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WELCOME TO POWER SECTOR BUDGET ZONE. 2012-13. POWER SECTOR REFORMS AND INFORMATION TECHNOLOGY. Agenda. 2012 POWER SECTOR BUDGET BUDGET EXPECTATIONS Need for Reforms Reforms in Power Sector BUDGET MEASURE Regulations Impact

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Welcome to power sector budget zone

WELCOME

TO

POWER

SECTOR

BUDGET

ZONE

2012-13


Welcome to power sector budget zone

POWER SECTOR REFORMS AND INFORMATION TECHNOLOGY


Agenda

Agenda

  • 2012 POWER SECTOR BUDGET

  • BUDGET EXPECTATIONS

  • Need for Reforms

  • Reforms in Power Sector

  • BUDGET MEASURE

  • Regulations

  • Impact

  • Role of IT

  • System Overview


2012 power sector budget

2012 POWER SECTOR BUDGET

  • Over the past few quarters, the power sector has seen hard times given the severe liquidity crunch that hit existing as well as new projects. And as such, the sector once again saw capacity addition that was way below the targets set out as part of the XIth Five Year Plan. While the situation on the funding side has improved considerably since the middle of 2008, companies are stepping up on new projects with utmost caution. This is especially given that linkage for fuel (especially coal and gas) is becoming a tough nut to crack. However, rural electrification continues to get a boost in each passing budget and so is the improvement in the T&D network. Budget 2011 was no different, as it allocated higher funds for the development of the power sector with a view of speeding up the expansion of new generation capacities


Budget expectations

BUDGET EXPECTATIONS


Need for reforms

Need for Reforms

  • Objective of integrated National Grid

    • 5 regional grids working at varying grid frequency

    • Integration needs Frequency Normalization means proactive load management

    • Alternative – Insulation thro’ HVDC links – Expensive

  • Regional surplus & shortages

    • Surplus in east and shortage in south

  • Continued functioning at non-standard grid frequency

    • Damage to Generator & End User equipment

    • Hidden cost passed to customer in long term


Need for reforms contd

Need for Reforms(contd…)

  • Central Vs State Generators

    • Capital cost Vs Variable cost

  • Beneficiaries not liable to pay fixed cost for their allocated share if not drawing

    • Increased cost of energy for beneficiaries drawing energy

  • Generation even without demand

    • High grid frequency


Reforms in power sector

Reforms in Power Sector


Objective

Objective

  • Reforms in tariff structure of bulk power

    • Better system operations

    • Better grid discipline

      through commercial incentives & disincentives

  • Ideal Grid Frequency = 50 Hz


Reforms

Reforms

  • Electricity Act 2003

    • Replaced Electricity (Supply) Act 1948

  • Regulations

    • Availability Based Tariff (ABT)

    • Merit Order Dispatch (MOD)

    • Plant Performance

    • Energy Management

  • SEB Trifurcation


Regulations

Regulations


Availability based tariff abt

Availability Based Tariff (ABT)

  • Deals with tariff structure for bulk power

  • Performance based tariff for supply based tariff

  • System of rewards and penalties seeking to enforce day ahead pre-committed schedules (One & One-half hours in advance)

  • Promote responsibility & accountability in power generation

  • Paradigm shift from maxpower to maxreliability

  • A path to deregulated power market


Abt components

ABT Components

  • Capacity charges (Fixed)

    • Payable against declared capacity of station for allocated capacity rather than actual consumption

    • Full fixed charges payable at PLF of 68.49%

    • Incentive @ 0.4 % of equity for each percentage increase between 70-85%. Beyond 85% it is 0.3%

  • Energy charges (Variable)

    • As per actual consumption

  • Unscheduled Interchange (UI) charges: Penalty that depends on severity of deviation. Payable/recoverable if:

    • Generator generates more, thereby increasing frequency;

    • Generator generates less than the schedule, thereby decreasing frequency;

    • Beneficiary overdraws power, thereby decreasing frequency;

    • Beneficiary under draws power, thereby increasing frequency


  • Merit order dispatch

    Merit Order Dispatch

    • Objective from maximum production to optimal production

    • Multiple unit power plant to identify optimum loading for each unit to save on operational costs

    • Identify units to bring online / offline to meet plant demand at minimum operating cost

    • Dispatching least cost power in preference to more costly power


    Trifurcation

    Holding Company

    Generation

    Company

    Transmission

    Company

    Distribution

    Company

    Trifurcation

    • State Electricity Boards (SEBs) trifurcated as shown –


    Impact of abt transco

    Impact of ABT – TRANSCO

    • Improved and efficient transmission systems

      • More generation capacity being added

      • Bottleneck in transmission to be avoided

    • Better forecasting systems

      • Vested with role of coordination between consumers & generators

    • Better communication and information systems

      • Communicate 15 min generation & consumption schedule to each party

      • Convey any unforeseen change in such a schedule

    • Improved metering & billing system

      • Ensure adequate metering capabilities for proper implementation of tariff structure

      • Specialized energy meters that keep track of 15-min energy aggregates & frequency for each interval to take care of energy charges and UI charges


    Impact of abt genco

    Impact of ABT – GENCO

    • Advanced control & monitoring systems to closely monitor ex-bus output of plant

      • Generation should closely follow 15-minute schedule

    • Integrated information & communication system

      • To capture data from all components

      • Unscheduled downtime is not very acceptable in the ABT regime

    • MOD to ensure economic operation

      • Cost of generation, ramping, start up & shut down of each unit varies

    • Performance calculation for each unit of plant

      • Corresponding optimization to be done

    • Pro-active management plan

      • Unscheduled deviation from power generation schedule incur considerable penalties

      • Unexpected downtime of power plant should not occur


    Impact of abt discom

    Impact of ABT – DISCOM

    • Enhanced load forecasting system

      • Consumer expected to stick to schedule of 96 intervals of 15-minute for each day

      • Failure to comply will attract penalty - UI charges

      • Basis of entering into commercial agreements with generating utilities

    • Reliable communication and information infrastructure

      • Load forecasting solution highly reliant on historical data for accuracy

      • To ensure smooth coordination with RLDC

    • Provision for in-house generation

      • Captive power plants - going to be more & more popular during transition to decentralized & deregulated power market


    Business objective

    Efficiency

    Input

    Output

    Minimize Cost

    Maximize Returns

    Business Objective

    • To generate & export electricity

    • Maximize output at lowest input

    • Maximizing returns require following ABT demand curve


    Regulations organization mapping

    Company

    ABT, Energy Management

    Power Plants

    Merit Order Dispatch

    Units

    Plant Performance

    Regulations – Organization Mapping


    Abt regime

    ABT Regime

    • Revenue calculation for GENCO depends on

      • Available capacity of plant

      • Implemented schedule

      • Grid Frequency

      • Actual energy export

      • Applicable tariff model

    • To maximize revenue & minimize input cost

      • Generation to closely follow demand schedule

      • Optimal loading of plant units


    Role of it

    Role of IT

    • Monitor various online real-time plant parameters from different generating stations

    • Establish a full-fledged Generation Control Room for performance diagnosis & optimization

    • Provide suitable connectivity between each power station & Control Room


    It solution

    IT Solution


    Software

    Software

    • HQ Level

      • ABT Optimization for UI Revenue Maximization

      • Economic Load Dispatch

      • Online Plant Performance Monitoring

    • Plant Level

      • Power Plant Monitoring for each Unit

      • Online Performance Monitoring & Calculation for each Unit

      • Merit Order Despatch (MOD) at Plant level

      • Dispatch Monitoring for Switchyard Energy Meters


    Hq level functions

    HQ Level Functions

    • ABT Optimization for UI Revenue Maximization

      • Ability to optimize tariff by maximizing UI revenue

      • Generate invoices on basis of total energy exported & applicable UI charges

      • Account auxiliary consumption of plant for billing purpose

      • Account for operations of “Peak Load” plants & grid maintenance

      • Account for cost of operating (Supply of Reactive power, Startup/ Stop operations) plant for these purposes, as & when they are made applicable

    • Economic Load Dispatch

      • Calculate individual plant OLC schedule for all power plants

      • Provide online communication between LDC & GCR regarding generation schedule

    • Online Plant Performance Monitoring

      • Close monitoring of power plants & generating automatic deviation alerts at appropriate times


    Plant level functions

    Plant Level Functions

    • Power Plant Monitoring for each Unit

      • Integrated information & communication system to capture unit data

      • Calculate various plant parameters for each unit performance.

      • Suggest operator for effects of varying plant parameters

    • Online Performance Monitoring & Calculation for each Unit

      • Monitor different plant parameters that may affect plant performance such as superheat temperature, reheat temperature, inlet/ outlet temperatures, excess air ratio etc.

    • Merit Order Despatch (MOD) at plant level

      • Support simulation facilities

      • Facilitate in determining optimal loading of plant units

    • Dispatch monitoring for switchyard energy meters

      • Close monitoring of switchyard energy meters to compare actual generation against scheduled generation


    Broad workflow

    Fuel Reserves

    Maintenance & Outage Information

    Generation Capacity Estimation by Plant

    OLC

    Grid Management Variation

    Load Despatch Center

    Day Ahead Schedule

    Actual Energy Export

    Load Forecasting

    Σ

    Implemented Schedule

    Generate

    Invoice

    Tariff Calculation

    MOD Engine

    Tariff Modeling

    Plant Performance

    ABT, PPA

    Broad Workflow


    Software features abt

    Software Features - ABT

    • Open communication architecture

    • Easy to use configuration utility

    • Flexible tariff calculation & UI charges module

    • Invoices in user-defined format

    • Reports and trends

    • Exporting reports & other data

    • Collecting 15-minute block aggregate data from meters & storing in ABT server

    • Monitoring actual generation Vs scheduled generation


    Software features mod

    Software features - MOD

    • Capability to handle multiple units

    • Use of historical data to generate a best-fit cost curve for the unit

    • Configuring individual units with historical data and operating constraints

    • Unit commitment approach based on maintenance schedule, minimum up and downtimes to be imposed on each unit

    • Allows users to perform simulation


    Communication backbone

    Load Dispatch

    Center

    HQ

    Plant

    Plant

    Communication Backbone


    Welcome to power sector budget zone

    System Architecture

    Generation Control Room

    Parameters from

    units in plants

    REPORTS

    DATA EXPORT MODULE

    TARIFF CALCULATION

    MANUAL DATA

    QUERY

    DCS/DAS DATA

    APPLICATION INTERFACE

    GEN. SCH. ENGINE

    NON-DCS DATA

    DATA ACCESS CONTROL

    GEN. TAR. ENGINE

    TARIFF MOD. ENGINE

    DATA LAYER

    ABT Engine

    DATA STORAGE

    Data Layer


    Welcome to power sector budget zone

    DATA ACQUISISTION


    Dcs unit implementation

    ManualInputs/ Configuration

    DCS / DAS

    LocalData

    Store

    CommunicationDriver

    DataValidation

    PerformanceCalculation

    Intermediate & Detailed Results

    Reports & Results

    DCS Unit Implementation


    Non dcs unit implementation

    Transducers

    Signal Splitter

    Controllers

    Analog Cards

    Plotters

    RTU/ Data Concentrator

    RTU 1

    RTU 2

    RTU n

    TerminalServer

    MODServer

    MUX

    Control

    Room

    Router

    Other data

    Non-DCS Unit Implementation


    Challenges

    Challenges

    DCS Units:

    • OPC compliance (tag, value and timestamp)

      • Tags vary from unit to unit – 1 tag list for each DCS - Depends on commissioning

      • Non OPC Compliant Interface Bus would require protocol gateways

      • Additional licensing cost or additional one-time licensing cost for implementing protocol gateways

        Non-DCS Units:

    • Synchronization between DCS & non-DCS units

    • Selecting minimum critical parameters to be monitored by GCR

      • A standard parameter list for all non-DCS units will not work

      • Parameters – Analog or Digital

    • Identifying location of critical analog signal

      • Parallel tapping of signal with without affecting current setup

    • Real time V/s Polling Frequency

    • Historical data availability


    System overview

    System Overview


    System components

    System Components

    • Data Acquisition System

    • Communication Infrastructure at Plant

    • Communication Backbone

    • Communication Infrastructure at HQ

    • Software solution at plant & HQ level


    System in nutshell

    System in nutshell

    • Data Acquisition

      • Capturing plant parameters

    • MOD Calculations

      • Calculating various plant performance parameters for each unit at plant level

    • Data capture from ABT meters

      • Monitoring performance of each unit and plant in control room

    • ABT Calculations

      • Calculating applicable tariff for each beneficiary


    Welcome to power sector budget zone

    OUESTION

    AND

    ANSWER


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