Transcript Gujarat Power Market Development

Gujarat Power Market Development
Dr. KETAN SHUKLA (IFS),
SECRETARY,
GUJARAT ELECTRICITY REGULATORY COMMISSION
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
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
Power Sector of Gujarat
Total Installed Capacity
(Including Central Generation)
12, 258 MW
Installed capacity
for Wind Power
1,790 MW
Captive
Generating Plant
(Grid Connected)
3,033 MW
Captive
Generating Plant
(Off the Grid)
2,531 MW
- 300 days of clear
sun
Potential for Solar
- solar radiation 5.6
Power
to 6 kWh per Sq. Mt.
per day
Sources: Submissions by Licensees during their filing of ARR, 2010
Power Sector of Gujarat
Total Installed Capacity
Projected Peak Demand in
2012 (As per 17th EPS / @
6% Growth)
Installed Capacity Required
by 2012 (at 80% PLF)
Planned Capacity Addition
by 2012
12,258 MW
Capacity Available by 2012
18764 MW
Surplus /(Deficit) by 2012
+ 336 MW
Private
sector
35%
State
43%
14,374 MW
18,428 MW
8,900 MW
Central
Share
22%
 Capacity to double at the end of XI Plan
Cum.
Year
State
Central Private
Total
Add.
Capacity as on 01-04-2009 was
09-10
700
407
2147
9864
3254
13118
15299
10-11
1060
421
700
2181
11 - 12
860
383
2222
3465
2620
1211
5069
8900
Total
18764
 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
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
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 demandsupply 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
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.
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
Promoting Renewable Sources of Energy
 GERC notified the
regulation
on
Procurement
of
Energy
from
Renewable Sources
Year
 Renewable
Power
obligation revised Specified
Minimum
Percentage of the total 2010 - 11
consumption of its
consumers including 2011-12
T&D losses during
year (for Distribution 2012-13
Licensees)
 Separate RPO for wind, solar
the availability of such sources
Minimum Quantum of Purchase (in %) from renewable
energy sources (in terms of energy in kWh)
Total
Wind
Solar
Biomass, bagasse
and others
5.00%
4.50%
0.25%
0.25%
6.00%
5.00%
0.50%
0.50%
7.00%
5.50%
1.00%
0.50%
and other
renewable energy based on
 RPO applicable to the Captive and Open Access consumers/users as
and when a separate notification is issued by the Commission.
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
Capital Cost
per MW
Order 1 of 2010
Rs. 500
dated
Wind
Lakhs per
Rs. 3.56 per Unit for project life of 25 years
30/01/2010
MW
Rs. 1650
Fixed Tariff of Rs. 15 per Unit for first 12 years and Rs. 5 per Unit for
Solar PV
Lakhs per
next 13 years
Order No. 2 /
MW
2010 dated
Rs. 1300
29/01/2010
Fixed Tariff of Rs. 11 per Unit for first 12 years and Rs. 4 per Unit for
Solar Thermal
Lakhs per
the next 13 years.
MW
GERC Order No.
RE Source
Tariff Rate
Single Part Tariff: Rs. 4.49 per unit with accelerated Depreciation
Order dated
17/05/2010
Biomass
Single Part Tariff: Rs. 4.54 per Unit without accelerated Depreciation
For developers adopting two part tariff, the Commission has determined the two-part
tariff for Biomass based projects to be commissioned during the years 2010-11,2011-12
and 2012-13 separately.
Rs. 4.54
Lakhs per
MW
Single Part Tariff: Rs. 4.65 per unit with accelerated Depreciation
Order dated
31/05/2010
Single Part Tariff: Rs. 4.71 per Unit without accelerated Depreciation
Bagasse based
For developers adopting two part tariff, the Commission has determined the two-part
co-gen
Rs. 444
Lakhs per
MW
tariff for Bagasse based co-gen projects to be commissioned during various years of the
Control period.
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
Recent Developments in RE
• 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
Visit Our Website: www.gercin.org
[email protected]