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5th Annual Conference on

Power Transmission in India
Requirements, Plans, Technologies and Regulation

April 30 – May 1, 2012

Key Trends and Outlook

Agenda

• State of the Sector
• Plans and Achievements

• Market Structure
• Regulations
• Technology Trends
• Issues and Challenges
• Conclusion
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513 350.000 150.000 383.862 292.000 2007-08 2008-09 2009-10 2010-11 2011-12 Growth in Substation Capacity 450.000 200.000 345.Sector Size and Growth Growth in Line Length 300. intrastate has grown at 5% only • Substation capacity grew at a CAGR of 9% between 2007-08 and 2011-12 − Interstate transformer capacity grew at a CAGR of 14% while intrastate at a much lower 7% 250.000 MVA 300.000 273.000 210.000 150. km 200.000 274.536 • The transmission line length has been growing at a CAGR of 7% between 200708 and 2011-12 ct.000 100.000 − Growth driven by 400 kV lines 50.467 254.000 50.000 2007-08 2008-09 2009-10 2010-11 2011-12 3 .004 222.465 400.746 236.882 250.000 100.051 − 765 kV line length has doubled between 2009-10 and 2011-12 − While interstate transmission lines have grown at a CAGR of 11%.891 310.

682 20.098 25.0 30.0 148.0 200.000 150.432 7.0 9.6 10.000 140.0 % MVA – 400 kV level has witnessed a higher growth than 220 kV level 35.000 • However.4 50.0 0.0 80.000 140.000 10.0 118.000 20.283 31.0 100.000 28.3 40.2 - – 765 kV lines have grown at a CAGR of 29% between 2007-08 and 201112 5.000 20.000 9.0 % ct.000 15.0 765 kV 500 kV HVDC 400 kV Line length 220 kV – Powergrid is setting up the first 800 kV HVDC line (Biswanath-ChariyaliAgra Bipole) Growth Substation Capacity 250.0 60.500 - 5.6 • Similar trends are visible for the substation capacity as well 25.0 7.0 100.km 120.000 13. the trend has been a movement towards higher voltage levels 15. followed by 400 kV 30.057 4.Voltage-wise Break-up of Transmission Network Line Length 160.295 9.9 • The transmission network is dominated by 220 kV lines.000 221.000 35.200 kV S/C line 0.0 765 kV 400 kV Substation capacity 220 kV Growth 4 .0 – Aurangabad-Wardha 400 kV Quad D/C line has been designed such that it can be converted to 1.0 12.

050 MW 15.000 MW in the 12th Plan. interregional links of about 38.Interregional Transfer Capacity Growth in Interregional Transfer Capacity 25.000 End of Ninth End of Tenth Plan Plan 2007-08 2010-11 2011-12* * As of December 2011 • The inter-regional transmission capacity stood at 23.750 20.000 MW capacity are planned to be added during this Plan period 5 .950 14.000 10.000 5.750 2008-09 2009-10 23.000 22.000 16.350 20.050 5.750 MW as of December 2011 − Growth has been slow over the past 3-4 years • Considering a capacity addition of 76.750 20.

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 6 .

139 30.288 ± 500 kV HVDC 765 kV - Programme 400 kV 220 kV Achievement • Around 130. km) 60.000 ± 500 kV HVDC 765 kV Programme 400 kV 220 kV Achievement 7 .122 • The total programme for the Eleventh Plan was around 84.000 ct. km line length has been added implying 82% achievement 66.530 3.000 13.387 52.654 64.560 2.000 26. km and 2.500 1.750 60.000 1.000 • More than 69.000 40.700 ct.000 30.484 2.396 50.269 3.066 40. km line length and 134.000 32.000 MVA substation capacity 20.500 6.275 • Private sector (through JVs) has contributed 3.000 40.000 20.000 10.000 60.Eleventh Plan Targets and Achievements Transmission Line Length (ct.000 ct.000 49.000 MVA substation capacity has been added implying 97% achievement Substation Capacity (MVA) 70.000 10.197 MVA • 765 kV and ± 500 kV HVDC levels have seen good growth during the Plan period 50.

440 10.000 20.000 MW of inter-regional capacity is expected to be added during the 12th Plan • Huge growth in 765 kV transmission lines and substations planned for evacuation of bulk power 8 . Rs 550 billion by state sector and Rs 250 billion by private sector • Total substation capacity addition during 12th Plan expected to be 270.000 MVA • HVDC capacity of 13.000 40.000 ct.000 35. km 30.000 27.000 0 765 kV 400 kV 220 kV +/.000 billion by central sector.000 MW expected to be added during the 12th Plan period • Around 38.Twelfth Plan Targets Twelfth Plan Targets for Transmission Capacity 38.800 billion – Rs 1.000 9.800 HVDC and +/500 HVDC • Investment required for 12th Plan estimated at Rs 1.000 MVA taking total capacity at end of 12th Plan to more than 640.

227 48.090 Sikkim 9 2.210 55 56.045 23.540 4.Planned Transmission Corridors Cluster Installed capacity (MW) Number of IPPs LTOA granted (MW) Corridor cost (Rs million) Orissa 7 10.090 6.987 NA Vemagiri 4 5.358 2.400 5.080 87.760 29.860 Cuddalore/Nagapattinam 3 3. of more than 60.000 MVA capacity • Four HVDC terminals of 7. km – more than 70% will be 765 kV lines • Planned substations .600 3.570 Srikakulam 2 3.358 13.650 Tuticorin 2 2.29 nos.610 Chhattisgarh Total • Powergrid is constructing 11 high capacity transmission corridors.240 Krishnapatnam 4 4.485 15.600 2.160 12. at an estimated cost of Rs 580 billion to facilitate power transfer from various upcoming IPP generation projects • Planned transmission lines: 23.881 580.185 288.526 9.040 Bilaspur and Madhya Pradesh 6 4.072 20.430 13 15.000 MW capacity also planned 9 .973 48.570 2.000 ct.520 Jharkhand 5 4.084 57.960 3.370 4.150 NA IPPs in Southern Region - 11.

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 10 .

Market Structure Cost plus Tariff Central Transmission Utility State Transmission Utilities Joint Ventures Tariff-based Competitive Bidding Private Players 11 .

Reliance.BS TransComm and Simplex Infrastructure Consortium: 1 project – Indiabulls • Five projects in pipeline • Six Joint Ventures with Powergrid – Tata Power. Torrent. Teesta Urja. and ONGC Tripura Power Company • Eight projects awarded through bidding route – Haryana: 1 project – Rajasthan: 5 projects – Uttar Pradesh: 2 projects 12 . Jaiprakash Hydro.Private Sector Participation Interstate Transmission Projects • Seven Independent Power Transmission Companies Intra-state Transmission Projects • 3 Joint Ventures with State Transmission Company (Mahatransco) – RPTL: 3 projects – JSW Energy – STL: 3 projects – Adani Power – Patel Engineering.

0 Tiroda WRSSS-II 43.0 9.0 Mundra Talcher-II 15.Private Sector Participation RPTL’s Transmission Projects Adani Power’s Transmission Projects North Karanpura 16.8 13.9 Parbati-Koldam 10.0 0 5 10 15 20 Sterlite Technologies’ Transmission Projects East-North Interconnection Independent Power Transmission Project 13 30 40 50 15 • WRSSS-II project of RPTL has seen the commissioning of 5 lines (500 km) – entire project expected to be commissioned in 2012 • Five more projects worth Rs 65 billion identified for competitive bidding 10 JV Project 20 • Seven interstate transmission projects awarded under competitive bidding so far 18 0 5 10 Investment (Rs billion) 10 Investment (Rs billion) Investment (Rs billion) System Strengthening of the Western Region Transmission System System Strengthening Common for Western Region and Northern Region 0 20 – Powergrid has emerged the lowest bidder for two of these (Vemagiri and Nagapattinam Cuddalore) 13 .

0 Jaypee Essar Power Teesta Urja JSW Energy Kalpataru and Techno Electric • Almost a dozen transmission systems associated with private generation projects being developed by private players either independently or in JV with the CTU or STUs • Maharashtra.0 6.Private Sector Participation Transmission Projects of other Players 12.5 3.0 7.300 km of lines at investment of over Rs 25 billion – Three projects in Maharashtra (one is operational) being executed in JV with the STU – Projects in the remaining states have/will be awarded through the bidding route 14 .6 8.0 0.0 4. Rajasthan and Uttar Pradesh have implemented PPP in state level transmission projects involving over 4.0 10.0 10.2 3.0 Torrent Power Patel Engg. Haryana. BS Transcomm and Simplex Infra 2.0 3.0 Investment (Rs billion) 8.8 4.

5 25.1 31.0 29. line length grew at 4.3%.234 MVA of transformer capacity as of March 2012 • Mahatransco incurred the highest capital expenditure at Rs 29. Karnataka and Rajasthan account for around half of the total intra-state line length • While intra-state transformer capacity grew at a CAGR of 7.6 38. and Tantransco and KPTCL at Rs 17 billion 15 .0 23.0 41.2 26.0 10.8 27.0 41.7% (2007-08 to 2011-12) 82. km 40. Gujarat.State Transmission Utilities Line Length of State Transcos 50.8 30.641 ct. AP. UP.3 KPTCL 49.0 '000 ct. AP and TN account for more than 50% of the total intrastate transformer capacity – Maharashtra and Chhattisgarh have HVDC transformer capacity • Gujarat.0 40 38. km of transmission lines and over 483.2 20 MP Transco TANTRANSCO AP Transco UPPTCL 0 GETCO • Maharashtra.5 RVPN 51.1 20.4 36.0 TANTRANSCO UPPTCL MP Transco RVPN KPTCL AP Transco MSETCL GETCO 0.4 billion during 2010-11 followed by RRVPNL at Rs 20 bilion. Maharashtra.0 Substation Capacity of State Transcos 100 49.6 60 34.6 MSETCL '000 MVA 80 • STUs accounted for 323.

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 16 .

Key Regulations and their Impact • Point of Connection method for sharing the cost of and losses in the interstate transmission system (ISTS) implemented from July 1. direction and quantum of power flow • PoC tariffs based on load flow analysis and capture utilisation of each network element by the customers Transmission Tariff • All designated ISTS customers are default signatories of TSA. ensuring payment of PoC charge for use of the network • As per amendment introduced in March 2012. 2011 • New pricing framework sensitive to distance. there will be 3 slab rates for injection and demand PoC charges till 2013-14 • The implementing agency will aggregate PoC charges for geographically and electrically contiguous nodes on the ISTS to create zones within the state boundary and arrive at a uniform zonal rate • Any interstate generating station directly connected to the 400 kV ISTS will be treated as a separate zone and not clubbed with other generator nodes Connectivity and Open Access • Generation stations granted connectivity to the grid allowed to inject infirm power into the grid during testing upto 6 months after first synchronisation • The CTU or transmission licensee to take up construction of dedicated transmission line in phases after ensuring that advance payment for main plant equipment orders have been made (for 500 MW and above thermal plants and 250 MW and above hydro plants) 17 .

5 Hz UI Charges Amendment – A maximum UI charge of Rs 9. the schedule of all beneficiaries will be reduced on a pro-rata basis IEGC • For new wind energy plants.0 per unit is applicable at grid frequencies below 49. below 49.Key Regulations and their Impact • The recent amendment has tightening of the operational frequency band from ‘50.5 Hz – 20% of the maximum UI charge.7 Hz’ aimed at ensuring better operational performance of the grid • In the case of forced outages of generating units.2 Hz – 40% of maximum UI charge.7 Hz – Additional UI charges: 49.2 to 49. there is no such band and all fluctuations for new solar power plants have to be borne by users of the interstate grid • Allows new wind energy generators to fine tune their schedules.5-49.2 to 49. as close as three hours before actual generation • High UI charges as deterrent for overdrawl from the grid – UI charges specified in the frequency band of 50. based on forecasting. 49.7-49.5 Hz’ to ‘50.2 Hz – 100% of maximum UI charge 18 .2 to 49. all fluctuations within ±30% of the schedule will be borne by all users of the interstate grid • For solar power.

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 19 .

• Tower design improvements – Compact/pole type towers for to tackle RoW issues Others – Multicircuit towers • Substation automation • Compact substations .Technology Trends • Necessitated by the need to increase the MW flow per metre of RoW Move to higher voltage levels • First line (Biswanath Chariyali .Agra bi-pole line) at 800 kV HVDC level expected to be completed by August 2013 • Powergrid engaged in developing the 1. Madhya Pradesh • Increasing the thermal capacity of the conductors and use of high temperature low sag (HTLS) conductors to increase transmission capacity Conductor configurations and materials • High Surge Impedance Loading (HSIL) technology to increase the load of the lines • Low resistance conductors (AL59 alloy conductors) and dull surface finish conductors are some of the upcoming kinds of conductors.gas insulated switchgear 20 .200 kV transmission system – UHV AC test station is under development at Bina.

Smart Grid Initiatives in Transmission Key Initiatives by CTU • Key smart-grid technologies deployed in transmission: – Synchronized Phasor Measurements using Wide Area Monitoring Systems like PMUs – Self Healing Power Systems – Adaptive Islanding Systems • Remote operations of substation – 27 unmanned substations as of today – Setting up of National Transmission Monitoring Centre (NTMC) by 2013 – Remote monitoring and operation of 192 Substations • Powergrid has commissioned 8 PMUs in the northern grid under the first WAMS pilot project – Pilot projects being implemented in other regions: Western Region (25 PMUs). Southern Region (6 PMUs). North Eastern Region (6 PMU) – Power grid plans to cover all 400 kV and above substations by installing around 1.000 PMUs by 2015 21 . Eastern Region (25 PMUs).

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 22 .

Issues and Challenges Demand Centres Generation Centres Need for bulk power transfer over long distance through strong national electricity grid 23 .

PoC tariffs. particularly in hostile terrains • Bidding process takes a long time which adds to the transaction costs of prospective developers • Coordination with generation projects.Issues and Challenges • Delays in land acquisition. environmental and related statutory clearances Procedural delays • Equipment deployment. and open access transactions cannot be effectively facilitated • PoC tariffs if implemented at the state level could make transmission investments self sustaining 24 . use and repair. power cannot be fully transported from surplus to deficit areas. private participation in transmission has been limited Limited private sector participation • Private sector players have concerns regarding a level playing field • Steps like standard bidding documents. will provide confidence • Investments in intra-state transmission networks have been inadequate Inadequate investments • Due to network constraints. payment security mechanism etc. obtaining right of way (ROW). so that the transmission system comes up in tandem with the generation capacity Lack of coordination • Transmission networks can be better planned when the allocation of generation projects is decided in a holistic manner • Merchant capacities and renewable power pose their own challenges • Unlike generation.

Agenda • State of the Sector • Plans and Achievements • Market Structure • Regulations • Technology Trends • Issues and Challenges • Conclusion 25 .

Summing Up • 76.000 MW by 2017 Generation capacity addition National grid Emerging requirements Technology upgradation • Move to higher voltages including 765 kV. power trading.000 MW planned capacity addition in 12th Plan • Generation and load centres dispersed • High amount of renewable power capacity coming up • Open access. ERP 26 . SCADA. 800 kV HVDC and 1.200 kV • Smart grid projects • GIS substations. ABT regime are new sector challenges • Transmission investments in increasing system redundancies and a strong grid • Synchronisation of all regional grids to ensure seamless flow of power • Targeted increase in interregional capacity to 75.

Thank You .