The document discusses various challenges and opportunities in India's electricity transmission sector. It notes challenges in transmission planning due to uncertainties in generation sources and scheduling. Construction faces issues with land acquisition, statutory clearances, and skilled labor shortages. Implementation is challenged by tight commissioning timelines. Grid security and reliability pose ongoing issues around adherence to standards, congestion management, and protection systems. A transition to a market-based system through measures like general network access could help address some issues by providing generators flexibility while empowering states in transmission development.

1. 1
Challenges and Opportunities in the
Indian Transmission Sector
Devendra Chaudhry
Additional Secretary
Ministry of Power, GOI

2. Major Challenges / Opportunities
• Challenges / Opportunities in Transmission Planning
• Challenges / Opportunities in Construction, Development
& Technology
• Challenges / Opportunities in Implementation
Bureaucrats like to play Sudoku with words (read policy
statements) in a scheming manner (don’t‘ miss the pun),
economists like labour-capital-profit brew, lawyers - rules and
agreements and Power sector players – power and profit at
lightning speed; But none of them can succeed at their chosen
tasks unless they work together in designing sustainable
solutions.”

3. Structure of Indian Electricity Sector
3

4. Mother of all Challenges
Ensure adequate, secure,
reliable and efficient operation
of the national grid
4

5. Clearing & Settlement
OrganisationCTU
System
Operator
Market
Operator
RPC CERC Financial Regulator
STUSLDC OA
Customer
Transmission
Licensees
Generator Power
Exchanges/
Trader
Ministry of Power
Money Flow
Information Flow
Figure 7: Illustration of External transaction & Interaction for separate corporate entity for Clearing & SettlemenTRANS CHALLENGE
5
Open Access, Market Administration, Automation,
Large fund handling (10s of Billions), Single
window clearance, taxation etc.)
TRANS SYSTEM
DEVELOPER-BUILDER
FREE PLAY
FREE PLAY

6. Your friendly Electricity Act’03
• Promotion of competition and market mechanisms
as contained in the Preamble of the Act:
– taking measures conducive to development of electricity
industry,
– promoting competition therein,
– 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 benign policies
• Federal Structure of Governance - Electricity a
Concurrent Subject
6

7. Challenges in Planning
 Uncertainty in generation – Free Play dominated – lack of firm
scheduling. Butter to Fire: Procurement (State Players – hedging / hawing )
 Beneficiaries uncertain
 Intent for MTOA / STOA - rather than Long-term Access
 IPPs apply for connectivity/Access with target beneficiaries. When
time comes for firming up of beneficiaries, many of them change
their drawal points- Leads to either under utilisation of some of the
corridors or congestion in other
 Hydro power development in North-eastern Region
10TH PLAN 11TH PLAN 12TH PLAN
Pvt. Cap addition MW 7,120 23,012 46,825
Private share at end of
plan % / MW
12.9% / 17,113 27.2% / 54,276 31.8% / 101,101

8. Challenges in Planning …contd
 Most of the drawee utilities do not know want to actually plan their
drawal requirement….. YA KHUDA….
 Intra State generation time schedule gets deferred leading to increase
in drawl requirement from the grid – e.g, Punjab, Southern Region
constituents etc.
 Integration of large scale renewable generation into the grid
 high volatility – intermittency & variability : needs large balancing areas
through interconnections, flexible generation, smart grid application etc.
 System planned for peak requirement. Due to wide variation on
generation and drawal, loading on the lines reduces load to high
voltage situations – dynamic reactive compensation required to address
operational issue
 STILL WANT ADEQUACY, SECURITY, STABILITY AND TOTAL FLEXIBILITY
 Strong Grid before Smart Grid

9. Challenges / Opps. in Construction, Development & Technology
• Right-of-way: Development of 11 high capacity transmission corridors –
80,000MW
 765kV double circuit corridors (> 50% increase in length in 12P), 1200kV
UHVAC technology. 800kV 6000MW long distance HVDC system (world’s
longest; > 2000 ckm)
• Reduction in land for substation – Gas Insulated Substation(GIS)
• Flexibility in line loading and regulation of power –Wide variation in
demand on a daily/seasonal basis, there is increased need to regulate power
flow on the network for grid security and optimisation – application of Flexible
AC Transmission (FACT) devices, dynamic compensating devices
• RE Blessings! Coming to a Grid near you (12P end: 54,504 -17.1%)
PLAN VI VII VIII IX X XI XII
CKM 52,034 79,455 117,376 152,269 196,407 257,481 364,921
MVA 46,621 75,322 125,042 181,943 257,439 409,951 692,301
% CHG. 52.7/61.6 47.7/66 29.7/45.5 30.3/41.5 35/56 41.6/69.2

10. Challenges in Construction / Development
• Tight time schedule for commissioning of Transmission System
• Difficult terrain – hilly, North-eastern region, forest
• Statutory clearances
• Land acquisition
 Long procedures of Land Acquisition Act / Resistance by land owners
 Non-acceptance of rates fixed by State Govt./demand for higher rates
• Right-of-Way
 Resistance by villagers for installation of towers in their land / Demand for higher
compensation
• Forest Clearance
 Requirement of NoCs from various Deptts (Revenue, Irrigation, highways, PWD, etc.)
 Requirement of various certificates (FRA, minimum forest involvement)
 Land scheduling & Digitization of maps
 Long procedures of clearance in case of involvement of sanctuary/ National Park (SBWL,
NBWL, Supreme Court). Forest proposal is considered only after clearance of Supreme
Court.
 Compliance of conditions of Stage I approval at state level
• Skilled manpower – limited gang availability

11. Key factors going forward…
• Need for a re-visit of the current provisions for
Connectivity and Access
• Concept of ‘General Network Access’ or GNA
to be explored
• Challenge is to put in place a market friendly
transmission service product
11

12. Key factors…. (contd.)
• Availability, dependability and reliability
• The following factors affect the reliability of the
power system:
– More than a certain number of trippings per year.
– Faults causing more than one element tripping due to
undesirable operation of the protective systems.
– Multiple tripping of lines and/or generating units leading
to loss of generation and/or load.
THE OLCHALLENGE OF GRID DISCIPLINE
12

13. Challenge of Grid Discipline
• Grid Security is Paramount - Adherence to E A 2003- Grid
Standards, Grid Code and Regulations by all
• Transmission capacity Vs Transfer capability
• Tightening of frequency band : 49.95 – 50.05 Hz.
• Congestion charges for any outage
• UI LIMITS
• Frequency response – GOVERNOR MODE
• Penal realisations for Non – compliance – big issue –
operational vs financial
• SLDCs – RING FENCING REQUIRED
13

14. Protections Systems / Islanding
• Key to the safe and secure of the grid - Essential to isolate the
fault portion of the grid and limit the spread of the impact
• Protection operations in an un-intended manner leads to
tripping- a security hazard for the grid – ZONE 3
• Need for ensuring that the defense mechanisms such as
Under Frequency Load Shedding & Protection Systems EXIST
AND OPERATE WHEN NEEDED - Third party audit
• Islanding to ensure supply to essential loads / isolate power
plants with major load centers
• Delhi islanding scheme under implementation
• All states to implement islanding schemes/SPS in consultation
with the CEA, CTU, RPCs.
• NPC / TASK FORCE CONSTITUED AND FUNCTIONING
14

15. Strengthening & Capacity Building of SLDCs
• Load Despatch Centers the nerve centers
• Institutional re-engineering required
• Key to successful system operation – Ring fencing and “Soft Skills”
• State Load Despatch Centers must be manned by trained and competent
personnel.
• Basic Level Power system Operator Certification has been introduced in
the country and more than 500 operators have been certified. Suitable
incentive schemes for these certified operators are also being
implemented.
• Specialist Level Certification Examination in “Regulatory Affairs” has been
conducted in March 2013
• Specialist Level Certification Examination in “Reliability” has been planned
for March 2014
15

16. Telemetry & Communication Challenge
• Telemetry and Communication is a mission critical
resource for effective visualization of the Power
System
• Important role of telemetered SCADA data in
decision making at any Load Despatch Centre.
• Data modelling, simulation , analysis capabilities at
the Load Despatch Centers are to be developed
• New Technology – Phasor Measurement Units (PMU)
are to be integrated and used for the benefit of the
system operator
16

17. Market Challenge
• Competition is key to a successful electricity market
• Vibrant ? Electricity Market at inter-state level exists in
different market segments: Bilateral , Day ahead / 2 Xchanges
• Proof of Govt’s success – reflects high degree of public-private
partnership
• Going forward Operationalisation of Intra State Open Access -
Top agenda of Ministry of Power
– Intra State open access implemented in Gujarat, Delhi and
West Bengal
– Issue of CUSTOMER ESCAPE AND VIABILITY
17

18. International Market Models
• VIU: Vertically Integrated Utility
• LTSO: Legally unbundled Transmission
System Operator
• ITSO: Independent Transmission System
Operator
• ISO: Independent System Operator
Shallow ISO / Deep ISO
18

19. Global Trends in Electricity Transmission System Operation: Where does the future lie? -- Mallika
Chawla1 and Michael G. Pollitt2
http://www.eprg.group.cam.ac.uk/wp-content/uploads/2013/05/Draft-Project-2.pdf
System Operator structure worldwide
19
•Multiple operators in each country – 249 total
•North America, Australasia and Africa have VIU, in fact maximum in numbers.
•The two biggest operators – PJM and MISO are ISOs
•Independent system operator in only 38 countries – all EU (12) and some states of USA (14)
•In analysis in terms of Giga Watt of generation capacity connected to the transmission system it emerges that
out of about 4200 GW generation capacity: 2000 GW is VIU, 1200 GW is ISO, LTSO and ITSO add up together to
another 1100 GW

20. ISO Models:
Balancing, Operational & Deep ISOs
20

21. Organization Types
21
Sr. No. Countries Operation model Organization type
1 China VIU Government Company
2 South Africa
3 South Korea
4 Brazil Private Company
5 Japan Public Company
6 Belgium ITSO Government Company
7 UK
8 Italy Private Company
9 Spain Public Company
10 Australia ISO Government Company
11 Russia
12 USA (PJM, CALISO, MISO) Private Company
13 France LTSO Public Company

22. Electric Reliability Organization (ERO) in USA
• Focus on Reliability post disturbance in 1965 and 2003
• North American Electric Reliability Council (NERC) established in
1967 with Voluntary Compliance of Reliability Standards
• Electric Reliability Organization
– Mandated by Electric Power Act of 2005
– Mandatory Compliance of Reliability rules
– Primary Role is in framing Standards, Compliance Monitoring &
Enforcement
• Compliance Monitoring & Enforcement
– Self Certification, Self Reporting, Periodic Data Submission, Exception
Reporting
– Compliance Audits, Spot Checking
– Complaints
• North American Electric Reliability Corporation (NERC) designated
ERO in 2008 (Council was Corporatized)22

23. Dancing with the Elephants
Building the Network and using it…
23

24. CEA 24
Statutory provisions: Tariff Policy – RULES OF
THE GAME
• Ensuring optimal development to promote
efficient utilization of generation and
transmission assets.
• Attracting investments in transmission sector
and providing adequate returns.
• Implementation of transmission projects
through competitive bidding at appropriate
time.

25. CEA 25
Existing Transmission Products
• Connectivity: No charges & no commitment to provide
access – no strengthening
• LTA - 25 years commitment to pay PoC injection and drawal
charges. / MTOA: 3 months to 3 years. / STOA: up to 3
months in advance and on the same day.

26. CEA 26
Issues in existing approach
• CERC regulations allow system strengthening (fresh
investment) on the basis of commitment to pay i.e. LTA.
No system strengthening can be done against connectivity,
MTOA or STOA.
• Existing philosophy - long term PPAs predominant. Short
term market shall be catered through available margins.
• There is no clear formulations in CERC regulation on when
drawal capacity for the states would be created.
• Historically, additional drawal capacity for the states was
created whenever new central/ISGS power projects came
up with know beneficiaries.
• LTA (target region) is an onerous financial liability without
commensurate benefits to the generators.

27. CEA 27
Issues in existing approach: Drawal above LTA 2011-12
(All India)State
Max. Peak
Demand
Met (MW)
Max Drawl from
ISTS (MW)
LTA
Quantum
(MW)
Difference (MW)
of Max Drawl and
Allocation (MW)
UP 12048 8217 4688 3529
Maharashtra 16765 7343 3963 3380
Punjab 8751 6027 3095 2932
Madhya Pradesh 8505 5000 2689 2311
Haryana 6725 4735 2554 2181
Tamilnadu 11053 4315 2739 1576
Rajasthan 7690 3975 2483 1492
West Bengal 7249 2694 1302 1392
Andhra Pradesh 11972 3618 2453 1165
Orissa 3792 1955 1023 932
Delhi 5642 4295 3376 919
Kerala 3337 2024 1312 712
Karnataka 8549 2722 2067 655
DVC 2470 797 154 643
Uttrakhand 1620 1217 723 494
Jharkhand 1052 866 469 397
Chattisgarh 3134 1356 984 372
27

28. CEA 28
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
% Drawl above LTA quantm

29. CEA 2929
-500
0
500
1000
1500
2000
2500
3000
3500
4000
UP
Maharashtra
Punjab
MadhyaPradesh
Haryana
Tamilnadu
Rajasthan
WestBengal
AndhraPradesh
Orissa
Delhi
Kerala
Karnataka
DVC
Uttrakhand
Jharkhand
Chattisgarh
Gujarat
Bihar
DD
Assam
J&K
Chandigarh
Goa
Meghalaya
Nagaland
Tripura
Mizoram
Arunachal
DNH
Manipur
Sikkim*
Pondicherry
HP
Drawl Pattern of States
Difference (MW) of Max Drawl and Allocation (MW)

30. CEA 30
Issues in existing approach: Growing short term trade
30

31. CEA 31
Towards an all
India
mesh???????
31
Rs. 75,000 Crore
already underway
involving 11 nos
of High Capacity
Corridors – no
PPA known!

32. CEA 32
What should be the new approach?
• Planning must and that too with a fair degree of certainty
• Catch 22: without prior knowledge of pairs of injection and
drawal.
• A GNA agreement with generators could become the driver
for investment ?.
• How about a GPA – General Purchase Agreement with the
procurers / traders for the long term?

33. CEA 33
Possible Benefits
• Market friendly transmission service product
• More accountability of planners to anticipate
and remove congestion / improve system
reliability
• Generators get all India access with flexibility
• States empowered to determine their GNA
requirement and get the ISTS built for it.
• ++++++++++++

34. CEA 34
GNA : Features
• Entities availing GNA shall have to commit to pay such POC charges
(injection or drawal) for 25 years as may be prescribed by CERC
• Charge rate ? – 1 lac INR / month / MW?
• GNA holder shall have the option to be scheduled as preferred
customer provided the counter party is also having GNA under
?????:
– LTA category
– MTOA category
– STOA category
– Access through PX
GNA holders having PPAs of more than three years could be
entitled under LTA category. They may seek reservation under
MTOA / STOA category. Similarly for GPAs?
34

35. CEA 35
GNA/GPA: Planning & Implementation
• Import/export requirement to be assessed at least
with 4-5 years in advance - STUs TO ENSURE
• For grant of GNA / GPA
– Generator will not have to specify drawal points
– Drawee entity will not have to specify injection points
• Entities seeking GNA / GPA shall have to sign
agreement, furnish BG etc. for enabling
implementation of the transmission system
35

36. CEA 36
the path difficult to travel….
1) CERC to modify regulations on Connectivity, LTA
& MTOA to introduce GNA concept- CERC
2) The planning procedures pertaining to GNA to
be incorporated in Grid Code- CERC
3) CTU along with CEA & POSOCO to workout
present GNA capability - CTU
4) States shall have to sign the GNA with CTU to be
treated as preferred customer- States/ CTU
36

37. 37
We delight at the beauty of the Butterfly
but rarely appreciate the changes it has
gone through….
We have great challenges but should we
overcome them our butterfly will be the
most beautiful in the world!!!!!

38. 38
Thank You
and Enjoy the Sea
There are no transmission
system issues there !!!!!!!!!!!
and the Beach….