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Gujarat Power Market Development . Dr. KETAN SHUKLA (IFS), SECRETARY, GUJARAT ELECTRICITY REGULATORY COMMISSION. New Avenues in Power Sector.

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Gujarat power market development l.jpg

Gujarat Power Market Development




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New Avenues in Power Sector

  • The Electricity Act, 2003 and Gujarat Electricity Industries (Reorganisation and Regulation) Act, 2003 envisages various activities for taking conducive measures to

    • Allow development of power market

    • Envisage competition

    • Protect interest of consumers and supply of electricity to all areas

    • Rationalize electricity tariff

    • Promote efficient and environmentally benign policies

    • Open Access in Transmission and Distribution

    • Power Trading

    • Implement Availability Based Tariff

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Making Competitive Power Market

  • National Electricity Policy (2005) enjoins upon Appropriate Commission to undertake development of power market

  • Power / Energy Exchanges introduced in India enabling market to discover a uniform market clearing price and market clearing volume

  • To make electricity market competitive following elements are necessary

    • Several buyers and sellers to avoid exercise of market power

    • Demand and supply responsiveness to price

    • Equal access to essential facilities transmission and distribution

    • Liquid and efficient market places

    • Application of Open Access in phased manner

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Power Sector of Gujarat

Sources: Submissions by Licensees during their filing of ARR, 2010

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  • Capacity to double at the end of XI Plan

  • The Commission has approved Power Procurement for 6000 MW through Competitive Bidding in various orders to be purchased by GUVNL

  • Sugen Power Project of 1100 MW established by Torrent Power Ltd. to reduce the power deficiency in the State.

  • Targeted addition of 3110 CKM of Transmission Lines and 60 number of Substations for 2009-10 by GETCO

  • In Distribution, Constant improvement in reducing the gap between Average realization and the average cost to serve

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Role of Gujarat Electricity Regulatory Commission

  • GERC - established under Electricity Regulatory Commission Act, 1998 - since April ,1999.

  • Continued functioning according to first proviso of section 82 of the Electricity Act, 2003.

  • Tasks before the Commission:

    • Gradual rationalization of electricity tariff so that they reflect cost of service.

    • Improvement in quality of supply of power and better customer service.

    • Availability of electricity at reasonable rates to the consumers.

    • Commercial viability of the Discoms.

    • Development of a competitive environment for efficient operations of the power sector in the state and for creating favorable conditions for investment in this sector to unlock its large potential. 

    • Introduction of open access in phased manner.

    • Promote renewable energy sources

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Open Access

  • Open Access to transmission and distribution networks for third party use and to increase competition, promote the trading of electricity

  • Helps Captive Generating Plants to run their power projects in efficient manner and sale of their surplus power in the market at better price – where utilities benefits to bridge demand-supply gap

  • High Contracted Load consumers are able to procure power at cheaper rate through Open Access from the sources where it is available at cheaper rate.

  • Initiation by GERC

    • Capacity granted for Open Access increased from 551 MW to 750 MW.

    • Reduced the cross subsidy charges from Rs. 1.80 per Unit in 2005-06 to Rs. 0.51 per Unit in 2008-09

    • Rationalized Transmission and wheeling charges

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Intra-state Availability Based Tariff (ABT) Mechanism

  • ABT – Brought about the effective day ahead scheduling and frequency sensitive charges for the deviation from the schedule for efficient real-time balancing

  • ABT - Mechanism brings grid discipline and improve efficiency of the power system

  • GERC Initiative:

    • GERC is among the first regulators to introduce ABT mechanism

    • Implementation of Intra-state ABT with effect from 5th April 2010. which is applied to generators, distribution licensees, Captive Power Plants connected with grid.

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Multi Year Tariff Introduction

  • MYT Tariff introduced for the period for FY 2008-09 to FY 2010-11 to bring in more predictable and transparent tariff rates in the State

  • Distribution Loss trajectory for the control period of MYT is given for all the Distribution Licensees

  • Re-oriented tariff structure to bring in more clarity and reliability

  • Wide participation by stakeholders during Public Hearings

  • Emphasis the promotion of efficiency link with gain/loss based on performance of the utilities

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Promoting Renewable Sources of Energy

  • GERC notified the regulation on Procurement of Energy from Renewable Sources

  • Renewable Power obligation revised - Specified Minimum Percentage of the total consumption of its consumers including T&D losses during year (for Distribution Licensees)

  • Separate RPO for wind, solar and other renewable energy based on the availability of such sources

  • RPO applicable to the Captive and Open Access consumers/users as and when a separate notification is issued by the Commission.

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REC Introduction

  • GERC is the First State Regulatory Commission to incorporate Renewable Energy Certificate in its Regulations of 2010

  • Necessary provisions in the Procurement of Energy from Renewable Sources Regulations, 2010 for Renewable Energy Certificate (REC)

  • Sale of Renewable Energy under REC Regime

    • Sale of conventional Electricity Component to Local Distribution Licensees

    • REC Component to Obligated Entities

  • Gujarat Energy Development Agency (GEDA) as the State Nodal Agency

    • For accreditation and recommending the renewable energy projects for registration

    • Function in accordance with the directions issued by the Commission and

    • to act in accordance to the CERC (Terms and conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010

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For Hydel Projects the rate is Rs 3.29 per unit for 2007-08 and escalated at 3% - For 2010-11 it comes to Rs. 3.60 per unit

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Recent Developments in RE and escalated at 3% - For 2010-11 it comes to

  • GERC notified the regulation for Procurement of Energy from Renewable Sources Regulations, 2010

  • GERC determined the tariff rates for procurement of power from various RE sources

  • Power Purchase Agreements for 365 MW Solar Projects were signed by 31st May 2010

  • Clinton Climate Initiative (CCI) have initiated and announced to implement a 3,000 MW Solar Park Project in the state.

  • Under the Solar Power Policy 2009, the State Govt. allotted 716 MW of Solar Power Capacity to 34 national and international project developers

    • Out of 716 MW, the share of Solar Photovoltaic and Solar Thermal Technologies is 365 MW and 351 MW respectively

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THANK YOU and escalated at 3% - For 2010-11 it comes to

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