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An OVERVIEW
THE PREDECESSOR
Applicable for Central Generating Stations (CGS) FIXED AND VARIABLE COST RECOVERED
FULL FC RECOVERY LINKED TO TARGET PLF OF 62.78% VC ON ACTUAL GEN. BASED ON OPERATING NORMS
DEEMED GENERATION
MINIMUM FIXED COST RECOVERY OF 50% AT 0% DEEMED PLF INCENTIVE ABOVE 68.49% DEEMED PLF NO INBUILT MECHANISM FOR FREQUENCY CONTROL- No incentive for Grid Discipline
ER FREQ WAS BELOW 49 Hz DURING EVENING PEAK HOURS BUT TOUCHED 52 Hz DURING OFF-PEAK NR GRID FREQ WAS GENERALY LOW BUT HAD HIGH FREQ SPELLS DURING MONSOON. WR GRID FREQ WAS REGULARLY HIGH DURING NIGHT HOURS
THE CENTRAL GOVERNMENT HAD BEEN EXAMINING FOR OVER 5 YEARS THE REFORM OF THE TARIFF STRUCTURE FOR BULK POWER OBJECTIVE:
THE GOVERNMENT HAD ENGAGED INTERNATIONAL CONSULTANTS (ECC) TO COMPREHENSIVELY STUDY THE INDIAN POWER SYSTEM AND RECOMMEND A SUITABLE TARIFF STRUCTURE
THEIR REPORT (ECC- REPORT) WAS SUBMITTED IN 1994. IT RECOMMENDED THE INTRODUCTION OF WHAT WAS CALLED THE "AVAILABILITY BASED TARIFF" (ABT) STRUCTURE.
A COMMERCIAL RATHER THAN A REGULATORY APPROACH. INCENTIVISES MERIT ORDER OPERATION INCENTIVISES GRID DISCIPLINE.
THE GOVERNMENT CONSTITUTED A NATIONAL TASK FORCE (NTF) AS WELL AS REGIONAL TASK FORCES (RTFs) TO DEBATE ON VARIOUS ISSUES IN THE INTRODUCTION OF AVAILABILITY BASED TARIFF (ABT) FOR BULK POWER.
ECC RECOMMENDATION
DECENTRALISED SCHEDULING AND DISPATCH OF CENTRAL SECTOR GENERATION AND DECENTRALISED INTER-STATE AND INTERREGIONAL TRADING. (Option C) CENTRALISED SCHEDULING AND DISPATCH OF ALL GENERATION, INCLUDING SEB INTERNAL RESOURCES, CENTRALISED SCHEDULING OF ALL INTERNAL TRADING WITHIN THE REGION, AND EXCLUSIVE AUTHORITY TO NEGOTIATE INTERREGIONAL TRADING. (Option A & B)
NTF DECISION
IN LIGHT OF THE VIEWS OF MOST OF SEBs, THE NTF ENDORSED ADOPTION OF OPTION C
AVAILABILITY BASED GENERATION TARIFF WAS TO BE ADOPTED AND WOULD BE APPLIED TO ALL ISGS INCLUDING FUTURE IPPs
Introduced through CERC order on Availability Based Tariff dtd. 04.01.2000 To be applicable to ISGS (NTPC, NHPC, NLC etc.)
Original Order referred to 16 ISGS of NTPC NHPC, NLC, NEEPCO etc. brought under purview subsequently NPC exempt from provisions of ABT Subsequent order of CERC has introduced ABT in Badarpur TPS from 01.04.2005 Further order of CERC directed that ABT is to be implemented w.e.f. 1.12.2005 for other single state stations of NTPC too.
Recent Order has initiated ABT implementation for BBMB & NHDC IndiraSagar HEP.
Simhadri, Faridabad, Tanda, TTPS & Kayamkulam NLC TPS-I from 01.01.2007
IMPLEMENTATION OF ABT
ABT has been implemented in different regions from the dates given below:
WR NR SR ER NER
Earlier
THREE COMPONENTS
ENERGY CHARGES
FULL RECOVERY AT 80% OF DECLARED (DEMONSTRATED) CAPABILITY, DC APPORTIONED TO VARIOUS BENEFICIARIES AS PER ALLOCATION
PAYABLE FOR SCHEDULED ENERGY (IRRESPECTIVE OF ACTUAL GEN) PAYABLE AT NORMATIVE TARIFF INCENTIVE AT 77%+ Scheduled PLF (Subsequently changed to 80%
Incentive @: 50% of FC at 80% or 21.5 p/kWh- later 25 p/kWh DEVIATION FROM SCHEDULE (AG-SG) RATE LINKED TO FREQUENCY; different UI Charts over time
ALL CALCULATION FOR EACH 15 MIN. TIME BLOCK; SUMMATED ON DAY, MONTH AND ANNUAL BASIS. ACCORDINGLY, SCHEDULE PREPARED ON 15-MIN BASIS SPECIAL ENERGYMETER IN LINE FEEDERS, FOR NET EXPORT AND AVG. FREQUENCY ON 15 MIN BASIS
100% GENERATION CAPACITIES OF A ISGS IS ALLOCATED TO BENEFICIARIES. CAP CHARGE RECOVERY AS PER ENTITLEMENT OF INDIVIDUAL BENEFICIARIES (IRRESPECTIVE OF DRAWAL BY THE SEB) & CALCULATED ON ANNUAL BASIS SEBs CAN REQUISITION DRAWAL FROM ISGS, limited to their ENTITLEMENT ON CAPABILITY DECLARED SUM OF REQUISITION OF ALL BENFICIARIES IS SCHEDULE FOR GEN. SINCE LIABILITY TO PAY CAPACITY CHARGES IS IRRESPECTIVE OF SCHEDULED CAPACITY, DISPATCH DECISIONS BASED ON VARIBLE CHARGES- PROMOTES MERIT ORDER DISPATCH VARIABLE CHARGE RECOVERY AS PER NORMS FOR ONLY SCHEDULED ENERGY NORMS OF FIXED AND VARIABLE CHARGE ARE DECLARED STATION-WISE PERIODICALLY BY CERC IN THEIR TARIFF REGULATION.
BECAUSE OF THE LOW VARIABLE COST OF MOST NTPC STATIONS, NTPC STATIONS GENERALLY SCHEDULED CLOSE TO THEIR DC
FOR INTRODUCING GRID DISCIPLINE, THE CONCEPT OF UNSCHEDULUED INTRCHANGE (UI) HAS BEEN INTRODUCED. THE AMOUNT OF GENERATION BY ISGS OR DRAWAL BY CONSTITUENTS, WHICH DEVIATES FROM SCHEDULE IS UNSCHEDULED INTERCHANGE UI IS PAYABLE OR RECEIVABLE DEPENDING ON OVER OR UNDER GENERATION. RATE OF UI LINKED TO AVERAGE FREQUENCY OF 15 MINUTES TIME BLOCK. IS ZERO AT 50.5 Hz AND ABOVE INCREASES AT THE RATE OF 8 PAISA FOR EVERY 0.02 Hz DROP IN FREQUENCY upto 49.8 Hz. Subsequently increases @ 18 p/ 0.02 Hz. AT & BELOW 49.0 Hz UI RATE IS FIXED AT Rs 10.00. CAPPED AT Rs 4.06 FOR PAYMENT TO GENERATORS (COAL & APM GAS)
1000
P/kWh at 49 Hz
800
p/ kWh
600
400
200
Freq
49.7
49.6
49.5
49.4
49.3
49.2
49.1
49
Previous
ACCOUNTING IN ABT
f= 49.7 Hz f = 50.0 Hz f = 50.3 Hz SD (MW) AD (MW) SI (MW) UI (MW) SI Amt. (Rs ,000) UI Rate (Rs/kWh) UI Amt. (Rs ,000) Cost of SI (,000) Gain/Loss (Rs ,000) 1000 1050 1000 50 1,250,000 3.70 185,000 62,500 122,500 1000 1050 1000 50 1000 1050 1000 50
1,250,000 1,250,000 2.00 100,000 62,500 37,500 0.80 40,000 62,500 -22,500
ACCOUNTING IN ABT
f= 49.7 Hz f = 50.0 Hz f = 50.3 Hz SD (MW) AD (MW) SI (MW) UI (MW) SI Amt. (Rs ,000) UI Rate (Rs/kWh) UI Amt. (Rs ,000) Cost of SI (,000) Gain/Loss (Rs ,000) 1000 950 1000 -50 1,250,000 3.70 -185,000 -55,000 -130,000 1000 950 1000 -50 1000 950 1000 -50
1,250,000 1,250,000 2.00 -100,000 -55,000 -45,000 0.80 -40,000 -55,000 15,000
UI mechanism of ABT introduced for Hydro ISGS w.e.f. 07.01.08 through amended to Tariff Regulations of CERC Hydro stations to declare day-ahead capability and energy availability (water) To be scheduled on 15-minute block basis Expected to match total energy generated in the day as declared However can modulate block wise generation based on frequency UI to be calculated for the day and paid to the HEP Excess/ Under generation against declaration to be adjusted on Day+3 schedule.
SCHEDULING TERMINOLOGY
IEGC: Indian Electricity Grid Code ISGS: Inter-state Generating Stations RLDC: Regional Load Dispatch Centre SLDC: State Load Dispatch Centre FIRM POWER: UPTO ENTITLEMENT ENTITLEMENT: VARIES WITH DECLARED CAPABILITY. Maximum of ALLOCATED SHARE AT 100% DC. INFIRM POWER: UNREQUISITIONED SURPLUS POWER & UI. PRIORITY IN SCHEDULING & ACCOUNTING:
1 2 3
SCHEDULING RESPONSIBILITIES
Generators:
Communication of Day-ahead capability (DC) Communication of revision of capabilities Adherence to IEGC and directions of LDCs Preparation and communication of Schedules Keeping Accounts of Energy Instructions w.r.t. Real time operation
Jurisdiction:
Inter-state CGS UMPPs Inter-state Bilateral transactions For all private ISGS of size >500 MW where at least 50% power is allocated outside the home state Intra-state generators IPPs except those above Embedded Open Access customers
SCHEDULING TIME-TABLE
DAY-AHEAD SCHEDULING
DECLARATION OF STATION-WISE CAPABILITY BY ISGS: 09:00 HRS. ADVISE ON ENTITLEMENTS OF CONSTITUENTS BY RLDC: 1000 HRS. DRAWAL REQUISITIONS AND BILATERAL EXCHANGES BY SLDCs TO RLDC: 1500 HRS. ANNOUNCEMENT OF SURPLUS :----DISPATCH & DRAWAL SCHEDULE (1st draft) TO EACH CONSTITUENT: 1800 HRS. SLDCs/ ISGS MAY INFORM CHANGES TO THEIR CAPABILITY/ DRAWAL : 2200 HRS. FINAL DAY-AHEAD SCHEDULE: 2300 HRS.
SCHEDULE PREPARATION
GENERATOR ADVISES HIS EX-BUS 96 BLOCK WISE DC RLDC ADVISES ALL BENEFICIARIES OF THEIR STATIO-WISE ENTITLEMENT BASED ON THEIR SHARES IN THE STATIONBLOCK WISE BENEFICIARIES ADVISE RLDC THEIR STATION-WISE DRAWAL REQUISITIONS plus any BILATERAL TRANSACTIONS.
GENERATOR DRAWAL SCHEDULE IS THE SUM OF ALL REQUISTIONS FOR THAT STATION- 96 BLOCKWISE CHECKED FOR ANY LINE LOADING LIMITATIONS & MODERATED IN CASE OF NTPC MULTI-STAGE STATIONS, SEPARATE SCHEDULE FOR STAGES DRAWAL SCHEDULE OF CONSTITUENTS IS CALCULATED AFTER ADJUSTING AVG. REGIONAL LOSSES ANY URS KNOWN AFTER (1st draft) OF SCHEDULE (REV. 0) GENERATOR/ BENEFICIARIES CAN TIE UP ANY URS FINAL DAY-AHEAD SCHEDULE: 2300 HRS- FAXED & ON RLDC WEBSITE.
REQUISITIONS EX-SENDING END BUS & BLOCKWISE CAN GIVE STANDING INSTRUCTIONS
of forced outage of a unit, RLDC will revise the schedules on the basis of revised declared capability. The revised schedules will become effective from the 4th time block, counting the time block in which the revision is advised by the generator to be the first one. The revised DC will also become effective from the 4th time bock.
schedules/declared capability in such cases shall become effective from the 6th time block, counting the time block in which the request for revision has been received in RLDC to be the first one.
contd.
SCHEDULE REVISION DUE TO TRANSMISSION CONSTRAINTS : ... (as certified by RLDC) necessitating
reduction in generation, RLDC will revise the schedules which will become effective from the 4th time block, counting the time block in which the bottleneck in evacuation of power has taken place to be the first one. Also, during the first, second and third time blocks of such an event, the scheduled generation of the station will be deemed to have been revised to be equal to actual generation and also the scheduled drawals of the beneficiaries will be deemed to have been revised to be equal to their actual drawals..
SCHEDULE REVISION DUE TO GRID DISTURBANCES : Scheduled Generation of all the Generating Stations and
Scheduled Drawal of all the Beneficiaries shall be deemed to have been revised to be equal to their Actual Generation/Drawal for all the time blocks affected by the Grid Disturbance. Certification of Grid Disturbance and its duration shall be done by RLDC.
contd.
SCHEDULE REVISION DUE TO SYSTEM REQUIREMENT : ... RLDC observes that there is need for revision of the schedules in the interest of better system operation, it may do so on its own. The revised schedules shall become effective from the 4th time block, counting the time block in which the revised schedule is issued by RLDC to be the first one. REVISION OF SCHEDULES W.E.F......: Generation schedules and drawal schedules issued/revised by RLDC shall become effective from designated time block irrespective of communication success.
6.4.2 The system of each State shall be treated and operated as a notional control area. While the States would generally be expected to regulate their generation and/or consumers load so as to maintain their actual drawal from the regional grid close to the above schedule, a tight control is not mandated. The States may, at their discretion, deviate from the drawal schedule, as long as such deviations do not cause system parameters to deteriorate beyond permissible limits and/or do not lead to unacceptable line loading. 6.4.4. Provided that the States, through their SLDCs, shall always endeavour to restrict their net drawal from the grid to within their respective drawal schedules, whenever the system frequency is below 49.5 Hz. When the frequency falls below 49.0 Hz, requisite load shedding shall be carried out in the concerned State(s) to curtail the over-drawal. 6.4.7. While the ISGS would normally be expected to generate power according to the daily schedules advised to them, it would not be mandatory to follow the schedules tightly. In line with the flexibility allowed to the States, the ISGS may also deviate from the given schedules depending on the plant and system conditions. In particular, they would be allowed / encouraged to generate beyond the given schedule under deficit conditions. 6.4.8. Provided that when the frequency is higher than 50.5 Hz, the actual net injection shall not exceed the scheduled dispatch for that time. Also, while the frequency is above 50.5 Hz, the ISGS may (at their discretion) back down without waiting for an advice from RLDC to restrict the frequency rise. When the frequency falls below 49.5 Hz, the generation at all ISGS (except those on peaking duty) shall be maximized, at least upto the level which can be sustained, without waiting for an advise from RLDC.
6.5.5. The SLDCs may also give standing instructions to the RLDC such that the RLDC itself may decide the drawal schedules for the States. 6.5.7. While finalizing the above daily dispatch schedules for the ISGS, RLDC shall ensure that the same are operationally reasonable, particularly in terms of rampingup/ramping-down rates and the ratio between minimum and maximum generation levels. A ramping rate of upto 200 MW per hour should generally be acceptable for an ISGS and for a regional constituent (50 MW in NER), except for hydro-electric generating stations which may be able to ramp up/ramp down at a faster rate. 6.5.11. While finalizing the drawal and dispatch schedules as above, the RLDC shall also check that the resulting power flows do not give rise to any transmission constraints. In case any constraints are foreseen, the RLDC shall moderate the schedules to the required extent, under intimation to the concerned constituents. Any changes in the scheduled quantum of power which are too fast or involve unacceptably large steps, may be converted into suitable ramps by the RLDC. Ann-1.5. Regional Energy Accounts and the statement of UI charges shall be prepared by the RLDC on a weekly basis and these shall be issued to all constituents by Saturday for the seven-day period ending on the previous Sunday mid-night. Payment of UI charges shall have a high priority and the concerned constituents shall pay the indicated amounts within 10 (ten) days of the statement issue into a regional UI pool account operated by the RLDC. The agencies who have to receive the money on account of UI charges would then be paid out from the regional UI pool account, within three (3) working days. Ann-1.10. The RLDC shall table the complete statement of the regional UI account and the regional Reactive Energy account in the RPCs Commercial Committee meeting, on a quarterly basis, for audit by the latter.
In the CERC Order for Conditions of Tariff for 2001-04, it was directed that any generation beyond DC would not be eligible for UI.
In case it is observed that the declaration of its capability by the generator is on lower side and the actual generation is more than DC, then UI charges due to the generator on account of such extra generation shall be reduced to zero and the amount shall be credited towards UI account of beneficiaries in the ratio of their capacity share in the station.
When generators were scheduled their full DC, it became a lose-lose situation for the stations.
In the CERC Order for Conditions of Tariff for 2004-09, CERC addressed this issue. (i) Any generation up to 105% of the declared capacity in any time block of 15 minutes and averaging up to 101% of the average declared capacity over a day shall not be construed as gaming, and the generator shall be entitled to UI charges for such excess generation above the sch. generation (SG). (ii) For any generation beyond the prescribed limits, the RLDC shall investigate so as to ensure that there is no gaming, and if gaming is found by the Regional Load Despatch Centre, the corresponding UI charges due to the generating station on account of such extra generation shall be reduced to zero and the amount shall be adjusted in UI account of beneficiaries in the ratio of their capacity share in the generating station.
NR-WR :
400 kV West bus of Vindhyachal HVDC Gwalior end of 765 kV Agra-Gwalior line
ER-SR :
400 kV East bus of Sasaram HVDC Muzaffarpur end of 400 kV Mzf-Gkp line Patna end of 400 kV Patna-Balia line
ER-WR :
400 kV Bus couplers between Talcher-I and Talcher-II 400 kV East bus of Gazuwaka HVDC Rourkela end of 400 kV D/C Rourkela-Raipur line Budhipadhar end of 220 kV Budhipadar-Korba Lines Bongaigaon end of the 400 kV D/C Malda-Purnea/Binaguri -Bongaigaon line Salakati end of 220 kV D/C Birpara-Salakati line
ER-NER :
Station to declare day-ahead DC on ex-bus basis to RLDC by 0900 hrs- Station O&E
Based on best estimate of availability of units. Realistic APC assessment Availability and quality of fuel Loading limitations & Operational constraintscondenser vacuum, ID Fan margins etc. Peak hour demand Coordinated through RCC.
Delay of 15 mins in reporting tripping of 500 MW unit could mean a UI of Rs 11.62 lacs (a loss of Rs 10.2 lacs considering a variable cost of Rs. 1.25 P/Kwh.) Revision based on unit performance and fuel characteristics. Spreading out the generation over the day in case of shortage of fuel Peak hour DC should not be less than other periods
Stations have installed ABT compliant meters for monitoring and management of ABT performance ABT monitoring software- Shows real time values derived from ABT meters
UI Accounting
Splitting ex-bus schedule into unit wise schedule- relative of units Raise lower decisions based on unit conditions Estimating start-up times and DC matching expected load ramp-up AG calculated as sum of net export on all outgoing feeders. Daily UI report (96 block-wise) prepared by O&E Commercial export meters downloaded every Monday and forwarded (e-mail) to RLDC. RLDC calculates station AG Standard Meter Frequency for the week (block-wise) and post on its website Station cross-checks the same and revises its UI account RPC issues weekly regional UI pool account by next Wed. UI payments settled in the next 10 days
DC & SG for the block Instantaneous AG (unit wise) & freq & UI rate; SG rate Running average AG & freq for the block Required average AG for the remaining period of block Current Variable Cost and Break-even Frequency Total Cumulative AG for the day (as % of DC). Total cumulative UI for the day
Sale of URS
URS: Un-requisitioned Surplus; Capacity remaining un requisitioned and scheduled by the beneficiaries. Issues in Sale of URS:
Infirm nature of power- beneficiaries have right to recall Identifying customers for URS- use of traders Finalising terms and conditions of Sale including tariff Very short duration of contracts. Real time issues- revision of schedules Commercial issues- billing, settlement, payment security etc.
Sale of URS
.contd.
NTPC has been trying to sell any URS capacity with the idea of optimising all available capacity Pricing of URS:
p.u. Capacity charges @80% DC (in case of WR, for RLNG/ naphtha power only 50% of FC)- approved charges as on 15th April; provisional charges being billed where not determined. Variable charges on normative basis based on last available FPA Incentive @25 p/kWh Income Taxes and duties etc. as applicable. Transmission OA charges, Scheduling & RLDC charges extra at actuals Trading Margin of NVVN (4p/kWh)
All inter-regional sale of URS Within region sale in NR, SR & ER; WR directly by NTPC. NVVN arranges for open access & scheduling with RLDC
Sale of URS
Operationalisation
.contd.
Billing
Annual FC, VC & Monthly FPA available with RCC After finalisation of daily schedules, RCC informs NVVN of availability of URS NVVN locates buyer and Faxes OA application to RLDC for scheduling- parties, quantum, duration Buyer also Faxes to RLDC its consent to purchase Liability of payment of fixed charges with original beneficiary All charges collected by NTPC in excess of variable charges and incentive to be passed on to original beneficiary In case of sale in NR, SR & ER through NVVN, bills for FC & Taxes raised by NTPC to NVVN VC+ FPA & Incentive billed directly by NTPC to the buyer Any subsequent adjustment in FC, taxes, duties etc. to the a/c of original beneficiary. NVVN directly bills and collects OA charges, RLDC scheduling and operation charges.
and Payments
Sale of URS
.contd.
Challenges
Quantum of URS Available very dynamic Very Short window for finalising the sale. Current regulations do not permit revision of schedules in real time for bilateral transactions including URS.
Very limited scope for retrospective adjustments- tariff revisions, statutory charges, fuel price adjustments
Chances of recall of capacity by original beneficiary. Changes in capability of generator- tripping, partial outages, fuel constraints. Shortfall in generation to be paid as UI by GENERATOR. Taken up with CERC for necessary amendment
THE COMMERCIAL MECHANISM IS A SELF REGULATED DISCIPLINE AND BINDING ON ALL CONCERNED FACILITATING GRID DISCIPLINE
Eastern Region