Introdcution to the electricity sector in India

electricity sector in India

2. 20EE403T
Electricity Sector in India:
Policies and Regulations
Dr. Bhinal Mehta
Department of Electrical Engineering
School of Energy Technology
Pandit Deendayal Energy University

3. CO1-Gather knowledge on the power sector administration and
institutional framework in India.
CO2-Understand the power sector policies of India.
CO3-Study the Indian electricity grid code.
CO4-Analyze grid codes for solar and wind power generating plants.
CO5-Understand policies and regulation for EV and its charging
infrastructure
CO6-Understand the government current policies and initiatives for power
sectors.
COURSE OUTCOMES
On completion of the course, student will be able to:

4. UNIT I INTRODUCTION TO THE ELECTRICITY SECTOR OF INDIA
(SYLLABUS)
•Indian Power sector at a glance,
•History of policy formulation in India,
•Power sector administration,
•Role of MoP (Ministry of Power),
•CEA - Central Electricity Authority
•PGCIL – Power Grid Corporation of India Limited
•POSOCO – Power System Operation Corporation
•NIWE - National Institute of Wind Energy - Chennai
•NISE – National Institute of Solar Energy – Gurugram, Haryana
•REC - Rural Electrification Corporation
•Reforms in Power Sector (as per latest 5-year plan),
•Indian Electricity Act-Past-Present.

5. The Ministry of Power started functioning independently with effect from 2nd July, 1992.
Earlier it was known as the Ministry of Energy sources.
Electricity is a concurrent subject at Entry 38 in List III of the seventh Schedule of the Constitution of
India.
The Ministry of Power is primarily responsible for the development of electrical energy in the country.

9. Energy Efficiency Services Limited (EESL)
ckm . (Circuit Kilometer) means the actual length of line. However
actual length of conductor shall be approx.

10. •The Ministry of Power is primarily responsible for the development
of
 electrical energy in the country. 
•The Ministry is concerned with perspective planning, policy
formulation,
 processing of projects for investment decision, monitoring of
the
 implementation of power projects, training and manpower development
and
 the administration and enactment of legislation in regard to thermal,
hydro
 power generation, transmission and distribution.
 
•The Ministry of Power is responsible for the Administration of the
Electricity
 Act, 2003,
the Energy Conservation Act, 2001 and to undertake
such
 
amendments to these Acts, as may be necessary from time to time,
in
 conformity with the Government's policy objectives.
About Ministry of Power

11. Responsibilities of MoP

12. Responsibilities of MoP
The Ministry of Power is mainly responsible for evolving general
1.General Policy in the electric power sector and issues relating to energy policy and coordination
thereof. (Details of short, medium and long-term policies in terms of formulation, acceptance,
implementation and review of such policies, cutting across sectors, fuels, regions and intra
country and inter country flows.
1.All matters relating to hydro-electric power (except small/mini/micro hydel projects of and below
25 MW capacity) and thermal power and transmission & distribution system network;
2.Research, development and technical assistance relating to hydro-electric and thermal power,
transmission system network and distribution systems in the States/UTs
3.Administration of the Electricity Act, 2003, ( 36 of 2003) , the Energy Conservation Act , 2001 (52
of 2001), the Damodar Valley Corporation Act,1948 ( 14 of 1948) and Bhakra Beas Management
Board as provided in the Punjab Reorganisation Act,1966 (31 of 1966 ).
4.All matters relating to Central Electricity Authority, Central Electricity Board and Central
Electricity Regulatory Commission;

13. (a) Rural Electrification;
(b) Power schemes and issues relating to power supply/development schemes/
programmes/decentralized and distributed generation in the States and Union Territories;
 
Matters relating to the following Undertakings/Organizations:-
a. The Damodar Valley Corporation;
b. The Bhakra Beas Management Board (except matters relating to irrigation
c. National Thermal Power Corporation Limited;
e. National Hydro-electric Power Corporation Limited;
f. Rural Electrification Corporation Limited;
g. North Eastern Electric Power Corporation Limited;
h. Power Grid Corporation of India Limited;
i. Power Finance Corporation Limited;
j. Tehri Hydro Development Corporation;
k. Satluj Jal Vidyut Nigam Ltd.;
l. Central Power Research Institute;
m. National Power Training Institute;
n. Bureau of Energy Efficiency;
 All matters concerning energy conservation and energy efficiency pertaining to Power Sector.
Responsibilities of MoP

14. Indian Power Sector at a Glance

16. PLF is
 
the ratio of average power generated
by the plant to the maximum power that
could have been generated in a given time.
More PLF results in more revenues and lesser
will be cost of per unit (kWh) energy
generated.

17. •Following the enactment of the Electricity Regulatory Commission Legislation, the
Central Electricity Regulatory Commission (CERC) [Functions] was set up, with the main objective of
regulating the Central power generation utilities.
•(CEA: Central Electricity Authority) [Functions/Dashboard]
•National Power Portal
•State level regulatory bodies have also been set up to set tariffs and promote competition.
•Private investments in power generation were also allowed.
•The State SEBs were asked to switch over to separate Generation, Transmission and Distribution
corporations.
•There was plans to link all SEB grids and form a unified national power grid.
Energy Sector Reforms
One nati
on one grid

18. 18

19. In 1991 North Eastern (4) and Eastern grids(2) were connected. Further, in 2003,
Western region grid (3) was connected with it.
In august 2006 North and East grids were interconnected thereby 4 regional grids are
synchronously connected forming a central grid operating at one frequency.
On 31st December 2013, the southern Region was connected to the Central Grid.
Thereby achieving 'One Nation, One Grid, One Frequency’.
 All possible measures are taken to ensure that the grid frequency always remains
within the 49.90-50.05 Hz (hertz) band.
1.Northern
2.Eastern
3.Western
4.North Eastern
5.Southern region.

20. 20
Almost 40 percent of the
total hydropower potential
of the country.

21. Importance of One Frequency
•Maintaining a consistent electrical frequency is important because
multiple frequencies cannot operate alongside each other without
damaging equipment.
•This has serious implications when providing electricity at a national
scale.
Benefits of One Nation-One Grid-One Frequency
Matching Demand-Supply: Synchronisation of all regional grids will help in
optimal utilization of scarce natural resources by transfer of Power from
Resource centric regions to Load centric regions.
•Development of Electricity Market: Further, this shall pave the way for
establishment of a vibrant Electricity market facilitating trading of power
across regions.

22. pit-head power plant 
means power stations
having captive transportation system for its
exclusive use for transportation of coal from the
loading point at the mining end upto the
uploading point at the power station without
using the normal public transportation system;

23. A Long-Term Solution to the Power Crisis : Pit-Head Power Plant
•In every monsoon season in India, the Power Ministry issues a warning to the Coal
Ministry about impending electricity supply shortage and the latter states that
there’s enough supply but logistics is the issue thus pointing fingers at the
Railways.
•Every year, the three ministries (power, coal and railway) involved come up with
short-term solutions whereas, for the power sector to become future ready, there is
a need to find a long-term solution.
A much-talked-about and suitable solution is to have pit-head power
plants. A policy for such plants has been in existence for some time
now.

24. A pit-head plant
•It is any captive or stand-alone power unit having a captive transportation system
for the exclusive movement of coal from the loading point at the mine up to the
unloading point at the power station, without using any other mode of
transportation.
•This is also called the merry-go-round system.
•Uttar Pradesh reportedly gets the cheapest electricity from the Sasan project (Madhya
Pradesh).
•A pit-head power plant cuts down on logistics and therefore it is cost saving.
•Also, a rake ferrying coal from a mine to a power plant has to return empty which
increases the logistics costs.

25. 25

26. Policy Initiatives / Decision Taken
•Electricity Act 2003 has been enacted and came into force from 15.06.2003.
•The objective is to introduce competition, protect consumer’s interests and provide power
for all.
•The Act provides for National Electricity Policy, Rural Electrification, Open access in
transmission, phased open access in distribution, mandatory SERCs, license free generation
and distribution, power trading, mandatory metering and stringent penalties for theft of
electricity.
•The Electricity Act, 2003 has been amended on two occasions by the Electricity
(Amendment) Act, 2003 and the Electricity (Amendment) Act, 2007.
•The aim is to push the sector onto a trajectory of sound commercial growth and to enable
the States and the Centre to move in harmony and coordination.
CERC: Central Electricity Regulatory commissions SERC: State Electricity Regulatory Commissions

27. •The government has enacted Electricity Act, 2003 which seeks to bring about a qualitative
transformation of the electricity sector.
•The Act seeks to create liberal framework of development for the power sector by
distancing Government from regulation (Deregulation).
•It replaces the three existing legislations, namely, Indian Electricity Act, 1910, the Electricity
(Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998.
•The objectives of the Act are “to consolidate the laws relating to generation, transmission,
distribution, trading and use of electricity and generally for taking measures conducive to
development of electricity industry, promoting competition therein, protecting interest of
consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring
transparent policies regarding subsidies, promotion of efficient and environmentally benign
policies, constitution of Central Electricity Authority, Regulatory Commissions and
establishment of Appellate Tribunal and for matters connected therewith or incidental
thereto.”
Electricity Act, 2003

28. Power to all
The salient features of the Electricity Act, 2003 are:
Power to all
i) The Central Government to prepare a National Electricity Policy in consultation with State Governments.
(Section 3)
ii) Thrust to complete the rural electrification and provide for management of rural distribution by Panchayats,
Cooperative Societies, non-Government organizations, franchisees etc. (Sections 4, 5 & 6)
iii) Provision for licence free generation and distribution in the rural areas. (Section 14)
iv) Generation being delicensed and captive generation being freely permitted. Hydro projects would, however,
need clearance from the Central Electricity Authority. (Sections 7, 8 & 9)
v) Transmission Utility at the Central as well as State level, to be a Government company – with responsibility for
planned and coordinated development of transmission network. (Sections 38 & 39)
vi) Provision for private licensees in transmission and entry in distribution through an independent network,
(Section 14)
vii) Open access in transmission from the outset. (Sections 38-40)
viii) Open access in distribution to be introduced in phases with surcharge for current level of cross subsidy to
be gradually phased out along with cross subsidies and obligation to supply. SERCs to frame regulations within
one year regarding phasing of open access. (Section 42)
ix) Distribution licensees would be free to undertake generation and generating companies would be free to
take up distribution businesses. (Sections 7, 12)
x) The State Electricity Regulatory Commission is a mandatory requirement. (Section 82)

29. ………..continue…………………The salient features of the Electricity Act, 2003 are:
xi) Trading, a distinct activity is being recognised with the safeguard of the Regulatory
Commissions being authorised to fix ceilings on trading margins, if necessary. (Sections 12,
79 & 86)
xii) Provision for re-organisation or continuance of SEBs. (Sections 131 & 172)
xiii) Metering of all electricity supplied made mandatory. (Section 55)
xiv) An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs.
(Section 111)
xv) Provisions relating to theft of electricity made more stringent. (Section 135-150)
xvi) Provisions safeguarding consumer interests. (Sections 57-59, 166) Ombudsman scheme
(Section 42) for consumers grievance redressal.

30. 30
Cross subsidization 
is 
defined 
as the variation in the price policy for 2 sets
of buyers or it can be stated as When a marketer charges higher prices to a
group of consumers in order to subsidise lower prices for another group, it is
referred to as
 
cross-subsidisation
Open Access 
enables heavy users with more than 1 MW connected load to
buy cheap
 
power 
from the 
open 
market. The concept is to allow the
customers to choose from a number of competitive
 
power 
companies, rather
than being forced to buy
 
power 
from the local utility monopoly.

31. Top 10 Power Companies of India
1. Adani Transmission
2. NTPC
3. Powergrid
4. TATA Power
5. JSW Energy
6. NHPC
7. Torrent Power
8. Reliance Power Ltd
9. SJVN Satluj Jal Vidyut Nigam
10. CESC stands for Calcutta Electric
Supply Corporation

32. Addition in Transmission line (ckm)Addition in Transformation capacity (MVA)
FY 2014-15 22,101 65,554
FY 2015-16 28,114 62,849
FY 2016-17 26,300 81,816
FY 2017-18 23,119 86,193
FY 2018-19 22,437 72,705
FY 2019-20 11,664 68,230
FY 2020-21 16,750 57,575
FY 2021-22 14,895 78,982
FY 2022-23
 
14,625 75,902
FY 2023-24 (till Apr ’23) 476 4,706
Total 180,481 654,512
With the above transmission capacity addition, the country has become one of the largest
synchronous interconnected electricity grids in the world with 4,71,817ckm of transmission
line and 11,85,058 MVA of transformation capacity (as on Apr’23). Besides, our inter-regional
capacity increased by whopping 212% to 1,12,250 MW since 2014.
(Circuit Kilometer) means the actual length of line. However actual length of conductor shall be approx. 3.16
Km of per CKm lines (considering 3 -Phase line and sagging)

33.  The above transmission capacity addition has benefitted in development of power sector in
the country. Some of the major ones are as under:-
 
•Transmission Congestion, experienced earlier in 2014, along with market splitting has
become a rarity now, resulting into discovery of single price across the power market. Volume
of electricity that can not be cleared in Power Exchanges as percentage of Unconstrained Clear
Volume has reduced to only 0.06% in 2020-21 as compared to 16% in 2013-14.
•High Altitude border areas of Ladakh got interconnected with national electricity grid in
January 2019 with the commissioning of 220 kV Srinagar- Leh line. This helped the people of
Ladakh to get access to 24x7 quality power from the national Grid.
•Transmission and Distribution infrastructure of our North Eastern States including Sikkim are
strengthened with implementation of two Central Sector Schemes namely, North Eastern
Regional Power System Improvement Project (NERPSIP) and Comprehensive Scheme for
strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim.
Implementation of these Schemes would improve the reliability of State Electricity Grids of
North Eastern Region and enable the end-consumers to draw 24x7 power from the Grid.

34. •Transmission System is playing a catalyst rote in energy transition of our country, by
extending the grid to renewable rich areas and facilitating the Renewable Energy projects to
connect into the grid. Continuing transmission capacity addition has helped in increase of
Renewable Energy (excluding hydro) by three times from 35.52 GW in 2014-15 to 104.88
GW in 2021-22.
• This huge transmission capacity has facilitated seamless transfer of power from power
surplus regions/areas to power deficit regions/areas and thus optimizing the use of
generation resources as well as meeting the demands of end consumers without any
transmission constraints. Peak and Energy Deficit have reduced to 0.4% in 2020-21 in
comparison to more than 4% in 2013-14.

35. https://powermin.gov.in/en/statutory-bodies
https://powermin.gov.in/en/content/organisational-setup-ministry
https://powermin.gov.in/en/content/unit-wise-work-allocation-ministry-power-0
https://powermin.gov.in/en/content/structure-ministry

36. Statutory Bodies
Central Electricity Authority (CEA)
Appellate Tribunal for Electricity (APTEL)
Central Electricity Regulatory Commission (CERC)
State Electricity Regulatory Commission (SERC)
Central Transmission Utility (CTU)
State Transmission Utility (STU)
National Load Dispatch Centre (NLDC)
Regional Load Dispatch Centre (RLDC)
State Load Dispatch Centre(SLDC)
Grievances Redressal Forum and Ombudsman
Bureau of Energy Efficiency (BEE)
Damodar Valley Corporation (DVC)
Bhakra Beas Management Board (BBMB)
JERC for GOA & UTs
JERC for Manipur and Mizoram
*JERC- Joint Electricity Regulatory Commission

37. Autonomous Bodies
1. Central Power Research Institute (CPRI)
2. National Power Training Institute (NPTI)

38. Public Sector Undertakings
1. National Thermal Power Corporation (NTPC)
2. National Hydroelectric Power Corporation (NHPC)
3. Rural Electrification Corporation (REC)
4. North Eastern Electric Power Corporation (NEEPCO)
5. Power Finance Corporation (PFC)
6. Power Grid Corporation of India (POWER GRID)
7. SJVN – A Mini Ratna Company
8. THDC India Limited
9. Power System Operation Corporation Limited (POSOCO)

39. 1.1 The electricity generation target (Including RE) for the year 2023-24 has been fixed as
1750 Billion Unit (BU). i.e. growth of around 7.2% over actual generation of 1624.158 BU
for the previous year (2022-23). The generation during 2022-23 was 1624.158 BU as
compared to 1491.859 BU generated during 2021-22, representing a growth of about
8.87%.
Performance of Generation from All Sources
(previous year data) The electricity generation target of thermal, hydro, nuclear & Bhutan
import for the year 2021-22 has been fixed as 1356 Billion Unit (BU). i.e. growth of around
9.83% over actual generation of 1234.608 BU for the previous year (2020-21).
The generation from above categories during 2020-21 was 1234.608 BU as compared to
1250.784 BU generated during 2019-20, representing a negative growth of about 1.29%.
1.0 PERFORMANCE OF GENERATION FROM THERMAL, HYDRO, NUCLEAR & BHUTAN IMPORT

40. 1.2 Total Generation and growth over previous year in the country during 2009-10 to 2023-
24 :- 
Year
Total Generation
(Including
Renewable Sources)
(BU)
% of
growth
2009-10 808.498 7.56
2010-11 850.387 5.59
2011-12 928.113 9.14
2012-13 969.506 4.46
2013-14 1,020.200 5.23
2014-15 1,110.392 8.84
2015-16 1,173.603 5.69
2016-17 1,241.689 5.80
2017-18 1,308.146 5.35
2018-19 1,376.095 5.19
2019-20 1,389.102 0.95
2020-21 1,381.827 -2.49
2021-22
 
1.491.859 7.96
2022-23 1,624.465 8.89
2023-24 * 436.474 1.00
1.3 The electricity generation target for the year 2023-24
was fixed at 1750 BU comprising of 1324.110 BU
Thermal; 156.700 BU Hydro; 46.190 Nuclear; 8 BU
Import from Bhutan and 215 BU RES (Excl. Large Hydro).
*Upto June 2023 (Provisional), Source : CEA

41. 2.0 Plant Load Factor (PLF):
2.1 The PLF in the country (Coal & Lignite based) from 2009-10 to 2022-23 is as under:
Year
PLF Sector-wise PLF (%)
% Central State Private
2009-10 77.5 85.5 70.9 83.9
2010-11 75.1 85.1 66.7 80.7
2011-12 73.3 82.1 68.0 69.5
2012-13 69.9 79.2 65.6 64.1
2013-14 65.60 76.10 59.10 62.10
2014-15 64.46 73.96 59.83 60.58
2015-16 62.29 72.52 55.41 60.49
2016-17 59.88 71.98 54.35 55.73
2017-18 60.67 72.35 56.83 55.32
2018-19 61.07 72.64 57.81 55.24
2019-20 55.99 64.21 50.24 54.64
2020-21 53.37 61.78 44.68 54.27
2021-22 58.87 69.71 54.50 53.62
2022-23 64.1574.67 61.86 56.64
2023-24* 70.0276.16 66.97 67.15
* Upto June 2023 (Provisional), Source : CEA
PLF is
 
the ratio of average power generated by the
plant to the maximum power that could have been
generated in a given time.
More PLF results in more revenues and lesser will be cost
of per unit (kWh) energy generated.

42. As per the definition,
Plant Load Factor, PLF =
  P
avg
 
/ P
max
From the load curve, P
max
 
= 200 MW but we need to calculate the average power P
avg
.
Average power Pavg can be calculated as below.
Pavg = Units (kWh) Generated per day / 24 hrs
But units (kWh) generated per day is the area under the curve i.e. area of ABCFILM.
Area under the curve = Area of (rectangle ABLM + Trapezoid BCFI)
 
                                
= [(100×16) + (1/2)(12+4)x100]
 
                                
= 1600 + 800
 
                                
= 2400 MWh = 2400×10
3
 
kWh
 
                                
= 2400×10
3
 
Units
 
                                
= 2.4 Million Units (MUs)
Thus the average power P
avg
 
= 2400 MWh / 24 h
 
                                               
= 100 MW
Hence,
PLF = 100 / 200 = 0.5

43. 3.0 Power Supply Position
The power supply position in the country during 2009-10 to 2022-23 : 
Energy Peak
Year
RequirementAvailability Surplus(+)/Deficts(-) Peak Demand Peak Met Surplus(+) / Deficts(-)
(MU) (MU) (MU) (%) (MW) (MW) (MW) (%)
2009-10 8,30,594 7,46,644 -83,950 -10.1 1,19,166 1,04,009 -15,157 -12.7
2010-11 8,61,591 7,88,355 -73,236 -8.5 1,22,287 1,10,256 -12,031 -9.8
2011-12 9,37,199 8,57,886 -79,313 -8.5 1,30,006 1,16,191 -13,815 -10.6
2012-13 9,95,557 9,08,652 -86,905 -8.7 1,35,453 1,23,294 -12,159 -9.0
2013-14 10,02,2579,59,829 -42,428 -4.2 1,35,918 1,29,815 -6,103 -4.5
2014-15 10,68,92310,30,785 -38,138 -3.6 1,48,166 1,41,160 -7,006 -4.7
2015-16 11,14,40810,90,850 -23,558 -2.1 1,53,366 1,48,463 -4,903 -3.2
2016-17
 
11,42,92911,35,334 -7,595 -0.7 1,59,542 1,56,934 -2,608 -1.6
2017-18 12,13,32612,04,697 -8,629 -0.7 1,64,066 1,60,752 -3,314 -2.0
2018-19 12,74,59512,67,526 -7,070 -0.6 1,77,022 1,75,528 -1,494 -0.8
2019-20 12,91,01012,84,444 -6,566 -0.5 1,83,804 1,82,533 -1,271 -0.7
2020-21 12,75,53412,70,663 -4,871 -0.4 1,90,198 1,89,395 -802 -0.4
2021-22 13,79,81213,74,024 -5,787 -0.4 2,03,014 2,00,539 -2,475 -1.2
2022-23* 2,71,136 2.67,816 -3,319 -1.2 2,15,888 2,07,231 -8,657 -4.0
* Upto May 2022 (Provisional), Source : CEA

44. Generation (Billion Units)

45. Generation Growth (%)

46. https://cea.nic.in/functions/?lang=en#:~:text=The%20main%20responsibility%20of%20Member%20(Power
%20System)%20is%20to%20extend,technology%20development%3B%20renovation%20%26%20modernization
%20of
Function of CEA
https://cea.nic.in/daily-renewable-generation-report/?lang=en