Introduction of Fast Markets at

Inter-State Level in India

Moving to 5-Minute Scheduling, Despatch and Settlement

1
 Looking Back to Look Forward
ABT Reforms Bilateral
• 15-minute scheduling, • 15-minute
despatch, metering, trading
Pre – ABT era
• Daily energy accounting &
booking settlement
• Joint Meter
Reading
2004:
(JMR)
2002-03: Open Access
• Overlay
accounts ABT
2000: Implementation
CERC ABT
Order Systemic Transformation
1995-98:
NTF and RTF • Multi-Part Performance
based Tariff
• Day Ahead Scheduling
Inadequacies • Incentives and penalties
1994:
GoI ECC • No incentives for utilities
Report • Grid indiscipline; No signal for power trading
• Perpetual operational & commercial disputes
 CERC ABT Order dated 04th Jan 2000

5.9.12 We have also considered the views of some

of the beneficiaries to change the time block of 15
minutes. We are convinced that a short time block
of 15 minutes can be expected to ensure alertness
on the part of the dispatcher to take quick
corrective action for maintaining desirable system
parameters. If the interval is larger, there may be a
tendency to defer the action with possibilities of
steep frequency excursions thereby inviting
damages to the system.
 Looking Forward to Leap Ahead
DERs, Electric Vehicles,
RRAS Storage, Financial Products
• Utilizing Un-
despatched
Sub-hourly 2018:
surplus
Bidding AGC Pilot Project
• 15-minute Future
clearing and
settlement
(energy) 2016:
Ancillary
Services
2012: 5-Minute Accounting
15 Minute • Granularity
Bidding • Ramp management.
2008:
Power
Exchanges
Collective transactions
• Hourly bidding
 Developments in Other Sectors…
Airlines Banking Petroleum

May 08, 2017

National Electronic Funds Transfer
(NEFT) system – Settlement at half-
hourly intervals
Railways Stock Exchanges
Data Time-Interval Annual Cost*
1 Minute Rs. 13,20,000

2 Minutes Rs. 7,50,000

5 minutes Rs. 2,75,000

15 Minutes Rs. 60,000
*NSE Annual Data Charges, Capital Market Segment
Advantage for moving to 5-Minute Scheduling & Settlement

• Learning from implementation of Ancillary

Services
• Increasing Renewable Energy Penetration
• Harnessing and Incentivizing Flexibility
• Ramp Management
• Improved Forecasting, Scheduling & Despatch
• Reduced Requirement of Reserves
• Economy in System Operation
6
Increasing Renewable Energy Penetration

Sample Day in 2022 (Source: GtG Study Report) 7

HARNESSING AND INCENTIVIZING FLEXIBILITY

All India Demand Duration Curve (2008-2017)

8
 MW

7800
8300

7500
7600
7700
7900
8000
8100
8200
8400
5:01:00 PM
5:06:00 PM
5:11:00 PM
5:16:00 PM
5:21:00 PM
5:26:00 PM
5:31:00 PM
TNEB_ACTUAL

5:36:00 PM
5:41:00 PM
5:46:00 PM
5:51:00 PM
5:56:00 PM
6:01:00 PM
6:06:00 PM
6:11:00 PM
6:16:00 PM
5 min. Average

6:21:00 PM
6:26:00 PM
6:31:00 PM
6:36:00 PM
6:41:00 PM
6:46:00 PM
6:51:00 PM
6:56:00 PM
7:01:00 PM
15 min. Average

7:06:00 PM
7:11:00 PM
7:16:00 PM
7:21:00 PM
7:26:00 PM
7:31:00 PM
7:36:00 PM
7:41:00 PM
7:46:00 PM
1 hour Average

7:51:00 PM
7:56:00 PM
8:01:00 PM
Ramp Management
Reduced Variability and Reserve Requirement
Hourly Despatch ~ 11,000 MW
15-Minute Despatch ~ 3300 MW
05-Minute Despatch ~ 1400 MW
 Scheduling and Bidding in PX(Shorter Interval)

5 Minute, 15 Minute and Hourly Schedules

12
 Policy / Regulatory Mandate
• CERC Consultations/Orders/Regulations

– Consultation Paper on Modifications in Power Market Design: Evening

Market, 15 minute Bidding time block and Ancillary market on PX (2010)

– Order on Automatic Generation Control (AGC) Pilot Project (2017)

– Communication System for Inter-State Transmission of Electricity

Regulations (2017)

• NITI Ayog Report - India’s Renewable Electricity Roadmap 2030 (2015)

• Ministry of Power Technical Committee Report (2016)

• Forum of Regulators (FOR) - SAMAST Report (2016)

• FOR Model Deviation settlement Regulations (2017)

• NITI Aayog - Draft National Energy Policy (2017) 13

 Deliberations in Meetings
Three meetings of the Sub-Group were held as follows:
• First Meeting – 03rd August, 2017 at NLDC, Delhi
• Second Meeting – 28th August, 2017 at NLDC, Delhi
• Third Meeting – 25th October, 2017 at NLDC, Delhi

Two 5-Minute Meter Capability Demonstration by meter vendors

were held as follows:
• M/s Secure Meters and M/s Elster-Honeywell on 13th
September, 2017 at 400/220 kV Magarwada PGCIL S/s,
Daman-Diu UT
• M/s L&T on 10th October, 2017 at 765/400 kV Vadodara
(Wagodia) PGCIL S/s, Gujarat
Phase wise Activities for transition to 5 minutes
• Pilot Project
• Regulatory Framework
• Amendment in Standards
• Formulation of Technical specifications
• Upgradation of Hardware & Software
• Procurement Process
• Trial Run
• Cost Recovery
Meter Demonstration
Meter Testing Witnessed Jointly by Representatives of NLDC,
WRLDC, POWERGRID, Gujarat SLDC and Meter Manufacturers

Magarwada S/s Vadodara S/s

Meter Demonstration & Testing Results - Summary
 Regional Entities
Regional Entities
Region
Generator Drawee Total
North 44 12 56
East 43 10 53
West 21 7 28
South 22 8 30
North-East 10 8 18
All India 158 55 213
Bhutan 4 1 5
Bangladesh - 1 1
Nepal - 1 1
Myanmar - 1 1
Total 162 59 221
Future ~ 250 ~ 100 ~ 350 19
Source: FOR
SAMAST Report
20
All India Metering Locations and Numbers
Region Metering Locations Number of Meters
North 274 1666
East 146 828
West 164 1490
South 157 887
North-East 75 375
All India 816 5246
Bhutan 3 18
Bangladesh 2 8
Nepal 4 8
Myanmar 1 2
Total 826 5282
Future ~ 1000 ~ 10,000
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 Modifications in CEA Metering Standards
• Record frequency data at 0.01 Hz resolution
• Net VARh and voltage to be recorded for each time block.
• Auxiliary Supply - SEM may normally be capable of operating with power
drawn from the VT secondary circuits.
• Provision to operate on control power supply to the SEM from 110V DC /
220V DC.
• Built-in calendar and clock
• Secured software based solution for meter time correction and
synchronization with GPS
• DLMS compliant for SEM communication protocol
• Automated Meter Reading (AMR)
• Uniform protocol for communication for meters of different vendors.
• Optical coupling cable should be compatible with all types of meters.
• Replacement of defective meters within a stipulated time frame
PERT Chart of Activities

23
 Cost Benefit Analysis
(~ 6000 meters @ ₹ 30,000/Meter) at inter-state level with 5 minutes integration
S.No. Item Estimated cost
Tentative Cost of replacement of all Pan-India
1. ₹ 20 Crore
Interface Energy Meters
Additional costs for hardware/software
2. ₹ 10 Crore
upgradation (@ 50 %)
3. Total ₹ 30 Crore
• Method 1
– PoC Yearly Transmission Charges (YTC) ~ ₹ 32,000 Crore.
– Cost of replacement ~ 0.09 % of YTC.
• Method 2
– 15-minute despatch - Reserve requirement is of the order of 3300 MW.
– Daily Average RRAS despatch ~ 8 – 10 MUs
– 5-minute despatch - Reserve requirement is of the order of 1400 MW
– Assuming RRAS despatch decreases by say, at least 30 %, on an daily average basis
– Assuming fairly accurate load forecasting & portfolio management
– Daily Average RRAS despatch reduces to ~ 5 – 7 MUs -> Saving of ~ 3 MUs/day 24
 Recommendations & Way Forward
• Move to Fast Market
• Development of Forecasting as a Core Area in System Operation
• Implementation of Five minute Scheduling and Despatch
• Implementation of 5-minute bidding in OTC/PX
• Five-minute Energy Accounting and Settlement System
• Transition in DSM Mechanism
• Pan-India Pilot Project on 5-minute metering
• Change in data exchange file structures and other technical issues
• Regulatory Interventions
• Amendments in CEA Metering Standards
• Upgradation/Replacement of Meter Infra
• Stakeholder Capacity Building
• Implementation of SAMAST Recommendations 25
International Experience

• Australia Energy Market Operator (AEMO)

• “Scheduling and Despatch” decoupled with “Settlement” from 1998, prior to large
scale RE integration
• Scheduling and despatch at 5-minute interval
• Settlement at 30 minute interval using average of 5-minute prices in that interval
• 2016: Debate/Stake holder consultations being held to align “scheduling & despatch”
interval and the “settlement” interval
• United States of America(USA)

RTO / ISO Despatch Interval Settlement Interval

CAISO 5-minute 5-minute

ISO - NE 5-minute Hourly average
MISO 5-minute Hourly average
NYISO 5-minute 5-minute
PJM 5-minute Hourly average
SPP 5-minute 5-minute
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Thank You