This document summarizes the key points of India's National Electricity Policy and National Tariff Policy. The National Electricity Policy, introduced in 2005, aims to achieve universal access to electricity, meet the growing demand, improve quality and availability, and ensure the financial viability of the electricity sector. It also focuses on issues like rural electrification, generation, transmission, distribution, and private sector participation. The National Tariff Policy, introduced in 2006, provides the framework for determining tariffs and aims for fair returns while protecting consumers. It outlines approaches for tariffs related to generation, transmission, distribution and cross-subsidies.
for Subsidy from Central Government under Ministry of Textiles, Food Processing, Tourism, Industrial Parks & Affordable Housing
• Innovative solutions for enhancement of FSI, Zone Change,& Value Maximization
for Subsidy from Central Government under Ministry of Textiles, Food Processing, Tourism, Industrial Parks & Affordable Housing
• Innovative solutions for enhancement of FSI, Zone Change,& Value Maximization
Utility (Power) Distribution Franchisee Business in India - Basic Information for understanding with focus on "Input & Investment" Model
This presentation is for Education purpose only.
Aemo victoria to new south wales interconnector upgrade rit t padr 2019Power System Operation
The energy landscape across the National Electricity Market (NEM) is changing rapidly. Strong investor interest in renewable generation continues to shift the geography and technical characteristics of supply, while it is anticipated that an aging fleet of existing conventional generators will progressively withdraw from the market over the coming decades. Furthermore, consumer behaviour is evolving and the increasing penetration of distributed energy resources (DER) is changing the nature of ‘demand’ while also providing new opportunities to address Australia’s energy transformation.
This energy transformation is already having a dramatic impact on the utilisation of the existing power system. It is, for instance, increasing network congestion in some areas, while also increasing the system’s reliance on interconnections between regions. Well-targeted and timely investment in the transmission network is required to keep pace with these changes and provide consumers with the most cost-effective energy outcomes.
AEMO’s 2018 Integrated System Plan1 (ISP) sets out an optimised national pathway for development of the power system that would maximise the value from new and existing resources across the NEM, while delivering energy reliability at the lowest cost to consumers.
The ISP identified that immediate action was required on several fronts, and designated these as priority ‘Group 1’ projects. This group included the need for increases to the transfer capability between Victoria and New South Wales.
Transfer between these two states is currently restricted by thermal, voltage stability, and transient stability limitations. Without investment, these limitations will result in the northern states having limited access to lower-cost generation from the southern states, preventing reductions in the underlying economic cost of generating electricity across the NEM, and increasing the requirement for new generation investment to maintain adequate supplies.
Economy and Energy Security for Pakistan -What lies ahead
The Economic Survey of Pakistan recognizes that during 2012 around 2 percent of gross domestic product (GDP) was lost due to the power sector outages.
The petroleum crude and products contributed to a third of total imports of Pakistan during 2012
The transmission and distribution (T&D) losses were valued at PKR 140 billion in 2012
Issues being currently faced can be categorised into policy, governance, technical and cost issues
Newsletter by E-Cube Energy with focus on India and Energy Efficiency. In this edition we cover an interesting mix of topics from policy issues around PAT Scheme to use of Data Analytics to foster energy efficiency.
Geographic regulation and cooperative investment in next generation broadband...Roberto Balmer
Alternative telecommunications operators have continuously invested in their own infrastructure in recent years. After more than a decade since liberalization, competitive conditions have substantially changed, especially in urban areas. European regulatory authorities have acknowledged this development by starting regional deregulation. Additionally, different forms of cooperative investments in next generation broadband have appeared on the market. The effects of such schemes on competition, investment and welfare crucially depend on the fine details of implementation. For instance, in the case of joint ventures, it matters how investment costs are shared and how internal and external access prices are determined. In the case of long-term access agreements, it is essential to consider how access tariffs are structured, whether they can adapt to market developments ex-post and whether contracts are signed before or after the investment takes place. Generally, many of these agreements allow some extent of risk sharing, offering the possibility to increase investment incentives when firms are not risk neutral. This article reviews the theoretical and empirical literature on geographic regulation and co-investments in next generation broadband. It is suggested that regulators consider introducing regulated co-investment agreements complementing current regulation or in some cases even substituting for it, in addition to considering geographically segmented access prices.
Utility (Power) Distribution Franchisee Business in India - Basic Information for understanding with focus on "Input & Investment" Model
This presentation is for Education purpose only.
Aemo victoria to new south wales interconnector upgrade rit t padr 2019Power System Operation
The energy landscape across the National Electricity Market (NEM) is changing rapidly. Strong investor interest in renewable generation continues to shift the geography and technical characteristics of supply, while it is anticipated that an aging fleet of existing conventional generators will progressively withdraw from the market over the coming decades. Furthermore, consumer behaviour is evolving and the increasing penetration of distributed energy resources (DER) is changing the nature of ‘demand’ while also providing new opportunities to address Australia’s energy transformation.
This energy transformation is already having a dramatic impact on the utilisation of the existing power system. It is, for instance, increasing network congestion in some areas, while also increasing the system’s reliance on interconnections between regions. Well-targeted and timely investment in the transmission network is required to keep pace with these changes and provide consumers with the most cost-effective energy outcomes.
AEMO’s 2018 Integrated System Plan1 (ISP) sets out an optimised national pathway for development of the power system that would maximise the value from new and existing resources across the NEM, while delivering energy reliability at the lowest cost to consumers.
The ISP identified that immediate action was required on several fronts, and designated these as priority ‘Group 1’ projects. This group included the need for increases to the transfer capability between Victoria and New South Wales.
Transfer between these two states is currently restricted by thermal, voltage stability, and transient stability limitations. Without investment, these limitations will result in the northern states having limited access to lower-cost generation from the southern states, preventing reductions in the underlying economic cost of generating electricity across the NEM, and increasing the requirement for new generation investment to maintain adequate supplies.
Economy and Energy Security for Pakistan -What lies ahead
The Economic Survey of Pakistan recognizes that during 2012 around 2 percent of gross domestic product (GDP) was lost due to the power sector outages.
The petroleum crude and products contributed to a third of total imports of Pakistan during 2012
The transmission and distribution (T&D) losses were valued at PKR 140 billion in 2012
Issues being currently faced can be categorised into policy, governance, technical and cost issues
Newsletter by E-Cube Energy with focus on India and Energy Efficiency. In this edition we cover an interesting mix of topics from policy issues around PAT Scheme to use of Data Analytics to foster energy efficiency.
Geographic regulation and cooperative investment in next generation broadband...Roberto Balmer
Alternative telecommunications operators have continuously invested in their own infrastructure in recent years. After more than a decade since liberalization, competitive conditions have substantially changed, especially in urban areas. European regulatory authorities have acknowledged this development by starting regional deregulation. Additionally, different forms of cooperative investments in next generation broadband have appeared on the market. The effects of such schemes on competition, investment and welfare crucially depend on the fine details of implementation. For instance, in the case of joint ventures, it matters how investment costs are shared and how internal and external access prices are determined. In the case of long-term access agreements, it is essential to consider how access tariffs are structured, whether they can adapt to market developments ex-post and whether contracts are signed before or after the investment takes place. Generally, many of these agreements allow some extent of risk sharing, offering the possibility to increase investment incentives when firms are not risk neutral. This article reviews the theoretical and empirical literature on geographic regulation and co-investments in next generation broadband. It is suggested that regulators consider introducing regulated co-investment agreements complementing current regulation or in some cases even substituting for it, in addition to considering geographically segmented access prices.
Introduction to Virtual Power Purchase Agreement instruments.pptxmsounak95
Virtual Power Purchase Agreements are increasingly becoming a popular instrument to execute electricity market transactions. They enable both parties to hedge their risks of fluctuating markets and execute transactions.
Affordable 24x7 Power To All @2019 - Key Strategies (Improve and Enhance Dist...Resurgent India
Affordable 24x7 Power To All @2019 - Key Strategies (Improve and Enhance Distribution Network ) - Part - 4
Presence of a robust distribution network is vital to achieve ‘affordable power to all by 2019’. At present, the distribution network in the country comprises of a total of 8,603,136 circuit kilometers of distribution lines catering to nearly 200 million consumers.
New Entrants in Electric Generation in Tennessee ValleyTNenergy
New Entrants in Electric Generation in Tennessee Valley" at the 43rd Annual Environmental Show of the South on April 30, 2014 in Gatlinburg, TN. The panel was comprised of experts in energy law and federal regulations, including Jim Rossi of Vanderbilt University and Gregory Young and Kenneth Gish of Stites and Harbison, PLLC. The session was approved for continuing legal education credits.
Electricity Act (Amendment) Bill 2022.pptxmsounak95
Electricity Amendment Bill, 2022 presents a landmark opportunity in overhauling the electricity sector. It introduces free and fair competition in distribution business as well as updated arbitration procedures.
Environmental show of the south 2014 new entrants in electricity generationTNenergy
Tennessee Department of Environment and Conservation’s Office of Energy Programs’ Director Molly Cripps moderated a panel presentation on “New Entrants in Electric Generation in the Tennessee Valley” at the 43rd Environmental Show of the South (ESOS) in Gatlinburg on April 30. The panel was comprised of experts in energy law and federal regulations, and the session was approved for continuing legal education credits.
The artifact is about how PPP options in Namibia could help improve inefficiencies and provide additional power for the population. My targeted audience is the policy makers in Namibia. The objective is to explain how the power sector challenges could be solved by addressing political and markets risks in order to attract private sector through a PPP approach. This artifact could also be of benefit to many policy makers in Africa that are seeking to expand electricity access in their respective countries.
Renewable Energy Act of 2008: Hits and Misses for the Philippine Geothermal I...Fernando Penarroyo
The enactment of the Renewable Energy Act of 2008 (“RE Act”) and its implementing rules and regulations was expected to open the way for the entry of risk capital in geothermal exploration, development and utilization. The Department of Energy (“DOE”) admitted that progress on implementing support systems for renewable energy development in the power sector has been hobbled by delays. The Philippine government initiated major structural reforms in the geothermal industry sector by undertaking the privatisation of geothermal generating assets and divesting its interests in the state-owned geothermal development company. Like in any resource development project, the Philippine government needs to address issues related to the complicated approval and permitting process to reduce and expedite procedures particularly in foreign ownership, land use, environment and social acceptability regulations. Needless to say, streamlining the permit process by government regulators will have an impact on geothermal development, as shorter project periods would reduce uncertainty for policy and market dynamics when modelling economic returns. As geothermal projects are characterized by significant upfront capital investment for exploration, well drilling, and the installation of plant and equipment, the DOE must develop publicly available database protocols and tools for geothermal resource assessments to facilitate access by developers to risk capital. Government regulators must also develop guidelines for the inclusion of non-conventional and leading edge geothermal technologies in the setting up of feed-in tariff rates. Risk mitigation instruments like risk guarantee schemes and geologic risk insurance will also encourage investments in geothermal exploration.
2. NATIONAL ELECTRICITY
POLICY
• Introduced by the Govt. on 6th FEB 2005.
• In order to address the issues the prevailing
issues in the policy prescribed some of the
objectives.
• Also NEP spells out the detail on some of
the challenges ahead under various
headings.
3. Providing universal access in next 5 year for which
significant capacity addition & expansion needed.
Meeting the demand fully by 2012
Bringing improvement in quality of power supply at
reasonable rates.
Increase per capita availability to over 1000 kwh/year
by 2012
Ensuring minimum life line consumption of 365 kwh
per year per household.
Financial turnaround & attainment of commercial
viability of all the entities in the sector.
Protect consumers’ interest.
4. RURAL ELECTRIFICATION
• Creation of REDB.
• Creation of distributed generation & local
distribution system.
• REC acts as a nodal agency at Central Govt
Level & provide fund for network expansion
work.
• Ensures that utilities must recover cost of
supply from all & Subsidy must reach to the
BPL consumers.
5. GENERATION
• On hydro-generation the document initiate the
launch 50 GW capacity.
• It is open ended about the imported LNG based
capacity addition but the focus shifted from liquid
fuel to gas/imported regasified LNG.
• Envisages new capacities to be either at pitheads
or at demand centers.
• Envisages the greater share of Nuclear power
through Private participation & Also from Non-
conventional sources of energy.
• The document spells out the need of “CAPTIVE”
& “STANDBY GENERATION” capacity
contribute to GRID.
6. TRANSMISSION
• Recognizes the need of development National &
Smart grid .
• CTU & STU can do the network expansion
based on present & future need.
• Also state that the IEGC must be specified by
SERCs to have smooth, efficient operation.
• Recognizes the importance of “OPEN ACCESS”
for promoting competition among Generators.
• Recognizes the need of creation of state-of –the -
art SLDCs in line with RLDCs.
7. DISTRIBUTION
• It restates that the States need to restructure the
utilities without burdening them with “past
liabilities” & “extraneous interference”.
• It emphasizes the need of SERCs to allow open
access to consumers having peak need of 1MW .
• Focuses on to use MYT principles to incentivize
the efficiency.
• The document emphasizes on segregation of
Technical & commercial losses through energy
accounting ,use of pre paid meter, use of IT &
SCADA for efficient management of system.
8. RECOVERY OF COSTS &
SUBSIDIES
• It recognizes the need to recover costs of supply .
• Put provision of cross-subsidies for poor
consumers.(Minimum charge-50% of supply)
• If state govt. wish to provide subsidy to any
group consumers ,it should be paid in advanced
without affecting the utility financially.
9. COMPETITION & PRIVATE
PARTICIAPTION
• Envisages Inter-state TRADING by licensees
having license granted by CERC.
• Introduction of intra-state ABT by SERCs.
• Focuses on private sector participation to meet
the investment requirements for the growth of the
sector
• Ensures the minimization of regulatory risks in
order to ensure efficiency through competition.
10. OTHER ISSUES
• Policy document laid emphasis on “ENERGY
CONSERAVATION” & “DEMAND SIDE
MANAGEMENT”.
• The document point out the importance of
TRAINED MANPOWER in the sector.
• It put importance on the co-ordination between
ERCs & state govt to achieve objectives like
capacity addition, strengthening the system,
restoring financial health,improove quality &
accessibility.
11. NATIONAL TARIFF POLICY
• It. was notified by the Central GOVT. on
6th January 2006.
• According to this act CERC & SERCs are
responsible for framing regulations while
guided by TARIFF POLICY.
• It recognizes the requirement of providing
fair & appropriate return on investment to
attract investment in the sector.
12. GENERAL APPROACH TO
TARIFF
• Emphasizes on importance of competition .
• CERC has to notify the rate of return on
equity/capital for GENCOS & TRANSCOS
keeping in view the cost of capital.
• The distribution margin approach should be the
factor of reduction in AT & C losses, cost of
supply & quality.
• It specifies the DEBT-EQUITY norm of 70:30.
• It specifies all tariffs would be under MYT
framework (Features 3-5 year control period).
13. GENERATION TARIFF
• It specifies that ERCs should have time-varying
(peak v/s non-peak) fixed charges for better load
management.
• Also specifies that the PPAs should have adequate
& bankable payment security mechanism.
• Captive generators on the grid should have same
terms as other generating stations subject to ABT.
• It specifies that the SERC fix the percentage of
share of power to be procured on competitive basis
by the distribution licenses from non-conventional
sources of energy.
14. TRANSMISSION TARIFF
• CTU/STUs can undertake the investments in line
with the National plan & CERC would specifies
the norms of capital & operating cost for
transmission lines at at various voltage levels.
• The tariff of the projects to be done by
CTU/STUs would be based on competitive basis
after 5 years or whenever ERCS are satisfied.
• It specifies that metering on the network should
be compatible with tariff.
• Inter state transmission tariff-set by CERC
Intra state transmission tariff-set by SERCs
15. DISTRIBUTION TARIFF
• Policy ensures that ERCs must strike a balance
between the commercial viability of the distribution
licensees & consumer interests.
• It emphasizes on the sharing of efficiency gains
between consumers & licensees through MYT
framework specified in the act.
• Policy ensures that the gap between the required
tariff & current tariffs need to be covered either by
tariff increase/Financial restructuring & Transition
financing.
• SERC should initiate tariff determination on suo
moto in case filing has not been made.
16. • Policy ensures that reduction in the AT & C
losses should not be achieved by denying
revenues for power purchase for 24 hours
supply, Reasonable O & M costs & Capex.
• Actual retail sales should be grossed up based
on Normative T & D losses.
• SERC may specify surcharge based on AT & C
losses , may also encourage area based
incentives / disincentives for the local staff.
• Policy ensures that the metering should be done,
so that it is easier to segregate technical losses
from commercial losses in MYT trajectory.
17. DISTRIBUTION TARIFF &
COST OF SERVICE
• Policy recommend that the state govt should
target direct subsidies than cross subsidies.
• Policy ensures that SERC must take necessary
measures to bring tariff with in +/- 20% of ACS.
• Document stated that the agricultural tariff
should be different for different parts of the state
depending upon the sustainability of the ground
water use.
• Document put stresses on metering of all
consumers.
18. CROSS-SUBSIDY SURCHARGE &
ADDITIONAL SURCHARGE FOR
OPEN ACCESS
• Cross subsidy surcharge=
Tariff applicable to that relevant category consumer-
Cost of the licensee to supply to that category
consumer.
• Policy stressed SERCs that they should bring down
cross-subsidy in a linear manner by 2010-11.
19. • Policy ensures that Wheeling Charge for the
“OPEN ACCESS” consumers would be based on
principles of intra-state transmission & would take
into account the losses at the relevant voltage
levels.
• Tariff policy ensures that ERCs must monitor
trading transactions to ensure that traders don’t
involve in profit making process during the
situation of shortages, So ERCs may fix margin for
this purpose.