual escalation for the first 10 years) was announced, initially bidders came forward only for 226 MW. As on 5, June, 2013, developers have enhanced the capacity to 690 MW. solar target by 2017 Rajasthan announced allocation of 200 MW of solar both PV and thermal. This received enthusiastic response from 25 bidders with total bid for 185 MW. However, the lowest bid was Rs6.45/kWh and only seven companies, with a total of 75 MW, were selected. In December 2012, Andhra Pradesh also came out with its tender document for allocation of 1,000 MW. It was considered more attractive than Tamil Nadu because the off-take was stronger and allocation were to happen at sub-station level. The tender was oversubscribed by 34 per cent. However, after the technical and financial bids were open, Andhra Pradesh policy makers fixed a
10,000 MW
JUly 2013 | Electricals Today
33-37_ET_July13_GENERATION_SOLAR.indd 35
35
28-06-2013 11:32:04
GENERATION / SOLAR
Domestic Content Requirement is mandated for solar PV projects.
tariff of Rs6.49/kWh irrespective of which sub-station the plant falls under. This came in as a disappointment to developers and it is not clear, at this stage, how many MW will actually be put up. Initiatives by Tamil Nadu, Rajasthan and Andhra Pradesh were followed by a slew of announcements from several states. Bihar floated a draft Rfp for 150 MW in February and Karnataka announced 130 MW of project in March. Orissa, Punjab and Uttar Pradesh also floated tenders for 25 MW, 300 MW and 200 MW respectively as well in March.
O
ne issue that has been plaguing the sector is the Domestic Content Requirement (DCR). In Phase-I of JNNSM, it was mandated the use of domestic solar PV modules in Batch 1. And this mandate was extended to cells in the Batch 2 of Phase-I. Since this mandate was not applicable for projects using Thin Film Technology, a majority of the developers imported thin films which came with low cost financing. Naturally, the market share of thin film technology was about 60 per cent. This is an
36
Electricals Today | JULY 2013
anomaly, since globally, thin film market share has been trending around 11 per cent to 12 per cent or lower. It may be noted that there are hardly any thin film manufacturers in India. From this it can be argued that the DCR in JNNSM Phase-I did not attain the intended results. The Indian manufacturers did not benefit from Phase-I, especially when they were fighting against stronger Chinese competition. Based on complaints that PV modules are being dumped into India, the Ministry of Commerce initiated anti-dumping investigations concerning all imports of solar modules originating in or exported from Malaysia, China PR, Chinese Taipei and USA in November 2012. The Period of Investigation (POI) was from January 2011 to June 2012. The findings is awaited. US, not happy with the investigations filed a complaint against the DCR in WTO. Given the fact that WTO has recently ruled against the DCR of Ontario Province in Canada, India’s DCR is also on a shaky ground. MNRE though, appears to be undeterred by the WTO ruling against Ontario has proposed a DCR for the 750 MW of projects to be allocated under VGF mechanism. As per of the guidelines, there will be a separate bidding without or with domestic content (Part A and Part B). The split of the 750 MW between Part A and B has not been specified yet. The exact DCR like crystalline Silicon vs Thin Films applicable for Part B is also under review. It may be recalled that none of the state policies specify any DCR.
P
rojects dependant on the RPO goes through the REC mechanism which acts as a revenue stream. Solar projects based on REC are limited compared to the non-solar REC projects. This is primarily due to the higher risk involved since REC being a traded commodity is associated with high volatility. In addition to this,
GENERATION / SOLAR
many developers are opting to go for sale of power directly to the end consumer through a bilateral PPA at a mutually determined price, which in most cases is higher than what the developer would have otherwise got from the state-owned utilities. A derivative form of this is the group captive mechanism, where the developer sells power generated to multiple consumers which help to mitigate the risk of having a single buyer. Thus, in addition to getting per unit tariff from consumers, the solar developer would also be eligible for RECs which can be traded in the open market for additional revenue. In some cases however, entities would require the solar power to fulfil their obligations. In such cases, the developer would then have to increase the solar tariff to the consumer since they would no longer be eligible for RECs. Developers also opt to part sell the solar power at higher tariff for obligation fulfilment with the remaining percentage being sold at a lower rate for the purposes of claiming RECs. Under the JNNSM Phase-II draft guidelines, a target of 1 GW through both grid-connected and off-grid rooftop systems was proposed. The SECI has already set the ball rolling by announcing 10 MW allocations in six cities but ended up allocating 5.5 MW in four cities, in the first phase with Gurgaon being the only city to witness a shortfall in allocation (1.5 MW below the target of 2 MW). Gujarat, Kerala, Tamil Nadu, Karnataka and Andhra Pradesh all have initiated policies to promote solar rooftop. REC market for solar also sluggish.
RPO enforcement procedures, which is the primary driver for the sale of RECs, continues to be inefficient. In contrast to the non-solar RECs which have been trading at the base price for the better part of the year, solar RECs have witnessed significant increase in prices. In fact, at the end of March 2013, solar RECs hit their forbearance price at Rs13,400 for the first time. The following month, April, the volume of RECs traded dropped by about 40 per cent and with the discovered price dropping by about 10 per cent to Rs2,000 per REC. May was the real shocker with indications of solar RECs ending up like non-solar RECs, if RPO enforcement is not enforced strictly. The demand for solar RECs fell by about 75 per cent with the total traded volume dropping by 30 per cent. The price discovered at IEX was Rs11,490 per REC while it was Rs10,990 in PXIL, with the weighted average solar-REC price standing at Rs11,186.42. Both these prices are the lowest. There should be no cause for concern as even at the floor price, REC-based solar projects are viable especially considering the low tariffs being offered. With the solar-REC supply expected to increase owing to numerous REC-based projects coming up in Rajasthan and other places, perhaps we might start witnessing the downward trend the nonsolar REC segment saw unless some significant counter measures are taken. Solar projects are eligible to be registered under the REC mechanism only if they opt to go for a PPA which is devoid of any subsidies i.e. capital subsidy, preferential tariff, etc. The mechanism, however, allows for third party sale of power. With this in mind,
S
Target in this Plan Period is
olar CSP based projects in India have been bow down due to dropping capital costs in solar PV sector. The initial response two set up solar CSP projects was positive, as seen in the case of project allocations under the Phase-I, Batch 1 of JNNSM, when about 470 MW worth of CSP projects were instantly gobbled up. However, the following two years were bad for CSP. The projects allocated under Phase-I of JNNSM have still not been commissioned due to various reasons; such as, issues in laying water pipelines, procurement of heat transfer fluid, etc. MNRE announced in May the penalties to be levied on the project developers for not meeting the deadlines would not be imposed since none of the project developers met the deadline. Currently, there are only two CSP plants in operation in India – a 2.5 MW plant in Rajasthan and a 3 MW in Gurgaon. With no allocations for solar CSP planned under the second phase (batch 1) of the JNNSM, one has to look towards state policies for solace. State policies however have not been bullish on solar CSP either. Presently, only Karnataka state policy has allocated capacity for CSP projects with the state receiving bids for only 20 MW of the 50 MW available. The Rajasthan state has 100 MW available under CSP for allocation, but did not receive any bids for the same. As it stands, the future looks bleak for solar CSP projects in India mainly because of the higher capital costs but also due to the lack of reliable solar irradiation data (DNI data) which makes accurate yield predictions (and hence revenue estimation) almost impossible.
9,000 MW
JUly 2013 | Electricals Today
33-37_ET_July13_GENERATION_SOLAR.indd 37
37
28-06-2013 11:32:13
INDIA BACKUP POWER EXECUTIVE SUMMIT
IT'S ALL ABOUT
BACKUP POWER
Experts are upbeat about the market for alternate energy systems like UPS, large-sized industrial batteries and diesel gen-sets, even in rural areas of the country
Manas Kundu
Mark Werle
Sunil Khanna
A
lternate energy sources like UPS, diesel generators, large-sized industrial batteries have attained significance as the supply-demand gap has increased considerably. In fact, according to experts, they have become a ‘way of life’ for many of the Indian households. Against this backdrop, key leaders from the industry discussed the growth drivers and market opportunities at the 2nd edition of India Backup Power Executive Summit and Awards Banquet 2013, an interactive forum organised by Frost & Sullivan.
38
Krishna Srinivasan
“These markets globally are accelerating growth and are expected to emerge in the Indian context in the mid- to longterm, thereby impacting the growth of backup power industry in our country as well, " said Krishna Srinivasan, global president and managing partner, Frost & Sullivan. As the power sector is going through technological advancement, the forum discussed the ‘Top 10 Markets to Watch’ globally — particularly for smart energy, smart grids and smart buildings — for 2020. 'Mega Trends Shaping the Indian Economy and Its Impact on the Backup Power Industry’ was another topic of discussion. Amol Kotwal, associate director, energy and power systems practice, Frost & Sullivan, said, “Facts like urbanisation, infrastructure development, working age population, connectivity, future economic growth could further act as growth drivers for various backup power products across industries and applications such as realty, IT/ITeS, malls, industrial and manufacturing sector, etc. Despite aggressive plans of power capacity additions within the country, increasing energy and power quality requirement fuels the demand for backup power products.” The forum, where ET was a media partner, brought together a wide cross-section of representatives from the entire gamut of the multi-product backup power industry. The summit also had representation from prominent end-user segments.
Electricals Today | July 2013
38-39_ET_Jul13_Events coverage.indd 38
28-06-2013 11:48:43
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market data
Generation Improves Power generation capacity addition was 105.77 per cent in May. This is due to addition of more than 2,000MW in thermal than planned. However, there is considerable slippage in nuclear and hydro. Region wise summary GENERATION (GWH) Monitored Capacity (MW)
Target APRIL 2013 - MAY2014
1
THERMAL NUCLEAR
"Category / Regions"
May-13
April2013-May2013
Program
Actual
Actual same month 2012-13
"% of program % of last year Program (4/3)" (4/5)
Actual
Actual Same % of pro2012-13 gramme (9/8)
% of last year (9/10)
2
3
4
5
6
7
8
9
10
11
12
34624.26
207657
17320
17249.84
15970.78
99.59
108.01
33484
32894.28
30970.17
98.24
106.21
1620
10664
938
1052.8
807.75
112.24
130.34
1850
1968.77
1766.48
106.42
111.45
HYDRO
15523.25
61597
6543.5
6740.98
5923.86
103.02
113.79
10694
10779.98
10210.98
100.8
105.57
TOTAL
51767.51
279918
24801.5
25043.62
22702.39
100.98
110.31
46028
45643.03
42947.63
99.16
106.28
THERMAL
58902.31
292416
24387
25318.11
23542.13
103.82
107.54
47993
49860.11
46681.48
103.89
106.81
NUCLEAR
1840
12363
1013
826.66
1311.37
81.61
63.04
1999
1505.64
2502.2
75.32
60.17
HYDRO
7392
15843
1033
1319.76
1387
127.76
95.15
2058
2567.57
2388.83
124.76
107.48
TOTAL
68134.31
320622
26433
27464.53
26240.5
103.9
104.66
52050
53933.32
51572.51
103.62
104.58
THERMAL
29102.8
157021
13801
14855.46
14126.55
107.64
105.16
27241
30105.37
28449.27
110.51
105.82
NUCLEAR
1320
12173
768
716.14
725.62
93.25
98.69
1518
1351.55
1397.36
89.03
96.72
HYDRO
11387.45
29454
2070
1331.05
1948.79
64.3
68.3
4401
3256.66
4110.43
74
79.23
TOTAL
41810.25
198648
16639
16902.65
16800.96
101.58
100.61
33160
34713.58
33957.06
104.69
102.23
THERMAL
27495.05
150503
12750
12349.77
12312.21
96.86
100.31
24690
23721.75
23619.19
96.08
100.43
HYDRO
3946.7
11191
998
1032.66
575.99
103.47
179.28
1847
1948.53
1067.55
105.5
182.52
TOTAL
31441.75
161694
13748
13382.43
12888.2
97.34
103.83
26537
25670.28
24686.74
96.73
103.98
THERMAL
1258.7
5140
366
387.01
380.81
105.74
101.63
744
774.71
736.93
104.13
105.13
HYDRO
1242
4178
299
382.43
183.18
127.9
208.77
474
511.21
341.83
107.85
149.55
TOTAL
2500.7
9318
665
769.44
563.99
115.71
136.43
1218
1285.92
1078.76
105.58
119.2
4800
279
380.01
236.52
136.2
160.67
486
566.92
451.07
116.65
125.68
THERMAL
151383.12
812737
68624
70160.19
66332.48
102.24
105.77
134152
137356.22 130457.04
102.39
105.29
NUCLEAR
4780
35200
2719
2595.6
2844.74
95.46
91.24
5367
4825.96
5666.04
89.92
85.17
HYDRO
39491.4
122263
10943.5
10806.88
10018.82
98.75
107.87
19474
19063.95
18119.62
97.89
105.21
0
4800
279
380.01
236.52
136.2
160.67
486
566.92
451.07
116.65
975000
82565.5
83942.68
79432.56
101.67
105.68
159479
161813.05 154693.77
101.46
104.6
NORTHERN REGION
WESTERN REGION
SOUTHERN REGION
EASTERN REGION
NORTH EASTERN REGION
BHUTAN IMP REGION 0
ALL INDIA REGION
BHUTAN IMP TOTAL
195654.52
* Provisional based on actual-cum assement
40
Electricals Today | July 2013
40-41_ET_July13_Market data.indd 40
28-06-2013 11:49:46
market data
PLF decreases Plant load factor of both thermal and nuclear were below planned levels owing to fuel issues. ENERGYWISE - PERFORMANCE STATUS ALL INDIA - REGIONWISE PERIOD: MAY-2013
VIS-A-VIS MAY-2012 AND APR-MAY-2013
VIS-A-VIS APR-MAY-2012
GENERATION (GWH) Monitored "Category / Regions" Capacity (MW)
Target APRIL 2013 - MAY2014
May-13
April2013-May2013
Program
Actual
Actual same month "% of program % of last 2012-2013 (4/3)" year (4/5)
2
3
4
5
TOTAL CENTRAL SEC. 51340.23
307048
25784
TOTAL STATE SEC.
57515.39
311211
TOTAL IPP SEC.
38662.5
1
Program
Actual
Actual Same 2012-13
% of programme (9/8)
% of last year (9/10)
6
7
8
9
10
11
12
25896.02 26295.88
100.43
98.48
50069
50770.61
50463.89
101.4
100.61
26804
25710.66 25994.06
95.92
98.91
52724
51046.24
51997.96
96.82
98.17
169396
13729
16314.68 11667.94
118.83
139.82
26841
31147.57
23339.57
116.04
133.45
TOTAL PVT. UTL. SEC. 3865
25082
2307
2238.83
97.05
94.28
4518
4391.8
4655.62
97.21
94.33
TOTAL THERMAL
812737
68624
70160.19 66332.48
102.24
105.77
134152
137356.22
130457.04
102.39
105.29
TOTAL CENTRAL SEC. 4780
35200
2719
2595.6
2844.74
95.46
91.24
5367
4825.96
5666.04
89.92
85.17
TOTAL NUCLEAR
35200
2719
2595.6
2844.74
95.46
91.24
5367
4825.96
5666.04
89.92
85.17
TOTAL CENTRAL SEC. 12325.7
47331
4641
5005.78
4295.86
107.86
116.53
7803
8157.92
7643.59
104.55
106.73
TOTAL STATE SEC.
24536.7
63259
5123.5
4549.27
4803.78
88.79
94.7
9924
9095.13
9055.78
91.65
100.43
TOTAL IPP SEC.
2182
10223
1059
1126.1
794.39
106.34
141.76
1507
1573.97
1192.86
104.44
131.95
TOTAL PVT UTL.SEC.
447
1450
120
125.73
124.79
104.77
100.75
240
236.93
227.39
98.72
104.2
TOTAL HYDRO
39491.4
122263
10943.5
10806.88 10018.82
98.75
107.87
19474
19063.95
18119.62
97.89
105.21
BHUTAN IMP
0
4800
279
380.01
136.2
160.67
486
566.92
451
116.65
125.7
TOTAL ALL INDIA
195654.5
975000
82565.5
83942.68 79432.56
101.67
105.68
159479
161813.05
154693.7
101.46
104.6
THERMAL
151383.1
2374.6
NUCLEAR
4780
HYDRO
236.52
Plant load factor (%) May-13
April 2013-May 2013
Program
Actual
Actual same month 2012-2013
THERMAL
72.4
72.08
70.17
70.83
70.16
69.81
NUCLEAR
82.94
87.35
67.02
83.14
83.01
74.48
THERMAL
69.67
69.64
74
69.68
68.87
75.4
NUCLEAR
74
60.39
95.79
74.21
55.89
92.89
THERMAL
82.71
84.21
87.38
83
85.82
88.34
NUCLEAR
78.2
72.92
73.89
78.55
69.94
72.31
65.52
63.73
69.79
64.48
62.39
69.4
0
0
0
0
0
0
THERMAL
71.61
71.51
74.42
71.05
70.76
74.92
NUCLEAR
78.09
72.99
79.99
78.33
68.96
80.97
BHUTAN IMP
125.68
Program
Actual
Actual same month 2012-2013
NORTHERN REGION
WESTERN REGION
SOUTHERN REGION
EASTERN REGION THERMAL NORTH EASTERN REGION THERMAL
ALL INDIA REGION
July 2013 | Electricals Today
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Market Column
More investments in transmission With high capacity operative lines in the current Five Year Plan, the segment is upbeat Salil Garg, Director-corporates, India Ratings & Research
L
arge capacity additions in power generation segment have to be matched by corresponding increases in the power transmission capacity. As Indian government targets addition of 88GW of new generation capacity in the 12th five year plan period to meet the growing demands for power in the Indian economy, the government as also envisaged capex in transmission sector to deliver the additional power to the respective buyers. Experience of transmission capex was positive in the 11th five year plan as India made reasonable progress in adding new transmission capacity. During the 11th five year plan 70,000 circuit kms of transmission lines, 1.50 lakh MVA of transformer capacity and 1,750MW of High Voltage Direct Current (HVDC) systems were added. Increase of 70,000 ckm in transmission lines was higher than the 11th planâ&#x20AC;&#x2122;s revised target of 68,673cKM. Encouraged by the success of the capex program in transmission segment and also looking at the generation capacity under construction, the government of India has planned for addition of 1,07,440ckm of transmission lines, 2,70,000 MVA of AC transformer capacity and 12,750 MW of HVDC systems. As a result of this additional capacity, the total capacity to transmit power across regions will increase to 65,550 MW at the end of 12th five year plan. This is an ambitious target envisaging increase of 136% even if from a relatively low base of 27,750MW at end March 2012. Transmission Capacity ( 12th Plan)
42
Transmission System
Unit
Capacity at end March 2012
Addition During 12th Plan
Capacity at end March 2017
Transmission Lines
Ckm
2,57,481
1,07,440
3,64,921
Substation
MVA
3,99,801
2,70,000
6,69,301
HVDC
MW
9,750
12,750
22,500
12th Plan - Planned additions to Transmission Capacity 150% 130%
131%
110% 90% 68%
70% 50%
42%
30% 10% -10%
Transmission Lines
Substation
HVDC
Source: CEA, India Ratings
Another important milestone for the transmission sector will be completion of the national grid that is under construction and is likely to become operational during FY2013-14. At present the Southern region is not connected to the rest of the four regional grids in the country which are working as a single system in a synchronous mode. Completion of this system will not only benefit the power starved Southern region but also have trickle down effect across the value chain by opening up new markets for the power generators based in East and Central India. Key challenges in the path of this large capex program arise from issues in obtaining right of way and land acquisition. These issues can be partly tackled through use of better technology which can enable shift to compact towers and substations that in turn lower the land requirements. Role of private sector as transmission company has been limited so as the central and state government owned entities have dominated this space historically. The large capacity additions will also mean a higher role for the private sector entities, through public-private partnership; however, this requires an enabling policy framework which can help attract large private sector investments.
Electricals Today | July 2013
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