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SANTOSH KUMAR SAHUDIRECTOR (Finance) OHPC
CONCEPT VISUALIZED BY
Management of Cost in Power Sector for Sustainability of The Electricity
Distribution in the Country
Santosh Kumar SahuDirector (Finance), OHPC Ltd.
Saw the Happiness among the villagers while accessibility of Electricity
Realized Electricity as a commodity
Dreaming for Electricity Business to be an franchisee
Theme of Dreams (Win Win situation fo a Franchisee, Supplier, Transmiter & Generator)
Electricity distribution in India are still making losses, even after:-
(i) Enactment of Electricity Act 2003 ( E. Act 2003)
(ii) Several Amendment(s) of Electricity Act 2003,
(iii) Declaration of National Tariff Plan and National Tariff Policy,
(vi) Un-Bundling of State Electricity Board(s),
(vii) Independency in Load Dispatch Centre - NLDC, RLDCs, SLDCs,
(vi) Establishment of Independent Regulators in Centre and State (CERC/SERC),
(vii) Establishment of Grievance Redress Forum like, GRF, OMBUDSMAN and ATE (Appellate Tribunal for Electricity)
(viii) Establishment of Enforcement Mechanism through Energy Police Station and imposition of penalty under the E Act-2003(ix) Privatization of Discoms
(x) Establishment of Ultra Mega Power Plant(s) (UMPP)
(xi) De-Monopoly of Generation / Induction of IPPs
(xii) Procurement of Power through Competitive Bidding
(xiii) Introduction of Franchise in Electricity Distribution
(xv) Reduction in rate of Interest on loan
(xvi) Provision of Incentives to the stake holders including Employee(s)
(xvii) Energy Audit/ Feeders Management in Distribution
(xviii)Implementation of Govt. Schemes with Capital Grant and Interest Subsidy
(xix) Implementation of different Energy Conservation Scheme(s) and Building Code
(xx) Implementation of Recommendation(s) of different Expert(s) Committee(s)
Theme of Dreams
What can be done by an CMA to put Electricity Distribution Sector on a fiscally sustainable path and bring investment in distribution, given the intense of political pressure to supply power cheaply and access of Electricity to all ?
(A) THERMAL POWER
Impact of COAL as a primary FUEL in Thermal
Re-Visiting of Long Term Coal Linkage policy
Allotment of Coal Blocks/ Mines through Auction/ Bidding Process
Allotment of Coal Blocks through Reverse- Bidding Process
Action Plan and mid term review of the Action Plan for Achieving Planned Targets from Captive Mines
Plan to reduce Cost of Imported Fuel Price
Establishment of Independent or Third Party International Laboratory for evaluation of Calorific value of Imported Coal for determination of the Price of Coal.
Evacuation of Power instead of Coal to save the Cost of transportation.
Approach for Generation to reduce the cost of power which is 70-80% for distribution utility :-
SELECTION OF PIT HEAD SITE TO EDUCE THE CARRYING COST
Re-visiting the Land Acquisition issues
Improving R&R Policy with Long term Dividend Sharing
Simplification of Environment Clearance for Power Projects to reduce the Cost Over-Run
Merry Go round of Railway Transportation
Combined and Shared Railway Corridor for transportation of Coal Plan
Selection of Ash Pond in appropriate place to save future continuous claim from Farmers
Water Storage and re-cycling plant
SLECTING APPROPRIATE TECHNOLOGY AND MANUFACTURER
Mega / Ultra Mega Power Project
Increase of Existing Installed Capacity and change of technology.
Capacity Building in of BoP (Balance of Project) Qualifiers
Reduction of Time for Annual Plant Maintenance through Professional Outsourcing Agency
Annual Supply Contract for Spare parts
Adequate and Appropriate Insurance for the project for un-foreseen
(B) HYDRO
Reservoir Management in Multiple Project
Treatment of Catchments Area for reduction of silt
Spinning Reserve to maintain the Frequency level and Grid Stability
Time Management in Annual Maintenance through Professional Agency
Maximising generation in peak period / peak season
100% Machine availability of Machine during Rainy season with Back up spares
Adequate Plant insurance
(C) SOLAR
Selecting Right Site with higher CUF for Solar
Development of Mega Solar Park with Evacuation
Selecting the Right Technology, Module and Cell and other Equipment like Inverter, Transformer etc.
Use of Balance unused land of existing Factories, Dam Sites, Institutions, Railway, Airport etc
Manufacturing of Mega PV Modules for use of floating Solar Panel in the Reservoir.
Capacity Building of Professional Maintenance Contractor
Use of Roof Top for Solar
Regulation for Net Metering arrangement in Roof Top Solar
PV System Architecture
14
Relatively simple to install, operate and maintain. Most popular and globally accepted configuration. No availability when grid is down, safety for grid
maintenance
Meter 1: Conventional Electricity Consumption
Transformer Grid
Photovoltaic Panel(Approx. 1 - 5kWP)
Grid-tied
inverter
Meter 2: Solar Electricity Generation
Approach in Transmission which is about 10%-15% cost to the Distribution Utility
Policy for Compensation of land used for Evacuation of Power like R&R
Balancing of Generation & Evacuation Capacity
Capacity Building of Qualified 765/400 KV Executors Re-visiting the Deviation Settlement Mechanism which has restricted the generators to inject power or Distribution Companies to draw power. R&M with capacity addition of Generating & Transmitting equipments Capacity Building for sufficient Higher Capacity Transformer Manufacturing in the Country Up-Gradation 400KV line to 765KV /1200 KV Installation of Ultra High Voltage (UHV) Transmission lines Use of Compact Tower/ Bi-Pole Development of 1200 KV AC System Evacuation of NER Power or Bi-lateal Trade
to Adjacent Country Re-visit for fixation of Inter regional
Transmission Point of Charges (PoC)
Approach in Developing Power Market
The factors affecting markets as follows: Flexibility in Deviation Settlement Mechanism.
Correct Delivery Point of Power Policy for Power Banking
Simplification of Open Access
Model Bilateral Trade/ agreement.
Approach For Franchisee in Distribution
Franchisee of 33/11 KV Primary Distribution / Sub-Station level
Franchisee for 33 and 11 KV Feeders Level
Franchisee for Distribution Transformer level
Fixation of Bulk Tariff rate for Franchisee at different level with different Voltage level
Franchisee for Wire Business
Franchisee for Maintenance
Approach in Distribution to Reduce the Cost
Input based Franchisee in Rural Area at different level
Outsourcing of Operation & Maintenance at 33/11KV Sub-station
BOOT Model franchisee for Semi Urban Area
Mid Term Visit for change in CERC Norms for computation of Generation, Transmission Tariff in regard to (i) Reduction of % on Return on Equity or introduction of Return on Capital Employed instead of ROE (ii) Change of O&M Norm (iii) reduction on rate of interest on working capital loan
Extension of the Integrated Power Development Snt S Scheme (IPDS) to Franchisee
Extension of IPDS to Each Panchayat level
Stopping of manufacturing of Candescent Bulb
Radio Frequency based metering in all Single phase
AMR in all 3 phase Consumers
Encouragement of Online payment with more Rebate.
Installation of Capacitor Banks for improvement of Voltage
Bifurcation and re-routing of feeder
Erection of appropriate Distribution transformers
Strengthening of conductors across all voltage levels.
Best practices to reduce Cost in Distribution :-
High voltage Distribution System (HVDS).
Network reconfiguration.
Network re-conductring.
Segregation of feeders with agricultural loads and supplying them with HVDS is proposed in all the Distribution regions.
Reconfiguration, Re-conduct ring of network and Optimal location of DTs
The reconfiguration of the distribution network to be done by Identifying over loaded feeders, and distribution transformers. The feeders are bifurcated, to form new feeders thereby to reduce the losses. The loads on the DTs are reduced by proposing additional DTs.
APPOINTMENT OF REGULATOR FOR LENDING AGENCY IN POWER SECTOR
Regulation for Lending Agencies for fixation of margin like trading of Power being 70% of Capital is invested by them in the project.
Relaxation in Allowing Generation, Transmission & Wire Business to avail External Commercial Borrowing and FDI
Arrangement of Inter Ministry meeting for liberalization of Hedging in case of Foreign Borrowings or Foreign Contracts
Allowing cheaper FIG (Financial Institution Guarantee) instead of Bank Guarantee (BG)
New Approach for Carriage and Content Business
Distribution Reform
Transferring of the existing financial losses of distribution company to a Special Purpose Vehicle (SPV) before reform to carriage and content business.
Reorganization of regulatory asset by the regulator .
Fixing the life line rate for Below Poverty Line consumer.
Capacity Building in Franchisee.
Tamper proof IT implementation.
Future Multiple Distribution Business
"A CMA having Vision, Dedication, Imagination can create Win-Win- Situation to reduce the Cost of the Organization and Save Billion"
" CMA can also reduce the Tension of the Nation”
Slogan of the day
Finally the CMA win over the dreams