WELCOME
Power Grid Corporation of India Limited
UNSCHEDULE
INTERCHANGE
It's more than what meets the eye!!!!
WHAT’S OUR OBJECTIVE?
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ECONOMIC OPERATION OF THE GRID
PROMOTE TRADE
STABILITY OF THE GRID
ROBUST SETTLEMENT SYSTEM
COMMERCIAL MECHANISM WHICH
COMPLEMENTS SECURITY
SEAMLESS CHANGE PROCESS
FREEDOM
LET’S SEE HOW THE
UI MECHANISM OF
ABT TAKES ON MANY
AVATARS
The fox knows many things, but the
hedgehog knows one big thing ……
—Greek poet Archilochus
THE MANY AVATARS
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PROMOTING TRADE
COMPETITIVE ENVIRONMENT
OPEN ACCESS
BALANCING/SPOT MARKET
ROBUST SETTLEMENT MECHANISM
NASH EQUILIBRIUM
ULTIMATE OPTIMISER
OPEN AND FAIR MARKET PLACE
WIN-WIN PLATFORM
IT’S SIMPLICITY ITSELF!
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INEXPENSIVE TO IMPLEMENT
MINIMUM LOGISTICS
 METERING IN PLACE IN MOST PLACES
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PRICE SIGNAL AVAILABLE AT ANY
POWER OUTLET !
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EASY SETTLEMENT
EASE OF REGULATION
THE PROBLEMS EARLIER….
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ERRATIC FREQUENCY
LOW VOLTAGES
FREQUENT DISTURBANCES
OVER/UNDER DRAWALS CAUSING
CONSTRAINTS
INDISCIPLINED SYSTEM OPERATION
ARCHAIC SETTLEMENT SYSTEM
AVAILABILITY
TARIFF
A RATIONAL TARIFF STRUCTURE
SCIENTIFIC SETTLEMENT SYSTEM
WHAT IS AVAILABILITY TARIFF?
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PAYMENT OF FIXED COST DEPENDS
ON PLANT AVAILABILITY( ie.. MW
DELIVERING CAPACITY).
VARIABLE COST IS PAID DEPENDING
ON THE ‘SCHEDULED GENERATION’
ANY DEVIATIONS FROM THE
SCHEDULE ATTRACTS A FREQUENCY
LINKED CHARGE.
UI : THE GENESIS
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ABT IMPLEMENTED IN SOUTHERN REGION
ON 1st January, 2003
UI ‘ TURNOVER’ AMOUNTS TO RS XXXX
CRORES TILL XXOCT03
INTER-REGIONAL UI TRANSACTION : RS
YYY CRORES
HIGHEST UI TRANSACTION IN A DAY
(INTER REGIONAL) = ZZ MU, RS 107 LAKHS
HIGHEST UI TRANSACTION IN A DAY
(INTRA REGIONAL) = DD MU, RS SSS LAKHS
THE AVATARS OF UI
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TRADITIONAL
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PRICE/OPTIMISATION VECTOR
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SPOT MARKET
BALANCING MARKET
MERIT ORDER OPERATION
SETTLEMENT FRAMEWORK
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SETTLEMENT OF DEVIATIONS
GRID DISCIPLINE
PUMPED STORAGE
MERCHANT GENERATOR
CAPTIVE POWER PLANT
DISCOMS
ARBITRAGE
CATALYST FOR COALITION
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CO-OPERATION THROUGH NON-CO-OPERATION
SELF HEALING MECHANISM’
TRANSPARENCY
IMPOSSIBLE TO RIG PRICES
NEUTRALITY
PSEUDO COMPETITOR
PAYMENT SECURITY THROUGH THE POOL
THE BASIC PREMISE OF UI
HELPING THE GRID GETS REWARDED,
HURTING THE GRID IS PENALISED
FREQUENCY BASED DESPATCH
THE CAPTIVE POWER PLANT
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HUGE CAPACITY IS BOTTLED UP FOR
WANT OF
COMMERCIAL ARRANGEMENTS
 FLEXIBILITY
 REGULATION
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SCHEDULING MECHANISM
BETWEEN SEB/TRANSCO/DISCOM
AND CPP
DEVIATIONS (UI) TO BE PAID @ RATE
DEPENDING ON THE FREQUENCY
AN EVERY DAY EXAMPLE
SEB
CPP + STEEL PLANT
CAPACITY
: 2X65 MW
RATE
: 100p/UNIT
REQUIREMENT
: 120±10 MW
CAPABILITY
: 120 MW
CONDITIONS
1)30 MW MINIMUM
DEMAND
2)70 MW MAX DEMAND
FOR 2 MONTHS
AVAILABILITY: FULL FOR 10
MONTHS, ONE UNIT ON OH FOR 1
MONTH EVERY YEAR
REPURCUSSIONS:
FOR 10 MONTHS THE CPP RUNS AT PART LOAD
OF 90 MW DUE TO CONDITION 1) ABOVE
UI AND THE CPP- ADVANTAGES
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ADVANTAGES TO CPP
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SIMPLICITY – A FREQUENCY METER IS ALL THAT IS
REQUIRED
NO TELEMETRY OR COMMUNICATION WITH SLDC/SEB
NO PRICE TO BE NEGOTIATED
CPP DOES NOT HAVE TO SEARCH FOR BUYER
CPP CAN MAKE A REASONABLE PROFIT.
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ADVANTAGES TO SEB/TRANSCO/DISCOM
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IMPARTIAL AND UNBIASED SYSTEM
NEED NOT WORRY ABOUT CPP UNDER-GENERATING AT
LOW FREQUENCY AND OVER-GENERATING AT HIGH
FREQUENCY
FRAMEWORK FOR SETTLEMENT IS ALREADY AVAILABLE
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A WIN-WIN SITUATION !!!
ABT MECHANISM FOR DISCOMS
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GENCO GIVES STATION WISE AVAILABILITY FOR DAY
AHEAD
TRANSCO RECIEVES ISGS AVAILABILITY FOR THE
DAY AHEAD
TRANSCO BROADCASTS THE SAME TO DISCOMS
DISCOMS REVERT BACK WITH REQUISITIONS
TRANSCO FINALISES AFTER DUE CONSIDERATION
(SECURITY ASPECT)
INFORMS ISGS REQUISITIONS TO RLDC.
BROADCASTS FINAL SCHEDULE TO DISCOMS
REVISIONS IF ANY
ADVANTAGES
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ECONOMIC OPERATION
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CHEAPER GENERATORS ARE ENCOURAGED
ONUS ON DISCOMS TO MANAGE LOADS
REALISTIC REQUISITIONS
CAPTIVES AND IPP’S HARNESSED
GENCO MAINTENANCE SCHEDULES WOULD BE
AGRESSIVE
CONTROL OVER UI QUANTUM(HEAVY
UNDER/OVER DRAWALS WOULD BE THING OF
THE PAST)
CAPACITY ADDITION – INVESTMENT
COMMENSURATE WITH LOAD GROWTH
MERCHANT GENERATORS
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NO FIXED COST IMPLICATION
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NOT ‘TIED’ BY PPA
TREATED MUCH THE SAME AS A CPP
ELECTRICITY ACT 2003
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LOW CAPITAL COST PLANTS
CO-GENERATIVES/RENEWABLES ETC
MAY CONNECT TO ANY LEVEL IN THE GRID
OPEN ACCESS IMPLICATIONS
DEPENDS SOLELY ON UI MECHANISM TO
RECOVER COSTS
(FIXED+VARIABLE+PROFIT)
PUMP STORAGE PLANTS
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A CRUCIAL ELEMENT IN MAXIMISING PAYOFFS IN ABT
DEPLETED HYDRO RESOURCES
SET THRESHOLDS FOR PUMPING AND GENERATING MODES
DEPENDING ON LOSS/VARIABLE COST
PLANT OPERATOR DECIDES WHEN TO GENERATE/PUMP
DEPENDING ON FREQUENCY( SAY GENERATE AT F <50 HZ AND
PUMP AT F > 50.2 HZ )
FLEXIBILITY AND CAPABILITY TO CHANGE MODES FAST IS THE
KEY
THE ‘STORED’ POWER IS USED TO GENERATE IN PEAK ( LOW
FREQ)
WATER IS RECYCLED MANY TIMES OVER
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EXAMPLE:- KADAMPARAI PUMPED STORAGE SCHEME IN TN HAS A
RESERVOIR CAPACITY OF 20 MU, BUT THE TOTAL GENERATION
ACHIEVED THIS YEAR IS MORE THAN 500 MU)
GENERATORS :-NON-CONVENTIONAL
ENERGY SOURCES
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VARIATION IN VARIABLE CHARGES DUE TO NATURE
OF FUEL
DIFFICULTY IN ENTERING INTO PPA’s/CONTRACTS
SEASONAL VARIATION IN GENERATION
UI MARKET PLACE PROVIDES A SEAMLESS
PLATFORM FOR TRANSACTIONS
THE PLANT OPERATOR DECIDES AT WHAT
FREQUENCY TO GENERATES DEPENDING ON
VARIABLE CHARGES
THE TRADING FRAME WORK
CTU_NORTH
RLDC
CTU_NE
CTU – INTER REGION
RLDC
CTU_EAST
CTU_WEST
RLDC
RLDC
STU
STU
RLDC
STU
NLDC
CTU_SOUTH
INTER-REGIONAL ARBITRAGE
HOW IT WORKS
GAME THEORY CONCEPTS
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MATHEMATICAL ANALYSIS FOR INTERACTIONS BETWEEN
PEOPLE.
THESE INTERACTIONS ARE CALLED GAMES.
GAMES ARE PLAYED BY RATIONAL PEOPLE.
RATIONAL PLAYERS IN A GAME LOOK TO MAXIMISING
THEIR INDIVIDUAL PAY-OFF’s.
AN EQUILIBRIUM POINT IS REACHED WHEN ANY PLAYER
CANNOT INCREASE HIS PAYOFF UNILATERALLY.
THIS IS REFFERED TO AS A ‘NASH’ EQUILIBRIUM AFTER ITS
PROPONENT JOHN NASH.
SOME OF THE TYPES OF GAMES ARE
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ZERO SUM GAME
CO-OPERATIVE/NON CO-OPERATIVE GAMES
REPETITIVE GAMES
GAME THEORY CONCEPTS ARE USED TO MODEL HUMAN
BEHAVIOUR/STRATEGIES IN A COMPETITIVE MARKET
THESE CONCEPTS CAN FIND PARALLELS IN THE UI
MARKETPLACE
GAME THORY AND UI
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ZERO SUM GAME :- Σ OF EVERY PLAYERS UI IS ZERO
REPETITIVE GAME :- PLAYED EVERY 15 MTS (ONE
TIME BLOCK OF ABT)
NON-CO-OPERATIVE GAME :- EVERY PLAYER LOOKS
TO MAXIMISING PAYOFF – ‘…. ITS’ HUMAN TO WANT
MORE….!!!’
EQUILIBRIA IS REACHED BETWEEN 49 AND 50.5 HZSTEADY STATE FREQUENCY
MULTIPLE EQUILIBRIUM POINTS IN THE RANGE
THIS EXPLAINS WHY AN UI MARKET OF A FEW
CRORES REGULATES A MARKET MORE THAN A
THOUSAND TIMES ITS SIZE!
UI : FUTURE REFINEMENTS
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TIGHTEN THE FREQUENCY RANGE
TIME-OF-DAY ELEMENT
CHANGE THE SLOPE