Module-1: Power System:

INTRODUCTION
Electricity plays a key role in the modem society because of its versatility with respect to input
energy form. For increasing the supply of electricity, new power projects will have to be
installed.Also,the target to achieve electricity for all by 2022 in india is to be fulfilled.the united
nations has set a goal of bringing clean and modern electricity to all people by 2030 although at
2015,more than 1.2 billion people worldwide still live without access to electricity.The process
of power-system planning is as below:
1.Study of the electric load forecast 5 to 30years into future
2.Evaluation of the energy resources available
3. Evaluation of the economic and technical characteristics of the existing system of generating
units and of the plants that are considered as potential units for system expansion
4. Determination of technical and cost characteristics of the plants available for expansion
5. Determination of the economic and technical parameters affecting decisions such as discount
rate, level or reliability required from the generating system,etc
6. Choice of a procedure to determine the optimal expansion strategy within the imposed
constraints.

POWER SYSTEMS
 Ever since electrification began in the world around 1880, electrical utilities have
gradually consolidated into larger units to generate, transmit and distribute electricity. In
India, electrification started with the commissioning of small hydro-electric station (130
kW) at Darjeeling in 1897. Followed by commissioning of a hydropower station at
Sivasamudram in Karnataka during 1902.
 The regulatory systems have consequently changed over time. The planning of power
systems must fit with the overall energy policy with due respect to public opinion and
reliability of power supply. This makes power system planning difficult. The problem of
ensuring adequate future electricity supply varies from country to country depending on
the peoples' expectations, technological development, and availabilities of resources.
 Under the Electricity Supply Act, it is the duty of the Central Electricity Authority to
adopt a systematic approach to formulate policy and optimize resources.
 Planning should consider the needs of the system - existing, new or refurbished
generation, new transmission or upgrades, demand-side management and so on - and the
resources that may be available to meet them. Where additional generation is required,
like site, size, the fuel type including back-up fuel requirements (if any), technical and
environmental characteristics and mode of dispatch (base load, intermediate, peaking),
should be identified.
 Environmental and resource constraints are forcing us to approach the future with better
planned and researched projects. The major goals for the future are to develop least cost
projects, identify new primary resources, find better means of distribution, transmission
and generation, emphasize on better and less wasteful use of electricity, and develop
demand side management. Pumped hydro power and superconducting magnetic coils
 represent a possible solution for storage of electricity Planning should identify the project
with decision & clarity.

PLANNING PROCESS

 Planning is the process of taking a careful decision. The main input in Planning is the
quality of systematic thought that goes into a decision.
 The process of establishing the power industry is capital intensive and time consuming.
Planning saves project time and ensures that resources are used most economically.
 Planning is the process of selecting vision, values, mission and objectives and deciding
what should be done to attain them.
 Planning should take into account: uncertainty about the future, many alternative action
choices and many goals and constraints. Planning can be seen as consisting of three
cyclical components
Learning about the environment, the relevant issues and possible future scenarios in order toidentify:
(i) Strategically goals (ii) The decision criteria and constraints (iii) Technological needs and
opportunities
1. Thinking about available strategic options, the associated costs and risks and their
implications. This involves:
(i) Investment of resources (ii) Possible unforeseen factors (iii) Reliability of outcome.
3 Action that involves choosing preferred plans or strategies on the basis of supporting analysis.
Once an action has been selected and the process of implementation begins, the cycle is
renewed. The following characteristics make this planning process particularly challenging for
power systems. 1. The power system is highly capital intensive. 2. Rationales and experiences
developed in advanced countries are difficult to apply for expanding a large system with diverse
options in developing countries. 3. The learning and thinking activities often tend to diverge
broadly before finally converging.
 Figure: Planning actions

1.5 POWER DEVELOPMENT

The development of power is closely linked with the growth of gross national product. The
economic strength of a region in the next century will be greatly dependent on the availability of
power. In the planning of power system development, priority is given to regional systems and
generation load balances are maintained. Also, keeping in view that different transmission lines
are not too 'redundant' but are sufficiently robust regional links, there must be strategic planning
to foresee, evaluate and co-ordinate future requirements and concentrate resources to dovetail
with medium and short-term objectives.
The starting point in the planning process is to develop clear vision, good values and mission.
The other processes follow, such as to develop load forecasts in terms of annual peaks and
energy needs for the entire utility area as well as for each region consisting of many utilities. The
system expansion is determined by load-flow studies under steady state and abnormal
conditions. The load-flow studies are made for calculation of currents, voltages, and real and
reactive power flows taking into account the voltage regulating capability of generators and
transformers, capacitors, generation schedules, power interchange etc. By changing the location,
size and number of transmission lines, the planner can achieve. To design an economical system
that meets the operating, design, environmental and cost criteria. After determining the best
system configuration from the load-flow studies, the planning engineer studies system behavior
under fault conditions by carrying out Short-circuit studies as a short-term plan to determine
design parameters of protection systems. Finally the planner performs the stability studies to
ensure that the power system will remain stable following severe fault.

POWER GROWTH

 The electricity generation capacity in India is the fifth largest in the world. India is also
the sixth largest consumer of electricity, and accounts for 3.4 per cent of the global
energy consumption. Over the past thirty years, the country’s energy demand has grown
at an average of 3.6 per cent per annum. Growth in the installed capacity of power
generation has been spectacular, having risen from 1,712MW in 1950 to 84,087MW
ending 1995-96. During the financial year 2011-12, the highest ever capacity addition of
20,501 MW (thermal, nuclear and hydro) was achieved (CEA). A capacity addition of
17,956 MW during the year 2012-13—comprising 15,154 MW of thermal, 802 MW of
hydro and 2000 MW of nuclear power—has been envisaged.
 India’s Installed Generation Capacity stands at 210,951.72 MW as on December 31,
2012. And the electricity sector in India had an installed capacity of 225.133 GW as of
May 2013. Captive power plants generate an additional 34.444 GW. Non Renewable
Power Plants constitute 87.55% of the installed capacity, and Renewable Power Plants
constitute the remaining 12.45% of total installed Capacity. India generated 855 BU (855
000 MU i.e. 855 TWh) electricity during 2011–12 fiscal.
 In terms of fuel, coal-fired plants account for 57% of India's installed electricity capacity,
compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewal
hydropower accounts for 19%, renewable energy for 12% and natural gas for about 9%.
 The Power Ministry has also proposed an outlay of Rs 37 crores for the Central
Electricity Authority (CEA) for various initiatives of strengthening its institutional
framework. Sixty-three per cent will be spent on new and ongoing projects while twenty-
nine per cent is on renovation and modernization, and the rest is on renewable energy
projects. The overall investment required for the power sector in the 12th Plan is about 12
to 14 lakh crores of rupees. The investment pattern should focus on generation,
transmission and distribution segments in order to achieve balanced growth in the power
sector.
 The Central Electricity Authority (CEA), in its fifteenth Electric power Survey has
estimated that the gross energy generation required by the year 2020 is to the order of
1325TWh/annum and the corresponding generation capacity requirement is 3,85,770MW.
  The transmission network comprises of about 98,367 circuit kilometers of transmission
lines at 800/765kV, 400kV, 220kV and 132kV EHVAC and +500kV HVDC levels and
160 sub-stations. A new transmission line of 1200 KV has become operational in India
recently, whereas the highest transmission voltage level in China is only 1100 KV. The
transformation capacity is about 1,57, 158 MVA as on January 31, 2013. This gigantic
transmission network spread over the length and breadth of the country is consistently
maintained at an availability of over ninetynine per cent (PGCIL).
 The transmission and distribution loss is another ill afflicting the power sector in the
country. The main reasons for high transmission and distribution losses are weak and
inadequate sub-transmission and distribution system, improper load management,
inadequate reactive load compensation at load points, low quality of construction,
inadequate maintenance of equipments, and unmetered supply of agricultural pump-sets
and pilferage/theft of energy.
 India's network losses exceeded 32% in 2010 including non-technical losses, compared to
world average of less than 15%. Both technical and non-technical factors contribute to
these losses, but quantifying their proportions is difficult. But the Government pegs the
national T&D losses at around 24% for the year 2011 & has set a target of reducing it to
17.1% by 2017 & to 14.1% by 2022. Some experts estimate that technical losses are about
15% to 20%.

2. NATIONAL AND REGIONAL PLANNING

2.1 ADVANTAGES & DISADVANTAGES OF NATIONAL AND REGIONAL
PLANNING There is a lot of diversity in the country in topography, daily peak due to day time
differences, annual peak load timings (winter or summer) & resources in the various regions.
Hence five electricity regions have been established. The economic argument in support of
regional coordination is – Advantages,
 Such coordination allows joint planning & operation of facilities,
 It makes the exchange of economical energy easier,
 It prevents the constructions of unnecessary facilities by isolated systems & increases
reliabilities.
 More specifically, as a result of transmission interconnections, coordination offers
distinct economic & the non coincidental occurrence of the peak of the participation
systems.
 It might be possible to reduce the total generating capacity requirements that would
otherwise apply if each utility system were to fully meet its needs.
 By combining the existing capacity of generation in the region & to make economic use
of the generating resources such as hydro & fossil fuels etc…

Disadvantage,
 One of the problems in regional planning relates to coordination among the various
utilities in the region with respect to tariff and backing down Of generating units in merit
 order. HVDC links for transfer of power between various regions is desirable in order to
utilize surplus power in some regions and for stable grid operation.

2.2 INTEGRATED RESOURCES PLANNING

This is an aspect of least cost planning. The utilities have to evaluate all the Supply side and
demand side options like energy conservation programmes, direct load control, interruptible or
time of use pricing and system improvement SUPPLYSIDE OPTIONS
1. The technology related to conventional fossil fuels is predominant at present. Many utilities
have turned to combustion turbines fueled with natural gas with new capacity which are highly
efficient, have low emission, and are well adapted for intermittent use. Moreover, as the focus is
now on cleaner, more efficiently cost-effective, coal-fired generation technologies, washed coal,
gasification based generation options like Integrated Gasification-Combined Cycle (IGCC), etc.,
are found more effective over applying Flue Gas Desulfurization units and Fluidized Bed
Combustion because the former have a potential to minimize solid waste in addition to cutting
airborne emissions.
2. Increasing role of renewable: While technological advancement continues in the use of fossil
fuels, several new options have started to emerge which broaden the scope of non-conventional
sources of energy in the future. Wind power generation costs have fallen dramatically, by a
factor of 10, and photovoltaics by a factor of 4, over the last two decades.
3. Increase in the availability of generating station.
4. Efficient operation of the regional and national grid.
5. Strengthening the existing transmission and distribution system such as by adding new links
and capacitor banks at suitable points and thus reducing system losses and improving voltage
profiles.

DEMAND SIDE OPTIONS

1. Taking energy conservation 111£asureTs:here is a potential for energy saving to the extent of
30 per cent in agriculture pump-sets, 25 per cent in industrial motors, and 10-15 per cent in
commercial and domestic lighting.
2. Minimum consumer power factor of not less than 0.95 lagging.
3. Consumer load management such as rural, agriculture and urban load staggering, individual
large consumer load control, and thereby improvement in generating stations load factor.
4. Time-of-day metering with three tariffs for peak time (higher rate), night time (lower rate) and
other times of the day (medium rate). 2.3 LEAST COST UTILITY PLANNING

 There are two fundamental problems inherent in traditional planning. The first is that
demand forecasting and investment planning are treated as sequential steps in planning,
rather than as interdependent aspects of the planning process. The second problem is that
planning efforts are inadequately directed at the main constraints facing the sector,
namely, the serious shortage of resources.
 Demand forecasts are little more than extrapolations of past trends of consumption; no
attempt is made to understand neither the extent of unmet demand, nor the extent to which
price would influence demand .growth. Greater attention should be paid to end-use
efficiency, plant rehabilitation, loss reduction programme etc as these have a potential for
much more economic use of investment resources.
 Least cost planning is least cost utility planning strategy to provide reliable electrical
services at the lowest overall cost with a mix of supply side and demand side resources.
 The LCUP uses various options like end-use energy efficiency, load management,
transmission and distribution options, alternative tariff options, decentralized non-
conventional sources power generation and conventional centralized generation sources.
The magnitude of the various components depends upon the detailed outcome of the
exercise.
 This planning process can yield enormous benefits to consumers and society because it
affords acquisition of resources that meet consumer energy service needs in ways that are
low in cost, environmentally benign, and acceptable to the public. Such benefits occur
because of the diversity of resources considered, public involvement in the planning
process and cooperation among interested parties.
 Least costs utility planning as a planning and a regulatory process can greatly reduce the
uncertainties and risks faced by utilities. System expansion detailed project reports
(DPRs) must be based on least cost planning and need to be made mandatory by amending
the Electricity (Supply) Act, 1948. The logic for least-cost planning is shown in below
Figure.

 For an investment to be least cost, the lifetime costs are considered. These include capital
cost, interest on capital, fuel costs, and operational and maintenance cost.
 To fully realize the benefits, a complete analysis of the options is necessary and
simulation study according to a programming can be necessary and simulation study
according to a programming can be helpful for a complete analysis of attributes. The
process of least cost planning is shown in next page.
Evaluation
1. All options, whether supply or demand, should be assessed in a comparable and consistent
manner.
2. Once the initial evaluation has been completed, other factors (economic, environmental, and
societal) should be considered individually. Such revaluation prevents the rejection of options
with high costs in one set of factors, such as economics, but strong benefits in others, such as
environmental impacts.
3. The evaluation and integration of options can also be accomplished through the use of
various commercially available computer programs.
4. A linear programming model (India ELITE) based on an earlier version of a power planning
model developed in Canada has been prepared. It has been used in identifying least cost electric
power system development options for India for the 1991-2021time frame.
5. EGEAS packages have been used by CEA for preparing the National Power Plans. 6. Other
software’s or packages available for simulation or least cost planning are PROMOD, ELFIN,
MIDAS, EGEAS, UPLAN, MARKAL-ELGEM etc which are used in different countries.
ENTERPRISE RESOURCES PLANNING
STRUCTURE OF POWER SYSTEM

 An electrical power system can be considered to consist of generation, transmission, sub

transmission systems and distribution parts. In general, the generation and transmission
systems are considered as bulk power supply and the sub transmission and distribution
systems are considered to be the final means to transfer the electric power to the ultimate
consumers. The standard system voltages used in India for transmission and distribution
are as per IS: 12360- 1988are given in the below table.
 The basic system consists of energy resources such as hydro, coal, gas etc., a prime
mover, a generator and a load. Some sort of control system is required for supervising it.
 The prime mover may be a steam driven turbine, a hydraulic turbine or an internal
combustion engine. Each one of these prime movers has the ability to convert energy in
the form of heat, falling water or fuel into rotation of the shaft which in turn drives the
generator.
 The generator may be are alternator or a d.c. machine. The Electrical load on the generator
may be lights, motors, heat or other devices, alone or in combination etc.
 The control system functions to keep the speed of the machine constant, the voltage within
prescribed limits to meet varying conditions of the load by adjusting fuel/water, and
generator excitation within the generator capability. The active power (MW) is
regulated by frequency (speed) control. The reactive power (MVAr) and voltage is
regulated by excitation control.
 The components of an electric power system include generators designed to convert
mechanical energy into electricity, transformers, which change the voltage or current of
electric power supply, transmission lines used to transfer power from one location to
another, and auxiliary equipment intended to vary the system controls. 
 System performance is determined at an instant of time and is characterized by its
functional parameters such as levels of power, voltage, frequency, wave shape, phase
balance, and amperes. Physical properties of interconnected systems are characterized by
resistance of components, inertia moments and time constants determining the change of
electrical and mechanical quantities. The electric power system is closely connected to
other systems by tie lines or links.
 Figure: Power System Components

The power transmission and distribution network may be of the following types
1. The radial system is as in Figure shown in next page. Here the lines form a 'tree' spreading
out from the generator. Opening any line results in interruption of power to one or more of the
loads.
2. The loop system is as in Figure shown in next page. With this arrangement all loads will
continue to be served even if one line section' is put out of service. In normal operation the loop
may be open at some point at A as shown in the figure. In case a line section is to be taken out,
the loop is first closed at A and the line section is put on shut down. In this way no service
interruption occurs.
3. In Network of lines the same loads being served by a network. This arrangement has a higher
reliability as each load has two or more circuits of supply.
 The sub transmission and distribution circuits are commonly designed as radial or loop
circuits. The high voltage transmission lines are generally laid as interconnected or
networks.
 In this case interconnection of major power stations creates networks made of many line
sections. As the demand for load grows, generating capacity and transmission and
distribution must grow as well. Transmission and distribution are distinguished by their
voltage levels. In general, transmission systems have bulk power handling capability, and
relatively long lines connecting generating stations to load centres of the utilities.
 The model of transfer of power (P) by transmission line (having line reactance XL)
between two distance buses, (1 and 2) fed by generating machines with terminal bus
voltage V1 and V2 respectively with phase angle θ difference is generally represented as,

 Distribution systems including sub transmissions, branch out from and Under lie the
transmission systems. They handle lower levels and have relatively short lines. The power
level that transmission and distribution systems are being called upon to handle, are
increasing with time. The economies of scale need large generating stations and higher
voltage levels for transmission and distribution. Electricity cannot be stored and has to be
supplied instantly.
 The component installed capacity, say in MVA p.u., expands progressively as one moves
from generation to transmission, sub transmission, distribution and the consumer end.
Typical value for the Indian power system is,
Generation capacity (1p.u.) =Transmission capacity (1.5p.u.) + Sub transmission
capacity (2p.u.) + Distribution capacity (3p.u.) + Connected load (6p.u.)
 The reduced p.u. values on the right hand will indicate better electricity efficiency
of the system but in the interest of reliability and future expansion p.u. values may
be higher for some sectors. With rapid advancements in the field of electronics and
its applications in innumerable domestic, commercial and industrial sectors, the
demand for quality power supply has increased. 'Computers and other high-tech
electronic process technologies require clean, precise, transient free and
uninterrupted power supply.
  Rule 54 of the Indian Electricity Rules, 1956, states that a supplier shall not permit
deviation in voltage at the point of supply in consumer premises
1. In the case of low or medium voltage, by more than 6 per cent, or
2. In the case of high voltage, by more than 6 per cent on the higher side or by more than 9
percent on the lower side, or
3. In the case of extra high voltage, by more than 10 percent on the higher side 0r by more
than 12.5 percent on the lower side.
4. Rule 55 states that the frequency of the alternating current should not vary from the
declared frequency by more than 3 percent.
POWER RESOURCES
 The electricity sector in India had an installed capacity of 225.133 GW as of May 2013.
Captive power plants generate an additional 34.444 GW. Non Renewable Power Plants
constitute 87.55% of the installed capacity, and Renewable Power Plants constitute the
remaining 12.45% of total installed Capacity.
 The share of electrical energy in total energy consumption in India is 13.0% which is at
10th place in world ranking.
 India is endowed with economically exploitable and viable hydro potential assessed to be
about 84,000 MW at 60% load factor. In addition, 6,780 MW in terms of installed
capacity from Small, Mini, and Micro Hydel schemes have been assessed.
 India’s coal reserves will outlast other fuels for there are known coal reserves for another
200 years. India is the third major coal producing country in the world. Coal and lignite
accounted for about 57% of India's installed capacity. However, since wind energy
depends on wind speed, and hydropower energy on water levels, thermal power plants
account for over 65% of India's generated electricity. India's electricity sector consumes
about 80% of the coal produced in the country.
 India's share of nuclear power plant generation capacity is just 1.2% of worldwide nuclear
power production capacity, making it the 15th largest nuclear power producer. Nuclear
power provided 3% of the country's total electricity generation in 2012.
 In India, the known reserves of oil will last for about 30 years & the Natural Gas can last
up to AD 2050 at the present rate of consumption. Natural gas is basically methane which
contains one carbon atom for every four hydrogen atoms. Therefore, after combustion it
gives out less CO2 for every energy unit derived. Besides, gas has little or no sulfur
compounds or suspended particulate matter, & the percentage of nitrogen is much less
than in coal or oil. As a natural policy, the use of oil & gas has been allowed for power
generation.

PLANNING TOOLS
 Planning engineer's primary requirement is to give power supply to consumers in a
reliable manner at a minimum cost with due flexibility for future expansion.
 The criteria and constraints in planning an energy system are reliability,
environment, economics and electricity pricing, financial constraints, and society
impacts and value of electricity. 
  Reliability, economic; financial and environmental factors can be quantified.
However, societal effects are evaluated qualitatively. Some of these criteria
conflict, making the planning decisions more complex. For example, meeting
higher reliability levels may be constrained by financial limitations to build new
facilities. Achieving lower environmental impact is likely to increase the cost of
electricity to consumers (economic factor).
 The system must be optimal over a time period from first day of operation through
the planned lifetime. Today, the planner numerous analysis and synthesis tools at
his disposal.

 Various computer programs are available and are used for fast screening of
alternate plans with respect to technical, economic and environmental performance
of power system. 
The available tools for power system planning can be split into three basic techniques:
simulation, optimization and scenario Techniques,
1. Simulation Tools
 These simulate the behavior of the system under certain conditions and/or calculate
relevant indices. Examples of (simulation tools) are load flow models, short-circuit-
models, transient stability models etc., in transmission; production costing, adequacy
calculations, estimation of environmental impact etc.
 In power generation, corporate models can simulate the impact of various decisions on
the financial performance of the power utility company.
 The use of simulation tools for strategic planning need voluminous data and requires the
results from various models to be integrated such typical simulation programs is shown.
2. Optimization Tools
 These minimize or maximize an objective function by choosing adequate values for
decision variables. Examples of these are optimum power, least cost expansion planning,
generation expansion planning.
3. The Scenario Techniques
 This is a method for viewing the future in a quantitative fashion.
 All possible outcomes are investigated. The sort of decision or assumptions which might
be made by a utility developing such a scenario might be: should we Computerize and
automate the management of power system after a certain date.
 The process of Planning Electric Energy Systems consist of generating a set of planning
Scenario,
 Scenario can be optimistic/ambitious or optimum or Pessimistic.
  In India, the various types of scenarios for electric power are drawn by the Planning
Commission, CEA, State Electricity Boards, research organizations, individual research
workers Etc.
 Electrical utilities should prepare integrated resource plans. These Long term plans seek to
develop the best mix of demand and supply options to meet consumer needs for electric
energy services.
Simulation programs for system planning

POWER PLANNING ORGANISATION

 Fig. Organisation Of Power Industry In India
REGULATION
The Electricity Act 2003
The Salient features of the act are as follows:
1. Generation is being de-licensed and captive generation freely permitted, i.e. any
generating company may establish, operate and maintain a generating station without
obtaining a licence under this Act with the only exception that it should comply with the
technical standards relating to connectivity with the grid referred to in clause (b) of
section 73.
Note: Hydro-projects, however, need concurrence from the Central Electricity Authority.
2. No person shall
(a) Transmit electricity; or
(b) Distribute electricity; or
(c) Undertake trading in electricity,
Unless he is authorised to do so by a licence issued, exceptions are informed by authorised
commissions through notifications.

3. Central Government may, make region-wise demarcation of the country, and, from time to
time, make such modifications therein as it may consider necessary for the efficient,
economical and integrated transmission and supply of electricity, and in particular to
facilitate voluntary inter-connections and co-ordination of facilities for the inter-State,
regional and inter-regional generation and transmission of electricity.
Transmission utility at the central and state level to be a government company with
responsibility of planned and coordinated development of transmission network.
4. Open access in transmission with provision for surcharge for taking care of current level
of cross-subsidy, with the surcharge being gradually phased out.
5. The state governments are required to unbundle State Electricity Boards. However they
may continue with them as distribution licensees and state transmission utilities.
 6. Setting up State Electricity Regulatory Commission (SERC) has been made mandatory.
7. An appellate tribunal to hear appeals against the decision of (CERC's) and SERC's.
8. Metering of electricity supplied made mandatory.
9. Provisions related to thefts of electricity made more stringent.
10. Trading as a distinct activity recognised with the safeguard of Regulatory commissions
being authorised to fix ceiling on trading margins.
11. For rural and remote areas, stand-alone system for generation and distribution is
permitted.
12. Thrust to complete rural electrification and provide for management of rural distribution
by panchayat, cooperative societies, NGOs, franchisees etc.
13. Central government to prepare National Electricity Policy and Tariff Policy.
14.Central Electricity Authority (CEA) to prepare National Electricity Plan.

THE ELECTRICITY RULES 2005

RULE 3: Requirements of Captive Generating Plant:(1) No power plant shall qualify as a

‘captive generating plant’ under section 9 read with clause (8) of section 2 of the Act unless- (a)
in case of a power plant - (i) not less than twenty six percent of the ownership is held by the
captive user(s), and (ii) not less than fifty one percent of the aggregate electricity generated in
such plant, determined on an annual basis, is consumed for the captive use.

RULE 4: Distribution System: The distribution system of a distribution licensee in terms of

sub-section (19) of section 2 of the Act shall also include electric line, sub-station and electrical
plant that are primarily maintained for the purpose of distributing electricity in the area of
supply.

RULE 5: Compliance with the directions by Transmission Licensee: The National Load
Despatch Centre, Regional Load Despatch Centre, as the case may be, or the State Load
Despatch Centre, may, under section 26, sub-section (3) of section 28, sub-section (1) of section
29, sub-section (2) of section 32 and sub-section (1) of section 33 read with clause (b) of section
40 of the Act, give such directions, as it may consider appropriate for maintaining the
availability of the transmission system of a Transmission Licensee and the Transmission
Licensee shall duly comply with all such directions.

RULE 6: The surcharge under section 38: The surcharge on transmission charges under
section 38, the manner of progressive reduction of such surcharge and the manner of payment
and utilization of such surcharge to be specified by the Central Commission under sub-clause (ii)
of clause (d) of sub-section (2) of section 38 shall be in accordance with surcharge on the
charges for wheeling, the manner of progressive reduction of such surcharge and the manner of
payment and utilization of such surcharge as may be specified by the Appropriate Commission
of the State in which the consumer is located under sub-section (2) of section 42 of the Act.

RULE 7: Consumer Redressal Forum and Ombudsman: (1) The distribution licensee shall
establish a forum for redressal of grievances of consumers under sub-section (5) of section 42
which shall consist of officers of the licensee. (2) The Ombudsman to be appointed or
designated by the State Commission under sub-section (6) of section 42 of the Act shall be such
person as the State Commission may decide from time to time. (3) The Ombudsman shall
consider the representations of the consumers consistent with the provisions of the Act.
RULE 8: Tariffs of generating companies under section 79: The tariff determined by the
Central Commission for generating companies under clause (a) or (b) of subsection (1) of
section 79 of the Act shall not be subject to re-determination by the State Commission in
exercise of functions under clauses (a) or (b) of sub-section (1) of section 86 of the Act and
subject to the above the State Commission may determine whether a Distribution Licensee in the
State should enter into Power Purchase Agreement or procurement process with such generating
companies based on the tariff determined by the Central Commission.

RULE 9: Inter-State trading Licence.- A licence issued by the Central Commission under
section 14 read with clause (e) of sub-section (1) of section 79 of the Act to an electricity trader
for Inter-State Operations shall also entitle such electricity trader to undertake purchase of
electricity from a seller in a State and resell such electricity to a buyer in the same State, without
the need to take a separate licence for intra-state trading from the State Commission of such
State.

RULE 10: Appeal to the Appellate Tribunal.- In terms of sub-section (2) of section 111 of the
Act, the appeal against the orders passed by the adjudicating officer or the appropriate
commission after the coming into force of the Act may be filed within forty-five days from the
date, as notified by the Central Government, on which the Appellate Tribunal comes into
operation.
RULE 11: Jurisdiction of the courts.- The Jurisdiction of courts other than the special courts
shall not be barred under sub-section (1) of section 154 till such time the special court is
constituted under sub-section (1) of section 153 of the Act.
RULE 12: Cognizance of the offence- (1) The police shall take cognizance of the offence
punishable under the Act on a complaint in writing made to the police by the authorized officer
as the case may be.
RULE 13: Issue of Orders and Practice Directions: The Central Government may from time
to time issue Orders and practice directions in regard to the implementation of these rules and
matters incidental or ancillary thereto as the Central Government may consider appropriate.

THE ENERGY CONSERVATION ACT 2001:It provides

FOREST (CONSERVATION) ACT, 1980

The Act stipulates the forest clearance requirement for the forest area where hydro plants
(reservoir etc.), and transmission lines are planned. The guidelines for taking power lines
through the forest area are,
1. Where routing of power lines through the forest areas cannot be avoided, these should be
aligned in such a way that it involves the least amount of tree cutting.
2. As far as possible, the route alignment through forest areas should not have any line deviation.
3. The maximum width of right-of-way for the power lines on forest land shall be as follows:
4. Below each conductor, width clearance of 3m would be permitted for taking the swinging of
stringing equipment.
5. In the remaining width, right-of-way up to a maximum of 8.5 metres (for 800kV lines), trees
will be felled or looped to the extent required, for preventing electrical hazards by maintaining
the Following, The sag and swing of the conductors are to be kept in view while working out the
minimum clearance mentioned below.

6. In the case of lines to be constructed in hilly areas, where adequate Clearance is already
available, trees will not be cut.
7. Where the forest growth consists of coconut groves or similar tall trees, widths of right-of-
way greater than those indicated above may be permitted in consultation with the CEA.
TOWN AND COUNTRY PLANNING ACTS These acts are of interest before erecting a
plant, a substation or overhead line. It is necessary to seek approval of planning authorities
whenever these acts are applicable.
ENVIRONMENT LAWS Environment laws such as Water (Prevention and Control of
Pollution) Act, 1974; Air (Prevention and Control of Pollution) Act, 1981; Environment
(Protection) Act, 1986are important for getting pollution clearance from the competent
authorities in case of generating plants.
SCENARIO PLANNING.:

A General view of scenario planning

PLANNING PRINCIPALS:
 ELECTRICITY FORECASTING:

LOAD REQUIREMENT:
 Throughout the world, electrification is an ongoing process. The reason for this
phenomenon is the preference for electrical energy.
 The increasing demand in the Asian region is due to several factors such as population
growth, growth of per capita income, migration to urban areas and increase in energy
using product.
 Demand forecasts are used to determine the capacity of generation, transmission and
distribution
 System and energy forecast to determine the type of generation facilities required.
 There are five broad categories of loads-domestic, commercial, industrial, agricultural
and residential. Commercial and agricultural loads are characterized by seasonal
variations. Industrial loads are considered base loads that contain little weather dependent
variation. Their generation characteristics are given below,
1. Domestic - This type of load consists mainly of lights, fans, domestic appliances such as
heaters, refrigerators, air conditioners, mixers, ovens, heating ranges and small motors for
pumping, and various other small household appliances. The various factors are: demand factor
100 percent, diversity factor 1.2-1.3 and load factor 10-15 percent.
2. Commercial - This type of load consists mainly lighting for shops and advertisement
boarding’s, fans, air conditioning;" heating and other electrical appliances used in commercial
establishments, such as shops, restaurants, market places, etc. The demand factor is usually 90-
100 percent, diversity factor is 1.1-1.2 and load factor is 25-30 per cent.
3. Industrial - These loads may be of the following typical power range,

The last type of loads needs power over a longer period and which remains fairly uniform
throughout the day. For large-scale industrial loads the demand factor may be taken as 70-80
percent and the load factor 60-65 per cent. For heavy industries the demand factor may be taken
as 85-90 per cent with a load factor of 70-80 per cent.
4. Agriculture - This type of load is required for supplying water for irrigation by means of
suitable pumps driven by electric motors. The load factor is generally taken as 15-25 percent, the
diversity factor is 1-1.5 and the demand factor is 90-100 per cent.
5. Other loads - Apart from the loads mentioned above, there are other loads such as bulk
supplies, street light, traction and government loads which have their own peculiar
characteristics.

SYSTEM LOAD
Consumer load has several requirements:frequency(50Hz),voltage,real power, and reactive
power.The end product has to be delivered instantaneously and automatically upon the
consumer’

ELECTRICITY FORECASTING
 Forecasting of electric load basically consists of,
 Long-term forecasting which is connected with load growth and supply / demand
side resource management adjustments.
 Mid- / short-term forecasting which is connected with seasonal or weather
variations in a year, weekly or daily load forecast etc.
 The planning for the addition of new generation, transmission and distribution facilities is
based on long-term load forecasts and must begin 2-25 years in advance of the actual in
service.
  In India, electricity load forecasts at the national, the Annual Power Survey Committee
under Central Electricity Authority prepares regional and state levels.
 Load demand of states and regions must be forecasted. The pattern of their typical
monthly load curves must be determined and the mix of base load and peaking power
stations for efficient integrated operation must be fixed. Locations and power station
capacities must also be identified to give optimum results.
 Tie-up of all necessary inputs; and matching transmission and distribution systems must
also be a part of the full plan.
 Forecasting techniques must be used as tools to aid the planner, along with good
judgment and experience.
FORECASTING HORIZON
Load forecasting is required in all three facets of power system operation, viz., long-range
system planning, operational planning and operational control, generally in the following time
frames,
(i) Long-term forecasting (periods ranging 245.years).
(ii) Medium-term forecasting (periods from one month to two years) for operational planning.
(iii)Short term forecasting (periods from one day to a few weeks) for operational planning.
(iv)Very short term forecasting (a few minutes to 24 hours) for operational control.

FORECASTS TECHNIQUES WITH EXAMPLES

 The need to understand the proper use of forecasting techniques has increased as the
computing capability has moved out o the hands of the experts in to those of the users in
an organization.
 Forecasting continues to gain in importance due to the increasing scarcity of electrical
energy along with the availability of lower cost and more powerful computing equipment
and softwares.
 Here techniques used are called Deterministic and Statistical.
 Deterministic techniques are further classified as extrapolating, econometric, end use and
strategic.
For example
1. For extrapolation, Sheer's formula is used which is based on the hypothesis that for every
one hundredfold increase. In per capita generation, half will reduce the rate of growth of power
generation. The following relation was developed after studying load growth in a number of
countries.

Where G is annual percentage growth in power generation, U is per capita generation, and C is
constant which is 0.02 multiplied by population growth rate plus 1.33. The formula is used
iteratively to forecast power consumption growth for each year with the preceding value used to
forecast the next year's growth.
2. In the end use method, the consumption of each category is projected, based on expected
changes in production (industrial), traction, irrigation, water works and sewerage pumping etc.
This technique is adopted where sufficient data regarding the programme for future is available.
3. Trend method, is suitable in case of other sectors such as domestic, commercial and public
lighting. For example, an exponented trend using energy consumption data in India the
calculated regression equation is shown below:

X =time in years with 1950-51as base year, Y= GWh requirement for the year
Trends identified nowadays are, (i) Industrial to information society (ii) national to world
economy (iii) Short-term to long-term thinking (iv) centralization to decentralization (v)
Either/or to multiple options.
4. Time series analysis, is a good technique involving the necessity of Using sound judgments
along with an analysis of past history. The history of past loads might be forecasted by a utility
using a time series analysis program, which uses monthly data and yields an analysis of trend,
cyclical variation, seasonal variation, and irregular movement. A recomposition of these four
factors into future months would involve considerable judgement as to the future course of the
cyclical and irregular elements and, if these elements were well formulated, would produce
usable forecast of electrical energy demand.
5. Moving average, Here each point of a moving average of a time series is the arithmetic or
weighted average of a number of consecutive points of the series, where the number of data
points is chosen so that the effects of season or irregularity or both are eliminated. A minimum
of two years of past energy consumption is desirable, if seasonal effects are present. Otherwise,
there will be less data. (Of course, more the history, the better.) The moving average must be
specified.
6. Trend projections, This technique fits a trend line to a mathematical equation and then
projects it into the future by means of 'this equation. There are several variations, the slope-
characteristic method, polynomials, logarithms, and so on. Trend analysis is the study of the
behavior of a process in the past and its mathematics modeling so #1at future behavior can be
extrapolated from it. Two general approaches’ followed for trend analysis are,
(i) The fitting of continuous mathematical functions through actual data to achieve the least
overall error, known as regression analysis; and
(ii) The fitting of a sequence on discontinuous lines or curves to the data. The second approach
in the short term forecasting. A time varying event such as power system load can be broken
down into the following four major components, (i) Basic trend (ii) Seasonal variation
(iii) Cyclic variation which includes influences of periods longer than the above and causes the
load pattern to be repeated for two or three years (or even longer cycles)
(iv) Random variations which occur on account of the day-to-day changes are in the case of
power systems, are usually dependent on the time of the week, e.g., weekend, weak day,
weather, etc. The last three variations have a long-term mean of zero as in figures shown in next
page.
 Decomposition of typical load growth curve (a) Total process (b) Decomposition
EXAMPLES FOR ABOVE TECHNIQUES Linear trend. This is a past trend where the
increase in consumption from Year to year is more or less constant. Tabulate the past
consumption data and plot it on an arithmetical graph which will give a straight line. The
projection of this line can give a forecast of future demands. But in real life, such a growth trend
is unlikely in the power supply industry. Such a growth trend in the power industry can be
mathematically expressed as Ct = a+bt where, Let
Ct =electricity consumption in any year t , a = consumption for base year t =0 , b = constant
annual increase in energy consumption, t =cardinal number of year t with reference to the base
year, i.e., equal to T - 1 + n, where T is the number of years for which the forecast is required.
a=4GWh, b =0.18GWh, n=5, t=T-1+n, t = 11- 1+5 = 15,
Then, C15 = 4 + (0.18 x 15) = 4 + 2.7 = 6.7GWh
Analysis of Time Series. Typical power system load curves can be represented by the equation,
Y=T*C*S*I Where, T = long-term trend, C = cyclical trend (often over several years), S =
seasonal trend (1 year cycle), I = irregular movements (noise). The 'noise' component is due, in
part, to temperature effects. A reasonable correlation between demand and temperature has been
found in most power systems. Some time series can be represented by a sum of these factors, i.e.
Y=T+C+S+I.
CORRELATION OF DEMAND WITH TEMPERATURE
 There is a fair amount of correlation the power system demand with temperature. The
random variations left in demand after deseasonalizing and removal of the trend effect are
largely due to temperature variations. There are two portions of the power system load
which are temperature dependent: domestic and commercial loads which increase with
cold on account of the use of heating devices, and with heat which necessitates the use of
fans, coolers, air conditioner etc. resulting in load increase.
 The correlation between the seasonal demand and temperature variations is in fact high. e
removal of temperature affects from load readings, however, still leaves cyclic and
random effects. This is because similar weather conditions at different times of the year
do not cause similar human response. Other factors, such as wind and rain seem
important, but are hard to account for, as the repetition of a certain set of exact weather
conditions (e.g., cold night, rain) is unlikely. Typical temperature demand relationship is
shown below
7.6 FORECASTING MODELLING
7.6.1 Factors Affecting the Forecasting There are many factors which influence the prediction
of load, and their influence vary from area to area and from country to country. The impact of
any factor on load of a utility needs to be properly examined before building a forecasting
model. The factors found to affect a variety of utilities' load are time dependent, weather
dependent, random, and other.
Time dependent factors
 Power systems exhibit a time dependent pattern of electric load demand. At times, these
factors are regular, irregular or random in nature.
 Regular pattern is exhibited during the time of day, day of week and week of the year, and
yearly growth.
 Irregular pattern is exhibited on holidays, weekends, special days etc., and load
requirements tend to differ on these days than on other days. Sometimes, load
requirements do not follow any pattern because of weather or other factors.
 Electric load requirements tend to depend on work rest style of our set-up as there can be
different possibilities of electric power consumption if people are at home during the day
than if they are away at work. This implies that load patterns are different on weekdays
and weekends, with the
 Possibilities of 2-4 groups, namely, weekdays, weekends, and pre and Post-respectively.
 An analysis of past data can reveal two or more pattern of load consumption for a week.
On the same lines, load consumption also differs on holidays, special holidays preceding
and following the weekends), and special days of national or social importance which may
require excessive lighting loads etc.
 The impact of these holidays and special days on load demand would depend on the extent
of public participation, impact on industrial activity, and state-level celebrations requiring
excessive lighting load. There are seasonal variations in hourly or daily load, due to
change in daylight hours, change in heating to cooling load or vice-versa, typicality of
load pattern of some months etc. From the past data (typically 2-5 years), periods in a year
can be divided into time-scales (hourly, daily etc.) which exhibit an established load curve
and others with a comparatively variable load curve.
Weather Dependent Factors
 Weather is one of the principal causes of load variations as it affects domestic load, public
lighting, commercial loads etc. Therefore, it is essential to choose relevant weather
variables and model their influence on power consumption. Principal weather variables
 found to affect the power consumption include temperature, cloud cover, visibility, and
precipitation.
 The first two factors affect the domestic/office (e.g., heating, cooling) loads, whereas the
others affect lighting loads as they affect daylight illumination.
 Average temperature is considered to be the most significant dependent factor that
influences load variations. However, temperature and load are not linearly related, and
variations in temperature in one temperature range may not have any effect on the load,
whereas in other temperature ranges and/or other seasons a 1°C change can change load
demand by over one per cent. This non-linear relation is further complicated by the
influence of humidity and by the effects of extended periods of extreme heat or cold spell.
Random Factors
 There are random phenomena which affect load consumption and can cause large errors in
load forecast.
 It is difficult to accurately model their actual impact on load demand. These include
school holidays, factory strikes, and influence of popular TV programmes.
 Influence of these Phenomena can be studied .if past data on these occurrences are
available.
Other Factors Other factors that influence the load demand include,
(i) Effects of DSEs (Distributed generating devices). (ii) Effects of rate tariff (time-of-day
pricing, change in industrial tariffs). (iii) Change over to winter time or summer time. Impact of
these factors in past data should be identified. The model should be selected based on these
factors and other considerations, and should be fitted to the data. Before use, the model should
be checked to discover possible lack of fit or any inadequacy, and necessary correction should be
applied as required.
FORECASTING MODELS
Regression Model.
This functionally relates load to other economic, competitive or weather variables and estimates
an equation using the least squares technique. Relationships are primarily analyzed statistically,
although any relationship should be selected for testing on a rational ground.
 Regression analysis involves the necessity of using judgment along with statistical
analysis whenever forecasting takes place.
 Regression of time series data is a common occurrence in utilities where tracking
important measures of performance on a weekly, monthly, or quarterly basis is conducted.
As autocorrelation is a common problem in such studies, an understanding of this
condition and its cure becomes vital if the results of such analyses are to be valid in the
decision-making process.
Econometric Model.
An econometric model is a system of interdependent regression equations that describes energy
sales. The parameters of the regression equations are usually estimate simultaneously. As a rule,
these models are relatively expensive to develop. However, due to the system of equations
inherent in such models, they will better express the casualties involved than an ordinary
regression equation and hence, will predict turning-points more accurately.
Strategic Forecasting.
 Strategic forecasting is becoming increasingly important and involves the explicit
examination of the factors and issues affecting future growth, It recognizes the impact that
policy decisions can have on future loads.
 This requires details of consumer operations, their current and potentili1' demand for
electricity, their competitiveness in the market place and their options with respect to
production processes,
 Switching alternatives, energy conservation technologies, etc.
 In the industrial sector, this implies combining elements of the econometric approach with
the technology detail found in end use/process models. Strategic models must be capable
of doing more than merely forecasting future requirements. They must be able to provide
planners with additional information to help shape the future demand.