Intra-State Availability Based Tariff (ABT)

Intra-State Availability Based Tariff (ABT)

What is ABT? 1. In Year 2000, the CERC revised the tariff structures of inter- state generators from drawal-based tariffs to ABT to discipline grid operations. 2. The earlier system was effectively a single-part tariff, where inter-state generators were compensated on the basis of their generation and beneficiary states paid on their actual drawals. 3. As a result, there was no discipline among generators and beneficiaries, leading to frequent tripping and undesirable frequency excursions. 4. The ABT structure comprises of the following: a. Capacity Charge (As per Plant Availability) b. Energy charge (As per Schedule) c. Unscheduled Interchange (UI) i.e. deviations from schedule Charge (Linked to Frequency)

UI Charges(Inter-State ABT) 1. The UI charge is payable by generators and beneficiary states for any deviation from the accepted schedule. 2. The UI charge provides incentives and disincentives for deviations between the scheduled and actual exchange of power, depending on the deviation s contribution to the overall stability and security of the grid. 3. The UI shall be worked out for each 15-minute time block. Freq UI rate Freq UI rate >49.00 5.70 49.00 5.70 49.02 5.61 49.50 3.45 49.04 5.52 50.00 1.50 49.06 5.43 50.50 & + 0.00 49.08 5.34 ( Each 0.02 Hz step is equivalent to 6.0 paise/kwh in the 50.5-49.8 Hz frequency range, and to 9.0 50.44 0.18 paise/kwh in the 49.8-49.0 Hz frequency range) 50.46 0.12 50.48 0.06 50.50 & + 0.00

Advantages Of ABT Availability Based Tariff (ABT) is successfully implemented for Inter-State System in India. The experience of implementing ABT in the country till date has shown following major advantages : 1. Significant Improvement in Grid Discipline and Grid Security. 2. Improvement in grid voltage levels leading to reduction in transmission losses and enhancement of transmission capacity. 3. Enabling environment for meeting Peak Demand. 4. Inter-State trading of electricity becomes reality. 5. Real-Time electricity Market. 6. Improvement in commercial dealings.

Need For Intra State ABT(1) 1. ABT is currently applicable only to central sector generators and beneficiaries who are directly connected to and are a player on the regional grids (inter state only). The advantages not being utilized by the entire power sector. 2. On the intra-state level, a significant surplus capacity exists with various generating companies & CPPs which at present is not being optimally utilized. 3. Moreover, a number of state generating stations still have single part tariff, which is not in line with merit order regime. Such generating stations would be asked to back down even though on a variable cost based merit order system they would have been fully dispatched. 4. It is also necessary that the distribution utilities become more accountable in their load management processes by assessing consumer demand more accurately and planning their load shedding schedules judiciously.

Need For Intra State ABT(2) 5. Unbundling of SEBs would increase no. of players managing the load in the system. 6. Unless a mechanism is put into place at the intra-state level to cover these distribution companies also under ABT, the loop would not be closed and the actual implementation of ABT would not be completed. 7. Thus, implementation of ABT at the intra-state level would release up idle generating capacity leading to meeting of more consumer demand, ensure better load management by the distribution companies, boost bilateral trading etc. 8. ABT with self contained discipline mechanism would enable better and reliable grid operations.

Issues in Intra State ABT 1. Structural Re-Organization (Shall embedded generation plants, be covered under Intra-State ABT?) 2. Pricing of balancing electricity (Marginal Cost of Generation + Cost of T&D losses + Frequency Dependant Incentive / Penalty + Pro-ration of Inter-State UI charges payable by the state) 3. Incorporation of Infirm power (e.g. Hydro & Nonconventional Generation) 4. Large number of entities & the infrastructure requirements 5. Banking and Wheeling arrangements to be re-arranged 6. Regulations on costs incurred by utilities in balancing Market.

POWER SCENARIO IN GUJARAT Present Installed Capacity - 8683 MW Max.Daily Energy Catered - 180 MUs (2004) Max.U/R Demand - 9692 MW (2004) Max.Demand Catered - 8078 MW (Sept-04) Total Installed Capacity of Gujarat System GEB + GSECL 4995 MW PRIVATE SECTOR CENTRAL SECTOR (SHARE) TOTAL 2156 MW 1532 MW 8683 MW

Structure of GEB GEB was constituted in 1961. GEB started functioning with two wings. 1. Planning & Project. 2. Operation & Maintenance. In 1980 O&M wing was bifurcated into two departments: 1. Transmission Department. 2. Distribution Department. So, the Generation, Transmission and Distribution departments are under one umbrella i.e. GEB till on date.

New Structure of GEB GENCO : GSECL( Gujarat State Electricity Corpn. Ltd) : Single GENCO owning all GEB s power stations and each power station a profit-centre TRANSCO: GETCO (Gujarat Energy Transmission Corporation Ltd) : Single Transco owning all 400/220/132 and 66kV lines and transformers owned by GEB. Transco to own network upto transformer stepped down to 66kV. 66kV lines and below to be owned by Discoms. DISCOM : There are four Discoms created on the basis of geographical locations. TRADER : Residual GEB (named as Gujarat Urja Vikas Nigam Limited (GUVNL)) as Trading licensee.

New Structure of DISCOMs Four DISCOMS DGVCL( Dakshin Gujarat Vij Company Ltd): South Gujarat Districts of Valsad, Surat, Dang, Bharuch & Narmada 23% of total load i.e. 1858 MW MGVCL( Madhya Gujarat Vij Company Ltd):Central Gujarat Districts of Anand, Vadodara, Kheda, Panchmahal & Dahod. 13% of total load i.e. 1050 MW UGVCL( Uttar Gujarat Vij Company Ltd):North Gujarat Districts of Banaskantha, Patan, Mehsana, Sabarkantha, Amdavad & Gandhinagar 29% of total load i.e. 2343 MW PGVCL( Pashchim Gujarat Vij Company Ltd):West Gujarat (Suarashtra) Districts of Kachchh, Jamnagar, Porbandar, Jungadh, Amreli, Bhavnagar, Rajkot & Surendranagar. 35% of total load i.e. 2827 MW

Implementation Of Intra-State ABT in Gujarat State 1. Realizing need of an hour, in Feb-2004 GEB had appointed M/S. PGCIL as Intra-State ABT Consultant to formulate and implement the Intra-State ABT in Gujarat state. 2. As per the plan, the first phase of listing of entities, finalization of metering issues etc have been completed. 3.As per the schedule planned, under second phase, the tariff will be finalised, the market structure will be formed, the existing PPAs will be made ABTcompliant. 4. In the final phase the metering & software will be installed & commissioned and UI account will be organized. 5.After joint evaluation of technical offers with PGCIL officials, the A/Ts have been placed in favour of two meter manufacturers.the scope of A/T comprises of supply of meters, DCDs, data reading software for DCDs, installation of meters and meter cubicle, weekly reading of metered data though DCDs, Confirmation for Transmission of data to SLDC. 6. The meters are expected to be supplied by 2 nd week of January and thereafter the work for installation of meters and cubicles and connections will be started.

GUJARAT STATE POWER POOL : Single Buyer Model GEN 1 GEN 2 STATE GENCO GEN 3 IPP 1 IPP 2 s External Purchases ISGS Allocations RESIDUAL GEB TO POOL ALL GENERATION TRANSMISSION SYSTEM OF GETCO South DISCOM A SEC Central DISCOM North DISCOM AECo West DISCOM

Intra-State ABT implementation is a Journey and not a Destination Thank You