open access and deregulation

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NEW TRENDS OF ELECTRICAL POWER INDUSTRY OPEN ACCESS & DE-REGULATION PRESENTED BY- ABHISHEK VASHISTH M.TECH (POWER SYSTEM) Roll No.-08304EN023 WELCOME TO ALL OF YOU

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Present scenario of Indian electric power industry How can we manage power system efficiently? Electricity act 2003 Concept of open access Why open access? De-regulation in power system Effect of De-regulation Role of regulatory commission WHAT I AM GOING TO PRESENT-

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Present scenario of Indian electric power industry

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RECENT INDIAN NETWORK DATA

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GROWTH IN TRANSMISSION LINE

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FEATURES OF THE ELECTRICITY ACT, 2003 An Act relating to generation, transmission, distribution, trading and use of electricity to development of electricity industry, promoting competition, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally policies constitution of Central Electricity Authority,

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WHAT IS OPEN ACCESS? One of the significant provisions of the Electricity Act is “OPEN ACCESS”. Open Access” means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or distribution system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the appropriate Commission.

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To invite private sector to invest in the power industry To promote competition among the generating companies To facilitate consumers to buy power directly from generators To lead to availability of cheaper and reliable power supply WHY OPEN ACCESS?

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CATEGORY OF OPEN ACCESS- (i) Long term open access user Open access agreement for more than 2 years. Nodal agency – State Transmission Utility (STU) (ii) Short term open access user Open access agreement for less than or = 1 year. Nodal agency – State Load Dispatch Centre (SLDC).

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Ensuring the capacity in transmission and distribution system Creating a multi buyer/multi seller environment Determining cross-subsidy surcharges based on economic principles Determination of transmission/wheeling prices Determination of rules and regulations for power trading Categorizing the consumers as LTOA and STOA and determining the charges based on category Determination of priority depending on category and congestion KEY ISSUES FOR OPEN ACCESS-

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Gives freedom to user to buy power from any suplier Assessment of Transfer Capability Balancing mechanism Methodology for transmission charge sharing Treatment of transmission losses Transparency and non-discriminatory implementation Congestion management ADVANTAGES OF OPEN ACCESS-

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Deregulation in power sector is a process by which government remove or reduce restriction on power industry and invite private sector to invest in the power industry. WHAT IS DE-REGULATION?

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Generation Transmission Distribution Electrical Power System

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Power industry is undergoing restructuring throughout the world. The traditional vertically monopolistic structure has been deregulated and replaced by Gencos, Transcos and Discos with competition introduced to Gencos and Discos in order to reach higher efficiency in electricity production and utilization. A lot of power markets have been established for the purpose. WHAT IS DE-REGULATION ?

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INITIAL SET UP GENERATION TRANSMISSION DISTRIBUTION SINGLE MANAGEMENT

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RESTRUCTURED SET UP OF DEREGULATION GENERATION COMPANY-1 GENERATIONCOMPANY-2 GENERATION COMPANY-3 DISTRIBUTION COMPANY-1 DISTRIBUTION COMPANY-2 DISTRIBUTION COMPANY-3 GOVT. OWNED TRANSMISSION COMPANY INDEPENDENT POWER REGULATOR

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Deregulation Deregulation Scheduling Coordinator ISO Transmission Owner Utility Distribution Company Generator Generators and Utilities Energy Service Provider Power Exchange

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To attract various investments to power systems through open-access and fair competition so that power supply can meet the fast growth of demand in developing countries. To reduce government commitment to power industry, To encourage efficient electricity production and utilization through competition and electricity pricing Mechanism So the purpose of de-regulation or in practical term re-regulation is to re-structure the Indian power network so the power generation can reach to customer in a competitive way under regulatory framework WHY DE-REGULATION?

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Effect of Deregulation Monopolistic Power Market Competitive Power Market Cost reduction Problems to Solve Security problem due to the nonutility companies Need of Actual Transfer Capability Analysis Need of Exact Model of Power Systems Under Deregulated Environment

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To determine Transmission and Distribution wheeling charges Surcharge considering the current level of cross-subsidy in the area of the distribution. The manner of payment and utilization of above surcharge the use of common network by different generating companies or customers is made possible by different laws by regulators ROLE OF REGULATORY COMMISSION

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Electricity reform process in India is already in action although in a slow Pace, several state electricity boards are being unbundled into three separate corporations namely Gencos, Transcos and Discos. The distribution system is privatized for better efficiency in metering, billing and revenue collection. The distribution company has option to purchase power from any generation utility through the existing transmission network We can say that open access and de-regulation make the power system more reliable, efficient and flexible. The open access market can improve the Indian power industry and Indian economy also. Conclusion