Sharing of ISTS Charges & Losses Regulation “Point of Connection Transmission Pricing Methodology” Prepared By: Mangaljyoti Swapnil Nayak MBA- 6 th Batch.

Sharing of ISTS Charges & Losses Regulation

“Point of Connection Transmission Pricing Methodology”

Prepared By:Mangaljyoti

Swapnil NayakMBA- 6th Batch

Prepared By:Mangaljyoti

Swapnil NayakMBA- 6th Batch

INDIAN GRID

INDIAN GRID

HR

CH

KARTN

NERNER

NRNR

ERERWRWR

SRSR

REGIONAL GRID CTU Lines STU Lines STATES

CURRENT- Case States

INTRA REGIONAL - KAR-TN

ADJACENT REGION- CH-HR

INTERVENING REGION- KAR-ER-HR

IMPLEMENTING AGENCY (NLDC-2yrs)

IMPLEMENTING AGENCY (NLDC-2yrs)

DIC’s , ISTS Transmission Licensees, NLDC,RLDC,SLDC & Other Relevant

Entity

DIC’s , ISTS Transmission Licensees, NLDC,RLDC,SLDC & Other Relevant

Entity

Commercial + Technical Information

IA Create Zones – Generation , DemandIA compute - PoC charges & Losses LTOA– Rs./MW/MonthSTOA – Rs,/MW/Hr Approved by RLDC/NLDC

IA Create Zones – Generation , DemandIA compute - PoC charges & Losses LTOA– Rs./MW/MonthSTOA – Rs,/MW/Hr Approved by RLDC/NLDC

Participation factor & PoC Charges shall be computed for :

Day : Peak- 8 hours , Other than Peak- 16 hoursBlock of Months :April –June, July – Sep, Oct-Nov, Dec- Feb, March

Participation factor & PoC Charges shall be computed for :

Day : Peak- 8 hours , Other than Peak- 16 hoursBlock of Months :April –June, July – Sep, Oct-Nov, Dec- Feb, March

CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010

Regulations shall apply to all Designated ISTS Customers, Inter State Transmission Licensees, NLDC, RLDC, SLDCs, and RPCsRegulations shall apply to all Designated ISTS Customers, Inter State Transmission Licensees, NLDC, RLDC, SLDCs, and RPCs

The Central Transmission Network is considered for the calculation of charges & losses , which are applicable on the sameThe Central Transmission Network is considered for the calculation of charges & losses , which are applicable on the same

The complete inter state Transmission System is divided into zones (Generation Zone & Demand Zone) consist of nodes. A state is considered as a single demand zone consist of multiple Generation ZonesThe complete inter state Transmission System is divided into zones (Generation Zone & Demand Zone) consist of nodes. A state is considered as a single demand zone consist of multiple Generation Zones

The charges & losses are defined for each Generation Zone & Demand Zone and are shared between the Generator and the Consumers based on the point of injection and point of drawal respectively.The charges & losses are defined for each Generation Zone & Demand Zone and are shared between the Generator and the Consumers based on the point of injection and point of drawal respectively.

CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010

Recovery of Yearly Transmission Charges and losses as per new transmission mechanism shall be based on both the methods by giving appropriate weightage :50 % of YTC by Uniform Postage Stamp Method50% of YTC by Point of Connection Method (After 2yrs Commission will review the weightage)

Recovery of Yearly Transmission Charges and losses as per new transmission mechanism shall be based on both the methods by giving appropriate weightage :50 % of YTC by Uniform Postage Stamp Method50% of YTC by Point of Connection Method (After 2yrs Commission will review the weightage)

Accounting of charges :Monthly Transmission Accounts applicable for various Designated ISTS Customers in each region shall be prepared by the respective RPC and RPC issue Regional Transmission Accounts on the 1st working day of the month for the previous month, same shall be display on website.

Accounting of charges :Monthly Transmission Accounts applicable for various Designated ISTS Customers in each region shall be prepared by the respective RPC and RPC issue Regional Transmission Accounts on the 1st working day of the month for the previous month, same shall be display on website.

Billing for ISTS charges : for all Designated ISTS Customers shall be on the basis of Rs./MW/Month, and shall be raised by the CTU . The SEB/STU may recover the transmission charges for the use of the ISTS from the distribution companies, generators and bulk customers connected to the transmission system owned by the SEB/STU

Billing for ISTS charges : for all Designated ISTS Customers shall be on the basis of Rs./MW/Month, and shall be raised by the CTU . The SEB/STU may recover the transmission charges for the use of the ISTS from the distribution companies, generators and bulk customers connected to the transmission system owned by the SEB/STU

Transition Period /Mechanism : The Commission shall notify detailed procedures as proposed by the Implementing Agency, along with corresponding timelines, as far as possible within 3 (three) months from the notification of this Regulation(15.06.2010).

Transition Period /Mechanism : The Commission shall notify detailed procedures as proposed by the Implementing Agency, along with corresponding timelines, as far as possible within 3 (three) months from the notification of this Regulation(15.06.2010).

Regulations shall come into force from 1.1.2011, and unless reviewed shall remain in force for a period of 5 years Regulations shall come into force from 1.1.2011, and unless reviewed shall remain in force for a period of 5 years

Solar generators connected to Central Transmission Lines not have to pay the Transmission Charges & LossesSolar generators connected to Central Transmission Lines not have to pay the Transmission Charges & Losses

Transmission Pricing Philosophy

1. Point-to-Point Tariff (Postage Stamp Charges & Losses – In Practice)

2. Point-of-Connection Tariff (PoC Charges & Losses – New Mechanism)

Applicability of Transmission Charges & Losses

Charges Losses Charges Losses Charges Losses Charges Losses Charges Losses

Generator - STU Consumer - STUC C C C C C

Generator - CTU Consumer - CTUC C C C C C

Generator - STU Consumer - STUC C C C C C C C

Generator - CTU Consumer - CTUC C C C

Generator - STU Consumer - STUC C C C C C C C C C

Generator - CTU Consumer - CTUC C C C C C

Charges Losses Charges Losses Charges Losses Charges Losses Charges LossesGenerator - STU Consumer - STU

C C DAC DAC C CGenerator - CTU Consumer - CTU

GAC GAC DAC DACGenerator - STU Consumer - STU


GAC GAC DAC DACGenerator - STU Consumer - STU


GAC GAC DAC DAC

STATE-N/W (Consumer)CTU-N/WCTU-N/W

(Consumer Region)

STATE-N/W (Generator)CTU-N/W

(Generator Region)CTU-N/W

CTU-N/W (Consumer Region)

STATE-N/W (Consumer)

CURRENT MECHANISM

REGION OPERATING CHARGES

REGION

NEW MECHANISM

OPERATING CHARGESSTATE-N/W (Generator)

CTU-N/W (Generator Region)

SLDC1 + RLDC2 + SLDC2 + AF


SLDC1 + RLDC1 + RLDC2 + SLDC2 + AF


SLDC1 + RLDC1 + RLDC2 + RLDC3 + SLDC2 + AF







SLDC1 + RLDC1 + RLDC2 + RLDC3 + SLDC2 + AFINTERVENING

ADJACENT

INTRA

ADJACENT

INTERVENING

INTRA

N/W

STU

CTU

SLDC

RLDC

AF

C

GACDAC Demand Access Charges

Network

Central Transmission Utility

State Load Despatch Centre

Regional Load Despatch Centre

State Transmission Utility

Application Fees

Consumer- STU

Generation Access Charges

KARKAR

GENERATORGENERATOR

TNTN

OLD MECHANISM

CONSUMERCONSUMER

STU –Tx Charges - C STU –Tx Losses - C CTU –Tx Charges - C

CTU –Tx Losses -CSTU –Tx Charges - CSTU –Tx Losses -C

Operating

Charges :

1. KAR-SLDC

2. SRLDC

3. TN-SLDC

4. Application

Fee

CHCH

KARKAR HRHR

HRHR

Operating

Charges :

1. CH-SLDC

2. WRLDC

3. NRLDC

4. HR-SLDC

5. Application

Fee

Operating Charges :1. KAR-SLDC2. SRLDC3. ERLDC4. NRLDC5. HR-SLDC6. Application Fee

GENERATORGENERATOR CONSUMERCONSUMER

CTU –Tx Charges - D CTU –Tx Losses -D

CTU –Tx Charges - D CTU –Tx Losses -D

STU –Tx Charges - C STU –Tx Losses - C STU –Tx Charges - D

STU –Tx Losses - D

SRLDC

WRLDC NRLDC

NRLDCERLDCSRLDCCTU –Tx Charges - C CTU –Tx Losses -C CTU –Tx Charges - C

CTU –Tx Losses -C

CTU –Tx Charges - C CTU –Tx Losses -C

GENERATORGENERATORCONSUMERCONSUMER

STU –Tx Charges - C STU –Tx Losses - CSTU –Tx Charges - C

STU –Tx Losses - C

(INTRA REGION)

(ADJACENT REGION)

(INTERVENING REGION)


CTU –Tx Charges - C CTU –Tx Losses -C CTU –Tx Charges - C

CTU –Tx Losses -C


CTU –Tx Charges - CCTU –Tx Losses -C


CTU Line

STU Line

TNTN

KARKAR

KARKAR


STU –Tx Charges - C STU –Tx Losses - C

CTU –DAC- C CTU –DL-C

SRLDCSTU –Tx Charges - C STU –Tx Losses -C

CHCHHRHR


STU –Tx Charges - C STU –Tx Losses - C STU –Tx Charges - C

STU –Tx Losses -C

WRLDC NRLDC

HRHR

ERLDCSRLDC




NRLDC

NEW MECHANISMOperating

Charges :

1. KAR-SLDC

2. SRLDC

3. TN-SLDC

4. Application

Fee

Operating

Charges :

1. CH-SLDC

2. WRLDC

3. NRLDC

4. HR-SLDC

5. Application

Fee


(INTRA REGION)

(ADJACENT REGION)



CTU –DAC- C CTU –DL-CCTU –GAC- G

CTU –GL-G

CTU –DAC- CCTU –DL-C


CTU –GAC- G CTU –GL-G



CTU Line

STU Line

TNTN

KARKAR

KARKAR


STU –Tx Charges - GSTU –Tx Losses - G

SRLDC

STU –Tx Charges - C STU –Tx Losses -C

CHCH HRHR


STU –Tx Charges - G STU –Tx Losses - G STU –Tx Charges - C

STU –Tx Losses -C

WRLDC NRLDC

HR HRERLDC

SRLDC



STU –Tx Charges - G STU –Tx Losses - G

NRLDC

Power Exchange – Old MechanismOperating

Charges :

1. KAR-SLDC

2. SRLDC

3. TN-SLDC

4. Application

Fee

Operating

Charges :

1. CH-SLDC

2. WRLDC

3. NRLDC

4. HR-SLDC

5. Application

Fee


(INTRA REGION)

(ADJACENT REGION)


CTU Line

STU Line

CTU –Tx Charges - G CTU –Tx Losses -G


CTU –Tx Charges - GCTU –Tx Losses -G


CTU –Tx Ch- C CTU –Tx Ls-C

CTU –Tx Ch- G CTU –Tx Ls-G

CTU –Tx Ch- G CTU –Tx Ls-G CTU –Tx Ch- C

CTU –Tx Ls-C





TNTN

KARKAR

KARKAR


STU –Tx Charges - GSTU –Tx Losses - G


SRLDC

STU –Tx Charges - C STU –Tx Losses -C

CHCH HRHR


STU –Tx Charges - G STU –Tx Losses - G STU –Tx Charges - C

STU –Tx Losses -C

WRLDC NRLDC

HR HRERLDCSRLDC



STU –Tx Charges - G STU –Tx Losses - G

NRLDC

Power Exchange - New MechanismOperating

Charges :

1. KAR-SLDC

2. SRLDC

3. TN-SLDC

4. Application

Fee

Operating

Charges :

1. CH-SLDC

2. WRLDC

3. NRLDC

4. HR-SLDC

5. Application

Fee


(INTRA REGION)

(ADJACENT REGION)







CTU Line

STU LineCTU –DAC- CCTU –DL-C






CASE STUDY

Charges Losses Charges Losses Charges Losses Charges Losses Charges Losses Charges Losses Charges Losses Charges Losses

BT- INTRA 35.42 4% 80 4.27% 28.97 1.75% 144.39 9.71% 144.39 9.71%EX- INTRA 135.42 8.10% 35.42 4% 100 4.27% 100 4.27% 28.97 1.75% 128.97 5.95% 264.39 13.56%

BT- INTRA 35.42 4.00% 144.4 5.30% 28.97 1.75% 208.79 10.68% 208.79 10.68%EX- INTRA 183.32 5.41% 35.42 4% 147.9 1.47% 144.4 5.30% 28.97 1.75% 173.37 6.96% 356.69 11.99%


BT- ADJACENT REGION 24.71 5% 80 4.50% 80 3.25% 190 4.23% 374.71 15.94% 374.71 15.94%EX- ADJACENT REGION 124.71 9.28% 24.71 5% 100 4.50% 100 3.25% 190 4.23% 290 7.34% 414.71 15.94%

BT- ADJACENT REGION 24.71 5.00% 142.1 3.71% 190 4.23% 356.81 12.39% 356.81 12.39%EX- ADJACENT REGION 147.91 8.57% 24.71 5% 123.2 3.76% 142.1 3.71% 190 4.23% 332.1 7.78% 480.01 15.69%


BT- INTERVENING REGION 35.42 4% 80 4.27% 80 2% 80 3.25% 190 4.23% 465.42 16.89% 465.42 16.89%EX- INTERVENING REGION 135.42 8.10% 35.42 4% 100 4.27% 100 3.25% 190 4.23% 290 7.34% 425.42 14.85%

BT- INTERVENING REGION 35.42 4.00% 142.1 3.71% 190 4.23% 367.52 11.47% 367.52 11.47%EX- INTERVENING REGION 183.32 5.41% 35.42 4% 147.9 1.47% 142.1 3.71% 190 4.23% 332.1 7.78% 515.42 12.77%

At Drawal Point (State)

At Injection Point (State)

Central Tx Utility N/w



State Tx Utility N/w

ADJACENT REGION TRANSACTIONTOTAL

NEW MECHANISM

ADJACENT(CH-HR)At Drawal Point

(State)At Injection Point

(State)State Tx Utility N/w





At Drawal Point (State)

INTRA REGION TRANSACTIONGeneration Connected to STU

INTRA (KAR-TN)At Injection Point

(State)Central Tx Utility

N/w

STATE KARNATAKA

STATE TAMIL NADU

STATE KARNATAKA

STATE HARAYANA

Generation Connected to STU

Generation Connected to STU

OLD MECHANISM

INTERVENING REGION TRANSACTION

STATE CHATTISGARH

STATE HARAYANA


Consumer Connected to STU


OLD MECHANISM

NEW MECHANISM

State Tx Utility N/wCentral Tx Utility

N/wCentral Tx Utility

N/w

TOTAL

INTERVENING ( KAR-ER-HR)

OLD MECHANISM

NEW MECHANISM


TOTALState Tx Utility N/w

Currently the transmission charges and losses are paid only by the beneficiaries (consumer). The new mechanism entails all users to pay transmission charges and losses for use, including the generators.

The new transmission pricing mechanism is beneficial and relatively cheaper for energy transactions in case of adjacent region and intervening region.

Encourage Generator and Consumers to connect with Central Transmission system for inter state sale & purchase respectively.

New Transmission Pricing Mechanism have an adverse impact on Intra State Energy Sale (huge increase in Transmission Charges).

Promote short term power transaction/Trading through Power Exchange (PX) and demotivate Bilateral short term power transaction/Trading.

STU Network is not the part of New Transmission Pricing Mechanism, therefore the effect of Pan-caking is not completely removed.

Typically wind resources are “embedded” in the state system. Wind Generators would benefit more from this new mechanism through better market access if the mechanism is applied at the state level.

Promote generation from solar based technology, as they don’t have to pay transmission charges and losses.

CONCLUSIONCONCLUSION

Steps followed in the implementation of the Hybrid Methodology

RegionRegion

State State

StateStateState

CLASS C

State

CLASS C

CLASS BCLASS A- Inter Regional Link

CLASS B- Regional Link

CLASS C- State Utility LinkInter Regional Link

CLASS A

Region

Categories of Transmission System

CLASS A : Inter Regional Link (CTU)CLASS B : Regional Network (CTU)CLASS C: State Utility Network (STU)

Procedure for Calculation of PoC Tariff

NOTE: Total Transmission Charges for each Class of network are predefined. Depending upon the voltage Class (400KV, 220KV, 132KV) & line length, the total

transmission charges for each line in that class of network is calculated. After carrying out real power tracing, the load & generator entities using these lines are

charged in proportion to their participation in the line flows.

Terminologies Used Length of line lm in Class A

Length of line lm in Class B

Length of line lm in Class C

Factor reflecting Voltage class for line lm in Class A

Factor reflecting Voltage class for line lm in Class B

Factor reflecting Voltage class for line lm in Class C

Locational Transmission price for ith load

Locational Transmission price for kth generator

Contribution of ith load in MW flow of line/element lm

Contribution of kth generator in MW flow of line/element lm

Receiving end real power flow on line lm

= ith load in MW

= kth generation in MW

= Load/Demand weighted aggregated locational transmission price for qth State

= Generation weighted aggregated locational transmission price for qth State

Aggregate rate for qth State

Locational Transmission Price of ith load

Locational Transmission Price of kth generator

Load of qth State

Generation of qth State

= Point-of-Connection charges in Rs/MW for loads in qth State

= Point-of-Connection charges in Rs/MW for generators in qth State

Defining the Total Transmission Charges for the particular Class of Network

1. Total fixed charges to be recovered from a Inter Regional Link – TSCA2. Total fixed charges to be recovered from a Regional link – TSCB3. Total fixed charges to be recovered from a State utility Network – TSCC

Calculation of Rate of a line in particular Class of Network

Calculation of Locational Transmission Price (Charges for Node)

Aggregation of Locational Transmission Prices to form Zones

=

=

is obtained by upstream tracing and is obtained by downstream tracing

Point-of-Connection Tariff for a State

Computation of Transmission Losses

Procedure :

1. Calculation of Marginal Loss Factor

The marginal loss factors are multiplied by the generation / demand at these nodes under base case,

2. Loss Allocation Factor for Generation and Demand Nodes

For Generation Node k i

Sharing of ISTS Charges & Losses Regulation “Point of Connection Transmission Pricing Methodology” Prepared By: Mangaljyoti Swapnil Nayak MBA- 6 th Batch.

Documents

state transmission charges

calculation of charges

ists transmission licensees

state transmission licensees

state transmission system

new transmission mechanism

losses regulations

central transmission