Contents. Minutes of the 32 nd Meeting of SRPC held on Page 1

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1 Contents 1. INTRODUCTION CONFIRMATION OF THE MINUTES OF 31 st MEETING OF SRPC OPERATION OF HYDRO POWER PROJECTS IN PEAKING MODE MEMBERSHIP TO RPC PREPARATION FOR MEETING REVISED ENVIRONMENT NORMS AS PER ENVIRONMENT (PROTECTION) AMENDMENT RULES, RELIABLE COMMUNICATION SCHEME UNDER CENTRAL SECTOR FOR SOUTHERN REGION TECHNICAL COMMITTEE FOR IMPLEMENTATION OF FRAMEWORK ON RENEWABLE AT STATE LEVEL TECHNICAL COMMITTEE CONSTITUTED BY CEA OPTIMUM HARNESSING OF RE IN SOUTHERN REGION COMPLIANCE OF CEA REGULATIONS FOR GRID CONNECTIVITY OF RENEWABLE ENERGY SOURCES TERMS OF REFERENCE FOR RENEWABLE INTEGRATION TASK FORCE UPCOMING TRANSMISSION SYSTEM UPCOMING RENEWABLE PROJECTS AND THEIR INTEGRATION WITH TRANSMISSION NETWORK REQUEST TO ISSUE CERTIFICATE FOR CLAIMING ADDITIONAL ROE NEW PROJECTS OF NTPC, NLC, NPCIL, JOINT VENTURE & UMPP NEW PROJECTS OF STATE SECTOR & IPP ROADMAP TO OPERATIONALISE RESERVES IN THE COUNTRY INCLUSION OF DRAWAL OF MAHE IN REA ISSUES IN RESPECT OF NPCIL COMMUNICATION REQUIREMENT DURING NATURAL DISASTERS STATUS OF GENERATION IN ISGS REVIEW OF ULDC / SCADA/COMMUNICATION URTDSM (PMU) PROJECT IN SOUTHERN REGION SCHEDULING OF WIND & SOLAR GENERATING PROJECTS HAVING CAPACITY OF 500 MW AND ABOVE TTC/ATC METHODOLOGY FOR CERTIFICATION OF INTRA-STATE TRANSMISSION LINE EMERGENCY RESTORATION SYSTEM (ERS) PROGRESS OF BUS/LINE REACTORS TO BE COMMISSIONED IN SR OUTSTANDING DUES BETWEEN SOUTHERN AND WESTERN REGIONS NON-AVAILING OF OCC APPROVED SHUTDOWN STATUS OF PHASE I AND PHASE II OF PROTECTION AUDIT RECOMMENDATIONS SPARE ICT AND REACTOR PLACEMENT AND USAGE PROCEDURE IEGC RELATED ISSUES REQUIRING ATTENTION/ACTION Minutes of the 32 nd Meeting of SRPC held on Page 1

2 34. IMPLEMENTATION OF PROTECTION SUITE / PROTECTION MANAGEMENT SYSTEM (PMS) FOR SR POWER SYSTEM ANALYSIS GROUP (PSAG-18) MEETING HELD ON 4 TH JULY, 2076 AT 400/ 220/ 66 KV HOODY SUBSTATION OF KPTCL IN THE CONTEXT OF FREQUENT TRIPPING OF 400/ 220 KV ICT S PROTECTION AUDIT OF SUBSTATIONS IN SR CONDUCTED DURING MARCH AUGUST, AUTO-RECLOSURE IMPLEMENTATION ON ALL 220 KV & ABOVE TRANSMISSION LINES OF SR IMPLEMENTATION OF LINE DIFFERENTIAL PROTECTION (LDP) IN NELLORE & SIMHADIRI COMPLEXES PATROLLING / MAINTENANCE OF CRITICAL LINES AND SUBSTATIONS COMPLIANCE OF ORDER OF HON BLE CERC IN PETITION NO. 420/MP/2014 IN RESPECT OF LVRT AND OTHER PROVISIONS OF CEA/CERC REGULATIONS PENDING IMPLEMENTATION OF RECOMMENDATIONS OF PCSC OF SRPC COMMERCIAL COMMITTEE ISSUES MONITORING OF SCHEMES FUNDED FROM PSDF SCHEDULING OF KAMUTHI SOLAR PARK AUGMENTATION OF TALCHER-II TRANSMISSION SYSTEM GRID OPERATION CONGESTION RELATED ISSUES REIMBURSEMENT OF SRPC EXPENDITURE STATE-WISE ALLOCATION OF 540 MW POWER FROM RGPPL TO RAILWAYS ADVANCE INTIMATION REGARDING FIRST TIME SYNCHRONIZATION OF TRANSMISSION ELEMENTS FREQUENT FAILURES OF TRANSMISSION LINE TOWER OF VOLTAGE LEVEL 220 KV & ABOVE IMPLEMENTATION OF CERC (COMMUNICATION SYSTEM FOR INTER-STATE TRANSMISSION OF ELECTRICITY) REGULATIONS, OVR GRADING OF 400 KV AND 765 KV TRANSMISSION LINES OF SOUTHERN REGION APPRAISAL REPORT ON KSEBL S REVISED PSDF PROPOSAL STUDY PROGRAMME ON THE INTEGRATION OF RENEWABLE ENERGY RESOURCES INTO THE GRID NON-ADHERENCE TO THE MAINTENANCE SCHEDULE - OVERHAULING OF TALCHER STAGE II U OUTSTANDING DUES FROM TSDISCOMS TO APGENCO URS ALLOCATION TO NON-BENEFICIARY CONCLUSION DATE & VENUE OF THE NEXT MEETING OF SRPC Minutes of the 32 nd Meeting of SRPC held on Page 2

3 1. INTRODUCTION SOUTHERN REGIONAL POWER COMMITTEE BENGALURU MINUTES OF THE 32 nd MEETING OF SRPC HELD ON AT THIRUVANANTHAPURAM 1.1 The 32 nd Meeting of the Southern Regional Power Committee (SRPC) was held on 22 nd August 2017 at Thiruvananthapuram. The list of participants is given at Annexure-I. 1.2 Team KSEBL welcomed the respected dignitaries to the 32 nd SRPC Meeting being held at Kovalam, Thiruvananthapuram, also known as Paradise of South India. 1.3 Dr K Ellangovan, CMD, KSEBL welcomed Chairperson, SRPC, Member Secretary, SRPC and distinguished delegates to the 32 nd Meeting of SRPC. He noted that the TCC Meeting had been well attended and the deliberations had been fruitful. The delegates of the TCC would acknowledge that the Meeting had been very useful in sorting out various issues of significance between member states. He stated that it was a pleasure to host this Meeting with all Members kindly accepting to come to Thiruvananthapuram. This Meeting would be discussing some vital issues which are now being faced. It was the view of KSEBL that SRPC Meetings have been extremely beneficial to place ones views on the table, so that the same get acknowledged not only in SRPC but at the highest level. SRPC has been very useful to the State of Kerala being tucked away from other states in respect of geographical location. CMD, KSEBL acknowledged the contribution of SRPC in various matters. He welcomed Shri D Prabhakar Rao, Chairperson, SRPC and stated that he has been very active, keen and methodical. He was certain that SRPC under his able Chairmanship would find solutions to some of the difficult problems being faced by the SR power sector. He welcomed the Members who had joined for the SRPC meeting - Shri Jawaid Akhtar, MD, KPTCL, Shri G Kumar Naik, MD, KPCL, Shri K Vijayanand, CMD, APTRANSCO, Shri A Gopal Rao, CMD, TSTNPDCL, Shri U K Verma, ED, NLDC, Shri V Thangapandian, Director (P), NLC and Shri R K Singh, ED (SR-II), PGCIL. This Meeting was also being attended by several important functionaries of Government, State Government, other utilities etc. He thanked his entire team for their wonderful efforts in organizing this Meeting. He hoped that all current issues would be deliberated and wished fruitful deliberations. 1.4 Shri S R Bhat, Member Secretary, SRPC welcomed all the esteemed Members to the 32 nd SRPC Meeting. He welcomed Chairperson, SRPC & CMD, TSTRANSCO to the Meeting and requested him to kindly chair the same. He also thanked CMD, KSEBL and the entire team for the outstanding arrangement made for both the Meetings. 1.5 Shri D Prabhakar Rao, Chairperson, SRPC & CMD, TSTRANSCO extended a warm greeting to all attending the 32 nd SRPC Meeting. He added that the 30 th TCC and 31 st SRPC Meetings were Minutes of the 32 nd Meeting of SRPC held on Page 3

4 conducted on and at Bengaluru and Minutes were communicated by MS, SRPC on and respectively. Southern Region has been in the forefront in maintaining grid discipline and always takes lead in implementing CERC/CEA/MoP guidelines. Main challenge confronted by SR is regarding handling of Renewable Energy. SR was leading in RE front with a target of 60 GW by 2022 as against all India target of 175 GW. It was heartening to note that SR had already achieved 22 GW of RE. To address this issue, a Special Meeting of SRPC was conducted at Hyderabad on , wherein it had been agreed in principle to go ahead with the Overarching Agreement among Southern States for mutual exchange of power for better harnessing of RE to minimize the balancing resources. Further, a Working Level Committee had been formed to work out the modalities. Accordingly, the issue of cooperation among Southern States was further discussed during the Working Level Committee Meeting through VC on and a few modifications had been incorporated in the Agreement. Finally, the Overarching Agreement for regional cooperation for better harnessing of RE without endangering the grid security had been concluded. He placed on record appreciation for concluding this outstanding concept by SR entities for harnessing maximum RE with least cost, which had also been appreciated by CEA and MoP. He added that it was time to address the Regulator to reduce clearing time for power exchange market transactions to 4 time blocks. This would help in quicker exchange of power since presently time for transacting power through exchange was around 3 hours. Another challenging issue to be stressed was readiness of downstream network by SR states to match the interstate transmission system. It was very important that state transmission utilities plan the network well in advance and complete downstream 400 kv and 220 kv sub stations and lines for evacuating the power from the ISTS projects soon after their commissioning. It was also observed that there was under utilization of inter-regional links such as 765 kv Angul-Srikakulam and 400 kv Jeypore-Gazuwaka. All concerned states and CTU should take proactive steps for utilization of inter-regional links for evacuating of bulk power to the maximum extent possible for benefit of all stakeholders. He requested all states and delegates to express their views and opinions on the agenda points which would help take timely decisions for expediting various projects/schemes in the interest of the region. He hoped that Southern Region would continue to take lead role in the country by means of more proactive initiatives for betterment of power sector in future too. On behalf of SRPC, he conveyed sincere thanks to Dr Ellangovan, CMD, Directors and other officials of KSEBL for making excellent arrangements for the Meeting. 1.6 SRPC welcomed the following new Members: Shri H Y Dora, CMD, APSPDCL Shri A Gopala Rao, CMD, TSNPDCL Ms Ruby Srivatsava, Director (F), NPCIL Shri M Prabhagar, CEO, NTPL Minutes of the 32 nd Meeting of SRPC held on Page 4

5 SRPC placed on record the excellent services rendered by following outgoing Members: Shri M M Nayak, CMD, APEPDCL Shri G Raghuma Reddy, CMD, TSSPDCL Shri Preman Dinaraj, Director, NPCIL Shri R Parthasarathy, Head, Bangalore Office, UPCL Shri A R Neelakanta Pillai, CEO, NTPL 1.7 Agenda was taken up for discussion. 2. CONFIRMATION OF THE MINUTES OF 31 st MEETING OF SRPC 2.1 Minutes of the 31 st Meeting of SRPC held on 25 th February 2017 at Bengaluru was circulated vide letter dated 11 th May Minutes of the Meeting were confirmed. 3. OPERATION OF HYDRO POWER PROJECTS IN PEAKING MODE 3.1 POSOCO had carried out operational analysis of various hydro stations in the country. A Report on Operational Analysis for Optimization of Hydro Resources & facilitating Renewable Integration in India was also prepared. It was observed by POSOCO that a number of hydro stations particularly in the state sector are not being operated in peaking mode. MoP had constituted a Sub-Committee under Chairperson, CEA to study and recommend individual hydro power stations which can be operated to achieve peak load capacity. This Sub-Committee had held three Meetings with concerned Hydro generating stations and concluded that there was scope of about 2,000 MW additional power generations from hydro station during peak hours. CEA vide letter dated (Annexure-II) has advised that the above issue be discussed in the TCC/RPC Meeting in all the regions. CEA had also advised that the matter of utilization of hydro stations in peaking mode be made an Agenda Point for discussion in the monthly OCC Meetings while discussing operational planning for the month ahead and analyzing the operation in the previous month. 3.2 POSOCO vide letter dated (Annexure-III) had furnished an agenda item on Operational analysis of Hydro Power Stations. Issue had been discussed in detail in the 134 th Meeting of OCC held at Neyveli on 11 th August 2017 (Summary given as Annexure-IV). TCC deliberations 3.3 The issue had been deliberated in detail in the TCC and the following was summarized: Presentation made by SRLDC/NLDC is given at Annexure-V. It was felt that hydro generation is already being optimized by SLDCs. Feedback of the 134 th Meeting of OCC has been passed on to NLDC for kind consideration. NLDC stated that the feedback of these Meetings would be considered. Suitable Market mechanism/incentive scheme needed to be in place for the purpose of any hydro optimization. Minutes of the 32 nd Meeting of SRPC held on Page 5

6 SRPC deliberations 3.4 MS, SRPC informed that the issue had been deliberated at length in the TCC and the following was noted: Efforts of POSOCO in preparation of the questionnaire and analysis. POSOCO had come out with a nice report which was well appreciated. POSOCO had put in lot of effort, time and energy in preparation of this report. In a nutshell, POSOCO had analyzed peaking, ramping capacity utilization factor and also identified constraints in optimal usage with flexibility based on all India peak demand curve. On various parameters the analysis had been carried out. They had also suggested multipart tariff for hydro stations for better utilization. TSTRANSCO had stated that hydro utilization also depended on irrigation requirements and LGB management of the control area. Dispatch based on national peak, ramp rates etc may be considered only with proper market mechanism in place. Margins are kept to meet RE and load variations. KSEBL had stated that final report had not been shared and SLDC had not been consulted appropriately. Hydro in merit order is considered based on price of the replaced energy in the entire water cycle year and not merely on the basis of the cost. Hydro generation was also being modulated based on power exchange rates. TANTRANSCO had stated that this was 2 nd year of poor monsoon and storage was only %. Study based on peak for last one year data could not be conclusive. 6,000 MW of RE was to be balanced and available hydro was also limited. Operation of hydro in NR/NER cannot be compared with Hydro operation philosophy of SR. KPTCL had stated that hydro was also required for grid security, deviation management, fall in generation due to outages, RE withdrawal and was also based on seasonal requirement. Hydro generation was being maximized during the period January to April since the power rates were higher. APTRANSCO had stated that hydro generation was also based on irrigation and drinking water requirements. It was felt that hydro generation was already being optimized by SLDCs keeping in view specific requirements of the respective control areas. A clear Market Mechanism was required to be introduced which may incentivize hydro support for peaking, ancillary services etc. 3.5 CMD, TSTRANSCO pointed out that water was very precious in various aspects. Water usage was with different objectives in various states. In AP and TS, hydro projects are multipurpose projects. Though hydro generation in TS was designed for around 3,500-4,000 MUs, in there was generation of only 269 MUs. There were several uncertainties and as expressed by the states, hydro generation was already being optimized. Srisailam LB was being utilized for condenser mode, pump mode besides generation. Final decision of operating hydro should be left with the concerned States where projects are located. 3.6 ED, NLDC stated that the views of the forum are well acknowledged and hydro generation in SR was being optimized. Only requirement of NLDC was that keeping in view daily allocated quantum of energy for hydro, considering all constraints (agricultural/drinking) support could be Minutes of the 32 nd Meeting of SRPC held on Page 6

7 extended to meet peak and balance could be utilized to meet other requirements. All SR states were purchasing power through exchange. Price of power during peak was higher, and thus it made economic sense to utilize higher hydro during peak hours. Price of power was generally following the load curve, it was up to Rs 7-8 during peak and going below Rs 2 during off peak hours. All over the world similar market has evolved where peak rates are higher than off peak rates. This would contribute to economic benefits by means of saving for the states. 3.7 CMD, APTRANSCO noted that in respect of SR states, the presence of renewable was quite significant. Historically, hydro was being utilized to meet the peak while other generation such as Thermal, Solar etc was being utilized during day. Hydro optimization may not be required to be revisited for any further refinement. 3.8 ED, NLDC informed that out of 150 hydro stations (equivalent to 32 GW which is around 80 % of the total population) it was found out that there were only 43 stations where peaking optimization was required. In SR, there were around 18 stations and in these stations the generation pattern could be studied and further peaking support could be extended. 3.9 MS, SRPC stated that the suggestion appeared to be for all India peaking support while each state was an individual control area as per Grid Code. There would be reasons for specific hydro generation pattern through the day. Since hydro generation was also based on storage content, average values may not work out. Based on storage, market, RE variability, load variability, irrigation requirements etc the hydro optimization is being carried out CMD, KSEBL opined that the consultation process by POSOCO with states was not as much as it should have been. He was personally not aware of this study. Kerala s load curve was different from that of other states. KSEBL had optimized hydro power in such a manner that the cost of the overall power gets optimized. Dams were not only for hydro generation, but were also being utilized for irrigation and drinking water requirements. As noted in the Assembly, drinking water requirement was of major concern followed by that of power. The compulsions for water utilization were different from state to state. Kerala s hydro was being utilized during peak beside the must run hydro during the day. Further optimization may not be possible. State wise hydro optimization within the control area constraints was a better approach rather than painting an all India picture. POSOCO had earlier brought out analysis of demand, load curve etc for 8 years which was Volume-1. Subsequently, state specific analysis was carried out which was Volume-2 and similar approach needed to be adopted now. In the State related chapters, critical appraisal needs to be carried out MS, SRPC stated that critical state-wise analysis may bring out the real optimization. Further, in NR & NER, many of the hydro units were central sector units, while in SR all were state owned ED, NLDC stated that unit wise analysis has already been carried out and only after detailed study 43 stations had been identified. Ancillary services market for hydro was under consideration and Minutes of the 32 nd Meeting of SRPC held on Page 7

8 they had already moved the matter before Hon ble CERC. Tariff design may need to be looked into by SERCs in line with that for central hydro units MD, KPTCL stated that the crux of the issue has already been highlighted by SRPC. For the POSOCO report, a lot of statistics had been collected. But it was quite apparent that there was no detailed discussion and interaction with state utilities during finalization of the report. The report might have assumed, as evident from the deliberations the present scenario and it might not have considered requirement of the state vis-à-vis target of 175 GW of RE by Like TN, Karnataka also may find it difficult to manage the RE. In Karnataka, reserves had been declining since last three years - from 55% to 44% while this year it was at 41%. The optimization in totality could only be appreciated through extensive interactions with SLDC on a day-to-day basis. With this target it would be rather difficult to manage the grid/re in the next 2-3 years. States may not have necessary resources and thus GoI may need to step in and create a scheme at national level. POSOCO should have comprehensively discussed this matter with states before finalizing the report. The resources belonged to the states and were to be utilized by them, in tune with the federal structure MS, SRPC informed that a Committee headed by Member (Planning), CEA had been constituted by MoP and the Committee was already looking into various issues. Region wise/ joint meetings had been conducted and they are in process of finalizing the Report. Issues relating to Balancing requirement, ramps etc had been covered in the Report ED, NLDC stated that they were open to suggestions and would interact with each state individually. He added that there were three types of reserves- Primary, Secondary and Tertiary. CERC orders specified quantum to be maintained by the state utilities and at the national level. NLDC was considering monitoring of the reserves w r t the stipulated quantity Chairperson, SRPC concluded that it was almost unanimous that the final decision on hydro optimization should be left to the states. As suggested by CMD, KSEBL, state-wise analysis for hydro operation could be carried out by POSOCO in coordination and close consultation with SLDCs. 4. MEMBERSHIP TO RPC 4.1 Withdrawal of Membership from SRPC M/s Lanco Kondapalli Power Ltd (LKPL) vide letter dated (Annexure-VI) had stated that there is no power generation from their plant since last nine months and also no visibility of generating power in the near future under the present circumstances. In light of this, they would be unable to contribute in respect of expenditure of SRPC Secretariat and hence are withdrawing their Membership from SRPC. They would consider availing Membership with SRPC, as and when, their plants become operational. Minutes of the 32 nd Meeting of SRPC held on Page 8

9 TCC deliberations This issue would be deliberated in the SRPC Meeting. SRPC deliberations SRPC agreed for withdrawal of the Membership of LKPL. 4.2 Trader Membership MS, SRPC informed that CEA vide letter dated (Annexure-VII) had communicated the Membership of JSW Power Trading as Trader Representative in SRPC for SRPC deliberations COO (Trading), JSWEL stated that JSW Power Trading had been inducted as trader representative in SRPC for the current financial year. But already half of the financial year was over and the objective of representation was lost. CEA may kindly communicate the Membership in March / April each year so that the concerned Trader is associated with respective RPC for the entire year. Since the Membership was communicated in August they are not willing to accept the Membership for the current year. It was agreed that this issue could be brought to the notice of CEA. 5. PREPARATION FOR MEETING REVISED ENVIRONMENT NORMS AS PER ENVIRONMENT (PROTECTION) AMENDMENT RULES, Revised water consumption and emission norms for existing as well as new thermal units (to be installed from onwards) as per Environment (Protection) Amendment Rules, 2015 were notified by Ministry of Environment, Forest & Climate Change (MOEF & CC) (Gazette Notification dated ). MOEF guidelines had classified thermal generators into three categories with different norms. The three classes were - prior to 31 st December 2003, 1 st Jan 2004 to 31 st December 2016 and beyond 1 st January Existing as well as new plants were required to meet standards by the stipulated time lines. Preparedness and action plan in order to comply with revised norms had been discussed in SRPC as well as Subcommittee Meetings. 5.2 CEA, New Delhi vide letter dated had intimated that a Committee headed by Chairperson, CEA had been constituted by Ministry of Power; Govt. of India for preparing phasing plan for implementation of new environmental norms issued in December 2015 by MOEF &CC with regard to SPM, SOx & NOx emissions. 1 st & 2 nd Meetings of this Committee were conducted on 21 st October 2016 and 13 th December 2016 respectively. Accordingly, a Meeting was conducted on 12 th January 2017 at SRPC, Bengaluru to (Minutes of the Meeting available on SRPC website). 5.3 The following had been noted in earlier Meetings: SRPC had noted the requirements for necessary compliance. deliberate on status and also firm up Phasing Plan. Minutes of the 32 nd Meeting of SRPC held on Page 9

10 Chairperson, SRPC had stated that most likely none of the entities may be in a position to meet time frame for compliance of new environment norms. The issue had been taken up for TN units with GoI, but response had not been very encouraging. Cost of Rs.1 to 1.5 crore per MW to take up the works was quite exorbitant. All entities could therefore suitably take the request for time extension with the concerned Authorities. It was agreed that Chairperson, SRPC may kindly take up the issue with GoI for funding to meet stipulated revised environmental norms. 5.4 Subsequently, CEA had firmed up the FGD phasing plan and uploaded the same on its website. Later, a Meeting to firm up phasing out plan for thermal unit which do not have space for FGD was held on 25 th March 2017 (Minutes available at SRPC website). Updated Plan for FGD implementation with respect to SR Units with confirmation/comments is given at Annexure-VIII. The Phasing Out Plan is given at Annexure-IX. However, confirmation/comments are awaited from most of the generators. 5.5 Chairperson, SRPC vide letter dated 24 th May 2017 (Annexure-X) addressed to Secretary-Power, MoP had brought to kind attention of MoP, the issue regarding funding either from PSDF or any other fund to meet stipulated revised environmental norms. 5.6 The following was noted in the TCC Meeting: APGENCO had informed that a Committee has been formed on FGD assessment etc and the Report would be submitted to the Board shortly. About Rs.1 Crore/MW was estimated expense for FGD and the issue would be reviewed/decided in the next Board Meeting. AP was in discussions with M/s BHEL and its team had also visited the power stations. There were issues with regard to limestone availability and also disposal of gypsum. Phasing out was also to be considered based on the commissioning of new 800 MW units at Krishnapattnam & Vijayawada (both expected in 2019) and overall energy security of the state. TSGENCO had expressed concern over space constraints for FGD installation in some of the plants and over the huge expense to GENCOs and consequent implications on tariff. NLC had informed that they had appointed M/s Mecon as Consultant and measurements had been taken at site. Based on the results, the type of FGD etc would be suggested by Consultant. NLC was seriously pursuing this matter and a decision would be taken after the Consultant s report is made available. Generators had been suggested to keep CEA kindly apprised of developments in this matter. Action was to be initiated to adhere to the FGD Plan and also Phasing Out Plan finalized by CEA/SRPC. After deliberations, TCC had recommended that Chairperson, SRPC may be kindly requested to once again take up the issue of funding (PSDF/any other fund) with Ministry of Power, for meeting the environment norms. SRPC deliberations 5.7 Director (P), NLC informed that the readings had been taken by the Consultant. Though space constraints were there, but the report was awaited. The consultant would be suggesting the way forward and a call would be taken after that. 5.8 MS, SRPC stated that the basic premise of earlier CEA report was based on inputs furnished by Minutes of the 32 nd Meeting of SRPC held on Page 10

11 generators on the space for FGD. Based on inputs furnished by NLC, the units of TS-II had been identified for phasing out. The NLC Report may need to be expedited and CEA was required to be informed accordingly. 5.9 Director (P), NLC stated that the report was expected in about 1-1½ month and the status would thereafter be communicated to CEA CMD, TSTRANSCO stated that the MOEF guideline was to be implemented but the financial support should also be considered. Some support through PSDF or special funds was required from GoI. The impact to meet norms was around Rs 1 crore/mw, it would be burden to the state utility which would have to be passed on to the consumer. Space constraints for FGD in certain cases were also to be considered MD, APGENCO noted that already thermal power was getting costly as could be seen from Kudgi. Further investment to the tune of Rs crore/mw to meet environment norms would be difficult for the State Government. The burden would automatically arise and it would thus be difficult for the generator to be economically viable. A resolution could be passed to request GoI to support the generators in meeting the environment norms. At the time when the plants were designed and constructed, the norms and costing were different and the Regulator had accordingly fixed the costs. Chairperson, SRPC could take up the issue with Secretary, MoP to consider some sort of financial support be it from PSDF, NCEF or any other fund MD, CEPL stated that from IPP point of view also, it was very necessary that some sort of funding was required. The cost would be Rs crore/mw and it could be extremely difficult to pass it on to the tariff Chairperson, SRPC stated that a specific mention of IPP cannot be made and a general appeal to GoI would be made It was agreed that Chairperson, SRPC would take up the issue of financial support through PSDF, NCEF or any other fund for the generators to meet the revised environment norms Generators were kindly suggested to keep CEA apprised of developments with regard to FGD/Phasing Out plan. Appropriate action needs to be initiated as per the FGD/Phasing Out plan finalized by CEA. 6. RELIABLE COMMUNICATION SCHEME UNDER CENTRAL SECTOR FOR SOUTHERN REGION 6.1 POWERGRID vide letter dated 4 th August 2017 (Annexure-XI) had stated that in the 31 st Meeting of SRPC, approval had been accorded for reliable communication scheme of 5,406 kms of OPGW based communication network at an estimated cost of Rs crores. It is now intimated that the estimated cost comes out to Rs crores. However, actual cost shall be discovered only after the bidding process. It had also been intimated that tender activities has been initiated as per DPR. 6.2 SRPC noted the above. Minutes of the 32 nd Meeting of SRPC held on Page 11

12 7. TECHNICAL COMMITTEE FOR IMPLEMENTATION OF FRAMEWORK ON RENEWABLE AT STATE LEVEL -FOR 7.1 FOR vide their communication dated 02 nd May 2017 had informed that a Technical Committee under the Chairmanship of Member, CERC had been formed at the direction of Forum of Regulators (FOR). This Committee comprises of Technical Members of State Commission of renewable rich States, viz. Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka and Madhya Pradesh. The objectives of the Committee include facilitating implementation of Regulations for Forecasting, Scheduling and Deviation Settlement at the State level, implementation of ABT framework and Ancillary Services in member States, among others. The Committee in its eleventh Meeting held in Chennai on had felt that with increasing penetration of Renewable Energy (RE) in the backdrop of GoI s 175 GW RE target, increasing inter-state transmission of power and commitment of 24x7 Power to All, regional cooperation for optimum utilization of generation resources had become critical. Further, it had been decided that Sub-Groups be constituted in Northern Region, Western Region and Southern Region (three RE rich regions) headed by the Member Secretaries of the respective Regional Power Committees (RPCs) to examine this issue. This Sub-Group shall inter-alia examine feasibility and modality of cooperation among states in the respective region for ensuring optimum utilization of generation resources with least cost options for balancing across the region. 7.2 Subgroup Meeting of SR under Technical Committee for Implementation of Framework on Renewable at State Level was conducted in SRPC, Bengaluru on 07 th June Recommendations (Annexure-XII) of this Sub Group had been submitted to the Technical Committee. 7.3 TCC deliberations MS, SRPC had informed that the Sub Group had submitted certain recommendations which also included Overarching Agreement for STOA under MCP /Swap, Separate Control Area for RE and Sale of URS through Generator (for firmness) which would be examined by the Committee. Also there was another Meeting held in CERC on 18 th August 2017.There was discussion about another intra-day product through PX, which would not be as rigid as presently available products. 7.4 SRPC noted the above. 8. TECHNICAL COMMITTEE CONSTITUTED BY CEA 8.1 A Technical Committee had been constituted by CEA for study of optimal location of various types of balancing energy sources/energy storage devises to facilitate grid integration of Renewable Energy Sources and associate issues. Subsequently a Meeting of Sub- Group of Southern Region formed under the Technical Committee was conducted on 24 th March 2017 with participation from CEA and the Minutes of the Meeting issued on is at Annexure-XIII. The second Meeting of the Technical Committee was held at Chennai on The final meeting was held at New Delhi on The Minutes of the Meeting are available on website of CEA. Minutes of the 32 nd Meeting of SRPC held on Page 12

13 8.2 TCC deliberations MS, SRPC informed that in the Committee Meeting, a new concept of net DSM had been discussed through which a state may get insulated from vagaries of RE. DSM of the Control Area may be arrived excluding the Deviation of the RE generators. 8.3 SRPC noted the above. 9. OPTIMUM HARNESSING OF RE IN SOUTHERN REGION 9.1 Follow up of MoP meeting / Special TCC A Meeting was held on 10 th February 2017 in MoP on matters relating to optimum harnessing of Renewable Energy Integration in SR without endangering Grid Security. A number of actionable points had been finalized in that Meeting and time lines for compliance of the same also had been specified. SRPC vide letter dated (Annexure-XIV) had requested the concerned utilities that the matter may kindly be arranged to be reviewed and urgent action arranged wherever necessitated. A Special TCC Meeting was also convened on 20 th May 2017 (Minutes at Annexure-XV) in SRPC, Bengaluru SRLDC had conducted a Capacity Building Workshop on STOA Procedures on 19 th May 2017 in compliance. A Special Meeting of SRPC Members of the constituent states was also held on 31 st July 2017 at Hyderabad. Based on the discussions in the Hyderabad Meeting, a draft Overarching Agreement had been prepared and circulated. It had been proposed to sign the Overarching Agreement in SRPC Bengaluru on 17 th August TCC deliberations TANGEDCO vide letter dated (Annexure-XVI) had informed that rate of energy of power to be exchanged as per item no. 7 was not viable to TANGEDCO. SRPC in its reply vide letter dated (Annexure-XVII) had again requested TANGEDCO to kindly sign the Agreement. MS, SRPC had informed that the Overarching Agreement had been signed between APPCC, TSDISCOMs & KSEBL on 17 th August He had thanked the utilities for their kind cooperation in this regard. PCKL had stated that they would communicate their views in the SRPC Meeting. TANGEDCO had stated that they would consider signing the Agreement under Swap with mutually agreed rates for the residual energy. In respect of SAMAST implementation, the following had been noted: APTRANSCO had informed that they had prepared a Report and submitted it to CERC and to NLDC for funding. It was of concern that the amount approved was only about 1/5 th of the estimate. TSTRANSCO had also endorsed the views of APTRANSCO and stated that NLDC should take lead and approve higher funds. They had submitted estimate of Rs 85 crores and in case much lower funds are approved, it may not encourage entities to take up the project in a time bound manner. KPTCL had informed that they were preparing the DPR and they had also deputed a Committee to Gujarat and MP to study their proposals. The DPR would be finalized by end of the month. Minutes of the 32 nd Meeting of SRPC held on Page 13

14 TCC had urged concerned entities to initiate action to complete pending points as noted in the Special TCC Meeting held on Implementation of SAMAST was targeted to be completed by December NLDC was requested to kindly look into the possibility of higher fund approval for the proposals under SAMAST. Demand and RE forecasting / scheduling was also to be undertaken by states on a priority basis. SRPC deliberations MS, SRPC thanked Chairperson, SRPC for his proactive leadership in enabling conclusion of the Overarching Agreement in the Meeting held on Chairperson, SRPC requested KPTCL & TANGEDCO to also sign the Overarching Agreement. In this Agreement there was no commitment on any state. This Agreement could be more advantageous to TN on account of the high RE penetration MD, KPTCL informed that they were ready to sign the Agreement CMD, KSEBL enquired about the mutually agreed rates being requested by TN. He added that KSEBL had been of the view that TN would participate and surplus power would be availed. He requested TN to kindly consider signing the Agreement. Since monsoon was below par, RE potential in the region should be exploited to the maximum. TN could weigh the cost of RE absorption and the likely benefits of trade and take a judicious decision MS, SRPC clarified that the option of mutually agreed rate under swapping was only in respect of residual energy under swap. He suggested that states could kindly use the mechanism for RE Integration and other contingencies and put the system in place. He noted that initially all initiatives were with the premise that TN was having constraints at times, for absorption of RE power in full Director (O), TANTRANSCO informed that within one weeks time they may sign the Agreement. Approval of State Government/ Management was required for this purpose. They would consider signing the agreement under Option 2 (swap) CMD, APTRANSCO stated that TN should also come forward to sign this Agreement, especially since there were no commercial implications NLDC was kindly requested to favorably consider approval of the SAMAST DPRs APTRANSCO informed that while DPR of Rs 57 crores, only Rs 11 crores had been approved. The component relating to metering and CT/PT had not been approved and revised DPR had been requested CMD, TSTRANSCO also raised concern and stated that releases are relatively very less and requested NLDC to look into this aspect favorably ED, NLDC assured that the DPRs under SAMAST would be possibly relooked. For reliable communication the grant has been raised to 50% which was earlier 30%. Many schemes had been approved by Monitoring Committee, but the utilities had not come forward to sign the Agreement MS, SRPC observed that pace of utilization of funds of sanctioned schemes may need acceleration. Minutes of the 32 nd Meeting of SRPC held on Page 14

15 NLDC had been regularly taking review meetings for appraising Ministry. There was a general perception that utilization was not taking place as desired Chief Engineer, NPC stated that utilization was an area of concern. Out of Rs 421 Crores for Kerala only Rs 23 Crores had been availed. For Karnataka out of Rs 17.9 Crores only Rs 8.7 Crores has been availed, Out of Rs 255 Crores for AP, only Rs 11 Crores had been availed while in case of Telangana out of Rs 108 Crores only Rs 24 Crores had been availed. In case of Tamil Nadu out of Rs 304 Crores Rs 12 Crores only had been availed. This had been noted with concern at higher levels. Out of more than Rs 9,000 Crores total sanctioned amount, about Rs. 600 crores only had been utilized so far Director (G&TM), APTRANSCO that project schedule was of two years but they were expediting to complete 1-2 months earlier. The tendering process needed to be followed, and since it included both replacement and new procurement, tendering process was getting delayed. However, within 9-10 months from Zero date all material would be procured. Any nonperformance could only be reviewed at the end of the project that is 2 years. The projects would be however completed within the stipulated time period. 9.2 Assessment of lift irrigation loads and necessary planning for using as demand response In the Sub Committee /Special Meetings, states had been suggested look into optimizing lift irrigation/other pumping schemes existing in their system for Load Generation Management/RE issues/load change over. Running these loads at different times could help in improved load generation management In the Meetings, it had been noted that TS was considering utilization of the lift irrigation loads for better RE integration States had been requested to kindly study this aspect and interact with Government Bodies/irrigation department to utilize these schemes for improved flexing of the loads SRPC suggested constituents to kindly consider the possibility of using lift irrigation loads also as part of demand response. 9.3 Operation of existing units in pump mode A Special Meeting had been convened at SLDC, TSTRANSCO with participation from AP, TS, SRLDC & SRPC Secretariat. Recommendations finalized w.r.t pump mode operations of Nagarjunasagar are given below: TSGENCO to address issues for filling up the Tail Pond Reservoir i.e. legal issues, elevating the lift irrigation schemes etc. Also, TSGENCO to test pump mode operation through their OEM M/s Hitachi. Issue of discharges (quantum / time duration) / mechanism for enabling pump mode operation/utilization of the water pumped back could be referred to CEA /MoP for further guidance and suitable directions. This could help in utilization of Nagarjunasagar units in pump mode in an optimal manner especially with higher renewable integration. Minutes of the 32 nd Meeting of SRPC held on Page 15

16 Following were the recommendation finalized w.r.t Srisailam pump mode operation: Issue regarding weir could be taken up with CEA /MoP for further advice/guidance/funding. Though it could take 2-3 years for completion but with high targets of renewables addition, this would be useful in pump mode operation at Srisailam and balancing of RE. Issue regarding discharges (quantum/time duration) / mechanism for enabling pump mode operation/utilization of the water pumped back could be referred to CEA /MoP for further guidance and suitable directions. This could help in utilization of Srisailam units in pump mode in an optimal manner TCC deliberations TSGENCO had informed that lift irrigation scheme between N Sagar and Tail Pond were getting submerged and needed to be elevated. Shifting of the lift irrigation scheme (under private sector) is under progress. OEM M/s Hitachi had visited in July 2017 and approved operation of N Sagar units in pump mode. Once lift irrigation scheme gets elevated and with sufficient available water, units can be operated in pump mode. With regard to Srisailam / N Sagar pump mode operation, TSGENCO was suggested to kindly take up issues, requiring attention of CEA. SRPC deliberations CMD, TSTRANSCO & TSGENCO informed that the Tail Pond reservoir is ready and was to be handed over to TS. Recently OEM, M/s Hitachi had inspected all the units and they had approved the commissioning MD, APGENCO informed that the proposal for handing over of the dam has been submitted to Government and was under consideration. The views expressed in SRPC Meeting would also be communicated to Government to take the decision at the earliest. Being an interlinked issue with Puluchintala, the handing over was awaiting formalization CMD, TSGENCO said that the Tail Pond was for pump mode and due to some administrative reasons there had been some delay MS, SRPC stated that in the CEA Meeting, Member (Planning), CEA had suggested that issues with regard to pump mode could be taken up with MoP/ Member (Hydro) by TSGENCO MD, APGENCO noted that Tail Pond dam was constructed with the intention of utilizing the N sagar units in pump mode and also the Tail Pond units were constructed to utilize 50 MW power Regarding Srisailam, CMD, TSGENCO said that 540 feet level was required to be maintained at N sagar for pumping operations. The weir had been washed out and would have to be re-planned. For weir construction they had already approached the concerned Central body. With good release from Almatti, pump operation at Srisailam may be possible. If any issue is perceived, it would be taken up with MoP/CEA. 9.4 Pump Storage Plants A Meeting had been convened by CEA on 28 th June 2017 (MoM dated enclosed as Annexure-XVIII) regarding utilization of existing pumps in the country. CEA had informed the Minutes of the 32 nd Meeting of SRPC held on Page 16

17 following about upcoming Pump Storage Plants in SR: State PSP Scheme Status Andhra Pradesh Upper Sileru (1000 MW) DPR being prepared Tamil Nadu Kundah (500 MW) DPR prepared 5 projects on existing sites Karnataka Sharavathy (2000 MW) PFR submitted to MoEF Varahi Kerala Sholayar-I (810 MW) Survey and investigation Sholayar-II (390 MW) (S&I)/implementation could Poringalkuthu (80 MW) not be taken up for want of forest clearance Issues in this regard, as also noted in the Hyderabad Meeting, had been taken up by SRPC with Member (Hydro), CEA vide letter dated (Annexure-XIX). SRPC deliberations SRPC suggested the constituents to follow the pumping schemes with concerted efforts. 9.5 Power Flow Analysis under high RE scenario SRLDC vide dated had informed that a project had been undertaken jointly by POSOCO, USAID and NREL for power flow analysis under high RE scenario. This study would look into reliability and security issues with high RE penetration. As a part of Phase-I of this work, studies are proposed to be conducted for 2018 grid scenario. For this purpose, States were kindly requested to share details of existing wind & Solar generator details and Wind and Solar expected to be commissioned by July 2018 with details of planned transmission system. It had also been requested to kindly fill in details sought as per the attached format. A sample wind station diagram was also attached for reference The following had been noted in the TCC Meeting: TSTRANSCO, TANTRANSCO & KPTCL had already furnished the relevant information. APTRANSCO informed that system study group had carried out Analysis with Spanish Consultant around two weeks back and report was awaited. SRLDC requested APTRANSCO & KSEBL to kindly furnish the information at the earliest SRPC noted the above. 9.6 Typical ramps of Solar Typical ramps for the 250 MW NP Kunta solar plant are given in Table below: Ramp No. Time blocks Approx. Time (Hrs.) Average ramp (MW/ block) Ram rate % installed capacity Remarks 1 26 to 27 6:15 to 6: % Slow ramp up 2 28 to 38 6:46 to 9: % Steep ramp up 3 39 to 45 9:31 to 11: % Slow ramp up 4 46 to 53 11:16 to 13:15 2 to 3 1% to 1.5% Generation more or less Minutes of the 32 nd Meeting of SRPC held on Page 17

18 same 5 54 to 58 13:16 to 14: % Slow ramp Down 6 59 to 69 14:31 to 17: % Steep ramp Down 7 70 to 73 17:16 to 18: % Slow ramp Down These Ramps could be used for balancing/reserve planning by entities. The installed capacity could be scaled suitably for this purpose. This exercise assumes significant importance in view of the fact that Solar trajectory is quite high and would form large component of the RE / installed capacity of the states. This would be an apt time to use such tools for better load generation, balancing / reserve assessment / planning. SRPC deliberations Constituents were kindly requested to consider this aspect for better reserve planning, balancing etc. 10. COMPLIANCE OF CEA REGULATIONS FOR GRID CONNECTIVITY OF RENEWABLE ENERGY SOURCES 10.1 CEA vide letter dated (Annexure-XX) had stated that in compliance of Clauses 6(3) and 6(4)(b) of CEA (Technical Standards for Connectivity to Grid) Regulations 2007 and CEA (Technical Standards for Connectivity of the Distributed Generation Resources) Regulations 2013 notified on 30 th September 2013, it is obligatory for all grid connected renewable generators to provide necessary facilities for data-communication and data-storage and other parameters as may be stipulated. The said CEA Regulations also place onus on the generating plants including renewable, to coordinate with appropriate licensees on issues including, but not limited to protection safety and metering With the above perspective emerging from the CEA Regulations, SLDCs had been kindly requested to take up the matter with all renewable generators to ensure transfer of data to the appropriate Load Despatch Centre, so that real time generation data is available with them for centralized monitoring. It was also requested to indicate present status in this regard and the action plan with definite time frame to ensure real time data telemetry from the entire grid connected Renewable Generators/Plants to SLDCs. CEA had requested SRPC to take up this issue with concerned SLDC/utility operating the SLDC Subsequently, CEA vide letter dated (Annexure-XXI) had conveyed contents of MoP letter dated The same are given below : CEA to ensure that necessary rules and regulations regarding generation data communication including RE generators are in place and being implemented in true spirit along with the suitable monitoring mechanism/penal mechanism for non-compliance. National level Registry to be maintained by Central Electricity Authority (CEA), where generation capacity data of all kind of Generators (Conventional, Non-conventional, Non-captive, Captive ISGS or ISGS) would be available. State level Registry shall be maintained at the respective SLDCs also where generation capacity data of all kind of Generators (Conventional, Non-conventional, Non-captive, Captive) in the respective States will be available. State level Minutes of the 32 nd Meeting of SRPC held on Page 18