Engr.

Salis Usman, General Manager, Power System Planning

National Transmission and Despatch Company
10th January 2020, WAPDA House, Lahore
 Today’s Focus
1. Where it all began?
2. Where do we stand today?
3. Major Challenges for NTDC
4. NEPRA Approves Market Model
5. Layout of Electricity Market
6. Mandate for NTDC
7. Mandate for NPCC

National Transmission and Despatch Company

 Objective of this Presentation
To set the perspective, particularly for NTDC
professionals and generally for power sector
professionals, with respect to understanding the
envisioned roles and responsibility under the
upcoming competitive wholesale power market
in Pakistan.

National Transmission and Despatch Company

 Pakistan WAPDA
1. WAPDA, a vertically integrated utility (1958)
2. Major functions of WAPDA Power Wing:
a. Power Generation
b. Power Transmission
c. Power Distribution

National Transmission and Despatch Company

 Restructuring of Power Sector

National Transmission and Despatch Company

 NTDC Mandate
1. NTDC was granted
license in 2002 under
section 17 of the
NEPRA Act 1997
2. “For the purpose of this
License the minimum
transmission voltage is
declared to be 220 kilo
volts and above”.

National Transmission and Despatch Company

 NTDC: A Major Stakeholder
Generation Transmission Distribution

500 kV 500 kV 132 kV Domestic

220 kV 220 kV 11 kV Consumer
WAPDA

` Commercial
Consumer

DISCOs
PAEC
NTDC Industrial
Consumer

Agricultural
Consumer
IPPs

K-Electric Public
Lightening

K-Electric Bulk Buyer

National Transmission and Despatch Company

 NTDC Responsibilities

1. System Planner

2. Transmission Network Operator

3. System Operator

National Transmission and Despatch Company

 NTDC Core Functions
The Wire Business
1. Transmission & Generation Planning
2. Project Development and Execution
3. Operation & Maintenance of Transmission Assets
4. Design and Engineering
System Operation and Despatch
1. Economic Generation & Despatch
2. Power System Operation and Control

National Transmission and Despatch Company

 NTDC Transmission Network
Grid Stations Transmission Lines Capacity
Category
Nos. km MVA
Existing System (2020)
500 kV 16 5,970 22,350
220 kV 45 11,322 31,240
Total 61 17,292 53,590

National Transmission and Despatch Company

NTDC Transmission Network 2020
NTDC Transmission Network 2025
 NTDC Transmission Network 2025
Grid Stations Transmission Lines Capacity
Category
Nos. km MVA
Existing System (2020)
500 kV 16 5,970 22,350
220 kV 45 11,322 31,240
Total 61 17,292 53,590
Future System (2025)
500 kV 24 12,633 39,150
220 kV 71 15,894 54,100
765 kV 1 500 3,600
±660 kV 2 (Converter Stations) 886 4,000
±500 kV 1 (Converter Station) 110 1,000
Total 99 30,023 101,850
 Major Challenges for NTDC
1. Upcoming ARE Policy 2019/2020
2. Upcoming Electricity Policy
3. Unprecedented transmission development plans
4. Effective Regulatory compliance
5. Sind Transmission and Despatch Company secures license from NEPRA
6. Implementation of Performance Culture and Institutional improvements
7. Setting up of R&D Function
8. Revamping of training function at NTDC
9. Development of NTDC Business Plan
10. IT revolution (ERP and many other initiatives)
11. Strengthening the CSR dimension
12. Right of Way issues
13. Revamping the Procurement processes
14. Upcoming competitive power market – more expectations
from NTDC

National Transmission and Despatch Company

NTDC Transmission Investment Plan
Feb. 2019
IGCEP Completed Ongoing To be Started
2040
Sep. 2019
Procurement of Jan. 2019
Modern Software
IGCEP
Nov. 2019 2047 Jun. 2020 Sep. 2020
Lahmeyer VRE Transmission Transmission
Study Expansion Investment
Feb. 2019 Plan 2047 Plan
Nov. 2019 Pakistan VRE
Longterm Forecast Locational
(EV+NPHS) Study
Jan. 2019
ARE Policy
2019

National Transmission and Despatch Company

 NEPRA Approves Market Model

National Transmission and Despatch Company

 NTDC in the Competitive Market

Stakeholders

Market Service
Participants Providers

Market System
Generators DISCOs
Operator Operator

Transmission Metering
BPC Suppliers Service Service
Provider Providers

Planner IAA

National Transmission and Despatch Company

 Layout of Electricity Market

System
Regulatory Planning Stakeholders
Operation
• Grid Code • Medium Term • Security • Generators
• Open Access • Long Term • Reliability • IPPs
• Licensing • Grant of • Scheduling • Transmission
• Tariff Access • Despatch Licensees
• Loss • Protection • Congestion • Distribution
Administration Coordination Management Licensees
• Payment • Standards • SCADA • Traders
Security • Metering • Ancillary • Power
• Dispute Services Exchanges
Settlement

National Transmission and Despatch Company

 Mandate for NTDC
1. Managing transparency in all the business functions
2. Data institutionalization
3. Metering (Completion, Fine Tuning of SMS at CDPs)
4. Strengthening of demand forecasting function
5. Strengthening of generation & transmission planning
6. Improving processes and structure
7. Amendments in Grid Code and
8. Proposing Connections Agreements
9. Awareness and Capacity building for market
readiness

National Transmission and Despatch Company

 Mandate for NPCC
1. Managing transparency in all the business
functions
2. Data institutionalization
3. Efficiency in the dispatch of power plants
4. Improving processes and structure

National Transmission and Despatch Company

National Transmission and Despatch Company
 Motivation

Effective compliance
with regulatory
requirements
minimizes any risks
involved with non-
compliance events.

National Transmission and Despatch Company

 Critical Strategies
1. Identify regulatory requirements as laid down
in the Licence and assess the risks associated
with each non-compliance event;
2. Ensure that NTDC staff is aware of these
requirements and their own roles and
responsibilities in this context; and
3. Provide a program, guidelines, and procedures
to facilitate efficient and effective compliance.

National Transmission and Despatch Company

 Regulatory Compliance Framework

National Transmission and Despatch Company

 How We Reached Here?

Independent Power Producers (IPPs)

1947-58 1958 1982 1994

Localized generation Provisional Electricity Departments

and distribution of were transferred to WAPDA and
power accordingly Area Electricity Boards
(AEBs) were established in 1982

National Transmission and Despatch Company

 How We Reached Here?

NEPRA Grid Code

1997 1998 2002 2005 2019

Power Policy 2002

IGCEP

National Transmission and Despatch Company

 Power Sector Hierarchy
Generation DISCOs
Portfolio

2002 & IESCO

onward IPPs
NTDC LESCO
CPPA-G
FESCO
GENCOs 1. System Operation Market Rules

2. Transmission
1. Market Operator GEPCO
2. Market Operations
WAPDA Network Operator
(Hydel) Commercial Code MEPCO
1. Meter Reading Verification
2. Billing
PPAs Grid Code 3. Settlements
SEPCO
4. Payments
1994 IPPs HESCO
(EPP & CPP) +UoSC+ MOF
(EPP & CPP)
+UoSC QESCO
Renewables Power Flow PESCO
Financial Flows
TESCO
EPP & CPP
(EPP & CPP) +UoSC+ MOF+ DM

National Transmission and Despatch Company

 Ownership Structure
Ownership Structure

Transmission and
Generation Distribution
Despatch

GENCOs
IPPs
+
+ National Transmission 10 K
WAPDA
K and Despatch Company DISCOs Electric
+
Electric
PAEC

Privately Privately
Owned State Owned Owned

National Transmission and Despatch Company

 NTDC Mission Statement
Contribute in the development of a prosperous
Pakistan by managing a stable, reliable and
economical transmission and despatch system
through professional excellence in terms of team
efforts and delivery

National Transmission and Despatch Company

 NTDC of Tomorrow
NTDC aims to be the best Transmission Company while
adopting best utility practices, ensuring Transmission
System Reliability and Safety and committed to become the
best service provider to the power producers, distribution
companies and bulk power consumers connected to its
Network.

Working to acquire new technologies including 765 kV AC

and ± 660 kV DC for better dispersal and transmission of
power.

National Transmission and Despatch Company

 Performance at NTDC
• Understand and communicate clarity on the purpose
• Follow rules yourself and then expect from others
• Ensure regulatory compliance proactively
• Have total faith in Allah Almighty & trust on team’s abilities
• Be brave to own your mistakes and failures
• Assess and review thoughts before shaping in ideas
• Manage your resources well – humans come first
• Acknowledge others’ performance specially of juniors
• Say No to tentativeness, comprising and pessimism
• Exhibit highest level of commitment with organizational goals
• Keep excelling and aim to stay at top – nothing short

National Transmission and Despatch Company

 NTDC: Existing Network

National Transmission and Despatch Company

 NTDC: Future Network

National Transmission and Despatch Company

 Financial Perspective
Tariff

1. Source of earning is Use of System Charge through

NEPRA tariff

2. Applicable tariff 2017-18 is Rs. 148.33 /kWh/month

3. KE and other few adjustments not allowed by NEPRA

4. Allowed losses @ 2.8% against demanded @ 3%

National Transmission and Despatch Company

 Financial Perspective
Financial Performance

1. 2016: Net after tax profit of Rs. 9,227 million

2. 2017: Net after tax profit of Rs. 10,585 million

3. 2018: Net after tax profit of Rs. 14,736 million

4. 2018: Current Ratio (Current Asset/Current Liability) = 1.48

5. 2018: Debt Equity ratio for 2018 = 86%

National Transmission and Despatch Company

 Factors for Electricity Market

 Robust Transmission System

 Control Area Demarcation & Boundary Metering
 Streamlined Scheduling and Settlement Mechanism
 Assessment of Transfer Capability
 Congestion Management
 Imbalance Handling Mechanism
 Methodology for Transmission Charge Sharing
 Treatment of Transmission Losses
 Transparent and Non-discriminatory Implementation
 Compliance Monitoring and Regulatory Oversight
 Dispute Redressal Mechanism

National Transmission and Despatch Company

 Competitive Regime

National Transmission and Despatch Company

 STDC features
1. "Transmission Business" means
planning, development, construction and
maintenance and operation of
transmission facilities;
2. The term is thirty (30) years;
3. The Licensee shall comply with the
provisions, terms & conditions of the
Grid Code;
4. The Licensee shall adhere to the IGCEP;
5. The Licensee shall offer its transmission
and inter-connection services to NTDC

National Transmission and Despatch Company

 STDC License Granted

National Transmission and Despatch Company