Sei sulla pagina 1di 7

Winds of Change: Challenges facing the Integration of Intermittent and

Unpredictable Generation in India


“Significant increase in wind based generation in India while providing clean, lower-cost, renewable power,
poses new challenges to the transmission sector. As penetration of wind based generation increases, issues
such as network reinforcement, transmission planning, adjustments in existing operation and reliability
practices, improvement in regulations and using more reliable wind forecasts, need to be addressed both at
central and state levels to accommodate larger wind power plants. Paying attention to these issues now will
ensure the exploitation of wind potential available in India to the maximum extent possible while maintaining
power system reliability without major curtailment of wind based power.”

Global warming, rising fossil fuel prices and ever increasing supply demand gap has
catapulted the status of wind from playing a peripheral role to becoming a significant
source of electricity generation. Recognizing the pivotal role of providing critical and
clean, carbon free energy and thereby addressing climate change, India is seeking to
implement a large wind-based electricity generation program 1 . The wind capacity in
India has grown at an average of 33% over the last five years and contributes over 6%
to the current capacity mix with total installed grid interactive capacity of 8,739 MW 2 .
This is primarily due to engineering and technology developments, provisions under
Electricity Act 2003, and financial incentives. In order to promote the needed
investments, the Indian government is introducing policies such as renewable purchase
obligations, financial motives such as income tax benefits, accelerated depreciation and
generation based incentives. Table 1 shows a summary of wind potential in key states in
India and the financial incentives and policy mandates that exist in those states. In
addition to these stimuli, sale of accrued carbon credits in the CDM market provides
additional revenue source for wind generators.
Even as these incentives stimulate development of large wind based power plants,
transmission limitations are increasingly becoming roadblocks to the continued growth of
wind in the foreseeable future. These transmission limitations force curtailment of wind
generation to ensure in reliable system operation and also act as an inhibitor to wind
installations in system planning. For example, in 2005-06, around 15 percent of wind
generation in Tamil Nadu was lost due to congestion and shortage of evacuation
facilities 3 . The current impediments in transmission that concern the wind developers,
system operators, policy makers and regulators are summarized below:
Who should pay for the evacuation facility up to interconnection point: developer, power purchaser,
transmission utility or distribution company?
What are the various methods to fund and attract investments for developing the wind transmission
infrastructure?
How to address grid connectivity and transmission infrastructure development under transmission
planning?
What is the role of State Transmission Utility (STU) in developing transmission infrastructure for
renewable energy projects?
Should the technical parameters of interconnections like voltage level, number of circuits,
interconnection points etc be revisited?
So far, no standard renewable related standards are available in CEA Regulations. Should the
connection standards and Grid Code be modified to accommodate wind energy sources?
What are the ideal transmission and wheeling charges, T&D losses and other charges for wind
under current regulations?
At present, SERCs have exempted wind from intra-state ABT regime. How to link wind with UI
mechanism and Intra-state ABT?
Is there a need to study the dynamic interaction between wind farms and power systems including
effects on and, due to unit commitment, balancing and reserve capacities?

1
The Perspective Plan of grid-interactive wind power by the Ministry of New and Renewable Energy (MNRE) at the end of XI Plan is 10,500 MW and by the end of
XIII Plan (2022) is 22,500 MW.
2
CEA (as on 31.02.2008)
3
Overcoming Power Shortages,, Business Line, 13.05.2008
Table 1: Wind Potential and Policies introduced by State Governments
Andhra West Madhya
Item Maharashtra Rajasthan Tamil Nadu Gujarat Kerala Karnataka
Pradesh Bengal Pradesh
Potential (MW) 3,650 5,400 5,500 9,675 875 8,275 6,620 450 5,500
Installed Capacity
1,756 539 3,857 1,253 11 123 1,011 1 188
(MW)
2% of Rs.0.3/unit 2% of energy
2% of energy energy in which +
+ 5% 10% of 5% of 4% of 5% of addition to 2% of would be Transmission
Wheeling
Transmission energy energy energy energy very high energy revised charges per
Losses transmission time to regulatory
charges time Commission
2% per
5% (12 9 Months
Banking 12 months 3 months - 12 Months month for 12 6 months Not Allowed
months) (Jun-Feb)
months
Rs.3.97 (with
Rs.3.59
decrease if 7
per unit for
paise up to
Rs.3.50/kWh Jaisalmer,
To be 4th year)
Escalation of Jodhpur, Rs.3.37/kWh
decided then fixed at
Rs.0.15 per etc. and Rs.3.37/kWh Rs.3.14/kWh for FY 2004- Rs.3.40/kWh
Rs.2.90/kWh on case to Rs.3.30/kWh
Buy Back unit per year Rs.3.67 fixed for 20 fixed for 20 05 w.e.f. fixed for 10
(Levelized) case with from 5th year
for 13 years per unit for years years 1.4.2004, for years
a cap of onwards
from DOC of other 5 years
Rs.4/kWh uniformly for
the project districts
20 years
(base year
(w.e.f.
2008-09)
11.6.2004)
Open Access Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed
06-07 3%
07-08 4%
RPO √ √ √ √ √ √ √ √
08-09 5%
09-10 6%
25
5 paise 10 paise 10 paise
paise/kVARh
per year per kVArh per kVArh
up to 10% of
w.e.f. up to 10% of upto 10% of
net active
Reactive energy 25 paise per 01/04/2006 active power Rs. 0.40 active power 27 paise per
power - -
charges kVArh with supplied & Per kVArh supplied & kVArh
supplied &
escalation 20 paise 25 paise
50 paise per
of 5% per per KVArh per kVArh
kVARh
year above 10% above 10%
above 10%
16% post tax 14% post tax
17.63% pre with MAT at with MAT at
ROE adopted by SERC 16% pre tax - 14% post tax - - 16% pre tax
tax 7.5% on 10.1% on
ROE ROE
Source: MNRE and CERC
Grid Interconnections: rethinking the cost sharing for transmission evacuation and
upgrades
In India as in other countries, temporal and spatial variations in wind speed are for the
most part, dependent on geography and spread across the states. Integrating a
generation resource such as wind with its uncertainties requires a robust and flexible
transmission infrastructure which is the primary responsibility of State Transmission
Utilities (STU). However, due to the poor financial health of the STUs, they are often not
in a position to invest the necessary capital for the required transmission upgrades.
Therefore, some STUs are demanding prior payment for transmission augmentation
carried out upstream of interconnection point. Grid upgrades and enhancements are
needed for integrating planned large scale wind capacity. Without significant increases in
the transmission capacity all the wind energy generated cannot be accommodated in the
power system. This lack of sufficient transmission capacity acts as a dis-incentive that
could result in less than expected additions in wind generation. Resolving this issue
requires the involvement of state and central government entities, STUs, power plant
developers and power purchasers. In such a forum, the need of introducing a better cost
sharing formula that clearly outlines the process of cost recovery, determination of rate
of return, the entities that are responsible for building the needed transmission (either
utilities or private players) and, the process for allocating the cost of new transmission to
loads and wind power plant owners, should be discussed and proper methodologies and
processes and plans to increase transmission capacity formulated.

The Maharashtra Experience: Novel solution for socializing transmission infrastructure funding
Maharashtra has been the front runner in adopting innovative structures and schemes to develop and
fund the evacuation infrastructure for renewable energy projects.
Maharashtra Electricity Regulatory Commission (MERC) has directed the STU to bear the cost of
transmission lines and associated facilities downstream of the interconnection point. However, the
developers have to provide interest free advance to STU for an amount equal to 50% of the cost of works
carried out by the STU. The STU has to refund the amount in five equal installments. The commencing of
installments starts one year after the date of commissioning of the project.
Government of Maharashtra has also devised a scheme of Green Energy Fund. A green cess at 4 paise
per unit is levied on commercial and industrial consumers within state. The Green Energy Fund takings
are exclusively used for funding the transmission system and other infrastructure requirements of
renewable energy projects.

Transmission Planning: needs to be in tandem with Generation


With a low gestation period for wind based power plants, usually spanning from six
months to a year, the corresponding transmission needed to evacuate that power, has to
be planned ahead (since transmission takes a much longer time to be built) so that
evacuation does not become a problem when the wind plants are built. Neither the CTU
nor the STUs have traditionally included evacuation plans for renewable-based power as
a part of their overall transmission planning. Resource constrained STUs are slow to
invest in dedicated transmission systems due to the perceived low and/or uncertain
utilization of these transmission lines caused by the inherent nature of relatively lower
capacity factors for wind plants. This lack of planning and unwillingness to invest in
renewable-power dedicated transmission lines could stall the growth in wind turbine
installations. Further, a component of the evacuation problem can also be attributed to
the rapid rise in the installed capacity as a result of both center and states tweaking
policies to encourage capacity addition. At present, there are no planning criteria,
processes and standards in transmission system operations and planning specifically
with regards to renewable capacity additions such as wind. One possible method to
stimulate and facilitate transmission projects is by creating an entity such as a
Renewable Energy Transmission Agency. This entity could facilitate development of
renewable specific processes and standards for transmission interconnection and
operation. In coordination with CTUs and STUs, this agency can conduct studies to plan
and identify transmission projects, build (or cause to be built), operate and otherwise
facilitate transmission corridors for power that evacuate power primarily from renewable
sources. This agency could also be created as a part of the existing PowerGrid
organization.

The Tamil Nadu Experience: Things have to worsen before they get better
Realizing the pace of growth and inability to develop the transmission systems, Tamil Nadu Electricity
Board (TNEB) has been working with wind project developers for faster development of power evacuation
infrastructure. The proactive support of TNEB to developers has resulted into high levels of growth.
To tackle the inadequate transmission planning, Tamil Nadu Electricity Board (TNEB) constituted a task
force to monitor augmentation of transmission infrastructure for wind energy. Noting that the prime
locations for wind mills had become congested, MNRE made efforts to develop alternative locations.
Wind farms in areas that didn’t have inadequate infrastructure were not approved by TNEB until
transmission and distribution facilities were upgraded. The wind developers were asked to give their
projections for the next couple of years to streamline the development of transmission system. TNERC in
its Order directed STU in the state to create necessary infrastructure.

Grid Integration: lacks grid codes that incorporate the behavior of renewable generation
One of the major constraints in harnessing the full wind potential is the inability of the
grid to absorb the power generated by all the wind turbines simultaneously. This is a
problem because wind farms are located in remote areas, with limited transmission
capacity and limited local power demand. Moreover, most of wind power plants are small
in size and hence are connected into the distribution network with distribution licensees
holding the primary responsibility to evacuate wind power. In some cases where
significant load is present closer to the wind power plants, increased renewable power
injection at distribution level will relieve stress on transmission network to a certain
extent. However, as the size of wind power plants get larger, they need to be connected
to the transmission network to supply load in other areas. In remote areas where large
wind farms are planned the existing transmission grid is limited and at a lower voltage
level. Thus, transmission over long distances to load centers and at lower voltage levels
could result in higher technical losses and potential system instability in case of faults or
other problems. These issues can be addressed by modifying the existing connection
standards and grid codes in addition to upgrading the transmission network.
Currently, no standard renewable related provisions are available in CEA Regulations.
The existing grid codes needs to be modified to provide standards for system stability
and reliability. These standards should include the impact of significant penetration of
renewable based generation such as wind, on the operation of the transmission network.
One of the challenges in reforming grid codes to account for renewable generation is in
the contribution of wind generation to faults on the network. For example, if all wind
generation trips off the grid immediately during a fault, the system may lose its capability
for a quick recovery. Therefore, one requirement from the wind turbines could be to stay
on the grid during a low-voltage event for a period of time before eventually
disconnecting from the grid. Other challenges include provision of sufficient reactive
power by the wind turbines and, maintaining voltage profiles at the point of
interconnection.
Thus, grid codes that include standards for wind integration are required to ensure that
wind farms do not adversely affect the power system operation with respect to security
of supply, reliability of the grid and power quality of the injected power.

The Over Voltage Experience: Peculiarity observed in the Indian Grid


Unlike other countries where low voltages are problem, high voltages is the feature of wind generation
in India. This is because wind speeds are at their highest during the monsoon season when hydro
generation is also at its highest and load is also relatively low. This creates issues such as dispatch of
conventional generation during off-peak vs on-peak. Wind power needs to be curtailed to ensure that
the thermal generation stays on line during off-peak so that they are available on-peak. The pronounced
effect of this can be seen in Tamil Nadu where due to lack of inter-state transmission, surplus power
cannot be transferred to possibly the Western or Northern grids.
To handle such situations, special counter voltage control measures and Grid Code requirements are
needed. Further, protocols are needed to be in place to allow the output to be curtailed when
necessary.

SERC Regulations: still at cross roads


The grid connected renewable generation has been accorded the major focus area of
Ministry of New and Renewable Energy (MNRE). Further, the Electricity Act mandates
SERCs to assist renewable generation in terms of obtaining grid connectivity and
promotion of sale of electricity. But regulations across SERCs regarding renewable
generation grid connections and transmission charges are not yet uniform, sometimes
vague, and are still at the nascent stage.
MNRE guidelines stipulate 2% of energy as wheeling charges for captive and third party
sale transactions. However, in reality, the costs involved in wheeling of energy are
higher than this and fall in range of 2% to 10% of energy 4 . The lower end of the range of
charges is primarily attributed to the promotional nature of policies. Lowering and
standardization of wheeling costs across the country will incent and hence increase
renewable and other forms of captive and third party generation.
Wind generation is also facing additional hurdles to open access because of reluctance
by the host Discom to allow merchant generation located within its service territory to sell
power outside the state to customers that are willing to pay higher rates. In some states
it is being insisted that the host Discom has the first right of refusal on sale of power by a
renewable captive facility. This message is often conveyed indirectly through delayed
responses, complex and time-consuming procedural formalities and high wheeling
charges. CERC should set an example by enacting regulations that give preferential
treatment to renewable sources for arranging inter-state open access. Clear policies and
their enforcement, clarity on the role of regulator along with an independent
management of the State Load Despatch Center (SLDC) are some of the major drivers
that are required to overcome the access hurdles faced by wind and other captive
generation.
Looking Beyond: Innovating towards a better frame work
Due to their inherent variability and intermittence, wind power plants have different
generation characteristics than conventional sources of energy. These generation
characteristics could cause changes in cost of: unit commitment (to consider wind speed
uncertainty), frequency regulation (needed to compensate for sudden changes in wind
speeds) and, provision of ancillary services (such as voltage support, regulation and
load following).
4
Table 1 and Ministry of New and Renewable Energy (MNRE)
Short term forecasting for the day ahead and hour ahead power system operation and
dispatch is critical for any market for reliable power supply and to minimize the cost of
power supply. Therefore, it is important to ensure that the best available forecast of wind
speeds in both day ahead and hour ahead time intervals is utilized. For enabling
increased integration of wind based power generation into the grid, incorporation of wind
energy forecasts by power system operators in their day ahead and hour ahead dispatch
schedules should be made a requirement. It is possible to achieve long-term significant
reduction power production cost by using accurate forecasts of wind speed. The cost of
infrastructure and equipment needed to provide such forecasts will be justified by the
savings in cost of electricity over the long term. In order to maximize benefits and
minimize cost impacts, utilities incorporating wind energy in their resources must learn to
accommodate the uncertainty and variability of wind energy in their operational and
planning practices.
Thus, the CTU, STUs, RLDCs and SLDCs should have in place the infrastructure for
wind based power plants that would enable them to (a) monitor and if possible, control
the amount of wind power output from each wind farm and, (b) forecast with the
maximum possible accuracy, the amount of wind power that would be available over the
desired operating interval. Such an infrastructure would assist in developing long term
generation and transmission resource plans with successful integration of renewable
based generation into the system without compromising system operational efficiency,
reliability and security.
Conclusion
The full utilization of wind potential in a region or a country to generate electricity
depends on solving transmission evacuation issues, accommodating wind generation in
the power system without negative bias (such as high wheeling charges and procedural
bottlenecks) and, developing renewable-friendly grid codes (without degrading system
reliability) in addition to providing the necessary financial and policy incentives. Several
SERCs have already taken important and proactive steps towards formulating and
implementing solutions that could stimulate the growth of wind generation. However, the
pace and extent to which these policies and reforms could be implemented still remains
uncertain. Wind energy can bring considerable benefits to utilities in terms of clean, cost
effective energy, long-term price stability, and increase in system capacity. Wind based
power generation is expected to grow in India as in other parts of the World. To ensure
full exploitation of the existing wind potential in India, transmission limitation issues and
other operational constraints identified in this article, must be addressed with suitable
policies, mandates and standards as soon as possible.

Short Bios of Authors:


Venkat Banunarayanan
Dr. Banunarayanan is a Senior Manager in ICF’s Transmission Services Group within
the Whole Power Practice where he analyzes issues relating to power generation,
transmission and ancillary services valuation, transmission congestion and energy and
capacity markets.

Prior to joining ICF Dr. Banunarayanan was employed at General Electric in their Energy
division. During his 10 year tenure at GE, Dr. Banunarayanan developed expertise in
generation asset evaluation, transmission congestion analysis, energy and capacity
price forecasts, market power considerations, impact of emerging environmental rules
on power plants and power system reliability, in all regions of the U.S. He has worked
with a variety of clients ranging from internal GE Energy divisions, utilities, government
organizations such as the DOE and finance firms. His international experience includes
study of power tariffs imposed by companies in India, Japan, Norway and Germany. He
has also been involved in developing production simulation models of UK, Australia,
Germany, India, China, Mexico and Canada power systems. Dr. Banunarayanan’s
consulting background includes a two year overseas assignment in India where he was
responsible for the startup and operation of the Indian arm of GE Energy’s consulting
division.
Dr. Banunarayanan holds a Ph.D. degree and a M.S. degree in Electrical Engineering.
His research work at North Carolina State University focused on quantifying and
allocating transmission/ancillary services such as real power losses and reactive power
support, to power transactions in the new electricity market using load flow based
methods. His work has been published in IEEE Transactions in Power Systems and
also presented in conferences such as CIGRE and North American Power Symposium.
Dr. Banunarayanan is an expert user of GE-MAPSTM and has received training in
power markets analysis, economics, finance and marketing.

Yasir Altaf
Yasir Altaf is currently working as an energy analyst with ICF Consulting, Inc., with over
4 years of experience in energy economics and energy engineering issues. The most of
his work has been in the areas of transmission studies and utility restructuring. His
expertise includes power system modeling, transmission asset valuation, generation
interconnection assessments, forecasting transmission Interface capabilities (ATCs and
TTCs), Locational Marginal Prices, transmission congestion and losses and their effect
on the plant dispatch and cost benefits in the US and Indian power markets. He also
specializes in Load Flow Studies, Optimal Power Flow simulations, Contingency
Analysis and Power System Stability Studies.

Potrebbero piacerti anche