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
2

Sector Size and Growth

Growth in Line Length
300,000 250,000 210,004 200,000
ct. km
150,000 100,000 50,000 274,882 254,536

222,746

236,467

The transmission line length has been growing at a CAGR of 7% between 200708 and 2011-12 Growth driven by 400 kV lines 765 kV line length has doubled between 2009-10 and 2011-12

2007-08 2008-09 2009-10 2010-11 2011-12

Growth in Substation Capacity

450,000
400,000 350,000

While interstate transmission lines have grown at a CAGR of 11%, intrastate has grown at 5% only
Substation capacity grew at a CAGR of 9% between 2007-08 and 2011-12

383,465
345,513 273,862 292,891

310,051

300,000
MVA
250,000

200,000
150,000

Interstate transformer capacity grew at a CAGR of 14% while intrastate at a much lower 7%

100,000
50,000

2007-08 2008-09 2009-10 2010-11 2011-12

Voltage-wise Break-up of Transmission Network

Line Length
160,000

140,000
120,000

140,295 28.9

35.0

118,098

30.0
25.0

ct.km

100,000
80,000

The transmission network is dominated by 220 kV lines, followed by 400 kV

However, the trend has been a movement towards higher voltage levels 765 kV lines have grown at a CAGR of 29% between 2007-08 and 201112 Powergrid is setting up the first 800 kV HVDC line (Biswanath-ChariyaliAgra Bipole)
%

20.0 12.0
9.3 7,057 15.0 10.0 4.2

60,000
40,000

20,000
-

9,432 500 kV HVDC Line length 400 kV Growth

5.0
0.0

765 kV

220 kV

Substation Capacity
250,000 31.6 200,000
150,000 148,682 221,283

35.0
30.0

400 kV level has witnessed a higher growth than 220 kV level

Similar trends are visible for the substation capacity as well
%

25.0
20.0

MVA

100,000 9.6
50,000 7.4

15.0
10.0 5.0

Aurangabad-Wardha 400 kV Quad D/C line has been designed such that it can be converted to 1,200 kV S/C line

13,500 765 kV 400 kV 220 kV Growth Substation capacity

0.0

Interregional Transfer Capacity

Growth in Interregional Transfer Capacity

25,000 20,750 20,000 16,950 15,000

MW

22,350
20,750

23,750

14,050

10,000
5,050 5,000

End of Ninth End of Tenth Plan Plan 2007-08 2008-09 2009-10 2010-11 2011-12*
* As of December 2011

The inter-regional transmission capacity stood at 23,750 MW as of December 2011 Growth has been slow over the past 3-4 years Considering a capacity addition of 76,000 MW in the 12th Plan, interregional links of about 38,000 MW capacity are planned to be added during this Plan period 5

Agenda

State of the Sector

Plans and Achievements

Market Structure
Regulations Technology Trends Issues and Challenges Conclusion
6

Eleventh Plan Targets and Achievements

Transmission Line Length (ct. km)
60,000 50,000
40,000 49,396 40,066

32,139
26,122

30,000
20,000 10,000 1,530 3,560 500 kV HVDC

2,269 3,288
765 kV 400 kV Achievement 220 kV

The total programme for the Eleventh Plan was around 84,000 ct. km line length and 134,000 MVA substation capacity More than 69,000 ct. km line length has been added implying 82% achievement Around 130,000 MVA substation capacity has been added implying 97% achievement
66,654 64,387

Programme

Substation Capacity (MVA)

70,000 60,000
50,000

60,750
52,275

Private sector (through JVs) has contributed 3,700 ct. km and 2,197 MVA
765 kV and 500 kV HVDC levels have seen good growth during the Plan period

40,000 30,000
20,000

13,500 2,500 1,000

500 kV HVDC 6,484

10,000 -

765 kV

400 kV Achievement

220 kV

Programme

Twelfth Plan Targets

Twelfth Plan Targets for Transmission Capacity

40,000
30,000
ct. km

38,000

35,000

27,000

20,000 10,000 9,440

0
765 kV 400 kV 220 kV +/- 800 HVDC and +/500 HVDC

Investment required for 12th Plan estimated at Rs 1,800 billion Rs 1,000 billion by central sector, 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 taking total capacity at end of 12th Plan to more than 640,000 MVA HVDC capacity of 13,000 MW expected to be added during the 12th Plan period Around 38,000 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

Planned Transmission Corridors

Cluster Orissa Jharkhand Sikkim Bilaspur and Madhya Pradesh Chhattisgarh Krishnapatnam Tuticorin Srikakulam Cuddalore/Nagapattinam Vemagiri IPPs in Southern Region Total Number of IPPs 7 5 9

Installed capacity (MW)

10,090 4,540 2,358

LTOA granted (MW) 6,080 4,084 2,358

Corridor cost (Rs million)

87,520 57,090 13,040

6
13 4 2 2 3 4 55

4,370
15,485 4,600 2.600 3,960 3,570 5,400 11,526 56,973

4,160
15,185 3,072 2,045 3,760 2,987 5,150 9,227 48,881

12,430
288,240 20,650 23,570 29,860 NA NA 48,210 580,610

Powergrid is constructing 11 high capacity transmission corridors, at an estimated cost of Rs 580 billion to facilitate power transfer from various upcoming IPP generation projects Planned transmission lines: 23,000 ct. km more than 70% will be 765 kV lines Planned substations - 29 nos. of more than 60,000 MVA capacity Four HVDC terminals of 7,000 MW capacity also planned 9

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

Tariff-based Competitive Bidding

Joint Ventures

Private Players

11

Private Sector Participation

Interstate Transmission Projects
Seven Independent Power Transmission Companies RPTL: 3 projects

Intra-state Transmission Projects

3 Joint Ventures with State Transmission Company (Mahatransco) JSW Energy

STL: 3 projects
Patel Engineering- BS TransComm and Simplex Infrastructure Consortium: 1 project

Adani Power
Indiabulls

Five projects in pipeline

Six Joint Ventures with Powergrid Tata Power, Reliance, Torrent, Jaiprakash Hydro, Teesta Urja, and ONGC Tripura Power Company

Eight projects awarded through bidding route Haryana: 1 project Rajasthan: 5 projects Uttar Pradesh: 2 projects

12

Private Sector Participation

RPTLs Transmission Projects
North Karanpura

Adani Powers Transmission Projects

16.0
Tiroda 43.8

WRSSS-II Parbati-Koldam Talcher-II 0 5 10.0

13.9

Mundra

15.0

9.0 10 15 20
0 10 20 30 40 50

Investment (Rs billion)

Investment (Rs billion)

Sterlite Technologies Transmission Projects

System Strengthening of the Western Region Transmission System System Strengthening Common for Western Region and Northern Region
East-North Interconnection

Seven interstate transmission projects awarded under competitive bidding so far

18

13

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 Powergrid has emerged the lowest bidder for two of these (Vemagiri and Nagapattinam Cuddalore) 13

10 15 20

0 5 10 Investment (Rs billion)

Independent Power Transmission Project JV Project

Private Sector Participation

Transmission Projects of other Players
12.0 10.0 10.0 8.6

Investment (Rs billion)

8.0
6.0

7.0

4.5
4.0 2.0 0.0 Jaypee Essar Power Teesta Urja JSW Energy Kalpataru and Techno Electric Torrent Power Patel Engg, BS Transcomm and Simplex Infra 3.8 3.2

3.0

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, Haryana, Rajasthan and Uttar Pradesh have implemented PPP in state level transmission projects involving over 4,300 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

State Transmission Utilities

Line Length of State Transcos
50.0
40.0

41.6

38.1

'000 ct. km

31.8

30.0 20.0 10.0

29.8

27.2

26.5

25.0

23.1

STUs accounted for 323,641 ct. km of transmission lines and over 483,234 MVA of transformer capacity as of March 2012 Maharashtra, Gujarat, UP, AP and TN account for more than 50% of the total intrastate transformer capacity Maharashtra and Chhattisgarh have HVDC transformer capacity Gujarat, Maharashtra, AP, Karnataka and Rajasthan account for around half of the total intra-state line length While intra-state transformer capacity grew at a CAGR of 7.3%, line length grew at 4.7% (2007-08 to 2011-12)

0.0

Substation Capacity of State Transcos

100
80 82.6 51.6 49.5

'000 MVA

60

49.0

41.0

40 20
0

38.4

TANTRANSCO

MSETCL

AP Transco

MP Transco

UPPTCL

KPTCL

GETCO

RVPN

36.3

34.2

TANTRANSCO

UPPTCL

MSETCL

GETCO

AP Transco

KPTCL

RVPN

MP Transco

Mahatransco incurred the highest capital expenditure at Rs 29.4 billion during 2010-11 followed by RRVPNL at Rs 20 bilion, and Tantransco and KPTCL at Rs 17 billion

15

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, 2011 New pricing framework sensitive to distance, 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, 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 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

Connectivity and Open Access

Key Regulations and their Impact

The recent amendment has tightening of the operational frequency band from 50.2 to 49.5 Hz to 50.2 to 49.7 Hz aimed at ensuring better operational performance of the grid In the case of forced outages of generating units, the schedule of all beneficiaries will be reduced on a pro-rata basis

IEGC

For new wind energy plants, all fluctuations within 30% of the schedule will be borne by all users of the interstate grid For solar power, 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, based on forecasting, 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 50.2 to 49.5 Hz A maximum UI charge of Rs 9.0 per unit is applicable at grid frequencies below 49.7 Hz

UI Charges Amendment

Additional UI charges: 49.7-49.5 Hz 20% of the maximum UI charge; 49.5-49.2 Hz 40% of maximum UI charge; below 49.2 Hz 100% of maximum UI charge

18

Agenda

State of the Sector

Plans and Achievements

Market Structure
Regulations Technology Trends Issues and Challenges Conclusion
19

Technology Trends
Necessitated by the need to increase the MW flow per metre of RoW 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 1,200 kV transmission system UHV AC test station is under development at Bina, Madhya Pradesh

Move to higher voltage levels

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. Tower design improvements Compact/pole type towers for to tackle RoW issues

Others

Multicircuit towers Substation automation Compact substations - gas insulated switchgear

20

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), Eastern 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

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

Issues and Challenges

Delays in land acquisition, obtaining right of way (ROW), environmental and related statutory clearances

Procedural delays

Equipment deployment, use and repair, particularly in hostile terrains Bidding process takes a long time which adds to the transaction costs of prospective developers Coordination with generation projects, 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, 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, PoC tariffs, payment security mechanism etc. will provide confidence Investments in intra-state transmission networks have been inadequate

Inadequate investments

Due to network constraints, power cannot be fully transported from surplus to deficit areas, and open access transactions cannot be effectively facilitated

PoC tariffs if implemented at the state level could make transmission investments self sustaining

24

Agenda

State of the Sector

Plans and Achievements

Market Structure
Regulations Technology Trends Issues and Challenges Conclusion
25

Summing Up
76,000 MW planned capacity addition in 12th Plan Generation and load centres dispersed High amount of renewable power capacity coming up Synchronisation of all regional grids to ensure seamless flow of power Targeted increase in interregional capacity to 75,000 MW by 2017

Generation capacity addition

National grid

Open access, power trading, ABT regime are new sector challenges Transmission investments in increasing system redundancies and a strong grid

Emerging requirements

Technology upgradation
Move to higher voltages including 765 kV, 800 kV HVDC and 1,200 kV Smart grid projects GIS substations, SCADA, ERP 26

Thank You