WELCOME TO ALL OF YOU

NEW TRENDS OF ELECTRICAL POWER INDUSTRY

OPEN ACCESS & DE-REGULATION

PRESENTED BY-
ABHISHEK VASHISTH
M.TECH (POWER SYSTEM)
Roll No.-08304EN023
 WHAT I AM GOING TO PRESENT-
Present scenario of Indian electric power industry
How can we manage power system efficiently?
Electricity act 2003
Concept of open access
Why open access?
De-regulation in power system
Effect of De-regulation
Role of regulatory commission
Present scenario of Indian electric power industry

30,500 MW
37,486 MW
2,506 MW

19,416
MW
16,000
42,420 MW

39,175 MW
RECENT INDIAN NETWORK DATA
GROWTH IN TRANSMISSION LINE
FEATURES OF THE ELECTRICITY ACT, 2003
An Act relating to generation, transmission, distribution,

trading and use of electricity to development of electricity

industry, promoting competition, protecting interest of

consumers and supply of electricity to all areas,

rationalization of electricity tariff, ensuring transparent

policies regarding subsidies, promotion of efficient and

environmentally policies constitution of Central Electricity

Authority,
 WHAT IS OPEN ACCESS?

One of the significant provisions of the Electricity

Act is “OPEN ACCESS”.

Open Access” means the non-discriminatory

provision for the use of transmission lines or
distribution system or associated facilities with
such lines or distribution system by any licensee or
consumer or a person engaged in generation in
accordance with the regulations specified by the
appropriate Commission.
 WHY OPEN ACCESS?

To invite private sector to invest in the power industry

To promote competition among the generating companies

To facilitate consumers to buy power directly from generators

To lead to availability of cheaper and reliable power supply

CATEGORY OF OPEN ACCESS-

(i) Long term open access user

Open access agreement for more than 2 years.
Nodal agency – State Transmission Utility (STU)

(ii) Short term open access user

Open access agreement for less than or = 1 year.
Nodal agency – State Load Dispatch Centre (SLDC).
 KEY ISSUES FOR OPEN ACCESS-

Ensuring the capacity in transmission and distribution system

Creating a multi buyer/multi seller environment
Determining cross-subsidy surcharges based on economic principles
Determination of transmission/wheeling prices
Determination of rules and regulations for power trading
Categorizing the consumers as LTOA and STOA
and determining the charges based on category
Determination of priority depending on category and congestion
ADVANTAGES OF OPEN ACCESS-

Gives freedom to user to buy power from any suplier

Assessment of Transfer Capability
Balancing mechanism
Methodology for transmission charge sharing
Treatment of transmission losses
Transparency and non-discriminatory implementation
Congestion management
 WHAT IS DE-REGULATION?

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.

 Electrical Power System

Generation Transmission Distribution

 WHAT IS DE-REGULATION ?

Power industry is undergoing restructuring throughout the world.

The traditional vertically monopolistic structure has been deregulated

and replaced by Gencos, Transcos and Discos with competition

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.

 INITIAL SET UP

GENERATION

TRANSMISSION

DISTRIBUTION

SINGLE MANAGEMENT
 RESTRUCTURED SET UP OF
DEREGULATION
GENERATION DISTRIBUTION
COMPANY-1 GOVT. COMPANY-1

OWNED
GENERATION DISTRIBUTION
COMPANY-2 TRANSMISSION
COMPANY-2
COMPANY

GENERATION DISTRIBUTION
COMPANY-3 COMPANY-3

INDEPENDENT POWER
REGULATOR
 Generator Generators
and Utilities

Scheduling Power Exchange

Coordinator

ISO

Transmission Utility Distribution

Energy Service Owner Company
Provider
 WHY DE-REGULATION?

To attract various investments to power systems through

open-access and fair competition so that power supply
can meet the fast growth of demand in developing countries.
To reduce government commitment to power industry,
To encourage efficient electricity production and
utilization through competition and electricity pricing
Mechanism
So the purpose of de-regulation or in practical term re-regulation
is to re-structure the Indian power network so the power generation
can reach to customer in a competitive way under regulatory
framework
Monopolistic Competitive
Power Market Power Market
Cost reduction

Security problem due to the nonutility companies

Need of Actual Transfer Capability Analysis

Need of Exact Model of Power Systems

Under Deregulated Environment
ROLE OF REGULATORY COMMISSION
 Conclusion
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 system
more reliable, efficient and flexible.
The open access market can improve the Indian power industry and
Indian economy also.