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NEW TRENDS OF ELECTRICALPOWER INDUSTRY
OPEN ACCESS & DEREGULATION of
POWER SECTOR
Ankit Anil Gupta
PRN 09020243008Energy & Environment SIIB
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Introduction to Electricity India
Countrys power generation capacity approx reaching 161300 MW
Peak Electricity Demand exceeds Supply by 13.3% and Base
Demand Load deficient by 11% approximately
Over 60% of power from Thermal sources and around 22% by
Hydro Power Plants and remaining is contributed by the Nuclear
and the Renewable Sources of Energy
Indias commercial energy supply needs to grow by about 12% -
15% per annum to sustain 9 % GDP growth (Sources: Infraline
Magazine)
Various Programmes have been launched for increasing the
generating capacity Solar National Mission (NAPCC)
Nuclear Mission 2020
UMPP (Ultra Mega Power Plants Thermal Based
Promotion for Biogas, Bag-gas, Wind and Tidal Sources forpower
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What is Open Access??
Open Access is Provision in Electricity Act 2003 for Generator,
Distributor and for consumers (Power Trading)
Defined under section 2 (47) Of Indian Electricity act-2003
Open Access means non-discriminatory provision for the use of
transmission lines or distribution system or associated facilities with
such lines or system by any licensee or consumer or a person engaged
in generation in accordance with the regulations specified by the
Appropriate Commission
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Why Open Access??
To remove the monopoly nature on Networks
Introduction of competition by introducing various
private players and orthodox public sector company
Open Access Regulation is for providing powersupply to one and all after completing the pre-
requisite of the regulation on non-discriminationbasis.
Better Service quality in power sector (Good Qualityof Power)
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Sections in Open Access
Section number in Open Access Name of Section
Section 9 (2) Captive Generation
Section 38 (2) (d) Function of CTU
Section 39 (2) (d) Function of STU
Section 42 (2) Wheeling Charges
Section 42 (4) Additional Surcharges
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Charges in Open Access
1. Cross Subsidy Surcharge
2. Additional Surcharge
3. Transmission Charges
4. Wheeling Charges
5. Default Supply Charge
6. Balancing Market Charge
7. OA Application Charges
8. SLDC Charges
9. Reactive Energy Charges
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Classification in Open Access
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Emerging Open Access Regulation
Contract Demand for the Consumer Date on which the Open Access will be
allowed under Sub Section (2) of Section
42 of the Act
Not less than 5 MVA Publication in the official Gazette
Document
Not Less than 2 MVA but Less than 5 MVA April 1, 2006
Less than 1 MVA April 1, 2007
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CERC Regulations for Short term
Open AccessRegulations Date. 30.01.04
Charges applicable in time blocks - 25% up to 6 hrs, 50% for6-12hrs,100% for 12-24 hrs
Transmission charges @ 25% of previous year average, perMW basis
Charges applicable on MW basis for corridor booked
RLDC charges @ Rs 3000 and SLDC charges @ Rs.1000 perday
Charges for interregional system revised to 50% of averageprevious year long term charges
(Amendment date. 21.02.05 - effective from 1.04.05)
CERC discussion paper dt.13.02.07 proposing elimination of
short term open access charges
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Cont..,Regulation Dt. 25.01.08
Transmission charges applicable for each Regional
system @ Rs. 30/MWH (revised to Rs. 80/MWH vide
amendment date. 20.05.09)
No transmission charges applicable for inter-regionalsystem
Operating Charges revised to Rs 2000 per day for eachRLDC/SLDC
Applicant to obtain SLDC consent in advance
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Procedure for Scheduling ofBilateral Transactions
(Issued by CTU on 28.01.2008)
SLDC consent to be obtained for each specific transaction inbooking of open access, first-come-first-serve booking, day-ahead scheduling etc.
In case of transmission constraints, bilateral transactionswould generally be curtailed first followed by collectivetransaction (Para 12.2)
In case a State Utility is Buyer or Seller, the operating chargesand transmission charges shall not include the charges forthat state network (Para 13.1.4)
Vertical disintegration of state utilities need to be recognized
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For Long Term and Medium termOpen Access in Inter State
Transmission(Regulation Dated: 7.08.09)
Open access , SLDC charges in line with long term open
access as notified from time to time
Scheduling to be done on day ahead basis
Medium Term Open Access introduced for period of 3 monthsto 3 years
Long term period reduced from 25 years to 12 years
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What is Deregulation in Power
Sector Deregulation in power sector is a process by which
government remove or reduce restriction on power
industry and invite private sector to invest in the
power industry. Power industry is undergoing restructuring
throughout the world. The traditional vertically
monopolistic structure has been deregulated and
replaced by Gencos, Transcos and Discos withcompetition introduced to Gencos and Discos in
order to reach higher efficiency in electricity
production and utilization. A lot of power markets
have been established for the purpose.
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RESTRUCTURED SET UP OF
DEREGULATION
GENERATIONCOMPANY-1
GENERATIONCOMPANY-2
GENERATIONCOMPANY-3
DISTRIBUTIONCOMPANY-1
DISTRIBUTIONCOMPANY-2
DISTRIBUTIONCOMPANY-3
GOVT.
OWNED
TRANSMISSION
COMPANY
INDEPENDENT POWER REGULATOR
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Deregulation Process
SchedulingCoordinator
Government/Regulatory Commission
Transmission
OwnerUtility Distribution
Company
Generator Generators
and Utilities
Energy ServiceProvider
Power Exchange
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Effects of Deregulation
MonopolisticPower Market
CompetitivePower Market
Cost reduction
Security problem due to the nonutility companies
Need of Actual Transfer Capability Analysis
Need of Exact Model of Power SystemsUnder Deregulated Environment
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Conclusion Open access help in development of power market to renewable power ,
CPPs, Merchant Power Plants etc.
Open Access charges / losses based on commercial principles to optimizeuse of existing assets and to encourage investment.
Power trading in India is in infant stage and has high potential for growth
Open Access is a small step towards for power market with high growthpotential.
Freedom to generators is an essential part of the process.
Commercial mechanism for deviation in scheduling (settlementmechanism) need to be introduced at all levels, including the consumerslevel.
Electricity reform process in India is already in action although in a slow
Pace, several state electricity boards are being unbundled into three
separate corporations namely Gencos, Transcos and Discos.
The distribution system is privatized for better efficiency in metering,
billing and revenue collection.
The distribution company has option to purchase power from any
generation utility through the existing transmission network
We can say that open access and de-regulation make the power systemmore reliable, efficient and flexible.
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THANK YOU