Electric Power Industry In Transition


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An interesting insight into how the electricity utility has undergone a major transition from a practising manager in the utility industry.

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Electric Power Industry In Transition

  1. 1. Changing global scenario of the utility business Himadri Banerji CEO RELIANCE ENERGY
  2. 2. Energy business Model - Transition from regulated to free market <ul><li>Legislative acts and laws through huge bureaucracy </li></ul><ul><li>Strict controls on quantity, technology, capital structure, imports etc. </li></ul><ul><li>Resulted in insulated industry, no competition, slow innovation, poor quality and high cost </li></ul><ul><li>Now moving towards a free market system </li></ul>
  3. 3. Generation EHV Transmission EHV Substations Power Transformers Contd... Existing Integrated Utility Structure (1)
  4. 4. Power Transformer 11KV Network Dist.Transformers Starting of LV Network HT Capacitor HT Consumers Contd... Existing Integrated Utility Structure (2)
  5. 5. LV Capacitor Fuse Section Pillar Mini Section Pillar COMMERCIAL INDUSTRIAL LV Cable Network RESIDENTIAL Metering System Existing Integrated Utility Structure (3)
  6. 6. Market innovations <ul><li>Global market growing towards retail sales. (Electricity pools). </li></ul><ul><li>Open access to transmission system </li></ul><ul><li>Emergence of power marketers who are buying cheap surplus capacities of utilities and selling at high price to areas of demand. </li></ul><ul><li>Tele-marketing of power by power marketers is also becoming the order of the day. </li></ul><ul><li>Forward and future contracts </li></ul>
  7. 7. <ul><li>More than just a low-cost provider </li></ul><ul><li>They want someone who will help them deal with the future </li></ul><ul><li>The energy provider needs to enable them to access the best in terms of technology, personalized service, reliability, and cost-effectiveness </li></ul>Customer Survey Results
  8. 8. Market Forces <ul><li>Demand for clean, reliable, quality power at affordable cost </li></ul><ul><li>Pressure from proactive consumers, dynamic consumer forums and strong environmental lobbies. </li></ul><ul><li>Encouragement to captive power generation left utilities with heavy swinging loads with poor load factor </li></ul><ul><li>Tariff revision becomes difficult and introduction of performance based optional tariff structure </li></ul><ul><li>Focus shifting from “Reactive” sales culture to “Proactive” sales culture. </li></ul>
  9. 9. Energy Business : Imperatives <ul><li>Till yesterday: monopolistic, cost-plus & promoted in-efficiencies </li></ul><ul><ul><li>To install physical plants </li></ul></ul><ul><ul><li>To serve the customers within franchise area </li></ul></ul><ul><ul><li>To meet the regulatory requirements </li></ul></ul><ul><ul><li>Returns based on physical assets installed </li></ul></ul><ul><ul><li>Commodity prices determined by regulators </li></ul></ul><ul><li>Now onwards : Competitive, price driven with incentive on efficiency </li></ul><ul><ul><li>Customers choose suppliers </li></ul></ul><ul><ul><li>Easy entry / exit for suppliers </li></ul></ul><ul><ul><li>Selectivity of interested areas of operations </li></ul></ul><ul><ul><li>Regulators imposes checks and balances </li></ul></ul>
  10. 10. Energy Business : Changes in business Models <ul><li>The international electricity business is undergoing very deep rooted changes, </li></ul><ul><li>moving towards unregulated electricity destiny </li></ul><ul><li>Deregulation, competition and environmental issues are posing serious challenges </li></ul><ul><li>The structure of central power station and T&D system is undergoing revolutionary changes. </li></ul><ul><li>Unbundling to generators, transmission system operators & distribution companies </li></ul><ul><li>Constant pressures from customers for performance enhancement, reduce costs, improve quality of power, meeting stricter emission norms. </li></ul>
  11. 11. New Utility Business Model Regulator Generators Transmission Utility Grid operators National Grid Distribution Consumers
  12. 12. Challenges to utilities <ul><li>Imperatives to adopt clean, environment friendly technologies in generation </li></ul><ul><li>Adopt technologies to reduce T & D Losses - Improvement in business performance with reduction in green house gas emission </li></ul><ul><li>Improvement in reliability and quality of power </li></ul><ul><li>Improve customer services especially accuracy in billing and ability to service billing and supply related complaints </li></ul><ul><li>Leveraging utility infrastructure </li></ul>
  13. 13. Turn challenges into opportunities <ul><li>to gather Market intelligence </li></ul><ul><ul><li>Knowledge about customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Market forces </li></ul></ul><ul><ul><li>Internal capabilities </li></ul></ul><ul><li>Changes in Business processes </li></ul><ul><ul><li>Move from technology to solutions </li></ul></ul><ul><ul><li>End-to-end information supply chain emerging - “Deliver the right information to the right user at the right time” rather than “ Provide all information to everyone” </li></ul></ul><ul><li>Utilities need to invest heavily in the processes and technologies that keep them focused on their customers’ value . </li></ul>
  14. 14. Opportunities to utilities in developing countries <ul><li>Will experience acute increased energy need due to escalating population & economic expansions. </li></ul><ul><li>Per capita consumption is five times lower in China & 10 times lower in India compared to western Europe. </li></ul><ul><li>Growth will be focused in these countries especially in cities primarily in Asia & South America. </li></ul><ul><li>Carbon trading </li></ul>
  15. 15. Utilities Leverages their strength to expand their business in other areas
  16. 16. Scottish Power Plc., UK Total Turnover : US $ 5 Billion Scottish power & Royal Bank of Scotland are to team up to offer customers an all-in-one service bundling utilities, telephone, internet, insurance and banking
  17. 17. Vivendi, France Total Turnover : US $ 37Billion Besides telecom, business areas include range of audio-visual services such as television broadcasting, cable / multimedia and film distribution
  18. 18. Suez Lyonnaise Des Faux, Belgium Total Turnover : US $ 37Billion
  19. 19. CMS Energy, USA Total Turnover : US $ 6 Billion
  20. 20. Leveraging infrastructure
  21. 21. Next generation home appliances :
  22. 22. Utility Investment trends <ul><li>World production is set to rise from 13 Million to 20 million GWH and installed capacity will rise from 2000 to 3600 GW in next 25 years. </li></ul><ul><li>Also there will be a requirement to replace 50% of existing generating capacity. </li></ul><ul><li>That means 75% of capacity requirement of year 2020 is yet to be built up. </li></ul>
  23. 23. Utility Investment trends… <ul><li>UHV and EHV AC / DC transmission system to match above capacity will need to be built up. </li></ul><ul><li>Interconnections between national grids with HVDC link </li></ul><ul><ul><li>allowing independent controls on voltages and frequencies, </li></ul></ul><ul><ul><li>yet allowing bulk power to be exchanged between nations </li></ul></ul>
  24. 24. Technology trends Generation
  25. 25. Generation <ul><li>Average efficiency of Coal fired plant ~ 25 to 38% </li></ul><ul><li>Gas fired power station ~ 60% </li></ul><ul><li>Need to improve the overall efficiency of coal fired plant </li></ul><ul><li>Efforts are on to develop new, high efficiency combustion systems using clean coal technologies </li></ul><ul><li>Aims to develop coal fired plant with thermal efficiency greater than 50% </li></ul>
  26. 26. Drivers for generation technology <ul><li>Cheap </li></ul><ul><li>Clean </li></ul><ul><li>Distributed </li></ul><ul><li>Peaking </li></ul>
  27. 27. Technology trends in generation <ul><li>Clean Coal technology </li></ul><ul><ul><li>CFBC </li></ul></ul><ul><ul><li>IGCC </li></ul></ul><ul><ul><li>PF+FGD </li></ul></ul><ul><ul><li>Low NOX </li></ul></ul><ul><li>High efficiency combined cycle plants with efficiencies crossing 60% </li></ul><ul><li>Renewable energy technologies </li></ul><ul><ul><li>Solar </li></ul></ul><ul><ul><li>Photovoltaic </li></ul></ul><ul><ul><li>Wind power </li></ul></ul><ul><li>Micro-turbines, fuel cells, distributed generation etc. </li></ul>
  28. 28. Fuel Cells <ul><li>For energy storage </li></ul><ul><li>Operates like giant rechargeable batteries </li></ul><ul><li>Stores energy when demand & costs are low and releases when demand & prices are high </li></ul><ul><li>Flattening of load curve - Better utilization of plant capacity </li></ul><ul><li>Removing the needs to call up more extensive power plants to meet the system peak </li></ul><ul><li>Effective use of intermittent renewable sources of energy like wind & solar </li></ul>
  29. 29. Fuel cells
  30. 30. Regynesys from National Power -UK
  31. 31. Transmission of Bulk power Trends
  32. 32. Flexible AC Transmission System <ul><li>In-built power flow controllers </li></ul><ul><li>High power semiconductors are used to generate a precisely controlled voltage </li></ul><ul><li>Control of active and reactive power flow </li></ul><ul><li>Eliminates the needs of large AC inductors / capacitance & Large substation area </li></ul><ul><li>High speed response </li></ul><ul><li>Optimal utilization of transmission lines </li></ul>
  33. 33. EHV / HV Urban Utility Networks <ul><li>Availability of Space </li></ul><ul><li>Transmission as near as load to improve reliability and T & D Loss </li></ul>
  34. 34. AIS vs GIS <ul><li>Compact </li></ul><ul><li>Total flexibility </li></ul><ul><li>can be located near the load centres </li></ul><ul><li>Allow more efficient network </li></ul><ul><li>Reliability </li></ul><ul><li>Outages </li></ul><ul><li>Integration with existing stations </li></ul>
  35. 35. Distribution Network Management Distribution Network Management Network Planning Business Management <ul><li>Primary electrical components </li></ul><ul><li>Selective protection </li></ul><ul><li>Topology design </li></ul><ul><li>Loss calculation </li></ul><ul><li>Energy balance calculations </li></ul><ul><li>Energy trading </li></ul><ul><li>Energy contracting </li></ul><ul><li>Energy forecasting </li></ul><ul><li>Investment calculations </li></ul>Distribution Automation (DA)
  36. 36. Distribution Automation Transmission automation Distribution automation Control center Control center Substation automation
  37. 37. Metering Management System <ul><ul><li>Automatic meter reading </li></ul></ul><ul><ul><li>Data storage / Evaluation / Reporting </li></ul></ul><ul><ul><li>Tariff control / Real time pricing </li></ul></ul><ul><ul><li>Planning and maintenance </li></ul></ul>
  38. 38. Integration in Automation Customers affected Substation SCADA Customer Customer Service Sales Accounting Control Center Engineering Asset Management Repair and Maintenance Reports Type of disturbance / Time to recover / No. of customers affected Reports Asset records Disturbance information Disturbance report Work Order Fault statistics Spares Real-time information Disturbance records
  39. 39. SCADA/DMS - GIS , a birds’ eye view Geographical info, Schematic diagram availability at central location addresses key operational concerns This ultimately leads to improvement in System Safety, Efficiency and Customer Service (Power Quality and Reliability)
  40. 40. Application systems for Utilities <ul><li>Network Planning </li></ul><ul><li>Business Management </li></ul><ul><li>Products, systems and </li></ul><ul><li>services for </li></ul><ul><li>Network Control Systems </li></ul><ul><li>Load Management Systems </li></ul><ul><li>Substation Monitoring Systems </li></ul><ul><li>Substation Automation </li></ul><ul><li>Distribution Management Systems </li></ul><ul><li>Metering Management Systems </li></ul>
  41. 41. Substation monitoring system Substations <ul><li>Substation configuration and monitoring </li></ul><ul><li>Relay setting and management </li></ul><ul><li>Condition monitoring </li></ul><ul><li>System maintenance and optimization </li></ul><ul><li>System analysis </li></ul><ul><li>Lower entry level for Substation Automation </li></ul><ul><li>separate user privileges for various user groups </li></ul>
  42. 42. Communication Radio systems Power and distribution line carrier Electrical telecom cables Fiber optic cables Transmitter Receiver Transmitter Receiver
  43. 43. Automatic Meter reading <ul><li>Reading of meter remotely </li></ul><ul><li>Use of communication medium or wireless </li></ul><ul><li>Implemented at AEC </li></ul><ul><li>On line monitoring and network control </li></ul>
  44. 44. Geographical Information System
  45. 45. Major issues confronting utilities today <ul><li>Distribution of existing data across various sites </li></ul><ul><li>Demand & constraints vs manual method of maintaining data </li></ul><ul><li>Size of database, its maintenance, updating and archival </li></ul><ul><li>Integration of data with other utility systems like SCADA,SAP, DMS, ICCUS etc. </li></ul>
  46. 46. Problem with manual system <ul><li>Physical condition of the documents </li></ul><ul><li>High cost to maintain </li></ul><ul><li>Duplication of records leading to…. </li></ul><ul><ul><li>Confusion over official records </li></ul></ul><ul><ul><li>Inaccuracy of the data </li></ul></ul><ul><ul><li>Time consuming effort for updating </li></ul></ul><ul><ul><li>Difficulty of keeping data current </li></ul></ul><ul><ul><li>Lack of easy access </li></ul></ul>
  47. 47. What is GIS?
  48. 48. GIS in Delhi
  49. 49. GIS for utilities
  50. 50. Capabilities of GIS & Mapping system Information Management Graphic Output Network Modelling AM / FM & Mapping System Intelligent Mapping Engineering Analysis Maintenance of Facilities Database Integration with Non-spatial database
  51. 51. Benefits of AM/FM System <ul><li>Asset management </li></ul><ul><li>Reduce the cost of maintenance </li></ul><ul><li>No physical maps to deteriorate </li></ul><ul><li>Integrate operations </li></ul><ul><li>New capabilities </li></ul><ul><li>Streamline the database across the organization </li></ul>
  52. 52. Global Positioning System
  53. 53. Global Positioning System (GPS) <ul><li>Satellite based radio navigation system </li></ul><ul><li>Developed and operated by US DOD </li></ul><ul><li>To determine three dimensional position (Longitude, latitude and altitude), velocity and time </li></ul><ul><li>Highest precision and accuracy </li></ul><ul><li>24 Operational satellites in 6 orbits at 20,200 Kms above the earth </li></ul><ul><li>Minimum six satellites in view to users anywhere in the world </li></ul>
  54. 54. GPS System
  55. 55. How GPS Works ?
  56. 56. Who uses GPS? Land, sea and airborne navigation, surveying, geographical exploration, mapping, vehicle location system, time synchronization etc.
  57. 57. Thank You The future’s not ours to see