Energy and Climate Summit 2009 Climate Change & Power Sector- Role of Electricity Regulators By Dr. Pramod Deo Chairperson Central Electricity Regulatory Commission - PowerPoint PPT Presentation

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Energy and Climate Summit 2009 Climate Change & Power Sector- Role of Electricity Regulators By Dr. Pramod Deo Chairperson Central Electricity Regulatory Commission

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Title: Energy and Climate Summit 2009 Climate Change & Power Sector- Role of Electricity Regulators By Dr. Pramod Deo Chairperson Central Electricity Regulatory Commission


1
Energy and Climate Summit 2009Climate Change
Power Sector-Role of Electricity
RegulatorsBy Dr. Pramod DeoChairperson
Central Electricity Regulatory Commission
2
 Structure of Presentation
  • Overview of Indias position on climate change
  • Power Sector Overview
  • Electricity Act 2003 and Role of Electricity
    Regulators
  • In overcoming barriers and facilitating
    development of renewable
  • In mitigating GHG emissions by
  • Supply side initiatives
  • Demand side initiatives

3
Indias position on climate change
  • Indias per capita CO2 emissions are 1.05 tonne
    as against world average of 4.22 tonne
  • There should be no adverse impact of GHG
    mitigation on GDP growth and poverty alleviation
    in developing countries.
  • The entire process should be within the UNFCCC
    provisions
  • GHG mitigation must be based on the principle of
    common but differentiated responsibilities
    (including historical emissions levels) and
    respective capabilities and result in actual
    global reduction in GHG emissions.
  • Indias per capita emissions will not exceed
    those of the developed countries.

4
1/2
Electricity Sector in National Action Plan on
Climate Change
  • Launched in June 2008
  • Conceptualizes living in harmony with Nature
  • Emphasizes on ecologically sustainable
    development
  • Aims at significantly increasing the share of
    solar energy in the total energy mix
  • Aims at saving of 10,000 MW by the end of 11th
    Five Year Plan in 2012.

5
2/2
Electricity Sector in National Action Plan on
Climate Change
  • Four new initiatives to be put in place
  • A market based mechanism to enhance cost
    effectiveness of improvements in energy
    efficiency in energy-intensive large industries
    and facilities, through certification of energy
    savings that could be traded.
  • Accelerating the shift to energy efficient
    appliances in designated sectors through
    innovative measures to make the products more
    affordable.
  • Creation of mechanisms that would help finance
    demand side management programes in all sectors
    by capturing future energy savings.
  • Developing fiscal instruments to promote energy
    efficiency

6
POWER SECTOR OVERVIEW
7
Expected Fuel Mix in Country (2031-32)
Source Report on Integrated Energy Policy
With limited hydro capacity, generation from
fossil fuel and nuclear is bound to increase
significantly.
8
CO2 Baseline Database for the Indian Power Sector
1/2
  • CEA has published CO2 Baseline Database for
    Indian Power Sector containing data for the year
    2007-08.
  • Northern Regional Grid, Eastern, North Eastern
    and Western Grid are operating in synchronous
    mode since August,2006.

9
CO2 Baseline Database for the Indian Power Sector
2/2

10
Role of Electricity Regulators
11
Electricity Act 2003 Enabling provisions
1/2
  • Section 3 4
  • Regulatory Commissions to be guided by the NEP
    and TP.
  • Section 61
  • The factors which would encourage competition,
    efficiency, economical use of the resources, good
    performance and optimum investments
  • The principles rewarding efficiency in
    performance
  • The promotion of co-generation and generation of
    electricity from renewable sources of energy

12
Electricity Act 2003 Enabling provisions
2/2
  • Section 86(1) Driver for Development of
    Renewables
  • The State Commission shall discharge the
    following functions, namely
  • (e) promote cogeneration and generation of
    electricity from renewable sources of energy by
    providing suitable measures for connectivity with
    the grid and sale of electricity to any person,
    and also specify, for purchase of electricity
    from such sources, a percentage of the total
    consumption of electricity in the area of a
    distribution licensee
  • Section 79 (2)
  • The Central Commission shall advise the Central
    Government on promotion of competition,
    efficiency and economy in activities of the
    electricity industry

13
Tariff policy on Non-conventional energy sources
  • Appropriate Commission shall fix a minimum
    percentage for purchase of energy from such
    sources considering
  • Availability of such resources in the region, and
  • its impact on retail tariffs.
  • Procurement by distribution companies shall be
    done at preferential tariffs
  • The Central Commission should lay down guidelines
    for pricing non-firm power, especially from
    nonconventional sources,

14
Regulators role in development of Renewables
  • Prescribe a percentage for consumption mandatory
    from renewables
  • To set preferential tariff to encourage
    investment
  • To provide grid connectivity

15
RPOs in different States
15
16
Tariff benchmarks set by different SERCs for Wind
-Based on MNES guidelines
17
Tariff benchmarks set by different SERCs for
Small Hydro
1/2
18
Tariff benchmarks set by different SERCs for
Small Hydro
2/2
19
Renewable Sources and achievement
Installed Capacity as on 30 September 2008,
Source MNES
20
Implementation Challenge
  • Lack of Enforcement mechanism for shortfall in
    achievement of target RPO.
  • The infirm nature of generation- The technology
    to facilitate more accurate projection and
    scheduling of the power generated from
    traditionally infirm sources like wind and solar,
    is the need of the hour.
  • Transmission capacity planning by STU should
    recognize evacuation infrastructure requirement
    in the first place.
  • Different interconnection standards are required
    to be formulated.
  • An appropriate market mechanism like Renewable
    Energy Certificates (RECs) - Necessary to address
    infrastructure requirement of renewable energy
    sources.
  • Special efforts required to bring down the prices
    of electricity generated from renewable sources
    through fiscal incentives incentives,

1/21/2013
CERC
20
21
Consensus reached at the level of FOR on
Renewable Energy
  • Renewable Purchase Obligations (RPOs) be fixed
    taking into account the suggested level of 5 in
    the National Action Plan on Climate Change.
  • Compliance with RPO may be enforced through
    invoking Section 142 of the EA 2003 against the
    officer responsible of the utility.
  • SERC may allow a higher rate of return on equity
    keeping in view the risks involved in deployment
    of a specific technology.
  • Appropriate technical standards for providing
    grid connectivity for renewable energy based
    power stations should be developed.
  • Separate co-ordination mechanism should be
    established for renewable energy in SLDCs and
    STUs.
  • Study feasibility of introducing RE Certificate
    mechanism

1/21/2013
CERC
21
22
Energy Efficiency Initiatives
  • Supply side Initiatives
  • Demand Side management (DSM)

1/21/2013
CERC
22
23
Energy Efficiency Initiatives(Supply side
Initiatives)
1/2
  • CERC in its Terms and Condition of tariff for
    2009-14 period issued on 19.01.2009 has
  • Tightened efficiency norms for the thermal power
    stations
  • For existing 500 MW units Station heat rate norm
    reduced from 2450 kCal/kWh to 2425 kCal/kWH
  • For New units operating margin in Station heat
    rate norm reduced from 9 to 6.5 from the design
    heat rate values
  • Raised performance norms of availability from 80
    to 85 coupled with incentive linked to
    availability
  • Reduced aux energy consumption norm by 0.5 point
    for thermal generating stations.
  • Provide for efficiency performance norms for
    super critical technology units

1/21/2013
CERC
23
24
Energy Efficiency Initiatives(Supply side
Initiatives)
2/2
  • Renovation Modernization of Thermal power
    Plants
  • Distinct activity recognized in Tariff Policy
  • Aimed at improved efficiency and performance
  • Phasing out of very old and inefficient units
  • Special allowance after useful life for
    sustaining efficiency and performance parameters
    in well maintained stations Rs.5lakh.MW/Year with
    effect from 2009-10 escalated every year at 5.72.

1/21/2013
CERC
24
25
Recommendations of Forum of Regulator (FOR) on
DSM Energy Efficiency
1/2
  • DSM involves actions at the level of consumers.
  • Constitution of DSM Cells by all DISOMs
  • Submitting of DSM Plans by Discoms including
    measures for increasing the consumer awareness
  • Organizing of training courses on DSM by FOR
  • Allowing cost of approved DSM programmes as pass
    through in ARR.

1/21/2013
CERC
25
25
26
Recommendations of Forum of Regulator (FOR) on
DSM Energy Efficiency
2/2
  • SERC to specify a percentage of the ARR to be
    utilized for DSM programmes
  • SERCs could consider appropriate tariff
    interventions to support DSM eg. TOD tariffs,
    power factor incentives and penalty, reactive
    power charges, load management charges, rebate
    incentives for energy efficient
    buildings/appliances, and differential pricing
    for agriculture consumers.
  • Special tariffs to induce the concerned
    authorities towards DSM Energy Efficiency
  • SERCs could consider giving a slightly higher
    return on equity for the investments made towards
    DSM measures.

1/21/2013
CERC
26
26
27
Thank You
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