Draft National Electricity Plan

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1 Draft National Electricity Plan (Volume - II) Transmission [In fulfilment of CEA s obligation under section 3(4) of the Electricity Act 2003] Government of India Ministry of Power Central Electricity Authority February 2012

2 Central Electricity Authority National Electricity Plan U/S 3 (4) of Electricity Act 2003 Draft National Electricity Plan (Volume - II) Transmission [In fulfilment of CEA s obligation under section 3(4) of the Electricity Act 2003] Government of India Ministry of Power Central Electricity Authority February 2012

3 Central Electricity Authority Draft National Electricity Plan (Vol-II) - Transmission CONTENTS CHAPTER TITLE PAGE Contents Acronyms (i) (iv) (v) (viii) Chapter - 1 INTRODUCTION National Electricity Plan National Electricity Plan Transmission Transmission System in India Provisions of the National Electricity Policy Provisions of the Tariff Policy Provisions in CERC Regulations 1.5 Chapter - 2 GROWTH OF TRANSMISSION SYSTEM IN INDIA Growth of transmission system in India Development of National Grid Growth of transmission system in physical 2.4 terms 2.4 Landmark events for transmission sector 2.6 Chapter - 3 TRANSMISSION PLANNING PHILOSOPHY Transmission planning philosophy Planning Objectives Transmission planning approach for market scenario 3.3 (i) Contents

4 Draft National Electricity Plan (Vol-II) - Transmission Central Electricity Authority CHAPTER TITLE PAGE 3.4 Highlights of Transmission Planning Criteria 3.4 Chapter - 4 PLANNING AND DEVELOPMENT PROCESS Coordinated planning and Standing 4.1 Committees for Power System Planning 4.2 Formulation of transmission schemes Implementation of ISTS Intra-STS planning and development Transmission planning studies Technological options 4.3 Chapter - 5 NEW TECHNOLOGIES AND SMART GRID The challenges in design and operation of 5.1 national grid 5.2 Adoption of new technologies Smart national grid 5.3 Chapter - 6 XI PLAN PROGRESS AND PROGRAMME Introduction Summary of XI Plan Transmission 6.2 Programme 6.3 Development of HVDC Systems during XI 6.3 Plan 6.4 Development of 765kV Systems during XI 6.4 Plan 6.5 Progress and programme during XI Plan Development of Inter-Regional transmission 6.6 capacity during the XI Plan 6.7 Challenges in implementation of XI Plan Development of Regional Grids during the XI Plan 6.10 Contents (ii)

5 Central Electricity Authority Draft National Electricity Plan (Vol-II) - Transmission CHAPTER TITLE PAGE Chapter 6A ANNEXES - XI PLAN PROGRESS AND PROGRAMME 6A.1 6A.58 Annex-6.1 Transmission system addition during Annex-6.2 Transmission system addition during Annex-6.3 Transmission system addition during Annex-6.4 Transmission system addition during Annex-6.5 Transmission system addition and programme during Annex-6.6 Details of transmission line projects (220 kv & above) under execution where major forest clearance problem were encountered by Implementing Agencies Annex-6.7 Transmission schemes under execution during 11 th Plan 6A.1 6A.8 6A.15 6A.22 6A.31 6A.42 6A.45 Chapter 7 XII PLAN PROGRAMME Evolving transmission system for XII Plan Inter-Regional Transmission Capacity 7.1 Programme 7.3 Implementation through competitive bidding 7.6 for development of transmission system during 12 th Plan 7.4 Transmission schemes planned for XII Plan 7.6 period 7.5 Northern Region - Transmission Schemes Western Region - Transmission Schemes Southern Region - Transmission Schemes Eastern Region - Transmission Schemes North-Eastern Region - Transmission Schemes 7.10 Evacuation schemes for generation projects in Bhutan for import of power in India kV transmission systems planned for 12 th Plan/ early 13 th Plan (iii) Contents

6 Draft National Electricity Plan (Vol-II) - Transmission Central Electricity Authority CHAPTER TITLE PAGE 7.12 HVDC transmission systems planned for 12 th Plan/ early 13 th Plan 7.13 Use of higher levels of voltage for transmission in national grid 7.14 Transmission system for Ultra Mega Power Projects (UMPP) 7.15 Evolution of high capacity power transmission corridors 7.16 Transmission System Development Programme for 12 th Plan 7.17 Fund requirement for development of transmission System during 12 th Plan Period 7.18 Integration of renewable energy sources (RES) generation in national grid 7.19 Transmission expansion assessment for 13 th Plan MAP Grid map of the existing and planned transmission system of 400kV and above voltage level in India Chapter 7A ANNEXES XII PLAN PROGRAMME 7A.1 7A.42 Annex-7.1 Northern Region transmission scheme 7A.1 details Annex-7.2 Western Region transmission scheme details 7A.10 Annex-7.3 Southern Region transmission scheme 7A.18 details Annex-7.4 Eastern Region transmission scheme details 7A.26 Annex-7.5 North Eastern Region transmission scheme details Annex-7.6 Transmission scheme details for projects in Bhutan 7A.34 7A.41 Contents (iv)

7 Central Electricity Authority Draft National Electricity Plan(Vol-II) - Transmission ACRONYMS ACRONYMS EXPANSION ABT Availability Based Tariff AC Alternating Current AEGCL Assam Electric Generation Company Limited AERC Assam Electricity Regulatory Commission AI All India APDRP Accelerated Power Development and Reform Program APP Atomic Power Plant APTRANSCO Andhra Pradesh Transmission Corporation Aug Augmentation b-t-b back-to-back CEA Central Electricity Authority CERC Central Electricity Regulatory Commission Ckm circuit kilometer CPP Central Power Project CPSU Central Public Sector Undertaking CSEB Chhatisgarh State Electricity Board CTU Central Transmission Utility D/C Double Circuit DVC Damodar Valley Corporation EA 2003 Electricity Act 2003 EHV Extra High Voltage EMTP Electro Magnetic Transient Phenomena EPS Electric Power Survey ER Eastern Region ERC Electricity Regulatory Commission FACTS Flexible AC Transmission System GETCO Gujarat Energy Transmission Corporation GIS Gas Insulated Switchgear GOI Government of India GVA Giga Volt Ampere (v) Acronyms

8 Draft National Electricity Plan(Vol-II) - Transmission Central Electricity Authority ACRONYMS GW GWe HEP HVDC ICTs ISTS Intra-STS JV KPTCL KUMPP kv LILO LNG LT LTOA MAPP MoP MVA MVAR MW NEEPCO NEP NER NHPC NLC NLCPR NPC NPCIL NR NRLDC NRPC NTPC ONGC op. EXPANSION Giga Watt Giga Watt Electrical Hydro Electric Project High Voltage Direct Current Interconnecting Transformers Inter State Transmission System Intra-State Transmission System Joint Venture Karnataka Power transmission Corporation Limited Krishnapattnam UMPP kilo Volt Line In Line Out Liquefied Natural Gas Low Tension Long Term Open Access Madras APP Ministry of Power Mega Volt Ampere Mega Volt Ampere Reactive Mega Watt North Eastern Electric Power Corporation National Electricity Plan North Eastern Region National Hydro Power Corporation Neyveli Lignite Corporation Non Lapsable Central Pool Resources Nuclear Power Corporation Nuclear Power Corporation of India Limited Northern Region Northern Regional Load Dispatch Center Northern Regional Power Committee National Thermal Power Corporation Oil and Natural Gas Corporation operated Acronyms (vi)

9 Central Electricity Authority Draft National Electricity Plan(Vol-II) - Transmission ACRONYMS PFBR PFC PG PGCIL PLCC PLF PMGY PPA PSS PMU PSU PTC PTC PTCUL Quad R&M RAPP RE RPC RL RLDC RoW RPCs S/C S/C on D/C S/S, s/s SC SEB SERC SLDC SR SRLDC SRPC STATCOM EXPANSION Pulverized Fuel Breeding Reactor Power Finance Corporation Power Grid Powergrid Corporation of India Limited Power Line Carrier Communication Plant Load Factor Prime Minister Grameen Yojana Power Purchase Agreement Power System Stabilizer Phasor Measurement Unit Public Sector Undertaking Power Trading Corporation Power Trading Corporation Power Transmission Corporation of Uttranchal Ltd Quadrupled Bundle Conductor Renovation & Modernisation Rajasthan APP Rural Electrification Regional Power Committee Root Length Regional Load Dispatch Center Right of Way Regional Power Committees Single Circuit Single Circuit on Double Circuit towers Sub-station, sub-station Series Compensation State Electricity Board State Electricity Regulatory Commission State Load Dispatch Center Southern Region Southern Regional Load Dispatch Center Southern Region Power Committee Static Compensation (vii) Acronyms

10 Draft National Electricity Plan(Vol-II) - Transmission Central Electricity Authority ACRONYMS Stg 2nd ckt STOA STU SVC TAPP Tckm TCSC TM TPS TSECL UCPTT UHVDC UI ULDC UMPP VAR VLGO WR WRLDC WRPC EXPANSION Stringing of second circuit Short Term Open Access State Transmission Utility Static VAR Compensation Tarapur APP Thousand circuit kilometer Thyristor Controlled Series Compensation Twin Moose Thermal Power Station Tripura State Electric Corporation Limited Unified Common Pool Transmission Tariff Ultra HVDC Unscheduled Interchange Unified Load Dispatch Center Ultra Mega Power Project Volt Ampere Reactive Very Large Grid Operators Western Region Western Regional Load Dispatch Center Western Region Power Committee ********** Acronyms (viii)

11 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission CHAPTER - 1 INTRODUCTION 1.1 NATIONAL ELECTRICITY PLAN As per Section 3 of the Electricity Act 2003, Central Electricity Authority (CEA) has been entrusted with the responsibility of preparing the National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five years. The Act provides that the draft of National Electricity Plan has to be published inviting suggestions and objections from licensees, generating companies and the public and CEA has to obtain approval of the Central Government before notifying the National Electricity Plan. 1.2 NATIONAL ELECTRICITY PLAN TRANSMISSION Transmission planning is a continuous process of identification of transmission system addition requirements, their timing and need. The transmission requirements could arise from new generation additions in the system, increase in demand and general system strengthening not necessarily associate with a particular generation project. These transmission addition requirements are identified, studied and firmed through the transmission planning process. This document Draft National Electricity Plan(Vol-II) Transmission elaborates plan for development of transmission systems in India during 12 th Five Year Plan period (i.e to ). 1.3 TRANSMISSION SYSTEMS IN INDIA The transmission systems that are in place in the country consist of Inter-State Transmission System(ISTS) and Intra State Transmission System(Intra-STS) Inter-State Transmission System (ISTS) ISTS is mainly owned and operated by Power Grid Corporation of India Limited(POWERGRID) which is also Central Transmission Utility(CTU). In future, Inter-State Transmission System (ISTS) schemes would be built through competitive bidding and many private sector entities would own and operate the ISTS elements. Already, a number of ISTS schemes owned by the private sector or joint venture(jv) between private sector and POWERGRID are under construction. The ISTS serves the following purpose: 1.1 Chapter 1: Introduction

12 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority (i) (ii) Evacuation of power from inter-state generation stations which have beneficiaries in more than one state. Onwards transmission of power for delivery of power from inter-state generation stations up to the delivery point of the state grid. (iii) Transfer of operational surpluses from surplus state(s) to deficit state(s) or from surplus region(s) to deficit region(s) Intra State transmission system (Intra-STS) Intra-STS within the state are mainly owned and operated by the state transmission utilities of each state. The Intra-STS serves the following purpose: (i) (ii) Evacuation of power from the generating stations having beneficiaries in that State. Onwards transmission within the State from ISTS boundary up to the various substations of the state grid network. (iii) Transmission within the state grid for delivery of power to the load centres within the state. 1.4 PROVISIONS OF THE NATIONAL ELECTRICITY POLICY Some of transmission related provisions of the National Electricity Policy, which have implication with regard to the National Electricity Plan, are: (i) (ii) Adequate and timely investments and also efficient and coordinated action to develop a robust and integrated power system for the country. Augmenting transmission capacity keeping in view the massive increase planned in generation and also for development of power market. (iii) While planning new generation capacities, requirement of associated transmission capacity would need to be worked out simultaneously in order to avoid mismatch between generation capacity and transmission facilities. The policy emphasizes the following to meet the above objective: The Central Government would facilitate the continued development of the National Grid for providing adequate infrastructure for interstate transmission of power and to ensure that underutilized generation capacity is facilitated to generate electricity for its transmission from surplus regions to deficit regions. Chapter 1: Introduction 1.2

13 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission The Central Transmission Utility (CTU) and State Transmission Utility (STU) have the key responsibility of network planning and development based on the National Electricity Plan in coordination with all concerned agencies as provided in the Act. The CTU is responsible for the national and regional transmission system planning and development. The STU is responsible for planning and development of the intra-state transmission system. The CTU would need to coordinate with the STUs for achievement of the shared objective of eliminating transmission constraints in cost effective manner. Network expansion should be planned and implemented keeping in view the anticipated transmission needs that would be incident on the system in the open access regime. Prior agreement with the beneficiaries would not be a pre-condition for network expansion. CTU/STU should undertake network expansion after identifying the requirements in consultation with stakeholders and taking up the execution after due regulatory approvals. Structured information dissemination and disclosure procedures should be developed by the CTU and STUs to ensure that all stakeholders are aware of the status of generation and transmission projects and plans. These should form a part of the overall planning procedures. The State Regulatory Commissions who have not yet notified the grid code under the Electricity Act 2003 should notify the same not later than September (iv) Open access in transmission has been introduced to promote competition amongst the generating companies who can now sell to different distribution licencees across the country. This should lead to availability of cheaper power. The Act mandates non-discriminatory open access in transmission from the very beginning. When open access to distribution networks is introduced by the respective State Commissions for enabling bulk consumers to buy directly from competing generators, competition in the market would increase the availability of cheaper and reliable power supply. The Regulatory Commissions need to provide facilitative framework for non-discriminatory open access. This requires load dispatch facilities with state-of-the art communication and data acquisition capability on a real time basis. While this is the case currently at the regional load dispatch centers, appropriate State Commissions must ensure that matching facilities with technology upgrades are provided at the State level, where necessary and realized not later than June Chapter 1: Introduction

14 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority (v) To facilitate orderly growth and development of the power sector and also for secure and reliable operation of the grid, adequate margins in transmission system should be created. The transmission capacity would be planned and built to cater to both the redundancy levels and margins keeping in view international standards and practices. A well planned and strong transmission system will ensure not only optimal utilization of transmission capacities but also of generation facilities and would facilitate achieving ultimate objective of cost effective delivery of power. To facilitate cost effective transmission of power across the region, a national transmission tariff framework needs to be implemented by CERC. The tariff mechanism would be sensitive to distance, direction and related to quantum of flow. As far as possible, consistency needs to be maintained in transmission pricing framework in inter-state and intra- State systems. Further it should be ensured that the present network deficiencies do not result in unreasonable transmission loss compensation requirements. (vi) The necessary regulatory framework for providing non-discriminatory open access in transmission as mandated in the Electricity Act 2003 is essential for signaling efficient choice in locating generation capacity and for encouraging trading in electricity for optimum utilization of generation resources and consequently for reducing the cost of supply. (vii) Special mechanisms would be created to encourage private investment in transmission sector so that sufficient investments are made for achieving the objective of demand to be fully met by PROVISIONS OF THE TARIFF POLICY Some of related provisions of the Tariff Policy, which provide objective in development of transmission systems through transmission tariff framework, are: The tariff policy, insofar as transmission is concerned, seeks to achieve the following objectives: 1. Ensuring optimal development of the transmission network to promote efficient utilization of generation and transmission assets in the country; 2. Attracting the required investments in the transmission sector and providing adequate returns. Chapter 1: Introduction 1.4

15 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission A suitable transmission tariff framework for all inter-state transmission, including transmission of electricity across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-state transmission, needs to be implemented with the objective of promoting effective utilization of all assets across the country and accelerated development of new transmission capacities that are required. 1.6 PROVISIONS IN CERC REGULATIONS In accordance with the Act, the central commission has issued regulations which entitle distribution licensees, generators, electricity traders and permitted open access customers to seek access to the inter-state transmission system. As per the present regulations access to the transmission system can be sought on short, medium or long term basis. The Central Transmission Utility (CTU) is the nodal agency for providing medium term (3 months to 3 years) and long term (12 to 25 years) access that are typically required by a generating station or a trader on its behalf. The nodal agency for grant of short term open access (up to three months) is the Regional Load Dispatch Centre. The nodal agency for providing transmission access to the power exchanges is the National Load Dispatch Centre. The long term access is to be granted through the transmission planning route. ********** 1.5 Chapter 1: Introduction

16 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority Blank Page Chapter 1: Introduction 1.6

17 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission CHAPTER - 2 GROWTH OF TRANSMISSON SYSTEM IN INDIA 2.1 GROWTH OF TRANSMISSION SYSTEMS IN INDIA Formation of State Grids for integrated planning At the time of independence, power systems in the country were essentially isolated systems developed in and around urban and industrial areas. The installed generating capacity in the country was only about 1300 MW and the power system consisted of small generating stations feeding power radially to load centres. The highest transmission voltage was 132 kv. The state-sector network grew at voltage level up to 132 kv during the 50s and 60s and then to 220 kv during 60s and 70s. Subsequently, in many states (U.P., Maharashtra, M.P., Gujarat, Orissa, A.P., and Karnataka) substantial 400kV network was also developed in the State sector as large quantum of power was to be transmitted over long distances. With the development of state grids in most states of the country the stage was set for development of regional grids Concept of Regional Planning and Integration of State Grids During the 3 rd Five Year Plan, the concept of Regional planning in Power Sector was introduced. Accordingly, for the purposes of power development planning, the country was demarcated into five power Regions viz. Northern, Western, Southern, Eastern and North-Eastern. In 1964, the Regional Electricity Boards were established in each of the Regions of the country for facilitating integrated operation of State Systems in the Region and encouraging exchange of power among the States. To encourage the States to build infrastructure for exchange of such power, inter-state lines were treated as centrally sponsored and the States were provided interest free loans outside the State Plan. 55 nos. of inter-state lines were constructed under the programme of which 13 lines were connecting States located in different Regions and this created the initial set of inter-regional links. These lines facilitated exchange of power in radial mode among the various Regions Evolution of Regional Grids Till about 1975 the development of transmission was essentially by the State Electricity Boards/ Electricity Departments in the States and Union Territories. In 1975, to supplement the efforts of the states in increasing generation capacities, Central Sector generation utilities viz. National Hydroelectric Power Corporation (NHPC) and National Thermal Power Corporation (NTPC) were created. These corporations established large generating station for the 2.1 Chapter 2: Growth of Transmission System in India

18 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority benefit of States in a region. These corporations also undertook development of associated transmission lines, for evacuation of power and delivery of power to the beneficiary States transcending state boundaries. This gave a fillip to the formation of Regional Grid Systems and by the end of 1980s, strong regional networks came into existence Development of inter-regional links In 1989, transmission wings of Central generating companies were separated to set up Power Grid Corporation of India (POWERGRID) to give thrust to implementation of transmission system associated with Central generating stations and inter-regional transmission programme based on perspective planning done by CEA. Till then, the generation and transmission systems in the country were planned and developed on the basis of regional selfsufficiency and the initial set of inter-regional links developed under the Centrally sponsored programme for building inter-state infrastructure of State utilities, was utilized to facilitate exchange of operational surpluses among the various Regions in a limited manner because the Regional Grids operated independently and had different operating frequencies and the power exchanges on these inter-regional links could take place only in radial mode. 2.2 DEVELOPMENT OF NATIONAL GRID The National Grid consists of the transmission system for evacuation of power from generating stations, the inter-regional links, Inter State transmission system and Intra-State transmission of the STUs. Thus, development of national grid has been an evolutionary process. It is expected that, at the end of 12 th Plan, each region in the country would be connected to an adjacent region(s) through at least two high capacity synchronous 400kV or 765kV lines and a HVDC bipole/back-to-back link. This would make the National Grid a large, meshed synchronous transmission grid where all the regional and State grids in them would be electrically connected and operating at single frequency. Following describes the evolution of National Grid Asynchronous Interconnections between Regional Grids Considering the operational regime of the various Regional Grids, it was decided around 1990s to establish initially asynchronous connection between the Regional Grids to enable them to exchange large regulated quantum of power. Accordingly, a 500 MW asynchronous HVDC back-to-back link between the Northern Region and the Western Region at Vindhyachal was established. Subsequently, similar links between Western Region and Southern Region (1000 MW capacity at Bhadrawati) and between Eastern Region and Southern Region (500 MW capacity at Gazuwaka) and between Eastern Region and Northern Region (500 MW capacity at Sasaram), were Chapter 2: Growth of Transmission System in India 2.2

19 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission established. The capacity of Gazuwaka link between Eastern Region and Southern Region has been increased to 1000 MW Synchronization of Regional Grids In 1992 the Eastern Region and the North-Eastern Region were synchronously interconnected through a Birpara-Salakati 220kV double circuit transmission line and subsequently by a 400 kv D/C Bongaigaon -Malda line. Western Region was interconnected to ER-NER system synchronously through 400kV Rourkela-Raipur D/C line in 2003 and thus the Central India system consisting of ER-NER-WR came in to operation. In 2006 with commissioning of Muzaffarpur-Gorakhpur 400kV D/C line, the Northern region also got interconnected to this system making an upper India system having the NR-WR-ER-NER system. In 2007 NR was also synchronously interconnected with WR through Agra-Gwalior 765kV S/C line-1 400kV operation All India Planning and Evolution of Integrated National Grid Since the advent of the current century, the focus of planning the generation and the transmission system in the country has shifted from the orientation of regional self-sufficiency to the concept of optimization of utilization of resources on all-india basis. Generation planning studies carried out by CEA had indicated that the capacity addition planned on all-india basis is less than that planned on regional basis. Further, a strong all-india integrated national grid enables harnessing of unevenly distributed generation resources in the country. Recognizing the need for development of National grid, thrust was given to enhance the capacity of inter-regional links in a phased manner. Total inter-regional transmission capacity by the end of 9 th Plan was 5750 MW. During 10 th Plan i.e , a total of 8300 MW of inter-regional capacities were added. In this effort, major achievements were - addition of Talcher-Kolar HVDC Bipole, second module of HVDC back-to-back system between SR and ER at Gazuwaka, HVDC back-to-back system between NR and ER at Sasaram, synchronous inter-connection of NER/ER grid with WR grid by Rourkela-Raipur 400kV D/C line, synchronous inter-connection of NER/ER/WR grid with NR grid by Muzaffarpur-Gorakhpur 400kV D/C (quad) line and subsequently, one circuit of Patna-Balia 400kV D/C (quad) line and Agra-Gwaliar 765kV transmission line (operated at 400kV). Total inter-regional transmission capacity by the end of 10 th Plan was MW and is expected to be MW by end of 11 th Plan (i.e. March 2012). Transmission constraints rarely occur due to physical limits of inter-regional transmission capacity. Details of inter-regional links that are expected to be implemented during 11 th Plan period are given in Chapter-6, and those under-construction/ planned for 12 th Plan period are given in Chapter Chapter 2: Growth of Transmission System in India

20 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority 2.3 GROWTH OF TRANSMISSION SYSTEM IN PHYSICAL TERMS There has been a consistent increase in the transmission network and transformation capacity in India. This increase is in consonance with increase in generation and demand of electricity in the country. The increase in the transmission lines of 220kV and above voltage levels, in terms of circuit kilometres, have been roughly five times in last 26 years and that for substation capacity more than seven times in the same period. There has been more increase in the transmission system at higher voltage levels and substation capacities. This aspect of growth in transmission highlights requirements of transmission network to carry bulk power over longer distances and at the same time optimize right of way, minimize losses and improve grid reliability Growth in transmission lines Cumulative growth in transmission lines, of 220kV and above voltage levels, since end of 6 th five-year plan(i.e. March 1985) to fourth year of 11 th Plan (i.e. March 2011) is depicted below: Growth of Transmission Lines(ckm) at the end of each Plan: Voltage level 6th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan (4th year) 765kV HVDC Bipole kV kV Total ckm Chapter 2: Growth of Transmission System in India 2.4

21 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission Growth of transmission lines t o t a l c k m a d d e d th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan Plan (4th year) Growth of Substations Cumulative growth in transformation capacity of substations and HVDC terminals, of 220kV and above voltage levels, since end of 6 th five-year plan(i.e. March 1985) to fourth year of 11 th Plan (i.e. March 2011) is depicted below: Growth of Substations (MVA/ MW) at the end of each Plan: 6th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan (4th year) 765kV HVDC Bipole kV kV Total MVA/MW Chapter 2: Growth of Transmission System in India

22 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority to ta l M V A /M W Growth of Substations 6th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan plan (4th year) 2.4 LANDMARK EVENTS FOR TRANSMISSION SECTOR Development of the transmission network has been done in tandem with growth in generation capacity. The growth in transmission system is characterized by the physical growth in transmission network as well as introduction of higher transmission voltages and new technologies for bulk power transmission. Landmark events of this growth are: 1948 Electricity (Supply) Act The Act provided for establishment of the Central Electricity Authority (CEA) and the State Electricity Boards Growth of State Grids and introduction of 220kV voltage level 1964 Constitution of Regional Electricity Boards Interconnecting State Grids to form Regional Grid systems 1977 Introduction of 400kV voltage level Growth of Regional Grid Systems as associated transmission system with Central Sector generation 1989 HVDC back-to-back System 1990 Introduction of HVDC bi-pole line 1997 Synchronous inter-connection of ER and NER 1999 Transmission planning re-oriented towards all-india system Chapter 2: Growth of Transmission System in India 2.6

23 Central Electricity Authority Draft National Electricity Plan(Vol-II) Transmission 2000 Introduction of 765kV transmission line (initially charged at 400kV) Electricity Act ABT with real time settlement mechanism implemented in all the five electrical regions creating the basic infrastructure for the operation of an electricity market. - Synchronous inter-connection of WR with ER-NER system - Bulk inter-regional HVDC transmission system 2004 Open access in transmission 2006 Synchronous inter-connection of NR with ER-NER-WR system kV operation of Sipat Substation kV operation of 765kV transmission lines 2010 Notification of POSOCO for operation of RLDCs/NLDC as a separate organization form CTU 2011 Implementation of point-of-connection based method for sharing transmission charges and losses all across the country. ********** 2.7 Chapter 2: Growth of Transmission System in India

24 Draft National Electricity Plan(Vol-II) Transmission Central Electricity Authority Blank Page Chapter 2: Growth of Transmission System in India 2.8

25 Central Electricity Authority Draft National Electricity Plan (Vol-II) Transmission CHAPTER - 3 TRANSMISSION PLANNING PHILOSOPHY 3.1 TRANSMISSION PLANNING PHILOSOPHY Transmission planning philosophy in India has evolved over last few decades keeping pace with developments and needs of the electricity sector. The transmission planning has been aligned with the new Electricity Act, National electricity policy, tariff policy, regulations and market orientation of the electricity sector. The objectives, approach and criteria for transmission planning, which evolved in time, take care of uncertainties in load growth and generation capacity addition while optimizing investment in transmission on long term basis. These objectives, approach and criteria are kept in view while planning transmission addition requirements to meet targets for adequacy, security and reliability. Transmission plan is firmed up through system studies/analysis considering various technological options and the transmission planning philosophy. 3.2 PLANNING OBJECTIVES Following objectives are taken into account while planning and developing transmission system in India. (1) Even development: Development of transmission system across the country so that all areas could have similar level of electricity system irrespective of uneven disposition of electric power generating sources in the country. (2) Optimum utilisation of generation resources: Adequate transmission system development so as to optimally utilise the hydro-thermal mix of generation resources taking into account the concentration of coal in the eastern part of the country and hydro power sources in the north - eastern and northern parts of the country. (3) Harnessing diversity in regional peak demand: Obtaining advantages of diversity based exchanges of power; that is, exchanges on account of regional variations in generation and demand pattern arising due to geographical, seasonal, time of day and operational diversities. (4) Providing flexibility for implementation: The Central Transmission Utility (CTU) and the State Transmission Utility (STU) responsible for planning the development of the transmission system. National Electricity 3:1 Chapter 3: Transmission Planning Philosophy

26 Draft National Electricity Plan U/S 3 (4) of Electricity Act 2003 Central Electricity Authority Plan prepared by the Central Electricity Authority to serve as guiding document in this process. The Central Transmission Utility is responsible for inter-state transmission of electricity. The State Transmission Utility is responsible for transmission of power within the state. The Central Transmission Utility would have to coordinate with the State Transmission Utilities and the other stakeholders for preparing a wellcoordinated transmission plan for the country. As the generation sector has been de-licensed, the actual development may be at variance with respect to the programme indicated in National Electricity Plan. The transmission development programme would accordingly need to be reworked from time to time. Therefore, in the long run there could be deviations from the National Electricity Plan. With the emergence of new generating stations, the transmission system associated therewith would have to be quickly planned and executed. (5) Facilitating trading: Transmission system to facilitate trading of electricity, which under the Electricity Act, 2003, has been recognized as a distinct activity. It is expected that in consequence of this and the nondiscriminatory open access on the transmission system, market forces may influence the pattern of power flows requiring reassessment of adequacies/ inadequacies in the transmission network. For the need arising from trading in electricity, suitable system strengthening (to be taken up from time to time), and aligned with the perspective transmission plan would be required to be taken up by the Central Transmission Utility and the State Transmission Utilities in coordination with CEA. (6) Technology and cost optimization: Optimum development of transmission network based on feasibility analysis and techno-economic evaluation of technology options such as Extra High Voltages, AC, HVDC, hybrid, multi-circuit/multi-conductor lines, GIS, reactive compensation, dynamic compensation, etc. The objective should be to optimize cost of transmission system by use of technology. (7) Right of Way optimization: With the all round development of our country and the increase in population, difficulty in obtaining corridors for power transmission has been increasing. Therefore, there is a need to optimize the power transmission corridors. Use of high capacity lines, multi circuit lines and increasing transmission capability of existing lines through use of re-conductoring using aluminium alloy conductors or series compensation and flexible alternating current transmission systems (FACTS) devices where optimal, are to considered in the planning stage. (8) Stage wise development: As generating capacity is built up in stages, the transmission capacity would also have to be built up in stages. Stage Chapter 3: Transmission Planning Philosophy 3:2

27 Central Electricity Authority Draft National Electricity Plan (Vol-II) Transmission wise development of transmission capacity could be done by charging a higher voltage specification line at lower voltage initially, or by stringing circuits of multi-circuit line in phased manner or by use of series compensation at a later date on a line built with high current capacity conductors etc. (9) High capacity corridors from NER: The North-eastern Region of the country has hydro potential of the order of GW most of which is yet to be developed. Development of this hydro potential alongwith industrial development in the North-eastern region(ner) is required so that increasing availability of power in the region is matched with growth in local demand. However, as the hydro potential in the NER is quite large (almost 70% of all future hydro power would come from NER), substantial power from this region would be required to be transmitted to Northern region and Western region where the growth in demand is much higher as compared to potential for local development of generation resources in those regions. In addition, power from Bhutan would also need to be transmitted towards NR/WR. As the Eastern region(er) is in surplus and with development of further generation projects in ER utilising the coal reserves in that area, the ER will continue to be an exporting region. Thus the bulk of NER power would be transmitted directly to NR/WR over distances exceeding 2000 km. Considering the right of way constraints in the chicken-neck area and also to conserve the over-all right of way, high capacity transmission system consisting of hybrid network of HVDC and high capacity 400kV AC would be required to be developed. This development would need to be properly phased to match with the programme of development of hydro generation in NER. For bringing power from NER, a higher voltage of + 800kV HVDC has been considered. Reduction in losses and optimisation of right of way are the main objectives of adopting higher voltages. (10) Full utilization of the generating capacity in Pit-head and Coastal Areas: For the full utilization of the capacity from cluster of generation projects mainly in pit-head and coastal areas, high capacity transmission system up to load centers in the country have to be planned keeping in view long distance of transmission, ROW optimization, operational flexibility of grid and the aim that no generating capacity is rendered idle due to transmission constraints. (11) Continued development of Regional Grids: Continued development of regional grids so as to meet the transmission needs within each of the regions. The development should cater to the power evacuation from generation capacity additions and strengthening in the regional grids addressing specific requirements of the area. It should provide transmission system to cater to changes in the pattern of power flows for inter-state transmission arising on account of capacity additions for intra- 3:3 Chapter 3: Transmission Planning Philosophy

28 Draft National Electricity Plan U/S 3 (4) of Electricity Act 2003 Central Electricity Authority state benefits. The system should be strengthened to overcome the deficiencies and provide long term solution. (12) A strong All India Grid: Formation of strong All India Grid is a flagship endeavour to steer the development of Power System on planned path leading to cost effective fulfilment of the objective of Electricity to All at affordable prices. A strong All India Grid would enable harnessing of unevenly distributed generation resources in the country to their optimum potential. This together with open access in transmission would facilitate market-determined generation dispatches, thereby resulting in supply at reduced prices to the distribution utilities and ultimately to consumers benefit. (13) Regional grid substations where demand exceeds 300 MW: Transmission system of the regional grids for delivery of power to the state grids is an important component of regional grid systems. The endeavour could be to provide regional grid substations (preferably a 400kV grid substation) at places where demand exceeds 300 MW. This would also enable spread of high capacity grid in India. (14) Development of matching transmission system at 220kV and 132kV: Development of matching transmission system at 220kV and 132kV and also the sub-transmission and distribution system so as to cater to the load growth and ensure proper utilisation of development in generation and transmission facilities for the ultimate goal of delivery of the services up to the end consumers in the country. 3.3 TRANSMISSION PLANNING APPROACH FOR MARKET SCENARIO Enactment of the Electricity Act, 2003 has opened up hitherto constrained electricity market which was characterized by long term PPAs and inability of Distribution Companies and consumers to have a choice of suppliers. Besides, de-licensing generation and removing controls on captive generation, the Electricity Act 2003 makes it mandatory for the transmission licensee to provide non-discriminatory open access to its transmission system for use by any licensee or generating company for wheeling its power on payment of transmission charges. This creates enabling environment for competition among generators/traders to choose their customers and vice-versa The Act has also liberalized setting up of generating stations and any generating company can establish, operate and maintain a generating station. As a result, a large number of IPPs are setting up generating stations with the aim of selling power in various segments of the electricity market viz. longterm, medium-term, short-term, bilateral or day-ahead power exchange. During the 11 th Plan, about 19,000 MW generating capacity is likely to be added through private sector. The contribution of the private sector i.e. Chapter 3: Transmission Planning Philosophy 3:4

29 Central Electricity Authority Draft National Electricity Plan (Vol-II) Transmission Independent Power Producers (IPPs) during the 12 th Plan may be between 40,000 60,000 MW. The magnitude of long term access (LTA) applications received by the CTU confirms this trend There is no firm knowledge of the perspective beneficiaries or delivery point when the transmission planning is taken up and for a number of generation projects and only target regions/ beneficiaries is known at the time of transmission planning. Under such scenario there is need to create adequate transmission infrastructure in time so that the new generating capacity is not bottled up after commissioning. While finalising the 11 th Plan document, CEA had developed a strategy for transmission planning for the IPPs to take care of the possibility of lack of knowledge of firm beneficiaries in a market scenario at the time of transmission planning. The same approach is followed and sufficient margins would get built to cater the need of generation resource optimization through short-term trading and power exchange operation Based on application by a generator for Long Term Access, the transmission system is planned for evacuation of power from generating stations. The system planning studies are carried out considering projected load in accordance with forecasts of Electric Power Survey (EPS) and actual growth of the load in a State/region. The loads of various States are assumed irrespective of any PPAs. Thus, in this process, adequate inter-state transmission capacity gets created for evacuation of power from the generation project. However, delivery of their power to their actual beneficiaries may face some constraint. Further, adequate intra-state transmission system is also required to absorb power injected from ISTS During the planning process, some design margins get created in the network generally due to long term optimisation. These margins, alongwith operational and reliability margins which are variable in nature and depend upon system conditions and load flow pattern at that time provide sufficient additional capacity in the system for States to buy power more than their long-term PPAs. However, these margins can be utilized only up to a limit and may result into congestion if States start buying power in much excess of their forecasted requirements. 3.4 HIGHLIGHTS OF TRANSMISSION PLANNING CRITERIA Transmission planning should aim at achieving an acceptable system performance and reliability requirements. These reliability requirements are specified in the Manual on transmission Planning Criteria and updated in the National Electricity Plan (2007) notified by Government of India. Highlights of the transmission planning criteria are: 3:5 Chapter 3: Transmission Planning Philosophy

30 Draft National Electricity Plan U/S 3 (4) of Electricity Act 2003 Central Electricity Authority (1) The transmission system should be planned in an integrated manner. (2) The optimization should include the total network including inter-state and intra-state transmission system. (3) The National Grid should facilitate free flow of power across the regional boundaries. (4) In the national approach, N-2 criteria may be adopted for testing the adequacy of transmission system from large generating complex (3000 MW or above) and multi line corridors (3 D/C lines or more), on case to case basis. Whereas, regional planning may be continued with N-1 criteria. However, while N-1 would be applied to test transmission adequacy without necessitating load shedding or rescheduling of generation during steady state operation, N-2 would be applied to test without necessitating load shedding but could be with rescheduling of generation during steady state operation. (5) Inter-regional exchanges and inter-connection capacity on account of plant mix considerations, generation shortages due to forced outages, diversity in weather pattern and load forecasting errors in regions shall also be considered in the studies. (6) Inter-regional exchange with a combination of surplus and deficit scenarios for different regions maximizing surplus in surplus region and deficit in deficit region to be considered in evolving National Grid. (7) The adequacy of the transmission system should be tested for different load generation scenarios corresponding to one or more of the following so as to test the scenario of maximum burden on the transmission system: Summer Peak Load; Summer Off-peak Load; Winter Peak Load; Winter Off-peak Load; Monsoon Peak Load; Monsoon Off-peak Load; (8) Dispatch scenarios for maximizing transfer in specific inter-regional corridors should be considered to determine the adequacy of transmission system to take care of requirement of regional diversity in inter-regional export / import. Chapter 3: Transmission Planning Philosophy 3:6

31 Central Electricity Authority Draft National Electricity Plan (Vol-II) Transmission (9) Sensitivity in respect of generation dispatch or load demand should be studied so as to study the possibility of increased burden on transmission system. (10) Size and number of interconnecting transformers (ICTs) to planned in such a way that outage of any single unit does not over load the remaining ICTs or the underlying system. (11) As a general rule, the ISTS shall be capable of withstanding and be secure against the following contingency outages: (a) Withstand without necessitating load shedding or rescheduling of generation during steady state operation - Outage of a 132kV D/C line, or - Outage of a 220kV D/C line, or - Outage of a 400kV S/C line, or - Outage of a 400kV S/C line with series compensation, or - Outage of single Interconnecting Transformer, or - Outage of one pole of HVDC Bipole line, or - Outage of a 765kV S/C line without series compensation (b) Withstand without necessitating load shedding but could be with rescheduling of generation during steady state operation - - Outage of a 400kV S/C line with TCSC, or - Outage of a 400kV D/C line, or - Outage of both poles of HVDC Bipole line, or - Outage of a 765kV S/C line with series compensation. (12) The above contingencies shall be considered assuming a precontingency system depletion (Planned Outage) of another 220kV D/C line or 400kV S/C line in another corridor and not emanating from the same substation. All the Generating Units may operate within their reactive capability curves and the network voltage profile shall also be maintained within voltage limits specified. For requirement of reliability, planning criteria for evacuation system for Nuclear power station that is being adopted is to consider outage of one circuit assuming precontingency depletion of another circuit from the same station. This is effectively N-2 without rescheduling but with no other pre-contingency. 3:7 Chapter 3: Transmission Planning Philosophy

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