TCIL 26 Power Sector Reforms & IT_1807200

8/4/2019 TCIL 26 Power Sector Reforms & IT_1807200

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Power Sector Reforms &Information Technology



A genda

Need for Reforms

Reforms in Power Sector

Regulations

Impact

Role of IT

System Overview



Need for Reforms

Objective of integrated National Grid

5 regional grids working at varying grid frequency

Integration needs Frequency Normalization means proactive load management

A lternative Insulation thro HVDC links Expensive

Regional surplus & shortages

Surplus in east and shortage in south

Continued functioning at non-standard grid frequency

Damage to Generator & End User equipment

Hidden cost passed to customer in long term



Central Vs State Generators

Capital cost Vs Variable cost

Beneficiaries not liable to pay fixed cost for their allocated

share if not drawing

Increased cost of energy for beneficiaries drawing energy

Generation even without demand

High grid frequency

Need for Reforms (contd)



Reforms in Power Sector



Reforms in tariff structure of bulk power

Better system operations

Better grid discipline

through commercial incentives & disincentives

Ideal Grid Frequency = 50 Hz

Objective



Reforms

Electricity A ct 2003

Replaced Electricity (Supply) A ct 1948

Regulations

A vailability Based Tariff ( A BT)

Merit Order Dispatch (MOD)

Plant Performance

Energy Management

SEB Trifurcation



Regulations



A vailability Based Tariff ( A BT)

Deals with tariff structure for bulk power

Performance based tariff for supply based tariff

System of rewards and penalties seeking to enforce day ahead

pre-committed schedules (One & One-half hours in advance)

Promote responsibility & accountability in power generation

Paradigm shift from max power to max reliability

A path to deregulated power market



A BT Components

Capacity charges (Fixed)

Payable against declared capacity of station for allocated capacity rather than actual

consumption

Full fixed charges payable at PLF of 68.49% Incentive @ 0.4 % of equity for each percentage increase between 70-85%. Beyond 85% it

is 0.3%

Energy charges (Variable)

A s per actual consumption

Unscheduled Interchange (UI) charges: Penalty that dependson severity of deviation. Payable/recoverable if:

Generator generates more, thereby increasing frequency;

Generator generates less than the schedule, thereby decreasing frequency;

Beneficiary overdraws power, thereby decreasing frequency;

Beneficiary under draws power, thereby increasing frequency



Merit Order Dispatch

Objective from maximum production to optimal production

Multiple unit power plant to identify optimum loading for

each unit to save on operational costs

Identify units to bring online / offline to meet plant demand

at minimum operating cost

Dispatching least cost power in preference to more costly

power



Trifurcation

State Electricity Boards (SEBs) trifurcated as shown

Holding Company

Generation

Company

Transmission

Company

Distribution

Company



Impact of A BT GENCO

Advanced control & monitoring systems to closely monitor ex-bus

output of plant

Generation should closely follow 15-minute schedule

Integrated information & communication system To capture data from all components

Unscheduled downtime is not very acceptable in the ABT regime

MOD to ensure economic operation

Cost of generation, ramping, start up & shut down of each unit varies

Performance calculation for each unit of plant Corresponding optimization to be done

Pro-active management plan

Unscheduled deviation from power generation schedule incur considerable penalties

Unexpected downtime of power plant should not occur



Impact of A BT TR A NSCO

Improved and efficient transmission systems

More generation capacity being added

Bottleneck in transmission to be avoided

Better forecasting systems

Vested with role of coordination between consumers & generators

Better communication and information systems

Communicate 15 min generation & consumption schedule to each party

Convey any unforeseen change in such a schedule

Improved metering & billing system

Ensure adequate metering capabilities for proper implementation of tariff structure

Specialized energy meters that keep track of 15-min energy aggregates & frequency for

each interval to take care of energy charges and UI charges



Impact of A BT DISCOM

Enhanced load forecasting system

Consumer expected to stick to schedule of 96 intervals of 15-minute for each day

Failure to comply will attract penalty - UI charges

Basis of entering into commercial agreements with generating utilities

Reliable communication and information infrastructure

Load forecasting solution highly reliant on historical data for accuracy

To ensure smooth coordination with RLDC

Provision for in-house generation

Captive power plants - going to be more & more popular during transition to

decentralized & deregulated power market



Business Objective

To generate & export electricity

Maximize output at lowest input

Maximizing returns require following A

BT demand curve

Eff iciency

Minimize Cost Maximize Returns

Input Output



Regulations Organization Mapping

Company

Power Plants

Units

ABT, Energy Management

Merit Order Dispatch

Plant Per f ormance



A BT Regime

Revenue calculation for GENCO depends on

A vailable capacity of plant

Implemented schedule

Grid Frequency

A ctual energy export

A pplicable tariff model

To maximize revenue & minimize input cost Generation to closely follow demand schedule

Optimal loading of plant units



Role of IT

Monitor various online real-time plant parameters from

different generating stations

Establish a full-fledged Generation Control Room for

performance diagnosis & optimization

Provide suitable connectivity between each power station

& Control Room



IT Solution



Software

HQ Level

A BT Optimization for UI Revenue Maximization

Economic Load Dispatch

Online Plant Performance Monitoring

Plant Level

Power Plant Monitoring for each Unit

Online Performance Monitoring & Calculation for each Unit

Merit Order Despatch (MOD) at Plant level

Dispatch Monitoring for Switchyard Energy Meters



ABT Optimization for UI Revenue Maximization

A bility to optimize tariff by maximizing UI revenue

Generate invoices on basis of total energy exported & applicable UI charges

A ccount auxiliary consumption of plant for billing purpose

A ccount for operations of Peak Load plants & grid maintenance

A ccount for cost of operating (Supply of Reactive power, Startup/ Stop operations)

plant for these purposes, as & when they are made applicable

Economic Load Dispatch

Calculate individual plant OLC schedule for all power plants

Provide online communication between LDC & GCR regarding generation schedule

Online Plant Performance Monitoring

Close monitoring of power plants & generating automatic deviation alerts at

appropriate times

HQ Level Functions



Plant Level Functions

Power Plant Monitoring for each Unit

Integrated information & communication system to capture unit data

Calculate various plant parameters for each unit performance.

Suggest operator for effects of varying plant parameters

Online Performance Monitoring & Calculation for each Unit

Monitor different plant parameters that may affect plant performance such as

superheat temperature, reheat temperature, inlet/ outlet temperatures, excess air

ratio etc.

Merit Order Despatch (MOD) at plant level

Support simulation facilities

Facilitate in determining optimal loading of plant units

Dispatch monitoring for switchyard energy meters

Close monitoring of switchyard energy meters to compare actual generation against

scheduled generation



Broad Workflow

Generation Capacity Estimation by Plant

Fuel Reserves Maintenance & Outage Information

Load Despatch Center

OLC

Tariff CalculationImplemented Schedule

ABT, PPA

Tariff Modeling

GenerateInvoice

MOD Engine

Load Forecasting

Plant Per f ormance

Day Ahead Schedule

Grid Management Variation

Actual Energy Export



Software Features - A BT

Open communication architecture

Easy to use configuration utility

Flexible tariff calculation & UI charges module

Invoices in user-defined format

Reports and trends

Exporting reports & other data

Collecting 15-minute block aggregate data from meters &

storing in A BT server

Monitoring actual generation Vs scheduled generation



Software features - MOD

Capability to handle multiple units

Use of historical data to generate a best-fit cost curve for the

unit

Configuring individual units with historical data and

operating constraints

Unit commitment approach based on maintenance schedule,

minimum up and downtimes to be imposed on each unit

A llows users to perform simulation



Communication Backbone

HQ

Plant

Plant

Load Dispatch

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APPLICATIO

I TERFACE

DATA ACCESS

CO TROL

DATA LA ER

DATA STORAGE

GEN. SCH. ENGINE

GEN. TAR. ENGINE

TARIFF MOD. ENGINE

REPORTS

TARIFF CALCULATION

QUER

DATA EXPORT

MODULE

Data Layer

ABT Engine

MANUAL DATA

DCS/DAS DATA

NON-DCS DATA

Generation Control Room

Parameters f rom

units in plants

System A rchitecture



Data A cquisition





Non-DCS Unit Implementation

RTU 1

Terminal Server

RTU n

MOD Server

MUX

Other data

RTU 2

Signal Splitter

Control

Room

Analog Cards Plotters

RTU / Data Concentrator

TransducersControllers

Router



Challenges

DCS Units:

OPC compliance (tag, value and timestamp)

Tags vary from unit to unit 1 tag list for each DCS - Depends on commissioning

Non OPC Compliant Interface Bus would require protocol gateways

A dditional licensing cost or additional one-time licensing cost for implementing protocol gateways

Non-DCS Units:

Synchronization between DCS & non-DCS units

Selecting minimum critical parameters to be monitored by GCR

A standard parameter list for all non-DCS units will not work

Parameters A nalog or Digital

Identifying location of critical analog signal

Parallel tapping of signal with without affecting current setup

Real time V/s Polling Frequency

Historical data availability



System Overview



System Components

Data A cquisition System

Communication Infrastructure at Plant

Communication Backbone

Communication Infrastructure at HQ

Software solution at plant & HQ level



System in nutshell

Data A cquisition

Capturing plant parameters

MOD Calculations

Calculating various plant performance parameters for each unit at plant

level

Data capture from A BT meters

Monitoring performance of each unit and plant in control room

A BT Calculations

Calculating applicable tariff for each beneficiary



Questions & A nswers



Thanks for your time &attention

TCIL 26 Power Sector Reforms & IT_1807200

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