Indian Power Sector: India Has A FEDERAL Structure Electricity A Concurrent Subject - Both Central

INDIAN POWER SECTOR
 India has a FEDERAL structure
 Electricity a concurrent subject – Both Central

and State Govts. responsible for its development
INDIAN POWER GRIDS
NATIONAL GRID
SYNCHRONOUSLY LINKED
INSTALLED CAP :50,000 MW , LENGTH : 2500 Kms
WESTERN EASTERN NORTH-

NORTHERN REGION REGION EASTERN
SOUTHERN
REGION
REGION REGION (31,500 MW) (16,000 MW)
(2500 MW)
(29,000 MW)
(29,000 MW)
SG . . . . SG SG . . . . SG SG . . . . SG
SG . . . . SG SG . . . . SG
TOTAL STATE GRIDS (SG) : 33
INSTALLED CAPACITY : 1,08,000 MW PEAK DEMAND: 82,000 MW

INDIAN POWER SECTOR PRIOR TO REFORMS
 Structure
 SEBs vertically integrated: Generation, Transmission
and Distribution under one umbrella.
 Administrative Mechanism
 Power sector administrated by GoI, REBs & SEBs
 Planning & project approval through GoI/CEA
 Tariff setting of central sector utilities by GoI/CEA
 Licensing function by the state Govts
 Grid operation by RLDCs
POWER SECTOR REFORMS
 In 1991, private sector participation in generation allowed
 In 1998, Central Electricity Regulatory Commission (CERC) for the

centre and State Electricity Regulatory Commissions (SERC) for
the states setup
 In 1998, Transmission recognized as a distinct activity
• Private sector participation in transmission also allowed
• POWERGRID notified as Central Transmission Utility (CTU)
• State Govt. to notify State Transmission Utility (STU)

POWER SECTOR REFORMS CONTD 
 Un-bundling & corporatisation of SEBs to make separate

corporations for Generation, Transmission and distribution for
better accountability
 Formation of Power Trading Corporation (PTC) to facilitate

trading of power especially providing payment security to IPPs
 In Distribution sector, Accelerated Power Development Reform

Program (APDRP) undertaken for upgrading of sub-transmission
and distribution network
 Indian Electricity Act,2003 promulgated, consoliding previous

Acts and more
POWER SECTOR DEVELOPMENT
NATIONAL
REGIONAL
• Formation of CTU
Province STATE • CTU assigned the
role of Grid operation
• Development on (TSO)
• Constitution of Regional basis
• Formation of
CEA as NATIONAL • Constitution of REBs Regulatory bodies
PLANNER for regional grid CERC & SERC
• CEA to concur operation
power projects • Central Gen. cos.
• Constitution of Constituted to develop
Vertically integrated big project on regional
SEBs for basis
development on
state level
1950’s 1970’s 1990’s

INDIAN POWER SECTOR – CENTRAL LEVEL
Central Govt
State Govts
CEA
Regulator
(CERC)
CENTRAL GEN Cos./ IPPs
POWERGRID
CTU & Grid Operator ( RLDCs)
TRANSMISSION
STUs LICENCEES
INDIAN POWER SECTOR – STATE LEVEL
CENTRAL GOVTs.
STATE GOVTs.
Regulator
(SERC)
GENERATING COS.
STUs/ Grid Operator ( SLDCs)
DISCOMs
FUNCTIONS OF VARIOUS PLAYERS
 Central Government
 To prepare & publish National Electricity Policy and
Tariff Policy in consultation with State Govts. and CEA
for development of power system based on optimal
utilisation of resources
 Formulate a National Policy, in consultation with State

Govts. and state commissions, for rural electrification
 Central govt. to establish an Appellate Tribunal

CONTD 
 Appellate Tribunal
 To hear appeals against the orders of the adjudicating
officer or the appropriate commission.
 Appellate Tribunals to have all powers of civil court
 Appeal against Judgment of Appellate tribunal only in

Supreme court
CONTD 
 Central Electricity Authority (CEA)

 To prepare National electricity plan in accordance with
the National electricity policy of Central Govt. and notify
the same
 Specify technical standard for construction, operation
& maintenance of electrical plants, electric lines and
connectivity to the grid
 Advice the appropriate Govt./Commission on all
technical matters related to Generation, transmission
and distribution
CONTD 
 Central Electricity Regulatory Commission (CERC)

 To regulate tariff of central generating companies
 To determine the tariff & regulate inter-state transmission of
electricity
 To issue licensees to function as transmission licensees
(other than CTU) and electricity trader with respect to inter-
state operation
 Aid & Advice the Central Govt. for formulation of National
electricity policy & Tariff policy.
 To specify the Grid Code
 Develop appropriate policies & procedures for
Environmental regulation of the power sector
CONTD 
 Regional Load Despatch Center (RLDC)

 Apex body to ensure integrated operation of the power
system in the region
 Give directions and exercise supervision and control
which is required for integrated operation to achieve
maximum economy and efficiency
 Scheduling/Re-scheduling of generation and contigency
analysis
 System restoration following Grid disturbances
 Metering & Data collection
 Compiling & furnishing data pertaining to system
operation
CONTD 
 Central Transmission Utility (CTU)
 Discharge all functions of planning & co-ordination for

inter-state transmission system with state transmission
utilities, Central Govt., State Govt., Generating
companies, Authority, Licensees etc
 To ensure development of an efficient, coordinated and
economical system of inter-state transmission lines for
smooth flow of electricity from generating stations to
load centers
 To exercise supervision & control over the inter-state
transmission system
 To ensure integrated operation of the regional grids
through RLDCs
CONTD 
 State Electricity Regulatory Commission (SERC)
 To determine the tariff for electricity within the state

 To regulate operation of power system within the
state
 Issue licensees for Transmission, distribution &
trading of electricity within the state
 To specify State Grid Code consistent with Grid Code
 Advice state Govt. on matters like promotion of
competition, efficiency, investment and economy in
the electrical industry
POWER SECTOR WORLD-WIDE
Regulator
U.K ELECTRICITY STRUCTURE (OFFER)
PowerGen National Independent British

Power Generators Energy
National Electric Grid & Pool
Regional Electricity Generators/ Other Licensed

Companies Suppliers Suppliers
Small Users Large Users

(<100 kW) (>100 kW)
ARGENTINA POWER SECTOR Scenario after
1992
UNBUNDLING
48 in Power Sector
Generators
Private Tx. Co
TRANSENER
6 REGIONAL Co. National

Electricity
Independent Regulatory
System Operator Agency (ENRE)
(ISO) , CAMMESA Looks
CAMMESA after the National
Load Dispatch Center
FRANCE POWER SECTOR
Eligible
REGULATOR
consumers
Other Producers
Other
Distributors
Non eligible
Producer EDF RTE consumers
(TSO)
Distributor
EDF
Foreign
TSOs
Foreign
TSOs Foreign
Foreign Producers consumers
& suppliers
POWER SYSTEM MODELS- SCHEMATIC
I. EUROPEAN, SOUTH AFRICA & INDIAN MODEL
G G G G G
T + SO
D D D D D
II. FRENCH MODEL
G
T + SO RTE
D EdF
POWER SYSTEM MODELS -SCHEMATIC Contd 
III. MALAYSIAN AND KOREAN MODEL
G G G
T + SO
+
D
IV. AMERICAN MODEL
G G G G G G
R
SO T T T SO
T
O D D D D D D
SUMMARY – POWER SYSTEM MODEL
INDEPENDENT SYSTEM OPERATOR (ISO)
• System operation is independent of the function of

transmission system development
• ISO prevalent when there are multiple transmission

agencies
TRANSMISSION SYSTEM OPERATOR (TSO)
• Grid operation as well as transmission system

development with single entity
• TSO prevalent where unbundling has taken place and

there is one transmission utility
ADVANTAGES OF TSO
• TSO, having no interest in generation and trading of

electricity is impartial and has same interest as that of
system operator.
• On-hand experience of systems constraints, direct control

over planning and development of transmission system.
Can therefore take immediate measures for system
improvement schemes on short-term and long-term
• More coordinated approach towards development and

operation of grids
• No duplication of assets and expertise

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INDIAN POWER SECTOR

 India has a FEDERAL structure

 Electricity a concurrent subject – Both Central

WESTERN EASTERN NORTH-

TOTAL STATE GRIDS (SG) : 33

INSTALLED CAPACITY : 1,08,000 MW PEAK DEMAND: 82,000 MW

 In 1991, private sector participation in generation allowed

 In 1998, Central Electricity Regulatory Commission (CERC) for the

 In 1998, Transmission recognized as a distinct activity

• Private sector participation in transmission also allowed

• POWERGRID notified as Central Transmission Utility (CTU)

• State Govt. to notify State Transmission Utility (STU)

 Un-bundling & corporatisation of SEBs to make separate

 Formation of Power Trading Corporation (PTC) to facilitate

 In Distribution sector, Accelerated Power Development Reform

 Indian Electricity Act,2003 promulgated, consoliding previous

1950’s 1970’s 1990’s

CENTRAL GEN Cos./ IPPs

STUs/ Grid Operator ( SLDCs)

 Formulate a National Policy, in consultation with State

 Central govt. to establish an Appellate Tribunal

 Appellate Tribunals to have all powers of civil court

 Appeal against Judgment of Appellate tribunal only in

 Central Electricity Authority (CEA)

 Central Electricity Regulatory Commission (CERC)

 Regional Load Despatch Center (RLDC)

 Central Transmission Utility (CTU)

 Discharge all functions of planning & co-ordination for

 State Electricity Regulatory Commission (SERC)

 To determine the tariff for electricity within the state

PowerGen National Independent British

National Electric Grid & Pool

Regional Electricity Generators/ Other Licensed

Small Users Large Users

6 REGIONAL Co. National

III. MALAYSIAN AND KOREAN MODEL

• System operation is independent of the function of

• ISO prevalent when there are multiple transmission

TRANSMISSION SYSTEM OPERATOR (TSO)

• Grid operation as well as transmission system

• TSO prevalent where unbundling has taken place and

• TSO, having no interest in generation and trading of

• On-hand experience of systems constraints, direct control

• More coordinated approach towards development and

• No duplication of assets and expertise

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