PSP Notes For 5 Questions

POWER SYSTEM PLANNING
Prepared by | ANILKUMAR K.M., Assistant Professor in E&EE, BIET,

Davangere-04.
AS PER VTU SYLLABUS

SUBJECT - POWER SYSTEM PLANNING
Subject Code: 10EE761
IA Marks: 25
Exam Hours: 03
No. of Lecture Hrs. / Week: 04
Total No. of Lecture Hrs. 52
Exam Marks: 100
PART - A
UNIT - 1
INTRODUCTION OF POWER PLANNING, National and regional planning, structure of
power system, planning tools, electricity regulation, Load forecasting, forecasting techniques,
modeling.
8 Hours
UNIT - 2 & 3
GENERATION PLANNING, Integrated power generation, co-generation / captive power,
power pooling and power trading, transmission & distribution planning, power system
economics, power sector finance, financial planning, private participation, rural electrification
investment, concept of rational tariffs.
10 Hours
UNIT - 4
COMPUTER AIDED PLANNING: Wheeling, environmental effects, green house effect,
technological impacts, insulation co-ordination, and reactive compensation.
8 Hours
PART - B
UNIT - 5 & 6
POWER SUPPLY RELIABILITY, reliability planning, system operation planning, load
management, load prediction, reactive power balance, online power flow studies, test estimation,
computerized management. Power system simulator.
10 Hours
UNIT - 7 & 8
Optimal Power system expansion planning, formulation of least cost optimization problem
incorporating the capital, operating and maintenance cost of candidate plants of different types
(thermal hydro nuclear non conventional etc), Optimization techniques for solution by
programming.
TEXT BOOK REFERRED FOR NOTES:
1. Electrical Power System Planning, A.S.Pabla, Macmillan India Ltd, 1998
2. Electrical Power Distribution System, A.S.Pabla, Macmillan India Ltd, 1983
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.
16 Hours
UNIT-1: INTRODUCTION OF POWER PLANNING
V.T.U.Syllabus
National and regional planning, structure of power system, planning tools, electricity regulation,
Load forecasting, forecasting techniques, modeling.
SYNOPSIS
The basic process of planning & its application to the power system has been illustrated. The
history of the planning & its increasing importance in present & future scenarios of power system
has been analyzed. The power growth & national & regional planning & development of national
grids have been brought out. Least cost planning is discussed, the regulatory process of power
development which includes various rules, acts & policies are illustrated. The various techniques
for forecasting & its modeling are explained.
UNIT-1: INTRODUCTION OF POWER PLANNING

1. INTRODUCTION
1.1 POWER PLANNING
Electricity plays a key role in the modem society because of its versatility with respect to input
energy form. The annual per capita consumption in India is about 335 kWh (1996). A rise in this
consumption to three times the value is likely to substantially raise the standard of living of the
people in the country with respect to education, health, transport, communication, media,
productivity etc. Electricity can be produced with coal, nuclear fuels, oil, gas, hydro power, diesel,
geothermal energy, biomass, wind energy, solar energy or fuel cells. Electrical supply also offers
the opportunity of total environmental enhancement compared to other energy use patterns.
For increasing the supply of electricity, new power projects will have to be installed.
Expansion, modernization, and maintenance of the electricity utility industry will require increased
capital costs, financial and environmental restraints, increasing fuel costs and regulatory delays.
All these factors lead to the necessity for a more comprehensive understanding and analysis of
electric power systems. Recent developments in system analysis and synthesis as well as in related.
Digital, analog, and hybrid computer techniques provide important tools which will aid the
planning engineer in meeting these challenges.
Some of the questions to be explored are:
1. Where and how much generating capacity should be added?
2. What should be the optimum size of the generating units?
3, what types or combinations of generation types should be used - nuclear, gas turbine,
conventional steam, pumped hydro, solar, wind etc.
4. What will be the environmental impact of various generation alternatives?
5. What should be the size of the interconnections with neighboring systems?
6. What voltage levels are most economical and what transmission lines should be constructed?
7. What will be the impact of major facility additions upon the financial structure of the utility?
8. How will utility requirements affect targets of performance for new technologies?
9. How will the energy conservation and load management measures help to reduce generation
capacity requirements?
10. How much reliability of power supply to consumer is required?
1.2 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.
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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
componenents
1
Learning about the environment, the relevant issues and possible future scenarios in order
to identify:
(i) Strategically goals
(ii) The decision criteria and constraints
(iii) Technological needs and opportunities
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.
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.
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1.3 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.
Power aspects in developed and developing countries
ITEM
DEVELOPING COUNTRIES
DEVELOPED COUNTRIES
Load Growth
Fast
Slow
Reliability
Low
Stringent
T&D Losses
High
Low
Power Planning
Poor
Adequate
Grid System
Weak
Strong
Public Acceptance
Lacking
Pursued
Services
Non-Market
Market oriented
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1.4 STRATEGIC PLANNING

1.4.1 Strategies & its classification
Strategy is a unified, comprehensive and. integrated plan.
It is designed to ensure that the corporate goals are achieved. Comprehensive intelligence about
the nature and extent of the likely trends of power development and demand is essential for a
successful strategy.
Strategic planning is the process of determining the long-term goals and courses of action and
the allocation of resources necessary to accomplish these goals.
The broader planning horizon of strategic planning has significant implications for resource
planning, for example, planning to influence demand in order to reduce the need to build new
generating capacity.
There are many means available to reduce demand, such as by
(i) Changing the tariff structure, e.g., time-of-day tariff.
(ii) Demand billing.
(iii) Implementation of load control by shifting peak load to off peak period.
(iv) Encouraging co-generation/captive generation.
(v) Promotion of conservation of energy.
Functions of planning
Function
Time Frame (Yrs)
Organizational Level
Perspective
10-20
Corporate vision, mission, Values
Strategic
5-10
Utility, Regional and National level
Tactical
1-5
Utility/corporate level
Operational
0-1
Utility level
The first step in developing a strategy is the identification of the problems and opportunities
that exist. A successful utility will have a fertile idea generating environment. To attain the vision,
perform strengths, weaknesses opportunities and threats (SWOT) analysis and benchmarking
exercises within the power utility. The second step is to set goals (objectives). Goal setting is not
independent from identification of opportunities. The next step is to have a procedure for providing
possible solutions. Tactical and operational planning involves this step. The fourth step in strategic
planning is to choose the best solution, given possible solutions and the objectives. On what basis
the solutions be chosen is a difficult job, depending upon various constraints. The components of
planning are shown in the next page.
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Flow chart showing the Components of Planning

The last step is to have some type of review procedure to check how the best solution has
actually performed. The nature of this review function will depend on the performance and style of
management. To implement a strategy, develop the specific action plan.
Long-Term Strategy
Some technological, managerial and geopolitical issues require long-term policy and
administrative decisions and include, among others:
(i) Directions for capacity augmentation to meet the projected demand need for accelerating hydro
development.
(ii) Environmental issues in power development.
(iii) Inter (state/regional issues in water resources development.
(iv) Functional and commercial issues in integrated operation.
(v) Land and water availability for thermal power development.
(vi) Fuel (coal, oil etc.) quality and transport in thermal power development.
(vii) Energy costs and prices and resource mobilization.
(viii) Organizational deficiencies in power development, i.e., re-engineering of power industry to
bring efficiency in the management process.
(ix) Private participation in power generation, transmission and distribution.
Medium-Term Strategy
The broad aims are:
(i) Renovation, modernization, upgrading and extension in the life of existing ageing power plants.
(ii) Reduction of transmission and distribution losses.
(iii) Construction of shorter gestation power plants like gas turbine based combined cycle, co
generation schemes etc.
(iv) Energy conservation and load management.
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(v) Adoption of non-conventional energy sources particularly for rural decentralized energy
systems.
Short-Term Development Strategy
Short-term strategies aim at:
(i) Improving the performance of existing power plant capacity and maximizing its utilization.
(ii) Seeking even power sharing over circuits of similar ratings.
(iii) Establishing new circuit connection as required, if possible without recourse to displacing.
lower voltage circuits, and at the highest possible capacity.
(iv) Routing new circuits so that they may readily be used for connection of future power stations,
or for supply points to regional grids.
(v) Reducing the number of levels of system voltage used.
(vi) Maintaining uniformly high, but acceptable fault levels.
(vii) Installing capacitors at various voltage levels (HT and LT.)
(viii) Computerizing work management system for tracking recurring problems, materials
movement and maintenance history and to forecast maintenance schedule.
The planning engineer's contribution to a project is to prepare a detailed project report giving a
time frame for site clearance, and for starting, completing, and finishing construction of a project.
The report sets the limits of resources and sequence of activities and phases etc.
1.4.2 Detailed project report (DPR)
Planning of power project facilities undergoes the following stages:
(i) Preliminary investigations for establishment of need proposed to be achieved through the
implementation of a project.
(ii) Project identification and formulation which involves examination of various options to meet
desired needs and selection of one for preparation of feasibility report.
(iii) Detailed Feasibility Report (DFR) regarding technical, demand, organization, and
environmental aspects, and financial and economic viabilities.
(iv) Appraisal of Detailed Feasibility Report keeping in mind the following aspects:
(a) Technical analysis to determine whether the specifications of technical parameters chosen are
realistic and optimal.
(b) Demand analysis to determine the demand availability gap of power for a particular
region/state/site and arrangement for evacuation of power thus generated.
(c) Organizational aspects to determine whether the organization has the managerial capability to
implement and operate the project.
(d) To check if the environmental guidelines are fully covered in the project cost
(e) Financial analysis to determine whether financial costs are properly estimated, funding is
ensured and the project is financially viable.
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(f) Economic analysis to determine the cost generation/transmission and whether the project is
economically worthwhile.
(v) Preparation of Detailed Project Report: It comprises technical details running into several
volumes for large projects. After the appraisal of DFR, detailed engineering conducted. A Detailed
Project Report indicating the firmed-up cost estimates and project implementation schedule is
prepared. Between the DFR and DPR stage, there may be some further studies required to improve
information about site conditions and other project parameters.
(vi) Implementation involves implementation planning as per detailed project report, obtaining
various clearances, getting investment approval or financial close, detailed designs and drawings,
specifications, tendering/contracting, execution of various activities leading to commissioning of
the project and monitoring throughout.
1.4.3 Project implementation
Good project management is necessary to avoid time and cost over runs. Rigorous project
planning and management practices should be applied for the project to be completed in time and
within budget. PERT must define an overall project management framework under which all
implementation activities will have to be performed. It should contain:
(i) A detailed schedule of all project activities and their estimated durations.
(ii) A statement on the methods to be used to complete all the project activities.
(iii) A quality statement which identifies all quality control and quality assurance steps to be
applied.
(iv) A statement on the organizational requirement and impact within the utility organization, so
that it can be managed effectively.
Well researched, clear and good quality Detailed Project Reports (DPRs) for power
development are important. Research and Development should be an in-built part of the project for
the entire duration of the project. The one important reason for the present conditions of power
supply in India is the delays in the addition of power generating, and transmission and distribution
capacity mainly due to DPR deficiencies.
1.4.4 Role of consultants
Consultants have important role in Power industry. The consultant can take up the turn-key
projects and Consultancy services such as feasibility reports, detailed project reports, detailed
engineering, total project management, commissioning, financial systems, manpower management,
R&D etc. The primary business of a consultant is;
(i) To provide solution to their client's problems. The consultant should be able to define the
problems and constraints and analyze them to arrive at a solution.
(ii) To help the client to accept and implement the solution.
(iii) Consolidate consultants' knowledge base.
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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 overall time leads to the various planning activities are given below,
Time ahead
Planning
Activity
5-20 years
Long-term planning Vision, values, mission, load forecasting regional system
and National grid expansions scheme
2-5 years
Medium-term
Medium-term utility generation schemes such as coal,
planning
thermal, gas turbines, hydro etc. Renovation and
modernization of existing generating plants
1-2 years
Short-term planning
System improvement of transmission and distribution
systems, Small generation schemes, small hydro, gas
turbines diesel power projects, non-conventional sources
of generation
15days-1year Operational planning Maintenance scheduling of units and fuel requirements
1-7 days
Operational planning
Generation scheduling and network switching
2-12 hours
Operational planning Economic dispatching instruction and power purchases /
selling
0-2 hours
Operational planning
Network switching Economic Dispatch Control
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.
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1.6 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 countrys 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 powerhas
been envisaged.
Indias 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 201112 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 substations. 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
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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 subtransmission 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.
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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 111asureTs: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
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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.
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The process of least cost planning

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 softwares or packages available for simulation or least cost planning are PROMOD,
ELFIN, MIDAS, EGEAS, UPLAN, MARKAL-ELGEM etc which are used in different countries.
3. 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.
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The standard system voltages used in India for transmission and distribution are as per IS: 123601988are given in the below table.
Standard system KV Voltages (IS: 12360)

Nominal Voltage in KV
Maximum System Voltage
Remarks
0.240
0.264
Distribution
0.415
0.457
3.3
3.6
6.6
7.2
11.0
12.0
22.0
24.0
33.0
36.0
Distribution & Sub
66.0
72.5
transmission
132.0
145.0
Sub transmission &
220.0
245.0
Transmission
400.0
420.0
Transmission & Tie
765.0
800.0
line
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.
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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.
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.
Radial System
Loop System
Network of Lines
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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 difference is generally represented as,
P=
| V1 || V2 | sin
XL
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 (1 p.u.) =Transmission capacity (1.5 p.u.) + Sub transmission
capacity (2p.u.) + Distribution capacity (3 p.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
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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.
4. 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.
Indias 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.
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5. 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.
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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
ANALYSIS
APPLICATION
PROGRAMS
Generation reliability
Generation reserve requirement to meet specified reliability criterion,

System reliability
Generation cost
Cost of fuel, operation and maintenance
Risk analysis
Resource uncertainties
Optimum generation
Best combination of different types and sizes of generating units
mix
considering capital and production costs and minimizing revenue

requirements
Power flow
Steady-state system studies
Transient stability
System stability assessment
Dynamic stability
Possibility of cascade tripping, system isolation and blackouts
Short circuit
To design protective relaying systems and to select the circuit breakers
Sub synchronous
To determine damaging generator shaft torques
oscillations
Loop flow
To determine possibility of unauthorized use of transmission lines of a

particular utility
Transmission
Optimum range for transmission line expansion
expansion
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6. THE ELECTRICITY REGULATIONS

Regulations shape and influence the functions and processes.
The regulations generally concern,
1. Price setting: consumer tariff, wheeling charges, long-term bulk-power Purchase agreements.
2. Quality of service standard and monitoring.
3. Compliance with public service obligations.
4. Dealing with consumer complaints.
5. Ensuring fair and open competition or the harnessing of competitive forces, as appropriate.
6. Monitoring investment in and repair of infrastructure.
7. Third party use of networks.
The current regulations enacted by the Government of India are primarily administered by
CEA in its role as technical and economic advisor to the Minister of Power, with input from
state, regional and central government entities.
For example, there is need for rules regarding transmission access to private generators and for
checking the potential for anticompetitive use of monopoly power.
Tariff regulations at the bulk power level are primarily covered under section 43A of the
Electricity (Supply) Act of 1948.
ELECTRICITY ACTS
INDlAN TELEGRAPHICACT, 1885
This act covers the privileges and powers of the government to place the telegraphic lines and
posts. Penalties and certain other supplementary provisions regarding electric power lines.
INDIAN ELECTRICITY ACT, 1910
This is an act to amend the law relating to the supply and use of electrical energy. It regulates:
1. Licences: Grant of licences; revocation or amendment of licences; purchase of undertakings;
annual account of licensees.
2. Works: Provision as to opening and breaking up of streets, railways and tramways; notice of
new works; laying of supply lines; notice to telegraph authority; overhead lines; compensation for
damage.
3. Supply: Point of supply; powers of lincences to enter premises, restrictions on licensees;
obligation on licensees to supply energy; powers of the state governments to give direction to a
licensee, power to control the distribution and consumption of energy; discontinuance of supply to
consumers; meters.
4. Transmission and Use of Energy by Non-licensees: sanctions required by non-licensees in
certain cases; control of transmission and use of energy.
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5. General Protective Clause: Protection of railways, aerodromes, canals, docks and piers;
protection of telegraphic and electric signal lines; notice of accidents and enquiries; prohibition of
connection with earth and power to government to interfere in certain cases of default.!
6. Administration and Rules: Advisory boards; appointment of electrical inspectors.
7. criminal Offences and Procedure: Theft of energy; penalty for maliciously wasting energy or
injuring works; penalty for unauthorized supply of energy by non-licensees; penalty for illegal or
defective supply or for non-compliance with order; penalty for interference with meters or
licensee's works and for improper use of energy; offences by companies; institution of prosecution.
8. supplementary Provisions: Exercise in certain cases of power of telegraph authority; arbitration;
recovery of sums; delegation of certain functions of the state government to the inspection staff;
protection for acts done in good faith; amendment of Land Acquisition Act, 1884;repeals and
savings.
THE ELECTRICITY (SUPPLY ACT) ACT, 1948
This act rationalizes the production and supply of electricity and generally provides for taking
measures conducive to its development. It provides for:
1. The Central Electricity Authority: Constitution ; powers to require accounts, statistics and
returns; direction of central government to the Authority; power of central government to make
rules; powers of Authority to make regulations.
2. State electricity boards, generating companies; state electricity consultative councils and local
advisory committees; constitution and composition of state electricity boards; interstate agreement
to extend board's jurisdiction to another state; formation, objects, jurisdiction etc., of generating or
transmission companies.
3. Power and duties of state electricity boards and generating or transmission company,
coordination with regional electricity boards and regional load dispatch centres.
4. The board's finance accounts and audit.
5. Miscellaneous items such as effects of other laws; water power concessions to be granted only
to the board or a generating company; coordination between the boards and multipurpose schemes;
powers of entry; annual reports, statistics and returns arbitration; penalties; cognizance of offences;
direction by the state government; provision relating to income-tax; members officers and other
employees of the board to be public servant; protection of persons acting under this act; saving of
application of Act.
THE INDIAN ELECTRICITY RULES, 1956
It contains 143 rules along with detailed annexure and covers:
1. Authorization to perform duties
2. Inspection of electric installations: Creation of inspection agency; entry and inspection;
inspection fees; appeal against an order; submission of records by supplier or owner.
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3. Licensing: Application, contents and form of draft license; advertisement of application and
contents thereof; approval of draft licence and a notification for grant of licence; commencement
of licence; amendments of licence; preparation and submission of accounts and model conditions
of supply.
4. General safety precautions: Regarding construction, installation, Protection, operation and
maintenance of electric supply lines and apparatus; service lines and apparatus on consumer's
premises; identification of earthed conductors; accessibility of bare conductors; provisions
applicable to protective equipment; instructions for restoration of persons suffering from electric
shocks; intimation of accidents; precautions to be adopted by consumers, owners, electrical
contractors, electrical workmen and suppliers; periodical inspection and testing of consumer's
installations.
5. General conditions relating to supply and use of energy: Testing of consumer's installation;
precaution against leakage; declared voltage and frequency of supply; placing and sealing of
energy and demand meters; point of supply; precautions against failure of supply.
6. Electric supply lines, system and apparatus for low, medium, high and extra high voltages:
Testing of insulation resistance; connection with earth; voltage tests systems; general conditions as
to transformation and control of energy; approval by inspector; use of energy; pole-type
substations; discharge of capacitors; supply to neo-signs; supply to HVelectrode boiler; supply of
X-ray and high frequency installations.
7. Over headlines: Materials and strength; joints; clearances and supports, erection of or alteration
of buildings; structures; conditions to apply where telecommunication lines and power-lines can be
carried on the same supports; lines crossing; service lines; protection against lightening; unused
overhead lines.
8. Electric traction: Additional rules for electric traction; voltage of supply; difference of potential
on return; current density in rails.: size and strengths of trolley wires; records.
9. Additional precaution for mines and oil fields.
10. Miscellaneous Provisions.
Rules relaxation by the government; relaxation by the inspector; supply and use of energy by non
licensees and others; penalty for breaking seal and other penalties for breach of rules; repeal
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.
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3. The maximum width of right-of-way for the power lines on forest land shall be as follows:
Line Voltage (KV) Width of Right Of Way
11
33
15
66
18
110
22
132
27
220
35
400
52
800
85
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.
Line Voltage (KV) Minimum clearance between conductors & trees (m)
11
2.6
33
2.8
66
3.4
110
3.7
132
4.0
220
4.6
400
5.5
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
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7. LOAD FORECASTING
7.1 LOADS
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.
Commercial - This type of load consists mainly lighting for shops and advertisement
boardings, fans, air conditioning;" heating and other electrical appliances used in commercial
establishments, such as shops, restaurants, market places, etc. The demand factor is usually 90100 percent, diversity factor is 1.1-1.2 and load factor is 25-30 per cent.
Industrial - These loads may be of the following typical power range,

Small Scale Industries
0-20kW
Medium Scale Industries
20-100kW
Large Scale Industries
100kW & above
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.
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.
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7.2 ELECTRICITY FORECASTING

Forecasting of electric load basically consists of,
o Long-term forecasting which is connected with load growth and supply / demand side resource
management adjustments.
o 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.
7.3 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.
7.4 TYPES OF FORECASTS & THEIR IMPORTANCE
Long Range Forecasts
Long-range forecasts involve Identification of both energy and demand forecasts for a utility
over a period exceeding two years. Whereas the energy requirements decide the type of generating
units (i.e., peaking or intermediate or base-load units), expansion and the demand of peak power
requirements decide the utility's investment in generation and the resultant transmission capacity
additions.
Long-term forecasts are used for,
(i) Exploration of natural fuel and water resources.
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(ii) Development of trained human power.

(iii) Reinforcement planning of generation transmission and distribution equipment.
(iv) Establishing future fuel requirement.
Forecasts based on either past trends or on very broad based factors do not provide sufficient
confidence level for long-range planning. Forecasting in today's environment has increased in
complexity due to rapid and random changes in the factors that influence load consumption.
The following factors are relevant for their impact on utility's growth,
(i) The country's economic policy, developmental plans, technological development in production
of products and services.
(ii) Growth pattern in domestic, commercial, industrial and agricultural loads.
(iii) Population growth and electrification plan (urban and rural).
(iv) Political, developmental and environmental decisions.
Statistical methods with adaptive techniques are employed to forecast long-range load
requirements, as the method chosen shall have to use past data, growth patterns and human
judgment.
Mid-Term Forecasts
These forecasts are aimed to determine yearly or monthly peak, minimum load and energy
requirements for one to few years for the purpose of:
(i) Deciding rat~-structure for billing of different consumer categories.
(ii) Power exchange contract with neighboring utilities and interchange schedules.
(Hi) annual planning and budgeting for fuel requirements and other operational requirements.
(iv) Maintenance scheduling of generation and transmission equipment.
(v) Scheduling of captive plants.
(vi) Scheduling of multi-purpose hydro plans for irrigation, flood control, cooling water
requirements etc., apart from generation.
Short-Term Forecasts
Short-term load forecasting is required for operational planning for,
(i) Unit commitment and economic dispatch calculations.
(ii) Maintenance scheduling updates.
(iii) On-line load flows.
(iv) Spinning reserve calculations.
(v) Short-term interchange schedules with neighboring system.
(vi) System security analysis.
(vii) Scheduling of pumped storage units.
(viii) Load management scheduling.
(ix) Optimization of fuel stocking.
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Utilities use past normalized data, weather data, and information on known random phenomena
like popular TV programmes, school vacations, factory strikes etc., for short-term forecasting of,
(i) Peak load conditions for system in a day.
(ii) System load at various intervals of time (half hour /hour) in a day.
(iii) Hourly or half-hourly energy requirements.
(iv) Individual bus load prediction.
(v) A few minutes to several hours ahead forecast and is useful in utility's systems operations to
deal with economic load dispatching & security assessment.
7.5 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.
G=
10C
U 0.15
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:
Y =- 3411.39+ 8555.05 x eO.O988X
X =time in years with 1950-51as base year, Y= GWh requirement for the year
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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 slopecharacteristic 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.
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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.
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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.
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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 1C 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.
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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.
7.6.3 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.
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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.
Mathematical Modelling-Simulation
In modelling, the total load is considered to be the sum total of various components due to
various factors.
These factors need to be measured and interrelated with load requirements. Thus, this
technique requires individual modelling of each load type, and identifying their
interrelationship to arrive at future load requirements.
This is mathematical modelling. Mathematics is a language that allows us to represent physical
problems in a form that a computer can understand.
The strength of a method lies in the accuracy of the results it gives. Errors in predicted loads
are found mainly in peak periods, transitional phase (from peak to off peak and vice-versa),
and on weekends and special days.
In extrapolation, future load is treated as an extension of the past and the load curve based on
past data is suitably adjusted to reflect growth trend. Thus, this technique involves the detection
of trends in the past data for various parameters, fitting a trend curve-which could be a straight
line, a parabola, exponential or a polynomial of other orders or a mix of the above-and finding
coefficients of these curves as given below,
Straight line Y=a+bx
Parabola Y=a + bx+ cx2
S. curve Y=a + bx +cx2+dx3
Exponential Y=becx
Modified exponential Y =a + becx
Logistics Y =1 / (a + becx)
Where Y is a variable to be fitted, x is time in assigned frame (in day, week, year etc.), and a, b
,c, d are coefficients be calculated. Extrapolation could be deterministic or probabilistic, with the
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accuracy of results quantified using statistics (i.e., standard deviation, variance etc.) in the letter
case.
The mathematical models for domestic, commercial and other sectors have been determined by
the CEA as given below.
Domestic sector
Energy in the domestic sector is mainly used for cooking, lighting, heating and other household
appliances like TV, refrigerators etc.
Increase in the family income and the resultant increased expenditure on household effects,
consisting of electrical appliances among other things has pushed up the demand for electrical
energy in the domestic sector.
There is a close relationship between the private final consumption expenditure (PFCE) and the
demand for energy in the domestic sector. PFCE data is available from Basic Statistics
Of Indian Economy from the Ministry of Planning, Government of India.
The following model has been adopted for projecting the anticipated demand in the domestic
sector as it gave the most consistent results,
log Y =a + blogX
Where Y = Energy consumption, a and b =Constant to be determined by Regression Analysis.
X=Private Final Consumption Expenditure.
Commercial and Other sectors
The increased commercial activity has resulted in increasing use of energy. The use of
electricity for illumination, weather comforts, refrigerators, air-conditioning and water heating
is being increasingly resorted to.
There is a strong relationship between the number of urban households and energy
consumption in the commercial sector.
The other sectors, which mainly consist of public lighting, public water works and
miscellaneous segments of energy consumption, are also expected to maintain the present
tempo of energy consumption in the foreseeable future due to expected industrial development,
increasing urbanization, migration of population from rural to urban areas, electrification of
villages and expansion of water facilities in the rural area. The public lighting system in the
urban areas is also likely to develop further due to increased demand for energy. The increase
in the number of urban households has, therefore, a close relationship with the increase in
energy demand relating to other sectors. As such, a. similar model has been adopted for
projecting the energy demand is these sectors separately.
log Y =a +b log X
Y =Energy consumption, a and b=Constants to be determined by Regression Analysis
for each sector, X=Number of urban households
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Typical requirements of a good load forecast programme are in terms of, Where,
(i) Accuracy of results (in real-time operation for a long period of time)
(ii) Its adaptive nature (e.g., model parameters can be changed on-line to track seasonal load
variations or variation of impact of different components of load etc.)
(iii) Being computationally efficient (in terms of data requirements, processing time and memory
requirements)
(iv) Its being easy to implement and use.
Econometrics
Certain economic factors which influence the system load growth are,
(i) Business and economic cycle (cyclic variations)
(ii) Growth of gross national product (GNP) (long-term variations)
(iii) Growth in population (long-term trend).
Most of these factors only affect the long-term trend which will not be picked up in a normal
model based on, say, a past history of 10 years (i.e Nyquist condition). Of course, changes in
government policy in, say, population, railway traction and integrated socio-economic
development of rural areas, will result in a change in the long-term trend.
For example, an examination of various electrical energy forecasts in India reveals that the energy
demand with regard to population and GNP leads to a satisfactory linear regression model. The
regression model is of the form
In Y =20.74773+2.88151nxl+ 1.3695lnx2
Where,
Y =electrical energy demand in GWh, xl =population in millions, x2=GNP 10x millions.of rupees
Xl and x2 are graphical projections based on data available from planning Commission or the
concerned ministry, such as Finance or social welfare.
Single factor modelling
Single Factor Model indication may be defective because of the following reasons,
1. It is too general.
2. A sector like industry occupies a far larger share in the consumption of electricity (45%) as
compared to its contribution to GNP which is only 30 per cent. On the other hand, agriculture may
have a larger share in the GNP (50%) but a lower share in electricity consumption (28%)(1996)
3. It is known that the rate of growth of various sectors of the economy is not the same. It is,
therefore, preferable to have separate single factor models for electricity consumption for
domestic, commercial, industrial, agricultural and other uses.
Domestic
The forecast of domestic consumption by use of population forecast and other variable such as
number of domestic consumers and per capita consumption can be a good model of trend line. In
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the UK, GDP and average temperature gave a reliable model for energy forecasts. The model fitted
is of the form:
Ct =K+ 0.7167log GDP
= 0.7082 log Ct - 1 - 0.4957 log Tt
Where, K =constant (can be calculated by the regression method), Tt=average temperature over a
period t in OF, GDP =Gross domestic product.
Industrial
For industrial projection, the following two trends are important,
1. The growth in industry as represented by the index of production and growth in the sale of
electricity by the utility per unit growth iI1 industry. Two separate graphs can be drawn. For any
point of time, if the two quantities are multiplied, then the total electricity consumption for the
industrial sector can be arrived at. For example, for a forecast, say for 1998, index of production as
projected from graph = 180 (say) Electricity sold per unit of industrial index (from the graph) = 37
GWh, say (projected) Hence, total electricity sales = 180 x37GWh =6660GWh
2. The growth in number of workers employed in industry and electrical energy consumed per
worker. It should be possible to obtain data regarding industrial workers from either the Central
Statistical Organization or the Ministry of Labour. A trend graph can be established to show a
forecast of industrial workers employed in industry at any point of time. A second trend graph has
to be plotted for the electrical energy consumed per worker. From these two trend graphs, a
forecast can be made for the requirement of electrical energy for the industrial sector. For example,
for a forecast, say, for 1998,
(i) Number of industrial workers projected = 0.86 million, say
(ii) Industrial electrical energy sales per worker projected =7750kWh, say
(iii) Forecast of electrical energy sales for industrial sector
= 7750 x 0.86 GWh
=6665 GWh
Agriculture
The electricity demand for agriculture can be processed in the same manner as industrial
consumption, the independent variable being the agricultural output or added value.
Alternatively, the trend of installation of irrigation pumps can be established keeping in view
the targets fixed by the Planning Commission and perspective plan envisaged by the Ministry
of Agriculture and Irrigation. A second trend graph can be established for the consumption of
electricity per pump. From these two graphs a trend graph can be established for electricity
consumption by the agricultural sector.
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Other Sectors
Forecast for street lighting, water works, sewerage, railways, auxiliary consumption,
transmission and distribution losses, etc., can be made by establishing trend graphs based on
time series study. Alternately, these projections may be made on the basis of plan targets,
wherever deemed feasible.
In each of these sectors of energy consumption, the relevant economic Variable may be
identified and an econometric model built. For example, national income in India is a function
of energy consumption. Based on the actual past energy consumption and national income,
both the log-log and linear forms as given below gave a very good fit relation,
Y =68.90 + 0.592 E
Where, Y is national income in billion of rupees, E =Total energy consumption in million tons
of coal replacement.
The Central Electricity Authority carried out a long-term power planning exercise using
sophisticated computer models like EGEAS and ISPLAN for evolving a need based power plan
covering the time horizon of 15 years.
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QUESTIONS BANK
1) Explain the Power system planning.
2) Explain the Strategic planning, long term planning and short term planning.
3) Explain integrated resource planning with respect to power generation planning.
4) Explain the structure of power system with types of transmission and distribution networks.
5) Mention and explain the different types of power resources.
6) List and explain power system planning tools.
7) List and explain the different types of loads.
8) Explain electricity forecasting and its types.
9) Mention and explain factors affecting the load of utility in forecasting modeling.
10) List the challenges faced by power system planning engineers.
11) Explain the power system planning process. Enumerate the cyclical components of
planning.
12) Discuss different stages of preparation of Detailed Project Report (DPR) for planning of
power projects.
13) With the help of a neat diagram, explain least cost utility planning.
14) Explain different time-frames of load forecasting.
15) Explain, in detail, the trend projection method used in load forecasting. Use necessary
diagrams.
Note Questions are collected from previous years Q.P , & Model Q.P.
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UNIT-2&3: GENERATION PLANNING
V.T.U.Syllabus
Integrated power generation, co-generation / captive power, power pooling and power trading,
transmission & distribution planning, power system economics, power sector finance, financial
planning, private participation, rural electrification investment, concept of rational tariffs.
SYNOPSIS
Integrated generation planning involves centralized generation along with the distributed
generation for least cost of supply. The various options for planning of generation schemes &
their optimal analysis is given. The national electricity policies are discussed. Importance of
cogeneration is illustrated & importance of power pooling & power trading is explained.
The planning of transmission and distribution of power to the consumers is as important as
generation. About 50 per cent of the total budget needs to be spent in this sector. The voltage
level selection for transmission and distribution, and their development criteria have been
presented. The high voltage dc for power transfer between the regions and stable working of
power system is important. To save generation capacity and to reduce losses, flexible ac
transmission including advance series compensation has been found to be a more suitable option.
The development options of substations in the urban and rural area and the development of
reactive power requires proper planning for system efficiency. National power grid is necessary
for efficient and reliable operation of the power system. Rural electrification is important for
social benefits to about 70 per cent of the rural population in India. Cost-benefit analysis should
be applied to rural electrification. For rural load growth decentralized generation with growth of
agro-industries is need to be encouraged. Rational tariffs are discussed.
The investment analysis of the power project is important for decision making. About 20 per
cent of the national budget is spent on the power sector. The power industry being capital
intensive, involves capital risks and for that good bankable project reports are desirable. Private
sector participation is important for mobilization of capital and various incentives for that are
necessary. Modes of private participation and methods of bidding has been explained. The pattern
and structure of the investment needs to be risked are covered. The various methods of mobilizing
the financial resources from the state funds, from public or from the international bodies and
banks have been discussed.
UNIT-2 & 3: GENERATION PLANNING

1. INTEGRATED POWER GENERATION
1.1 INTRODUCTION
Today planners must deal with problems having three characteristics,
(i) Multiple conflicting objectives, e.g., minimizing costs, monitoring environmental impact and
maximizing reliability.
(ii) A broad range of options (including demand side options! non-conventional and traditional
generation, and transmission alternatives).
(iii) Pervasive uncertainty.
Some factors which can have a major influence on a utility are not under its control or cannot be
predicted with certainty. These are called uncertainties.
Risk is the hazard to which a utility is exposed because of uncertainty. Attributes like cost of
electricity, capital requirements, and environmental effects constitute risk. Risk as a characteristic
of decisions has two dimensions:
(i) The likelihood of making a regrettable decision,
(ii) The amount by which the decision is regrettable.
Historically there have been two general approaches to dealing with uncertainty in power
utility planning-(i) probabilistic analysis, and (ii) contingency analysis.
The first is used frequently in establishing generation reserve requirements and the second in
transmission planning and operations. Both share a common initial step: they deal with
particular uncertainties and plans. Uncertainties in the probabilistic method are modelled using
probability distributions for unit availability-capacity functions, expected loads, etc. In
generation planning applications, we use such well-known attributes as the loss of load
expectation, expected unsupplied energy, the probability distribution of emergency power
requirements and the expected cost of power production.
In transmission planning and the investigation of certain system Operating questions such as
transfer capability, probabilistic methods are ~ not widely used. Instead, most transmission
planners use contingency analysis methods to study the system under preselected normal and
emergency conditions.
1.2 PLAN FORMULATION & DISTRIBUTED POWER GENERATION
Power utilities should give increasing attention to the distributed utility concept. A distributed
utility integrates the central station power with distributed generation and demand side
management applications that are strategically located within the utility network to lower the
overall cost of serving consumers.
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This model integrates a variety of energy options into a "power generation portfolio" consisting
of conventional options as well as advanced renewable, PV technology, clean coal, waste-toenergy and nuclear technologies. The distributed utility concept has several strategic operating
advantages over the central station model.
The smaller modular nature of this design allows planning flexibility and short construction
lead time. Furthermore, transmission losses are reduced by locating the power generation
source near the consumer. This also allows greater operating flexibility through the utilization
efficiency of existing transmission and distribution assets.
Distributed power generation can avoid the need for substantial improvements in transmission
systems by better utilization of existing transmission and distribution assets.
Decentralized power generation (Captive, CCGT, Small hydro, wind, photovoltaic etc.) located
close to the loads can follow the local load, minimizing the heavy loading of the transmission
grid and saving the cost of substantial system losses for the utility or the power consumer.
The addition of central power generation source can create stability problems or load flow and
voltage problems. Line compensation can be expensive and can introduce additional losses on
the system. Distributed' power generation can actually improve the existing transmission
network capability by adding real and reactive power to the local load and the-network.
This interest in non-traditional power sources stems from the emerging reality that traditional
approaches to rural electrification are both costly and difficult. Line extensions are frequently
unreliable are characterized by low loading ratios and high losses.
The planning formulation includes three elements as shown in below figure Variety of options,
irreducible uncertainties, and objectives (attributes).
Options
The list of options available includes non-utility supply sources, conservation and demand side
management (DSM), A variety of institutional means can be used to develop the options with
scenarios. The scenarios of various options are developed by various agencies in India after
careful studies. Such agencies are-the Planning Commission, CEA, SEBs, R&D in power
Research workers / individual thinkers etc. Planning options includes
Type of Generation station plants selection, Packaged plants, DSM, Pumped hydro plants,
Existing plants renovation, reduction of T&D losses etc..
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Uncertainties
It seems impossible to eliminate uncertainty altogether. A goal is a plan which is robust or
flexible in the presence of uncertainty, perhaps because hedges against adverse outcomes have
been carefully designed.
Some of Uncertainties may be load growth, Fuel prices and water availability in hydro
stations, Consumer response to demand side options, Potential supply of non-utility generation,
Construction costs of planning options, Longevity and performance of Life extended or
converted plants, Market for off peak sales, Technological developments, Regulatory changes.
Objectives
Objectives are expressed in terms of attributes or measures of goodness. In the past, utility
economic evaluations were based on minimizing the present worth of the revenues required.
Reliability and certain other attributes were taken as constraints. When a problem has multiple
attributes, there is usually no single solution which simultaneously optimizes all of them. What
is sought is a compromise which represents a reasonable trade off among the attributes.
Some of the Attributes (measures of goodness) are Economic, Quality, Reliability, Financial,
Environmental, and Societal.
1.3 GOALS-NATIONAL ACTION PLAN
According the studies by CEA and World Bank the desirable options in India for the next 25
years are,
1. Accelerate hydro capacity development: hydro share should be at least around 40 per cent of the
whole generation for optimum operation of the system. The site locations need to be identified on a
long-term basis in advance and Detailed Project Report should be prepared as need based. Hydro
power is urgent for developing peaking capability.
2. Accelerated nuclear power development India is the only developing country in the world
having a mature nuclear technology and a long-term power generation programme based on
PHWRs using natural uranium in the first phase and FBRs or LW thorium reactor in the second
phase around 2010ADusing thorium and plutonium resources.
3. Reduction in T&D losses from about 23 per cent to 15 per cent will save the generation capacity
of about 6000MWat the rate of about 0.35 per cent reduction in T&D losses per year. About onefourth of these losses are attributed to theft of energy. The other reasons are bad design of system:
use of long LT lines, low voltage, low load density and long lines in rural areas; introduction of flat
rate for agricultural consumers etc. The losses can be reduced by executing the system
improvement schemes and by better management.
4. The energy saving potential in industry, agriculture, and in the Commercial / domestic sector has
been identified as 25, 30 and 10 per cent respectively. With a modest overall 10 percent saving
mission, about thousands MW installed capacity can be saved by energy conservation measures.
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5. Studies show that demand management in regional systems will reduce system installed capacity
requirement by about ten to twenty thousand MW by improving the regional system load factors
from 3 to 11 per cent by shifting load from peak hours to off peak hours. The country should
switch to two time zones with one hour difference, i.e..One for the eastern states and one for the
western state, to reduce the clock related peak demand in the country.
6. Renovation and modernization of existing thermal units and hydro units will add capacity to the
tune of MW capacities. The scheme will improve the plant load factors and will result in extended
life of the plants.
7. Formation and operation of the National Power Grid, according to Simulation studies will have
the advantage of an overall saving of about 10,000 MW generation capacity in reserve margin or
peaking capacity. Feasible improvement in grid discipline will contribute about 5 per cent of the
saving in installed capacity. All the five regions at present are deficit in meeting peak load
requirements, even though a substantial amount of energy resources remain unutilized at certain
time of the day/season. Generating units in one region often have to be backed down while
simultaneously there is perceptible power shortage in a neighboring region. Installation of inter
regional links (HVDC/HVAC) will improve hydro-thermal mix of combined regions and enable
transmission of surplus energy.
8. There is a lot of scope for co-generation in large industries such as sugar, textile, alcohol, paper,
petro-chemical and metallurgical works. Cogeneration potential in the country is to the order of
10,000 MW in the sugar industry. It should be mandatory for cement, steel, fertilizer and chemical
plants having load above 15MWto install captive power. The Indian Electricity (Supply) Act 1948
must be amended to make the installation of captive power by such plants mandatory. There is
need for comprehensive legislation towards compulsory co-generation and feeding into the grid for
the sake of conserving natural energy resources.
9. In the rural areas only, there is scope for wind farm generation of up to 20,000MW. Solar
photovoltaic has great potential for rural street lighting, home lighting, operating pumps etc. The
Ministry of Non-conventional Energy Sources has drawn an ambitious programme touching at
least 1,00,000 villages through photovoltaics. At 1996 about 0.25 million modules are installed in
the country and this number is likely to exceed 50 millions by the year 2020.
2. COGENERATION / CAPTIVE POWER
There is large scope for cogeneration of nearly 50000MW in India in industries such as sugar,
textile, alcohol, paper, petro-chemicals and metallurgical. It should be made mandatory for
cement, steel, aluminium, fertilizers, chemical plants and other heavy industry to install captive
power. Consumers could utilize the waste heat produced in heavy power-intensive industries
having load more than 5 MW, such as steel, aluminium plants or group of induction or arc
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furnaces: They must install cogeneration plants/captive power generation plants for the sake of
economical power generation.
A cogeneration facility produces electrical energy and other forms of useful thermal energy
(such as heat and steam) used for industrial, commercial, heating or cooling purposes through
the sequential use of energy from a single source. In the combustion of fuel, energy is released
which is used for heating or to perform some useful form of work. Not all of the energy that is
produced can be used; some of it is wasted. A cogeneration facility recaptures some of the
waste energy that otherwise would escape and puts it to useful purpose.
The modem technology is more efficient having steam pressure of minimum 45 kg/ cm2 and
high temperature up to 500c. Cogeneration can be used in almost any industry with some type
of thermal need.
Large energy consuming industries such as steel, paper, distilleries, sugar mills, textiles,
cement (dry process), chemicals and petroleum refining, led the way in building cogeneration
facilities. With the availability of small packaged cogeneration units such as for hospitals,
shopping complexes and small manufacturing firms are becoming involved in cogeneration.
To determine the feasibility of cogeneration, economic and energy factors must be considered.
Rates for purchase and sale of electrical energy are important as are fuel prices. The cost of the
equipment in relation to the energy saved is a major economic factor. Cogeneration systems are
more expensive and cost more to operate and maintain than systems that produce only thermal
energy. Degree of waste recovery, duty cycle, capital cost, fuel and electricity prices, taxes,
reliability and size are all important factors to consider in deciding on cogeneration.
There are two basic processes a cogeneration facility may utilize. The first process, and the
most common, is the "topping cycle process". The second one is called the "bottoming cycle
process".
(i) In the topping cycle process, electricity is produced first and the waste energy being recovered
is in the form of thermal energy. There are several different configurations for a topping cycle
facility but -two of the most common are: (a) A boiler produces steam that is used to power a steam turbine generator set to make electricity.
The steam required for the process is extracted from the exhaust of the turbine or from an
intermediate stage.
(b) A gas turbine or diesel engine bums fuel to spin shaft connected to a generator produce
electricity. Heat is given from the burning of fuel. This is recaptured in a waste heat recovery
boiler which Produces steam from the hot exhaust gas, or the hot exhaust is used directly in a
thermal process.
(ii)In the bottoming cycle, the thermal energy is first used in a process and the waste energy
recovered from that process is used to produce electricity. For example, a furnace is used in a
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smelting or forming process. A waste heat recovery boiler recaptures the unused energy and uses it
to produce steam to drive steam turbine generator which in turn produces electricity.
The choice of configuration facilities is dictated by the needs of the plant for electrical and
thermal energies and the nature of the fuels available. Typically, in the bottoming cycle
configuration, the thermal energy (process) steam or (process) heat is required at a very high
temperature and the attempt is to recover part of the exhaust heat from the process to generate
electricity. In contrast, the topping cycle configuration is suitable where the thermal energy
required (process steam) is at a comparatively lower temperature.
As of now, there is need for comprehensive legislation in India with regard to cogeneration
systems in order to conserve national energy resources & to encourage the cogeneration,
generation should be free of tax & government should offer best prices for the energy
production.
In this regard it is worthwhile to study the legislations measures adopted in the countries,
especially in the USA called Public Utilities Regulatory Policies Act (PURPA) to serve as
guidelines for any possible legislation.
However, in order to derive the economic benefits associated with the sale of cogenerated
power, the cogeneration system configurations being evaluated must satisfy basic criteria
identified in the legislation. To distinguish new cogeneration facilities that will provide
meaningful energy conservation from those that will be "token" facilities producing trivial
amounts of useful heat and power, the PURPA regulation sets three separate qualifying
criterion-efficiency, standard and ownership.
The operating standard requires that a new topping cycle facility must produce at least 5 per
cent of the total energy output as useful thermal energy. The efficiency standard, which is
applicable only if oil or natural gas is used, requires that the annual electric power plus half the
useful thermal energy must be at least 42.5per cent of the total natural gas and oil energy input
(on the LHV basis) except that if the thermal energy output is less than 15per cent of the total
energy output, the requirement becomes 45 per cent. For new bottoming cycle facilities, the
annual useful power output must be at least 45 per cent of the energy input of oil and. ~ used
for supplementary firing (heating of water or steam before entering the electricity generating
cycle from the thermal energy cycle).
Deciding purchase price for cogeneration
Decision on purchase price involves consideration of three costs of generation, ie..
(i) Unit cost of generation from a new power plant based on relevant conventional source (i.e.,
thermal power plants based on coal in most cases)
(ii) Unit cost of generation from the relevant conventional alternative in cases of short-supply (i.e.,
DG sets/in most cases)
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(iii) Unit cost of generation from biomass based power generation system.
Brief and simplified formulations for each are:
1. Unit cost of generation from thermal power plants
In a simplified case, this can be seen to consist of three major components-fuel costs, capital
charges and O&M charges. Fuel charges can be represented in terms of specific coal consumption
(with a multiplier to account for oil input etc.), and the other two can be represented in terms of a
percentage charge on capital investment divided by the average annual generation. A typical
correlation could be:
Unit cost of generation =1.2 x (Delivered cost of 0.70 kg of coal) + 0.2x (Capital investment/kW)
8760x (Plant Load Factor)
This is based on a specific fuel consumption of 0.70 kg of coal/kWh, other fuel costs etc., and
being 20 per cent of coal cost and capital charges (interest, depreciation) as well as O&M charges
put together being approximately 20 percent of the capital investment.
2. Unit cost of generation from DG sets
Unit cost of Generation =1.2x (delivered cost of 330cc of HSD) + 0.3 x (Capital investment /kW)
3. Unit cost of generation through biomass gasification
Unit cost of generation = Delivered cost of 1 kg of prepared through biomass biomass + Delivered
cost of 100 cc of gasification HSD + [0.2x (Delivered Cost of 330cc of HSD)]+ [0.3x (Capital
investment/kW)]
3. POWER POOLING AND TRADING

The electric power cannot be stored and power demand must equal power generation at any
time. Therefore, power pooling is an important consideration for power supply in the 21st
century.
This is the wholesale market in bulk supply, the pool, in which spot price is determined for
every half-an-hour in the national power load curve period through competitive bidding by
individual generators.
The pool itself exists as a mechanism to allow trading or sharing between power utilities and
power generators. Long-term contracts in sales and purchases of electricity are made between
participating utilities and generating companies according to a set of rules evolved.
This is supplemented by spot trading in a short-term market with prices reflecting supply and
demand on short-term basis.
In order to improve the prospects for the electricity trade, it will be necessary to formulate
commercial guidelines for wheeling of power and a rational tariff structure to encourage the
selling and buying of energy for mutual benefit. Suitable measures have also to be devised to
discourage high frequency operation of the grid.
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The settlement system in UK grid calculates the prices and payments due under the poolwheeling arrangements, while the grid operator seeks to schedule and dispatch generating
units, subject to certain technical constraints, to meet demand, including a margin for reserve.
This is done principally on the basis of a merit order which is constructed from the generators'
offers of prices and the availability of their generating units.
Generating capacity scheduled for energy in the revised unconstrained schedule receives the
Pool Purchase Price (PPP) which is a single price determined for each half hour and
comprising two elements-Systems Marginal Price (SMP) and the Capacity Element. SMP is
the price derived from the offer prices of the marginal generating sets scheduled in the
unconstrained schedule for the relevant period, the capacity element is calculated according to
Loss of Load Probability (LOLP).
The pool is a spot market which operates in real time. The tariff making for retail market takes
signal and messages obtained in pool output price system. These messages are passed to the
consumers for efficiency and load management.
To encourage the generation from renewable energy sources, the consumers are obliged to
purchase electricity from such generators under Non-Fossil Fuel Obligations. Under this
arrangement, the Public Electricity Suppliers will purchase electricity from the generators
which do not use fossil fuel for electricity production. The additional cost to be incurred will be
recovered from the consumers through the Fossil Fuel Levy.
4. TRANSMISSION AND DISTRIBUTION PLANNING

4.1 NETWORK
Transmission of electric power is one of the most important elements of electric power system
planning. The transmission system transfers bulk power from the generating plant to the areas
of consumption from which distribution systems supply to the consumers.
Sub transmission is an intermediate network between transmission and distribution that is able
to transfer & segregate the electrical power efficiently and economically in those cases where
distribution networks are not connected directly to the transmission networks
The transmission system also interconnects the electric utilities to permit power exchange
when it is of economic advantage and to assist the power utilities when their generating plants
are out of service for some reason.
The planning of ac transmission involves power flow requirements, systems stability, selection
of voltage levels, voltage and reactive power flow, conductor selection, losses, insulation
levels, selection of type of structure and rights of way. The criteria for network Planning
generally depends on such factors as availability of generation for the load demand, voltage
levels, size and configuration of systems, distance, right-of-ways, resource constraints etc.
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Practices vary from Country to country. Due to increasing demand and increasing requirement
of high reliability, the neighboring utility networks are interconnected.
In healthy systems, the networks are loaded normally up to 50-60 per cent of their designed
capacity. At present in India transmission network is mostly loaded above 90 per cent,
Operating always at alert conditions during peak period. A small any point is capable of
causing a major collapse in the grid network.
Distribution
In general, distribution of power is a part of the system between the transmission and consumer
services. In general, a typical distribution system consists of the following network.
Sub-transmission circuits in voltage ratings usually between 33 kV and 220 kV which delivers
energy to distribution substations.
The distribution substation which converts the energy to lower primary system voltage for
local distribution and usually improves facilities for voltage regulation of the primary voltage.
Primary circuits of feeders usually operating in the range of 11kV to 33 kV supplying the load
in well defined geographical areas.
The distribution transformer in rating from 10 to 2500 kVA which may be installed on poles or
on pads or in underground vaults near the consumer sites and transform the primary voltage to
the utilization voltage at usually 110to 440 volt.
Secondary circuits at utilization voltage which carry energy from the distribution transformer
along the street etc.
Service lines which deliver the energy from secondary circuits to the consumer premises by
service lines.
It is desirable to rationalize and standardize the voltage levels employed in supply systems and
to limit the number of voltage levels. Several studies showed that an optimal supply situation
would have only three voltage levels beyond the low-voltage system. These studies indicated, that
no extra intermediate voltage levels are necessary. However when loads are unevenly distributed
(spot-wise), a two-voltage level system can be very suitable. The six basic distribution systems
used by utilities are discussed below sections.
1. RADIAL
A radial system is connected to only one source of supply.
It is exposed to many interruption possibilities, the most important of which are those due to
overhead line or underground cable failure or transformer failure.
Each event may be accompanied by a long interruption. It has lower reliability. Both
components (feeder and transformer) have finite failure rates and such interruptions are
expected and statistically predictable.
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Feeder breaker reclosing or temporary faults are likely to affect sensitive loads. This system is
suitable for small loads.
2. PRIMARY LOOP
A great improvement over a radial system is obtained by arranging a primary loop, which
provides power from two feeders.
Power flow to consumers is by way of single path at any one time from either side of the loop
depending upon the open/close status of sectionalisers and reclosers.
The loop is normally operated with the tie sectionaliser switch open. Any section of the feeder
can be isolated without interruption and primary faults are reduced in duration to the time
required to locate a fault and do the necessary switching to restore service. Each line of the
loop must have sufficient capacity to carry all the load.
The additional line exposure tends to increase the frequency of faults, but not necessarily the
number of faults per consumer. Sensitive loads are affected by reclosing under temporary fault
conditions.
Figs showing the Radial & Primary loop type of distribution systems.
Figs showing the Primary Selective & secondary selective type of distribution systems.
3. PRIMARYSELECTIVE
It uses the same basic components as in the primary loop. Each transformer can have supply
from two sources.
High voltage automatic switching is provided ahead of consumers' transformer. In the event of
loss of feeder, transfer to second feeder is automatic and the interruption duration can be
limited to two or three seconds.
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System reliability is high here. It also offers a little advantage to sensitive loads like computer
problems caused by temporary faults. This scheme is normally used for large essential or
continuous process industrial consumers.
4. SECONDARY SELECTIVE
This system uses two transformers, each from separate primary feeders and with low voltage
switching.
The load is generally divided between two LT buses with both transformers continuously
energized. The tie switch on secondary tie bus is normally open and is interlocked with
secondary feeder switches.
This system is commonly used for industrial plants and institutions like hospitals.
Primary operational switching is eliminated. Duplicate transformer virtually eliminate the
possibility of a long interruption due to failure. Each transformer and feeder must have
sufficient capacity to supply the entire load.
Transfer is automatic upon loss of voltage on either feeder with static switching equipment.
Sensitive equipment can be effectively served. Reliability is better than in the primary selective
system because of additional redundancy of transformers.
5. SPOT NETWORK
Maximum services reliability and operating flexibility for most loads are obtained by use of the
network using two or more transformer units in parallel.
The low voltage bus (spot network bus) is continuously energized by all units operating in
parallel.
Automatic disconnection of any unit is obtained by sensitive reverse power relays in the
protection. If there is a fault in one feeder, it is isolated by the network protection on that
feeder.
Maintenance switching of primary feeders can be done without consumer interruption. Spot
networks are used generally in metropolitan high-load density areas, for large continuous
process industries and essential services loads such as water works etc.
6. GRID NETWORK
Grid networks provide maximum reliability and operating flexibility.
These networks are the most economical and effective methods to serve the high density loads
in metropolitan cities. The network grid is simultaneously supplied from several feeders.
In grid network, no consumer outage is caused by switching off primary feeder for scheduled
maintenance. Voltage regulation is improved since power flow to the consumers is through
several transformers operating in parallel.
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The grid can handle abrupt load changes and disturbances associated with large motor starting
without severe voltage dips or surges. A strong grid network is sufficiently stiff and a fault on
one unit does not disrupt voltage outside of sensitive load tolerance limits.
Figs showing the spot & grid network type of distribution systems.
4.2 HIGH VOLTAGE TRANSMISSION
The sources of hydro and thermal power are often situated far away from the load centres. This
necessitates transfer of power from one area to another over long distance, on the other hand
increasing requirement of bulk power transfer over long distances has resulted in the adoption of
higher voltages of ac transmission all over the world.
The policy of generating power at pit heads having high ash content and transmitting bulk
power to load centres, even across long distances, has found favour for economic and ecological
reasons. The voltage level at which power is to be transmitted depends primarily on the quantity of
power to be transmitted and the distance over which it is to be transmitted. An approximate
relation for power handling capacity is given as P =
0.5V 2
.
XD
Where P is the total power in megawatts, V is the line to line voltage in kV, D is the distance in
kilometer and X is reactance in ohm/km (X=2fL) where f is the frequency of ac supply, L is
inductance which is an inertial property of an ac circuit. The transmission loss PL is given by PL =
53.6 r
. Where r is resistance in ohms / km. Typical values are given in below table.
X
Transmission line losses
Voltage kV
Reactance X ohmslkm
Resistance r ohmslkm
Percentage loss
400
0.327
0.031
5.12
800
0.272
0.0136
2.7
1000
0.231
0.0036
0.85
1200
0.231
0.0027
0.64
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Observations,
The capital cot per MW-km decreases with higher voltage.
One 800 kV line can normally carry as much power as four 400 kV circuits for equal distance
of transmission.
One 1200 kV circuit can carry the power of three 800 kV circuits and twelve 400 kV circuits
for the same transmission distance.
In comparison to the percentage power loss at 400 kV, if the same power is transmitted at 800
kV, the line losses are reduced to one-tenth.
There is an overall power shortage in the country. There are pockets of surplus but the same
cannot be transferred to distance deficit because of the absence of transmission links.
Experience has shown that transmission links will have to be asynchronous HVDC/back-toback links as the frequency of the connecting system widely differs and ac mode of connection
is practically impossible.
4.2.1
HVDC Transmission
High voltage DC (HVDC) Transmission system consists of three basic parts: 1) converter
station to convert AC to DC 2) transmission line 3) second converter station to convert back to
AC. HVDC transmission systems can be configured in many ways on the basis of cost,
flexibility, and operational requirements.
The simplest one is the back-to-back interconnection, and it has two converters on the same
site and there is no transmission line. This type of connection is used as an inter tie between
two different AC transmission systems.
The mono-polar link connects two converter stations by a single conductor line of usually
negative polarity and earth or sea is used as a returned path. The most common HVDC link is
bipolar, where two converter stations are connected by bipolar () conductors and each
conductor has its own ground return. The third link is homopolar link which is having two or
more conductors having the same polarity & always operated with ground or metallic return
the multi-terminal HVDC transmission systems have more than two converter stations, which
could be connected is series or parallel.
Block diagram of monopole system

with earth as return.
Block diagram of bipolar system

that also has an earth return.
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Schematic diagram of HVDC back to back converter station.
CONFIGURATION OF HVDC TRANSMISSION SYSTEM
Block diagram showing the HVDC system configuration.
The most relevant components that comprise a HVDC system are the following
The Thyristor or IGBT (Insulated Gate Bipolar Transistor) valves make the Conversion from
AC to DC and thus are the main component of any HVDC converter. Each single valve
consists of a certain amount of series connected thyristors (or IGBTs) with their auxiliary
circuit, conventional thyristor valves are replaced by IGBT & GTO valves and these are
actually called as VSC (voltage source converters) of HVDC.
The Converter Transformers transform the voltage level of the AC busbar to the required entry
voltage level of the converter.
The Smoothing reactor, which main functions are
(i) Prevention of the intermittent current
(ii) Limitation of the DC fault currents
(iii)Prevention of resonance in the DC circuits
The Harmonic Filters, on the AC side of a HVDC converter station, which have two main
duties
(i) To absorb harmonic currents generated by the HVDC converter
(ii) To supply reactive power, Also DC filter circuits have to be used. Besides Active
Harmonic filters can be a supplement to passive filters due to their better performance.
Surge arresters which main task is to protect the equipment of over-voltages
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DC Transmission circuit, which include DC Transmission line, cable, high speed DC switches
and earth electrode. Converter stations require reactive power supply that is depending upon
the active power loading fortunately part of this is fulfilled by active filters. In addition static
VAR compensators & shunt capacitors are provided.
Control and Protection. - Control of firing angle is accomplished by the optic fiber based
hardware circuitry; power transmitted over the dc link is always controlled. Converter stations
are controlled in such a way that a rectifier end controls the current while the inverter end
controls the voltage allowing the link to maintain the constant power.
In HVDC there is a need to convert power from ac to dc and reconvert it to ac to the end.
HVDC transmission brings with it a considerable cost. Transmission cost in HVDC, on the other
hand, is lower than that in UHVAC There is, therefore, a minimum distance or break-even distance
beyond which HVDC may be economical. A diagram representing the cost with distance for both
DC and AC transmission is given below
Investment
Cost
In Rupees
Graph of cost along with losses as a function of distance for HVAC &HVDC.
Situation promoting for HVDC in India are
The surplus and short regions during peak and off-peak periods of various regions are
identified. Based on these exercises, inter-regional ties are planned to interconnect the regions
at suitable points for transport of surplus energy.
There is wide variation in the surplus/deficit generation conditions in the five regions in India
resulting in mismatch between the frequencies and operating voltages of these regions, making
it almost impossible to run these regions in synchronism.
There is a need to have controlled power flow between these regions.
An asynchronous HVDC link would further enhance the stability of these regions due to its
ability to control the tie line power flows fast.
With an ac tie, the disturbances in one region may be transmitted to other regions, thereby
increasing the chances of a wider effect.
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Asynchronous links, being electronically controlled, can reduce the spinning reserves required
to a great extent. The total MW spinning reserve requirement therefore, can be maintained at a
national level rather than at the individual regional level in case of national grid.
With the HYDC inter-regional links, the overall stability of both the regions shall increase. Due
to this, the power carrying capability of some of the ac lines shall increase and the d1ances of
state/region level grid collapse shall also be reduced. In case of an unavoidable grid collapse,
the links shall reduce the region's restart time by transmission of large amount of power at the
earliest from the adjoining region. The total saving on this account itself are considered to be
adequate to justify these links.
The HVDC links can operate with different frequencies on either sIde, thereby allowing a
region to serve a greater number of consumers by operating at a relatively lower frequency. In
case of ac links, however, considerably power may flow over the link only to equalize the
frequency of the two regions.
In case of a synchronous tie between the regions, the flow on the tie line behaves in an
uncontrolled manner and is mainly dependent upon the two region's load-generation balance.
Because of strong dependence of loads on the system's voltage and frequency, the tie line flow
shall also be influenced by the variations in the voltage/frequency of these regions. In order to
properly control the flow on the tie line and limit them below the capacity of the line under
such circumstances, it becomes necessary to keep some generating capacity in reserve in both
the regions so as to take care of the relatively fast variations in the load/generation balance
and/or voltage, frequency variations. This would also mean loss in revenue and underutilization
of the generating capacity and thus will defeat the very purpose of connecting the two regions.
The asynchronous links can control the power flow in any direction irrespective of the
voltage/frequency conditions on either side. This feature may be helpful in solving some power
issues.
Within its capability, the HVDC links can be used to control the frequency of a region to a
given target value. It is concluded that HVDC inter-regional link facilitate optimal utilization
of the existing resources, provides reliable and secure supply to some important load centre,
and supply a share of power from generating stations in one region to another.
There are, however, some major technical advantages of an HVDC system which may be
summarized as follows
Power flow can be controlled independent of system operating conditions.
Systems operating at different frequencies may be interlinked.
It helps to improve stability.
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The most common reasons for HVDC system are

lower line costs- A dc line with two conductors is more economical to build than an ac with
three conductors.
lower losses- With HYDC there is no reactive power transmitted. This is one of the reasons
why the line losses are lower with dc than with ac. The losses in the converter terminals are
approximately 1-1.5 percent of the transmitted power, which is low compared with the line
losses.
Asynchronous connection- Sometimes it may be impossible to connect two ac networks due
to stability reasons or because they operate at different ac frequencies. In such cases the
solution is HVDC since it is an asynchronous connection.
Controllability- Today's advanced semiconductor technology, utilized both in power thyristors
and microprocessors for the control system, has yielded a substantial improvement in reliability
and controllability of HVDC system. In an ac system it is not possible to control the power
flow while in an HVDC system, the power flow can be controlled with regard to both amount
and direction very quickly. This characteristic has often been used to stabilize different all
networks.
HVDC offers several advantages
DC cables are cheaper compared to ac.
One single cable can take up to 500-1000MW.
A dc cable does not contribute to the short-circuit power.
Costly and difficult overhead line paths in a city centre can be avoided by cabling.
It ensures better conductor utilization.
It provides for three times the capacity, using the same conductors.
It has an even higher capacity with new towers in an existing right-of-way.
It makes it possible to control reactive power in a city centre.
It ensures increased ac system stability.
It provides for increased power capacity in parallel ac lines.
It provides for controlled power flow.
It provides for double circuit performance of a converted single circuit ac line.
There is higher power without increased short-circuit power.
There is better control of the line load factor.
Disadvantages of HVDC transmission system are
Costly terminal equipments converters are expensive, converters require much reactive
power & generate harmonics so they require filters, and converters have little overload
capability.
Inability to use the transformers to change the voltage levels.
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The difficulty of breaking the D.C currents which results in high cost of D.C breakers.
Generation of harmonics which require A.C & D.C filters, adding to the cost of converter
stations.
Difficult for maintenance, need skilled technicians for operating.
Application of HVDC transmission system
Control & stabilization of power flows in A.C ties in an integrated power system.
For the cables crossing bodies of water wider than 20ml (32km).
For interconnecting the A.C systems having different frequencies or where asynchronous
operation is desired.
For transmitting the large amount of power over the long distances by overhead lines.
In congested urban areas or elsewhere where it is difficult to acquire right of way for overhead
lines & where the lengths involved make the A.C cable impracticable.
Increasing the capacity of existing A.C. transmission by conversion to D.C transmission. New
transmission rights-of-way may be impossible to obtain. Existing overhead A.C transmission
lines if upgraded to or overbuilt with D.C. transmission can substantially increase the power
transfer capability on the existing right-of-way.
4.2.2 FLEXIBLE AC TRANSMISSION SYSTEM (FACTS)
For economic reasons electric power systems are interconnected within utilities and interutilities.
The purpose of transmission network is to pool power plants and load centres in order to
minimize the number of power generation sources needed, taking advantage of diversity of
loads, availability, of sources and in order to supply the load at required reliability.
As power transfers grow, the power system becomes increasingly more complex to operate and
the system can become more insecure with large power flows with inadequate control and
inability to utilize the full potential of transmission interconnections. The concept of Flexible
AC
Transmission System has great potential, using thyristor based controllers to offer the utilities
the ability to control power flows on their transmission lines, allow secure loading of
transmission lines to their full thermal capacity.
The relevant technologies based on thyristor based controls are-SSR" damping, static VAr
compensator (SVC), series capacitor, phase angle regulator, static condenser, dynamic load
brake, dynamic voltage limiter, series reactor, fault current limiter, circuit breaker, load tap
changer, and ferro resonance damper.
Static VAr compensators, fast controllable phase shifters, and series compensation, all play a
significant role in FACTS. Although the equipment which comes under this heading has
existed for many years, what is new about FACTS is that these power components and their
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special features are systematically evaluated with the goal of increasing the power transfer
limits of ac networks.
An important property of the FACTS components is their ability to control the power flow,
both active and reactive power flows or the power in feed to a certain node. The Control can
be used either to regulate the power flows in the steady state, or to damp power swings
dynamically.
Advanced series compensation(ASC)
Advanced Series Compensation is a way of further improving the efficiency of the
transmission line or network by reducing power losses and so saving energy. By making better
use of existing line capacity, the need for additional transmission lines could be obviated and in
extreme cases, the need for extra generating capacity curtailed.
The first three-phase ASC system has been operational since Autumn 1992 at the Kayenta
substation in northeast Arizona, USA. By providing direct control of transmission line
impedance, this scheme offers many advantages over conventional fixed series-capacitors
installations.
Advanced Series Compensation combines high-power electronics devices along with these
essentially comprises a reactor (an inductive reactance) in parallel with a series capacitor. The
net series compensation 'seen by the power transmission line is the combined impedance of
the reactor. In varying the impedance of the reactor, the total impedance of the compensation
circuit changes. The ASC system regulates the current flowing through the reactor and so the
current along the transmission line. It can control the apparent line impedance over a wide
range by varying the firing angle of the thyristor. This allows ASC to operated not just as a
series capacitor but also as a series reactor which in turn allows changes in transmission line
impedance to be readily made.
The main features offered by such a system are-direct and continuous flexible control of the
transmission line compensation levels, increased stability, reduction of short-circuit current
achieved by changing from a controlled capacitive reactance to a controlled inductive
reactance, better overload flexibility by adapting the thyristor firing angle to the accumulated
capacitor and arrester energy, improved protection of series capacitor banks, reduction of dc
offset voltage, sub-synchronous resonance mitigation, and power swing damping.
4.2.3. Underground transmission
Underground cables or underwater (submarine) cables are used for electrical energy transport
where overhead construction is impracticable, unsafe, costly or environmentally unacceptable.
The main applications are in urban areas, where there are long water crossings, across islands,
or where overhead rights-of-way are unavailable or not possible or very costly, or where local
laws dictate underground cabling such as in airport approaches, stations and substation exists,
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areas of unusual scenic value or with extreme vulnerability to damage by natural forces or
vandalism.
There are many systems of cables depending upon the voltage, power requirements, length,
cost and reliability considerations. Underground transmission cables up to 800 kV are in
operation.
Some common cable systems are-high pressure oil filled (typical voltage level 132-500 kV),
low pressure oil filled (110-132 kV), extruded dielectric cable (132 kV to 400 kV), compressed
gas system (up to 800 kV). Up to the 66 kV level, solid cables are used such as paper
impregnated insulated cables, plastic insulated (PE, PVC etc.) cables, and rubber insulated
cables.
4.2.4 Development of transmission voltage levels
In order to develop strong regional systems, it is important to strengthen the existing 400 kV
network with 800kV ac and HVDC links and use such modem techniques as series
compensation, static VAr systems, and phase shifting transformers with a possible future
application of flexible ac transmission systems.
In order to supply the growing demand for power, there has been a continuing trend towards
adoption of higher voltages for transmission of power economically & also to reduce the losses
throughout the world.
4.2.5 Selection of voltage levels
The economy of electrical power supply is determined essentially by the selection of the
voltages in the distribution and transmission systems.
Fundamental considerations that determine the voltages to be used in the medium high, and
high voltage ranges and also for their stepping are-load density, transmission distance and
transmission power on the voltage to be selected.
The steady growth of loads also makes it necessary that consideration be given to the load
development which may not only vary with respect to the time but also geographically.
Matching of the voltages to the standardized values is also important. Voltage application
range is given in table
Voltage application range
Voltage
Designation
<1Kv
Low Voltage (LV)
1-36kv
36-150kV
Range of application
Distribution systems for feeding low voltage consumers such

as houses, small workshops, commercial shops, hotels etc.
Medium Voltage
Distribution systems for feeding low voltage systems &
(MV)
large consumers such as shopping complexes, schools,
hospitals, industrial plants, administration buildings etc.
High Voltage (HV)
Distribution & sub transmission systems for feeding the
medium voltage system, for cities, large industrial works,
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railways, main substations.

>150kV
Extra High Voltage
Transmission systems for large blocks of power & for
(EHV)
interconnected system operation.
In the selection of extra high voltages, other special problems arise in the dimensioning of the
insulation and design of the overhead lines.
At present high voltages, the influence of the insulation on the costs may be of great
importance, particularly where there is danger of contamination or other special climatic
conditions such as mountain climate. Recommendations are made for the dimensioning of the
insulation, these being based on the applicable standards.
Also important is the economical design of high voltage overhead lines, since in long distance
transmission lines, the proportion of the line costs to the total costs is very high.
4.3 PLANNING CRITERIA
4.3.1 Strategy for transmission expansion
While SEBs are responsible for providing the transmission systems for their respective state
grids, POWERGRID has been entrusted with the responsibility for laying transmission system
network for facilitating
transfer of power generated by the central sector to various
constituents as also for laying necessary transmission network for augmentation/strengthening

of regional power grids and formation of national power grid to facilitate transfer of power not
only within a region but also across various regions in the country.
With the latest amendment (1997-ordinance) to the Indian Electricity Act 1910and the
Electricity Supply Act 1948, private transmission companies can be entrusted for developing
any transmission system.
Keeping in view long- and medium-term perspective planning, the transmission system needs
to be evolved taking an integrated approach for evacuating power from different generating
sources, irrespective of their ownership, and delivering it to the beneficiaries over an optimally
designed power transmission system with reliability, security and economy.
In other words, the state/regional power systems have to be planned in such a manner that the
power received from all the power plants can be transmitted without constraints to different
beneficiaries as per their allocated shares, maintaining a reasonably good voltage profile,
stability conditions and redundancy criteria.
The power system so planned should also integrate well within the region. Hence, the
requirement of individual states as well as the possibilities of inter-state and inter regional
exchanges must be kept in mind during the planning exercises.
Regional grids are developed for substantial inter-regional transfers and limited cross country
exchanges can be attached to achieve optimized utilization of available generation and provide
high standard of supply to beneficiaries with reliability and at reasonable cost.
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4.3.2 Thermal loading

Thermal loadings are generally decided by design practice on the basis of ambient temperature
and maximum permissible conductor temperature.
In India, the ambient temperatures obtained in the various parts of the country are different and
vary considerably during the various seasons of the year. It is, therefore, difficult to specify
conductor loadings based on uniform ambient temperature conditions.
The maximum permissible line loading with respect to standard sizes of ACSR employed in
220 kV and 400 kV lines for ambient temperature of 40C, 45C, 48C and 5OC, are
different.
For the purpose of system planning studies, the line loadings should not exceed the values
corresponding to appropriate ambient temperature conditions and maximum permissible
conductor temperature, or those dictated by the stability criterion, whichever are lower.
4.3.3 Dispatchability
Loading & Outage Capability
The transmission system should be planned on the basis of regional self-sufficiency. Wherever.
inter-regional power transfer are allowed, the system should also be suitable for specific
quantum of assistance from neighbouring regions. The maximum power angular separation
between any two important buses should not normally exceed 40 for load flow under steady
state conditions.
The transmission system should be capable of transmitting, the states shares from the central
sector common projects.
The transmission system should be planned to withstand outage of two circuits of 220 kV
system, or one circuit of 400 kV or higher voltage system, or one pole of HYDC bipole, or an
EHV transformer without the necessity of load shedding or rescheduling of generation.
The transmission system should be planned to ensure full transferring of
the maximum
possible output from generating stations even under forced outage of a transmission outlet.
There should be sufficient redundancy to ensure that there is no transmission constraint on
rescheduling generation under the conditions of outage in any of the generating plants.
Reactive compensation should be provided as far as possible in lower voltage systems with a
view to meet the reactive power requirement of loads close to load points.
4.3.4 Security
The system should be able to survive without losing synchronism, the single contingency of
single line-to-ground fault, or line-to-line fault close to a bus on a trunk transmission link
cleared by three pole opening of the circuit breakers on either end within 100 ms from the
initiation of fault, or a fault in HVDC converter station equipment resulting in a permanent loss
of one of the poles of an HVDC bipole.
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The above criterion is proposed since single-line-to-ground (SLG) or line-to-line (LLG) faults
are more common and frequent as compared to the other types. Three-phase clearance has been
adopted since it is more commonly practiced as compared to single-pole clearance. In the case
of 800 kV system, the SLG fault for transient stability with a fault clearance time of 5 cycles
(100 ms for 50 cycle systems) is to be adopted. The same criterion for security should be
adopted with respect to the 800 kV system.
In the event of a double contingency of single-line-to-ground fault or line-to-line fault with the
primary protection failing to operate and fault being cleared by second zone protection, the
system should return to stable operation after resorting to load shedding. In the event of an
extreme contingency of outage of two circuits emanating from same generating station, it
should be possible to revert to stable operation with protection being coordinated to island the
zones.
4.3.5 Right-Of-Way
In view of increasing difficulty in obtaining right-of-way for transmission lines, and on account
of problems associated with the clearance for routing transmission lines in forest area, transmission
lines should be constructed as double circuit or multi-circuit lines wherever feasible.
4.3.6 Economic Evaluation
Economic evaluation should take into account the cost of the total system including terminal
equipment. The cost of energy should be based on marginal cost.
4.3.7 Planning of distribution networks
The basic parameters considered are-load density, expected load growth, voltage level and
circuit
configuration, number of feeding points etc.
In order to select the most advantageous investments from different alternatives, cost/benefit
studies must be carried out taking into account system voltage, system losses, estimated non
distributed energy due to system faults, annual maintenance costs, safety etc., for one or two
years. Suitable account should be taken of future long-term period unknown factor by some
form of sensitivity analysis.
The existing distribution system network arrangement is a natural starting point for planning
for future developments. Good system planning requires sound knowledge of the existing
system to provide a firm base on which to assess the projects for future network development
from the technical and economic point of view.
At HV (subtransmission) level, the technical studies can be complex. HV systems are
introduced to deal with longer distances and increased power requirements. The use of a single
higher voltage system of 33-220 kV to supply local LV networks directly would lead to
unacceptably high costs and amenity problems. Thus, another voltage level MV (primary
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level), is used to interlink, i.e., 22 kV or 11 kV. Material & construction costs of 11-22 kV over
head lines are only slightly higher than those for a 400 V line of the same length, but are
approximately one-tenth the costs of a 110 kV line. It is this large cost differential which
economically justifies the inclusion of an MV network between the EHV, HV and LV systems,
even when the costs of HV/MV substations have been taken into account. Medium voltage
system also provides a convenient voltage for connecting substantial industrial loads, large
buildings or office blocks. The decision for selecting the voltage level must be based on longterm studies.
4.3.8 Substation development
For planning the density and size of substations in the power system, the following technical
and economic aspects are considered-load density (e.g., MW per km2), load growth, utilization
of transformer capacity, maximum fault levels, flexibility and siting.
Normally, the city areas have higher load densities and the size of substations will be higher
than in rural areas. This is mainly because of the fact that the cost of distributing the power in
general is lower when the load density is high.
The size and number or density of substations is determined by technical-economic analysis.
The average distance between substation, It is given by
1/2
TotalAreas
NumberofSubstations
Due to the scarcity of available sites and other local environmental aspects, it may be
impossible to respect the optimal technical-economic solutions alone. Nevertheless, these
solutions should be looked for so that the cost consequences are known and the optimum
conditions may be approached as near as possible.
From the economic point of view the optimal successive transformer sizes, between the same
voltage levels, have a ratio of about 1.5 to 2.5. This means, in practical situations, that new
sizes should be envisaged when the loads in substations have been increased by that factor.
Load density is a very important determinant of the size of substations. Very big substations
can be attractive when the density is high as an increase in demand in the long term is very
probable otherwise smaller sizes are preferable.
Now SF6technologies make it possible to put HV substations inside buildings or underground.
Such substations closer to the load centres are physically smaller and often simpler designed.
Modem protection schemes allow a more complex operation to maximize security of supply.
This also favors simpler substations.
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substation bus bar schemes

The arrangement of bus bar and circuit breakers plays an important part in determining the
efficiency of power transmission and distribution system. The type of arrangement to be adopted is
determined by the degree of flexibility of operation, immunity from total shutdown, importance
and nature of loads, security, capital cost and minimization of fault level by way of
sectionalization, maintenance, area of extension, land area etc. The most prevalent bus bar
arrangements are given below
1. Single Bus System
It is the cheapest arrangement and is used for small substations where power outage for short
periods for maintenance and repairs is permissible.
The disadvantage of the system is that in case of contingency the whole system has to be dosed
down.
Improvement to this is possible by sectionalizing the bus by installing isolating switches or a
circuit breaker so that different sections can be operated independently.
2. Duplicate Bus System
This arrangement is commonly used in large systems with many feeders.
There is a coupling switch or circuit breaker between the two bus bars.
Isolators and circuit breakers are connected so as to have the power flow without interruption.
This is a comparatively more expensive arrangement.
Feeder breaker maintenance is difficult without interruption of supply of feeder.
3. Transfer Bus Arrangement
With this arrangement line circuit breakers can be taken out for maintenance and repairs without
interruption of supply.
This is a very costly scheme but is more flexible.
4. Breaker and A Half System
The arrangement is suitable for systems where power outage is not permissible for any reason
whatsoever.
The supply has to be kept uninterrupted even in case of bus fault and the bus can be taken out
for
maintenance. The cost and the area required are 90 percent and 50 percent as compared to main
bus and transfer breaker schemes.
4.3.9 Reactive power planning
The planning criteria for reactive power compensation may be adopted as follows,
Reactive power should not be transported over long distances.
In normal intact network situations reactive power should be produced and consumed locally.
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The network should be operated at upper voltage limits in high load conditions to achieve
higher stability margins and to reduce active and reactive power transmission losses.
The amount of reactive power reserves should be sufficient to ensure acceptable transmission
capacities in the network during system disturbance conditions.
There are two important aspects which distinguish reactive power planning from the
planning of active power,
Transmission of reactive power over long distances will have both active and reactive power
losses and voltage drop. Compensation to maintain reactive power balance in an area must
consequently be provided in the vicinity. Reactive power is in this respect a more local
problem than active power.
Investment cost related to reactive power reach only a few per cent of Corresponding values
for active power transmission equipment. Furthermore, reactive power installations have a
much shorter construction time and very less influence on the environment.
Reactive power sources
Reactive power is generated or absorbed by all major components of a power systemgenerators; transformers, HVDC converters, lines, loads; and reactive power compensating
devices.
Reactive power compensation devices such as capacitors, reactors, synchronous condensers
etc., are installed to improve reactive power balance, voltage control, and system stability
including damping of power oscillations.
The future UHV and EHV transmission development will not see much progress of shunt
reactors and shunt capacitors and synchronous condensers. Static VAr compensators, based on
power electronics will have large development in this area for transmission level.
Series Compensation
For long lines, series compensation is used to increase the permissible loading which is limited
mainly by the transient stability. The following factors should be considered in the selection of
series compensation requirements
steady state and transient system stability
protection of series capacitors
sub synchronous resonance.
Shunt Compensation
Selection of shunt compensation requirement for EHV & UHV lines requires consideration of
the following factors.
steady state over voltages during light load conditions
dynamic over voltages
switching over voltages
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resonance voltages from parallel lines.

Capacitor Planning
The low voltage nodes can be raised within operating limits by increasing the generation bus
voltage beyond the usual upper steady state limits. The system voltage is allowed to operate
above the normal limit for low load since the extra reactive power intake can jeopardize the
generator stability and shunting. To meet the contingency, some of the system nodes may be
operating at voltage experienced during the low load period. The bus voltage raise produces an
effect similar to the transformer tap variation.
Optimum capacitors can be decided considering both the transformers tap setting and the
variable voltage ceiling limit.
Criteria for planning static VAr system
A static VAr compensator (SVC) is an automatically controlled supply of VArs. The supply of
VArs is regulated by the thyristor switching off reactors or capacitors in shunt with the
transmission or distribution system. The result is that the voltage of the bus at the location of
the SVC will be controlled. The response time of an SVC is in the range of a few cycles and
can be switched as often as the control allows.
Rapidly varying loads cause voltage fluctuations in the transmission or distribution system. Arc
furnaces, welders, steel rolling mills, induction furnaces, cement mills, large pumps and
compressors, mining shovels, wood choppers, and electric traction loads are examples of
rapidly varying loads. Many times the industry with these loads does not complain, but the
other electricity-using consumers in the area do complain. SVCs are fast enough to stabilize
voltage for the types of applications listed above and reduce or eliminate the consumer
complaints of voltage fluctuations.
Weak transmission and distribution systems with varying loads are one application which
could be served by an SVCs.
If the load is constant, switched capacitors can usually supply the VArs for the load and the
line losses, thereby reducing current in the line, improving the power factor and thus regulating
the voltage. If the load varies and the switched banks cannot be dispatched rapidly enough to
meet the load, then an SVC maybe required.
4.3.10 Grid Formulation
The creation of the Power Grid Corporation of India (PGCI) would provide the necessary
impetus for establishing efficient power system networks with the ultimate objective of evolving a
national power grid by the year AD 2000.In a regime of shortages, the grid management
philosophy has to be different from the advanced countries where huge reserves are available
enabling considerable flexibility in economic load dispatch.
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Grid operation
The major problems encountered by the five regional load dispatch centres in the five region in
the integrated operation of the power grids relate to inadequate capacity, inadequacies in the
transmission and distribution system, grid indiscipline leading to indiscriminate and heavy over
drawls by the constituents, wide frequency fluctuations, reluctance to back down generation,
abnormal voltage levels, commercial disputes, inadequacy of load dispatch and communication
facilities.
The steps to solve these problems are discussed below,
Accelerating the construction of power generating stations & converting nowadays Inadequate
generating capacity in to adequate capacity.
perspective plans for transmission and distribution system including HVDC have to be planned
for inter-regional power exchanges.
Managing the load for avoiding Frequency and voltage fluctuations.
Optimizing the generating stations for Economic power generation.
Proper hydro-thermal mix is required for evolving the most efficient
and economical system for generation of power.
4.3.11 Compact Lines
Up gradation of existing lines and substations
Several alternative approaches are available to increase the capability of existing lines. The
most obvious method of increasing the capability of an existing line is to increase the operating
voltage. This method can sometimes be accomplished by modifying existing structures on a line,
but a large increase in voltage might require replacement of structures, which is usually still more
economical and practical than trying to obtain right-of-way for a new transmission line.
Some commonly used practices are,
use of aluminum alloy conductors which have low weight to strength ratio for minimization of
sag or tension as comparison to ACSR.
use of V-string assembly or polymer insulators to prevent conductor swing and thereby
maintain required electrical clearness.
Introduction of additional panel in tower structure suitably to increase ground clearance.
Replacement of X-arm by special shape arms. Reduction in the number of circuits (from
double circuit to single circuit) for upgrading system voltage followed by reconductoring.
Reinforcing structure legs through attachment of additional steel sections with the existing leg
posts.
Another method of making more efficient use of right-of-way involves" compaction" of
transmission lines. By restricting the movement of the conductors at the structure, right-of-way
width can be reduced.
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Series compensation is another way to increase power-transfer capability of ac transmission

lines. Economic benefits of adding series compensation to long transmission lines are realized
by allowing reliable operation of the system closer to be line's thermal limit. An advanced
series compensation (ASC) scheme can be used to evaluate benefits of combining conventional
fixed series capacitors with thyristor-controlled reactors and provide direct dynamic control of
a transmission line's impedance
With the increasing requests for wheeling and transmission access transmission engineers will
be challenged more and more to provide maximum capability on existing lines and to design
new lines making the most efficient (optimum) use of right-of-way with the lowest electric and
magnetic fields possible. It is feasible to upgrade any existing 11kV line to 33 kV line or 33 kV
lines to 66 or 132kV lines as compact line.
It will be advantageous to change the delta formation of the conductors to a horizontal (or near
horizontal) formation. This can be achieved by fitting a 33 kV "V" type cross arm to the
existing 11kV pole.
Load leveling in time and area domains is effective for improving the utilization factor of
power utilities network.
Uprating/upgrading of transmission system is possible due to innovative approach, to improve
transmission capacity such as compaction, FACTS, use of AAAC, use of polymer insulators
and insulated X-arms, reduction of air clearances and angle of swings, and deploying Zno
lightning arresters.
The dimensions of a transmission line can be compacted by restraining the movement of the
conductor at the point of attachment to the insulators by certain arrangements like V string,
Horizontal posts, Strut suspension combination, Horizontal V etc. and by installing ZnO
arresters.
Multi-circuit lines One solution to the increasing pressure for mere compact right -of-way is
to restring existing low-voltage lines onto new towers with new high voltage circuits.
5 & 6. POWER SYSTEM ECONOMICS & POWER SECTOR FINANCE
About 20 per cent of the national plan budget is spent on the electric power sector.
Even ignoring possible inflation and cost overruns, the power sector project investment- needs
equal 2.5 per cent of the GDP.
Much of this additional capacity will come from coal-fired plants, especially in China and
India. But there will also be substantial additional capacity in the amount of hydroelectricity
and gas-fired capacity.
According to estimates, the annual costs to industry in India due to electricity shortages are
currently one to three percent of the GDP.
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It will be impossible for the public sector to make the necessary investment to bridge the gap
between the demand and supply of electricity. The increasing role of the private sector in
electric power sector has three aspects-mobilization of private capital for power development,
development of new sources of power generation and improved economic efficiency. Three
main points make project finance attractive - (i) Risk Sharing, (Ii) Improvement of Balance
Sheet, (iii) Taxation Advantages.
7. FINANCIAL PLANNING
Investment requirement of the power sector has increased exponentially over the years and,
therefore, a need was left to mobilize resources to meet this huge requirement by way of
foreign assistance, private capital, public borrowings and internal resource generation, to
reduce the financial burden on the public.
The state electricity boards and the central sector corporation are expected to generate at least
20 per cent of their total investment as internal resources.
The capital structure of the state electricity board is built up with loans from the state
governments, financial institutions like banks, LIC, PFC, REC etc. and market borrowing.
They are also expected to generate internal resources from their statutory earnings after
meeting the liabilities of operating expenditure, interest on loans, capital-and depreciation.
The negative internal resources indicate losses incurred by SEBs due to lack of rational tariff
and other reasons.
Power being the basic infrastructure required for sustainable economic development, cannot be
ignored even in such a situation and ways and means will have to be found to mobilize
finances for funding the new schemes.
The capital finance debt and/or equity is required for fixed capital (long term) for land,
building, machinery, materials, construction etc. and working capital (short term) for raw
material such as fuel for two months etc. Working capital has highest interest rates.
Competitive financial markets are emerging. The innovative approach by various financial
institutions has made funding a complicated process.
The broad options available for power sector finance are as follows,
(i) Issue of bonds by the central corporations, electricity boards,
(ii) Internal resources generation by utilities,
(iii) Subscriptions of shares/debentures from public,
(iv) Loans from power finance corporation (PFC),
(v) Promoters money,
(vi) State plan resources for state electricity boards,
(vii) New budgetary support from the government of India,
(viii) Joint sector participation between central and state governments,
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(ix) Joint ventures between public and private sectors,.

(x) Bilateral assistance on selective basis in terms of grant, equity and loans,
(xi) Multilateral assistance from world bank/ AOB etc., in terms of grant, equity and loans,
(xii) Loans or equity from financial institutions such as LIC, UTI, commercial banks, NABARD,
IDBI etc.
(xiii) Loans from specialized financial corporations such as IFC, ICICI, pension funds etc.
(xiv) Lease financing to power utilities.
Pattern of investment
The Rajadyksha Committee on Power appointed by the Government of India had
recommended (1980)that the investment ratios in the power sector between generation,
transmission, distribution and rural electrification should be 4:2:1:1.
More than 50 percent system losses are estimated to occur in the lower voltage system below
132 kV which are the sub transmission and distribution system. These need to be strengthened
through increasing investment.
Plan outlay
Much higher outlays have been allocated to generation component than T&D system or
renovation and modernization (R&M)programmes.
Inadequate investments in T&0 system is one of the reasons for poor quality of supply of
electricity (voltage fluctuations and break downs). Investment on optimum utilization of
existing generation plants through R&M programmes has also not always been adequate,
though large investment in R&M - programmes would probably have resulted in higher
average PLF of the power plants.
This plan outlay generally describes the pattern of investment made in the five year plans in the
different sector of power & energy.
Techno-economic viability
One of the basic objectives of the power project report is to determine techno-economic
viability for the project identified and also to obtain the investment for construction of
generation plants and interconnecting links which ensures an economic and reliable supply.
The evaluation of investment in various subsectors of the power industry such as generation
system, transmission linkages, distribution systems, etc., through long-range planning is
necessary for a rational and planned growth of the power system as a whole.
In large developing countries, such as India and China,' there is, however, another feature of
the planning problem that is absent in the developed countries. This arises from the fact that
concomitant with the need for new capacity to meet the rapidly growing demand, there is an
equally important requirement for the expansion and extension of the transmission and
distribution to provide power either to new areas.
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From the standpoint of analysis of investment alternatives for the system as a whole, this
implies that the analytical tools used should be capable of assessing the options for both
capacity and transmission linkage expansion and distribution in an integrated fashion to
achieve an optimal solution for the future evolution of the system.
The project must be clear from the point of regulatory clearances before seeking finance from
investment agencies. The main choice problems confronting the system planners in case of
thermal power are the question of optimal unit size and generation reliability, the location of
the plants in relation to the load centre, the coal mines, the transportation network for coal and
extension to higher voltage level of the transmission grid.
Since power systems planning is generally carried out over relatively long time horizons, an
important operational consideration given, the large uncertainties inherent in long-term input
assumptions is that the suitable analytical methods should be capable of examining a large
number of future scenarios within a reasonable time and level of effort.
The Central Electricity Authority has acquired the Integrated System Planning Package
(ISPLAN)developed by M/s I.D.E.A.of USA. It is an indicative planning tool for analyzing the
major features of an optimal expansion plan for generation capacity, transmission and coal
transport. Based on an LP formulation, the model can be utilized effectively and quickly with
respect to a large number of alternative input assumptions to produce an optimal expansion
plan at the regional level.
Another proprietary package, the Electric Generation Expansion Analysis System (EGEAS) is
a computer software package which contains five capacity expansion analysis options ranging
from preliminary analysis tools based on screening curves and linear programming to
sophisticated non linear analysis tools utilizing Generalized Bender's Decomposition
Technique and Dynamic Programming Algorithm.
8. PRIVATE PARTICIPATION
Private power projects are important as a part of the country's investment resources raising and
least cost expansion plan for the supply of electricity.
Under the Indian Electricity (Supply) Act, the private sector generating companies,
transmission or distribution companies are encouraged to participate in power sector.
Another advantage of private' sector participation is that it opens up new work and
management skills for timely execution of the project and delivery of quality in work and
service. Some of incentives for private sector versus public sector are given in the below table.
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As notified by the Government of India

Private & public sector investment
Details
Public sector
Private sector
Debt-Equity Ratio
1:1
4:1
Minimum rate of return(ROR) on
12%
16%
Capitalization of Interest
1% above reserve
At actual cost
construction
bank rate
Period of initial validity of licence
equity component
Increased from 20 to 30 years &

further expandable by 20 years on
each occasion
Mode of operation as Generation,
Independent
Independently or Association with
T&D companies
Foreign participation
central or SEBs
-
Single point clearance of

application
Capitalization of interest during construction is at the actual cost for private sector from the
existing schedule interest rate applicable to state electricity boards, and state and central
corporations.
The interest(%) during construction is =
C *R*N
where, C= Cost of project in Rs., R = Rate
2*12*100
of interest, N = Construction and commissioning period in months.

With different debt-equity ratios and rate of return as indicated above, private sector cost of
energy would go up.
The central government has further liberalized the rates of depreciation provision in the
Electricity (Supply) Act, 1948 with respect to assets of power generating companies/boards
and licensee companies.
The private power generating companies would have to be assured of guarantee by state
governments or by the central government or by any legal institution or expanded form of an
escrow account and letter of credit or timely payments of the dues on account of power sale to
the various electricity boards or timely payment of loan to the lender respectively. Provision of
direct supply by private companies to HT consumers or exclusive distribution area may be
another option.
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Ownership
Power utilities have a natural monopoly.
The efforts are to remove this monopoly by creating supply market as in UK [8], USA,
Argentina, Australia and some other countries.
The consumers will be free to choose their suppliers. Rapid decision-making, risk-taking and
innovation are needed and these qualities are usually lacking in state-owned undertakings.
Privatization will restructure the electricity supply industry in most countries in Asia in the
near future. It will break up vertically integrated monopolies in search of lower costs and
higher productivities.
The public sector and private sector power utilities have different financial structures Various
private sector options like turnkey (engineering, procurement, construction) contract, BOOT,
BOO, BOL, ROL etc., BOO (Build-awn-operate), BOOT (Build-own-operate-transfer) are the
most common schemes for new projects, ROL (Rehabilitate-awn-lease) are common for old
plants and BOM (Build-awn-maintenance) for new transmission lines.
Figs showing the finance structure of private & public utilities.

Some salient business features of the incentives given by the government to private
investment are,
1. Private sector units can set up coal/lignite/oil/gas-based thermal, hydel, wind and solar energy
projects of any size.
2. Private enterprises can set up units, either as licensees distributing power in a licensed area from
own generation or purchased power, or as generating companies, generating power for supply to
the grid.
3. Licensee companies holding licence to supply and distribute energy in a specified area under a
licence issued by the state government will function under a liberalized economic and legal
environment.
4. New licences can be issued by the state governments to private units willing to enter the
electricity sector.
5. Private enterprises may be allowed to set up and they can sell or distribute surplus power to state
electricity boards (SEBs).
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6. Promoters' contribution should be at least 11 per cent of the total outlay. Not more than 40 per
cent of the total outlay can come from Indian public financial institutions. To ensure that private
entrepreneurs bring in additional resources for the sector, they must find 60 per cent of the
resources from sources other than public financial institutions.
7. Both licensees and generating companies can enjoy the following Benefits,
(i) Up to hundred per cent foreign equity participation can be permitted for projects set up by
foreign private investors.
(ii) With the approval of the government, import of equipment for power project will be permitted
in cases where foreign suppliers or agencies extend concessional credit.
(iii) Return for producers.
Debt Equity Ratio
The Government of India has stipulated a debt-equity ratio of 4:1. A higher ratio is considered
more risky for the lenders. Debt-equity ratio is calculated by dividing long-term debt by the equity.
Debt and equity are defined as follows
Debt
long-term loans/deposits (repayable after twelve months) including interest bearing unsecured
loans from government agencies, promoters etc. & deferred payments.
Equity
ordinary paid-up share capital, premium on issue of shares, amount of central/state subsidy,
non-refundable deposits in the case of cooperatives.
Modes of participation
Given the present provision of electricity laws, the private sector could participate in four
ways.
Purchase contract where the state electricity board would be responsible for transmission and
distribution of power while private entrants could own generating companies and sell energy to
SEBs on basis of contractual agreement such as PPA.
Franchise monopoly where private entrants would be granted monopoly rights to supply a
specific area either through self-generation or by purchasing the required power.
By passing - It is wheeling of power where the private sector generating company could sell
directly to any consumer and could have access to the T&D network by paying for it. The
NTPC is supplying power to the railways at present by this arrangement.
The transmission lines could be set up on the basis of norms laid by the central government in
respect of transmission tariff, line availability, service agreement, depreciation and return on
investment.
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Bidding for private power entrants

The state government will be required to plan and select projects for offering them to bidders.
The planning process would include identification of system requirements estimated on the
basis of demand projection, power evacuation arrangement, availability of fuel and water, ash
disposal/utilization and environmental aspects in the form of DPR or DFR.
Private generation bidding can be on competitive bidding to set up power projects through the
least cost/price or through Memorandum of Understanding route.
Memorandum Of Understanding (Mou) Route
This is an initial one-to-one agreement with the state electricity board and the prospective
generating company to express intention for under-taking power generation project (MW or
prepared under negotiations with certain boundary conditions and time period).
MoU system is considered suitable at the initial stages of private power sector policy
implementation or when no competitive bidders are coming such as for a project in an area
having less developed infrastructure where railway, fuel linkage and power dispatchability are
difficult. There is difficulty in arriving at a reasonable price level in an MoU case.
Competitive Bidding Route
Competitive bidding is done for prepared and cleared projects and can be in five phases
(i) Issue of RFQ (Request for qualifications) to encourage competent bidders to participate by
giving threshold criteria, mainly organization, financial capability, management capability and
technical capability for qualifying an applicant for the subsequent RFP process
(ii) Issue of RFP (Request for proposals)detailing engineering adequacies, acceptance of SEBs
operating requirements, pricing, plant availability, plant load factor, draft power purchase
agreement and implementation agreement (IA),evaluation criteria, capacity, timing, sizes of units
etc., as in DPR for new capacity or DFR in case of refurbishment
(iii) Submission of Bids and evaluation the determining factor for awarding the project could be
based on the total project outlay or ultimate single tariff
(iv) Signature of PPA and IA
(v) Financial close.
Power Purchase Agreement (PPA)
It is a type of commitment by the state electricity board to allocate risk and for sale and
purchase of energy and power. It is based on the philosophy of keeping a balance between the
risk and the price of electricity purchased for an agreed period say of 15 to 30 years. It
incorporates plant load factor versus long-term costs and tariff structure, fuel reserves, period
of
contract,
maintenance
procedures,
billing
and
payments,
pollution,
counter-
guarantee,banking, insurance, dispatchability, metering, licences, defaults, force majure,

agreement termination, arbitration and jurisdiction provision.
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This agreement is between the prospective generator and the state government. The quality of
PPA is important for satisfying financers, together back up for other agreements.
Fuel Supply agreement
It is an agreement for the linkage of fuel supply (coal or oil or gas) with concerned department
giving details of the costs-annual and monthly, linkages, quality, combustion, transportation,
timely delivery of fuel, default and penalty.
Implementation Agreement (IA)
It is an agreement between the independent power producing (IPP) company or NUG or private
owned utility generation company and the state government providing assurance on
implementation of PPA, construction, water supply agreement, government approvals, sovereign
guarantee by government of India, levy of taxes, foreign exchange, immigration, bank account,
exchange risk insurance, political, resettlement, force majure conditions etc.
Operation and Maintenance agreement
Financial Close
Financial close is the date on which banks and financial institutions start lending for the work
on the project. The breakup time up to financial closing in general is shown in below Figure.
Fig showing Typical time lead of the private utility up to financial close.
It takes four to eighteen months for executing the various project agreements including
financial agreements for debt and/or equity with lenders to arrive at financial close. The signing of
agreements can be simultaneous or in sequence as shown in Next page.
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Typical stages of arrangements of a power project.

Energy purchase agreement with cogenerators
Energy purchase agreements b/t cogeneration companies & SEBs will require agreement for
power purchase & sale tariffs including wheeling & banking of power, billing & payment,
parallel operation, interconnection facility owned by state electricity boards, continuity of
service, personnel & system safety, metering, permits & licenses, events of defaults &
termination indemnification & disputes.
All or portion of value of electricity energy delivered at peak may be designated for peak
banking or delivered off peak may be designated as off peak banking. This energy may be used
by the cogenerators for credit against future energy purchase by the cogenerator from the
SEBS.
All or portion of value of electricity energy delivered on peak may be designated for peak
wheeling or delivered off peak may be designated as off peak wheeling. This energy may be
used for future credit against energy purchased by third party from the SEBS.
Each month, the cogeneration firm should prepare an invoice indicating what quantity of
energy delivered to the SEBs during the previous calendar month is designated as banked,
wheeled, sold for on peak & off-peak.
9. RURAL ELECTRIFICATION PLANNING & INVESTMENT

It would not, however, be quite correct to judge rural electrification purely on the criterion of
the financial returns on the investments made.
A number of indirect socio-economic advantages like harnessing of groundwater resources for
increased food production, promotion of rural industries and rural employment, prevention of
migration from rural to
urban centres, saving in diesel and the like, should not be ignored.
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The real advantages of rural electrification are not limited to the immediate or long-term
financial returns but go far beyond and can be truly evaluated by the benefit-cost analysis.
The National Council of Applied Economic Research (NCAER)carried out studies in the
impact of rural electrification in the Punjab and Kerala villages and after evaluation of the
indirect benefits, it was found that the benefit-cost ratio of all the schemes was well above
unity proving that there was abundant economic justification for the rural electrification
schemes.
9.1 RURAL ELECTRIFICATION
Rural Electrification programme is mainly funded by Rural Electrification Corporation of India
since 1969 for all-round development of village life, agriculture and village industries. The
present concerns are,
Rural electrification concerns the supply of electricity to low density areas of villages. It is
traditionally achieved in two ways by the installation of generators independent of the grid, i.e.,
diesel or micro-hydel or wind generation etc., directly at the consumption site (village, farm,
small industry, dispersed dwellings), or by the extension of the interconnected electrical grid.
This latter technique accounts for 80 per cent of rural electricity distribution in the world and
about 98 per cent in India.
For electricity distribution, rural areas are distinguished from urbanized areas by some
fundamental aspects like sites to be electrified are often several kilometers from the existing
(H.T.) medium voltage (MV) network, there is lower population density and electricity
consumption is much lower than the average urban consumption.
The above characteristics of rural electrification result in an increase in capital costs of rural
projects in comparison with urban projects because the great distance of sites to be electrified
entails the installation of MV lines from the grid over sometimes significant distances. (2 to 3
km on an average in India).
The low population density in comparison with urban sites requires to installation of longer
low voltage (LV)lines per consumer. As a rule of thumb, stability problems limit extensions of
grid to a distance in km of not more than double the line voltage in kV.
The rural electrification programme has a useful contribution to the agricultural production,
especially by the energization of pump sets for irrigation. However, due to non-availability of
reliable power supply in rural area, the agro-based industries did not grow and this lead to
migration of rural population to urban area.
The rural power system has long lines, low voltage, low power factor, overloaded transformers
causing damage to the costly equipment and higher transmission and distribution losses. The
consumers do not install capacitors in their premises to increase power factor and also have no
inclination of participate in the energy conservation.
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9.2 COMPONENTS OF RURAL ELECTRIFICATION PLANNING

1. Village electrification
At present millions of villages have been electrified out of a total of 0.579million villages
which constitute about 86 per cent in the country. A village is deemed to be
electrified even if a single connection is given in the revenue boundary of the village.
2. Pump set energization
This is a major scheme of rural electrification planning. Rural Electrification Corporation of
India, NABARD and commercial banks & many rural electrification cooperatives have provided
funds in equal ratio for pump sets energization.
3. Load development
The use of electricity for domestic and other non-farm activities is still limited and the creation
of HT/LT network in the rural areas for industrial development is yet to take place.
4. System improvement planning
The existing system has expanded at a fast rate and not strengthened, therefore, making the
overall system inadequate. Continuous system improvement needs to be planned as part of the
work culture.
5. Insulated aerial cable system
Insulated overhead distribution system has the ability to reduce the environmental impact on
overhead system both for new work in difficult areas and retrofitting of existing bare system.
High Voltage ABC (Aerial Bunched Cable) system is used in many countries.
Covered conductor system provides an improved open wire system which can be less
expensive than HV ABC. Two versions of power conductors, namely, covered conductor (CC)
and covered conductor thick (CCT) are now used.
Decentralized generation
The electrification of these villages by conventional means from grid supply is becoming
increasingly expensive and unreliable. It is desirable to electrify the villages through
decentralized generation schemes like mini-micro hydel, solar, wind, geothermal etc. Also the
growth of load in already electrified villages can be accelerated by such small generation
schemes.
The small power generation schemes are being given subsidies up to 50 per cent by the
Ministry of Non-conventional Energy Sources to reduce the ultimate cost of supply. Small
hydro and wind generators up to 100 kW should be developed by the local Panchayat at the
identified sites for which necessary expertise should be given by the Ministry of Nonconventional Energy Source /Indian Renewable Energy Development Agencies Ltd (IREDA).
1. Wind generator
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These are competitive source of electricity in windy areas and are susceptible to substantial
development in India. An assessment of wind energy resources in India indicates a potential of
50,000MW. Now commercially India is generating around 20,000MW of power through wind
energy. The commercial wind turbines in India are in the range of 1-2 MW for grid connected
applications.
2. Small hydro power stations
Small hydro power stations have begun to spread in several developing countries in hilly areas
and plain terrains. Two problems need to be solved here, the problem of capital cost, which must
be kept as low as possible by the use of standardized hardware and local engineering, and the
problem of the good load factor, which must be high enough to make the project viable.
3. Wood fired gasifier micro power stations
These seem capable of supplying a kWh at a price comparable to that of a conventional
generating set under certain conditions: isolation of the locality to be supplied and availability of
raw materials, with the advantage of using a local energy source.
4. Photovoltaic systems
Thousands of PV systems are today in operation worldwide, and have proved highly
competitive in a range of residential, agricultural, commercial, village level, health, education and
small-scale industry applications. A large number of photovoltaic water pumps are now in service
in the country.
5. Biomass electricity generation sets
The technology for such biomass based power plants is a proven one. These run exactly on the
same principles as a coal-fired plant. These plants are modular in nature and are in the 5-25 MW
range. They run on any combustible material.
10. RATIONAL TARIFFS

There are three main objectives of a sound pricing structure/consumer tariff.
(i) Financial-Ensuring that the revenue yield from the application of tariff to the consumer is
sufficient.
(ii) Economic-Ensuring that tariffs charged to consumers enable them to make rational and
optimal choices in the use of energy, discourage waste and promote efficient allocation of
resources.
(iii) Social-Ensuring that the price structure takes into account fair distribution of costs among
various classes of consumers, subsidization of target class etc.
There are two basic tariff-making philosophies recognized- (i) Cost based and (ii) Market
based. The factors used in developing cost-based tariffs are identified as capacity-related,
energy-related and consumer-related. These factors vary for different classes of consumers
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(residential, agricultural, commercial, industrial etc.), and require an analysis of much data in
order to properly allocate costs.
Cost based tariffs are generally preferred because they are less likely to be criticized by
consumers. However, political or social considerations sometimes over-ride the inherent
fairness of cost-based tariffs especially developing economies. When this is done, the tariffs
are said to market based.
10.1 COST-BASED TARIFFS
The tariff should have sufficient rates to raise adequate revenue to meet the financial
requirements of the utility.
The tariff should be based on supply cost for each category of consumer. However, urban
consumers will subsidize the rural consumers to some extent.
Peak consumers should pay both capacity and energy costs whereas off peak consumers such
as agriculture should pay only the energy costs.
Lower the service voltage, the greater the costs consumers impose on the system. Therefore,
higher tariff for low voltage consumers is desirable.
Tariffs must be based on marginal costs of serving demand which varies,
(i) for different consumer categories,
(ii) for different seasonal industries such as rice shellar, ice industry etc.
(iii) for different hours of the day, i.e., higher rate for peak hours, medium rate for day time and
lower rate for off peak hours.
(iv) for different voltage levels, i.e., HT or LT supply consumers.
(v) for different geographical areas.
10.2 MARKET-BASED TARIFFS
Following are some examples of market-based tariffs. They may be more prevalent when
sufficient justification can be provided. However, to recover costs, cross-subsidization between
various classes of consumers and/ or some subsidization by the government is inevitable.
Certain industrial rate classes may be subsidized to attract new industry to an area.
Residential rates may be subsidized by other classes or Social/Political purposes.
Agricultural tube wells services may be subsidized to encourage increased food production
Inverted block rates have been used extensively to encourage energy conservation depending
upon the analysis of price elasticity.
Ep =
%changeinenergyconsumptioninkWhrs
%changeinpriceperkWhrs
10.3 CENTRAL SECTOR GENERATION PROJECTS TARIFFS

As per provision of IE (Supply) Act, 1948,the tariff for sale of electricity by generating
company to the state electricity board shall be computed and fixed for a period of five years on
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normative basis as per electricity (supply) Act provision. Bulk power supply agreements (BPSA)
are usually signed. An ac transmission tariff plus HVDC transmission tariff (if any) are charged in
each case and charged on fixed rate/unit basis in each case of agreement. However, the tariff shall
be computed and fixed a new for a period of five years each and whenever additional generating
capacity is commissioned in the same station.
Thermal Power Station
The two-part tariff for sale of electricity from thermal power generating stations (including gas
based stations) shall comprise the recovery of annual fixed charges consisting of interest on loan
capital, depreciation, operation and maintenance expenses (excluding fuel), taxes on income
reckoned as expenses, return on equity and interest on working capital at a normative level of
generation and energy (variable) charges covering fuel cost recoverable for each unit (kilowatt
hours) of energy supplied.
Hydro Power Station
The two-part tariff for sale of electricity from hydro power generating stations shall comprise
the recovery of annual capacity charges consisting of operation & maintenance expenses, tax
on income reckoned as expenses, return on equity, cessor levy on water charges as actual, &
interest on working capital at a normative level of generation shall be based on the norms as
may be applicable.
There is a mechanism of incentive specified for improved performance above normative level
with respect to project availability & energy generation.
Transmission tariff
For common interstate projects, the capital cost of construction for the transmission lines and
other assets such as generating stations is generally shared in proportion to the power allocation
to the state.
The power may be in terms of energy drawn for each month or year or for. block of years or
over the life of the line or other assets.
The cost recovery may be in the form of 'transmission tariff in the shape of fixed charges based
on cost contribution plus annual energy charges of kWh supplied. The transmission tariff is the
total tariff for transmission of power and is payable by the beneficiary states. It is equal to the
annual fixed charges which consists of O&M expenses plus depreciation plus interest on loan
and working capital plus return on equity plus any other tax annually payable.
Usually O&M charges, depreciation charges and rate of return are levied as per norms notified
by the government or regulatory body. The annual fixed charges are based on fixed assets of
the transmission system.
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Tariff for Renewable resources generation

Most of the renewable resources are required to be connected to the grid for selling power to
the nearby utility.
The cost of supplying is normally decided by the avoided cost to utility. The avoided cost to
utility is taken as cost of generation which is predominantly installed by the utility.
If there is no utility generation then the cost may be decided on the basis of opportunity cost.
Opportunity cost is the cost that the consumers will be spending per unit of energy, may be in
the form of wood, diesel, kerosene etc.
It may be noted however, that the cost of power of the new private producers would necessarily
be more than the pooled power provided by the state electricity boards (SEBs),the bulk of
which is from old, depreciated plants. Such average low-cost supply should mean that SEBs.
can supply power more competitively than the private distributors, who are more likely to have
a larger proportion of their supply from new plants.
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QUESTIONS BANK
1)
2)
3)
4)
What are the basic processes of cogeneration? What are its benefits? Explain.
Explain the strategies for transmission system expansion in India.
Discuss generation characteristics of broad categories of loads. MQP
Enumerate elaborately on the desirable generation options for next 25 years for India as per
CEA and World Bank.
5) Write descriptive notes on (i) Boiler renovation, and (ii) Power policy and trading.
6) Write a descriptive note on selection of voltage levels in India for Transmission and
Distribution.
7) Explain different types of reactive power compensation techniques used in transmission and
distribution systems.
8) With the help of necessary graphs, Explain variation of (i) Reliability vs Investment cost, and
(ii) Annual cost vs System reliability.
9) Enumerate different trends and issues that planners and operators have to cope with during
reliability planning.
10) Describe the two methods of reliability assessment.
11) Write a descriptive note on CEAs reliability planning criteria.
12) Describe different types of disturbances and the devices used to suppress the disturbance.
13) Describe in detail the economic characteristics of generation units.
14) Write a note on reactive load forecast.
15) Explain Power Pooling and trading in India and its role in Power System Planning.
16) What is renovation and Modernization of power plants? Explain Boiler renovation in thermal
power plants?
17) Describe HVDC transmission on planning.
18) Describe substation development planning.
19) Explain grid operation in power system planning.
20) Explain the components of rural electrification planning.
21) Explain basic distribution system used by utilities along with single line diagram.
22) Enumerate elaborately on the desirable generation options for next 25 years for India as per
CEA and World Bank.
23) Explain the variation of investment cost with respect to distance in AC/DC systems.
24) Give the merits and demerits of HVAC and HVDC systems.
25) Explain private participation in generation planning? How it will improve the situation in
India?
26) Discuss the tariff making philosophy.
27) Explain with V-T curves the importance insulation coordination in the power system.
28) Explain the concept of Dispatchability in power system planning.
29) Discuss the effect of power generation on environment? How it can be reduced?
30) What are the objectives of sound pricing structure? Explain.
31) Describe reliability planning with reliability versus cost graph.
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UNIT-5 & 6: POWER SUPPLY RELIABILITIES
V.T.U.Syllabus
Reliability planning, system operation planning, load management, load prediction, reactive
power balance, online power flow studies, test estimation, computerized management. Power
system simulator.
SYNOPSIS
The reliability of the power system has been discussed with reference to cost, unnerved
energy & unnerved demand for various stages of power system. The lead times for operational
planning and on line controls of AGC, economic load dispatch, state estimation are given for complete
operational planning. The operational planning involving hardware and software for various functions of
load dispatch, economic dispatch, load dispatch centre, energy management, SCADA, state estimation are
discussed. Generation-load balance prediction studies are necessary one year in advance. The peaking
capacity and energy requirement along with medium and short time forecasting based on computer
programs are necessary. The grid code for grid operation at the national and regional levels and the
optimum utilization of thermal, hydro, nuclear and other resources is desirable for every utility, dispatch
centre and national grid centre. Maintaining frequency by means frequency-based tariff, keeping automatic
load shedding schemes and strengthening of system by capacitors installation is required. The grid
frequency control, wheeling and trading of power and grid connection of small generating schemes for
future importance are discussed.
UNIT-5 & 6: POWER SUPPLY RELIABILITY

1. RELIABILITY PLANNING
1.1 SYSTEM RELIABILITY
Modern society expects that the supply of electricity should be continuously available on
demand.
Sometimes reliabilities fails due to Random system failures which are generally beyond the
control of power system engineers.
The probability of consumers being disconnected, however, can be reduced by increased
investment on power systems by providing high quality equipment or redundancy and better
maintenance.
The reliability of supply to consumers is judged from the frequency of interruptions, the
duration of each interruption and the value a consumer places on the supply of electricity at the
time that service is not
Provided. The value to consumers is determined by the benefits which they can derive from
using it.
Uncertainty
The problem of uncertainty consists in devising a system sufficiently robust to withstand the
impacts.
At the present time the amplitude and the number of the possible impacts is such that the cost
of a robust system becomes prohibitive, if one wants to face most of the uncertainty factors.
Flexibility within the system development. From the planner's point of view a flexible system
is a system which will be able to be adapted quickly to any external change. This is achieved
either because the planner made provisions to change over to diverse fuels or diverse power
generation or because he decided to install equipment which makes better use of the existing
system.
In recent years the need for flexibility has become particularly apparent because both planners
and operators had to cope with more and more significant trends,
1. Industry structure trends - deregulation, privatization and vertical disaggregation, wheeling for
non utility generation, transmission access for consumers for power purchases from other utilities.
2. Financial trends capital availability and cost uncertainty, rate base incentives and constraints,
stockholder risks and uncertain rates of return, construction expenditure recovery risks.
3. Technical trends - load management and conservation, generation technology and licensing
issues, transmission technology and ROW issues.
4. Environment and health issues emissions limits, power frequency and electromagnetic field
constraints, radioactive waste storage/disposal, endangered species.
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Flexibility appears with the improvement in the ability of the power system to adapt itself
quickly to new circumstances.
Security affects the operation and the structure of the system. The system security is defined
here as its ability to avoid or limit-major outages which entails the collapse of entire parts of
the system.
1.2 SYSTEM ADEQUACY AND SECURITY
A simple yet reasonable subdivision of power system reliability, both deterministic and
probabilistic, is the two basic aspects of system security and system adequacy.
Adequacy is generally defined as the capability of the system to meet the system demand
within major component ratings and in the presence of scheduled and unscheduled outages of
generation, transmission and distribution facilities.
Security is generally defined as the capability of the system to withstand disturbances arising
from faults and unscheduled removal of equipment without further loss of facilities or
cascading. Adequacy therefore, relates to the existence of sufficient facilities within the
system, i.e., it relates to static system conditions whereas security relates to dynamic system
conditions.
The task of power system planning is to configure an electric power system with a compromise
between the requirements perceived by consumers for adequacy and security to achieve
continuity and quality of supply, and to keep in mind the economics of the power system in
terms of operating and capital costs, so that the benefit of higher levels of adequacy and
security are realized by the consumer.
1.3 RELIABILITY PLANNING
The basic function of an electric power system is to meet electricity requirements, with
adequate quality and reliability and in an economical manner.
There is an emerging recognition that the traditional practice of providing all users with a
uniform and a good level of service reliability merits a re-examination. Given the changes in
the electric utility industry's cost structure in recent years, there is a growing feeling that
investments related !o the provision of electric service reliability should be more explicitly
evaluated with reference to their cost and benefit implications.
Cost-benefit analysis provides the basis for answering the fundamental economic question in
reliability planning-how much reliability is adequate? A key related question is how and where
should a utility spend its 'reliability rupees'.
Because of the changes in technology, consumer needs and lifestyles, economic factors, etc.,
reliability preferences can also shift over time. This may require periodical revision at the
reliability standards. As the reliability standards changes from time to time.
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Figs showing the Reliability versus Cost.

In contrast, the total cost minimization approach seeks to establish the trade-off that is
conceptually depicted in Figure below. The total cost of supplying electricity is the sum of
system cost and consumer outage costs. The lowest point on the total cost curve defines the
optimal balancing of system costs and consumer costs and determines the optimal reliability
level, reserve margin, LOLP,EUE.
From an implementation standpoint, the following analysis is required under this method. For
each of several preselected reserve margins, an optimum resource mix is first determined.
Next, for each such resource mix, production costing, revenue requirements and reliability
calculations are performed to estimate total costs as (revenue requirements) + (EUE) (outage
cost in Rs/kWh)
The lowest point on this curve defines the optimum reserve requirement which can also be
calibrated to an optimal EUE (Expected Unserved Energy) standard or some normalization of
EUE such as loss-of-energy probability (LOEP).Especially in situations where the present
generation fuel mix is non-optimal, the total cost minimization approach will indicate a higher
reliability level because some generating plant will be added to reduce fuel costs.
CEA reliability planning criteria
The Central Electricity Authority (CEA) uses the following reliability criteria on deterministic
and probabilistic basis.
For Lines
Loading under normal operating conditions with nearly 20% margin for lines. For example
400 kV S/C line: 360-800 MW, 220 kV S/C line: 160-200 MW, 132 kV S/C line: 50-70 MW.
For Generation
The transmission system configurations for which the transmission planning studies are carried
out depending on the generation scenarios worked out by the CEA. The peaking capacities and
energy generation capabilities, availabilities of power plant on which the power & energy balance
studies are based, would be determined on the basis of the following norms,
Thermal and Nuclear Plants - The norms for availability of peaking capability is given
by Rated capacity - (Maintenance @5% + Partial outage rate @15% + Forced outage rate
@17% + Auxiliary consumption @1O% + Spinning reserve @5%)
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This norm is not realistic and total reserved margin should not be more than 20 per cent.
Hydro plants - Norms for deciding overall peaking capacities of hydro units would be as
under, Rated capacity - (Maintenance @3% + Forced outage rate @9.5% + Auxiliary
consumption @0.5%)
The peaking capacities and energy generation capabilities of hydro stations shall be determined
taking the hydrological conditions, requirements of water for irrigation purposes, etc., into
consideration.
Generation expansion - LOLP = 1%, 2%, 5%.
Reliability evaluation
The power system reliability studies are conducted for two purposes,
1. Long-term reliability evaluations may be performed to assist in long range system planning.
2. Short-term reliability predictions may be undertaken to assist in day-to-day operating decisions
including system security.
Improvement in system reliability can be effected by using either better components or a system
design incorporating more redundancy. The main steps in reliability studies are,
1. Define the system-list the components and collect the necessary component failure data from
field surveys available.
2. Define the criteria for system failure.
3. List the assumptions to be used.
4. Developing the system model.
5. Perform failure effects analysis and compute the system reliability indices.
6. Analyze and evaluate the results.
2. SYSTEM OPERATION PLANNING

2.1 OPERATIONS
Operational planning covers the whole period ranging from the implementation stage of system
development plans to the point when system operation engineers at area, state, regional and
national load dispatch deal with the dispatch of power.
It is the matching of generation output with aggregated consumer demand, subject to
requirements of economy and security. It covers the maintenance of generation, transmission
and distribution facilities.
Certain 0perational problems have to be considered at the long-term planning. For example, the
Indian power system regional grids are small in capacity and size, and thus, there is a limitation
on installation of large sized generation units in the grid.
Operation planners plan to minimize operating costs within constraints while ensuring an
acceptable level of system reliability. Various decisions are required at appropriate times
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related to operating policies, operating procedures, maintenance planning, fueling, hydraulic

utilization, transaction planning etc. The overall operation is shown in the below figure
Fig showing the lead time for operational planning.

2.2 REAL TIME OPERATION
2.2.1 State Estimation
The state of technology of actually existing real time computers allow network data collection
for the period at one to two minutes. after each state estimation, all data identified as bad for
erroneous and non-telemetered values are replaced by calculated values becoming available to
the operator of the programs.
The network estimation assumed to be the most important functions for the real time secure
operation, include all the principles and computer programs devoted to the permanent
assessment of security factors for actual or simulated network configurations.
In the real time program, the comparison of variables in telemetered values to fixed limits is
the first step of maximum system loading evaluation.
Let n be the number of buses of the network, thus overload checking belongs to n security"
assessment. With an ac load flow calculation, the complete n security can be checked, while
changing the values of some data (measurements or indications) which allows the operator to
anticipate the evaluation of eventual future situations.
Many power systems today have been designed in such a way that the random failure of the
transmission's item or generating unit with the heaviest load does not affect reliability of other
equipment, at the same time preserving the quality of supply.
The contingency analysis is based on this criterion starting from it toad flow calculation. The
program simulates outages and determines the load transferred on the remaining items of the
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network. A display of violated constraints informs the operator of the risks occurring in the
new operating conditions.
2.2.2 Automatic Generation Control
Automatic Generation Control function (AGC) is on-line computer control and is generally
executed everyone to ten seconds. AGC tracks system load and generation level of each
committed unit. In the interconnected power systems, this function also meets an additional
objective namely the maintaining of the net interchange contracts in force at each instant.
The tie lines are generally connected into the transmission network at locations where their
specific power flow must be established by adjusting or shifting the power output of generators
in order to achieve a desired flow value.
To maintain a net interchange of power with its area neighbours, an AGC uses real power flow
measurements of all tie lines emanating from the area and subtracts the scheduled interchange
to calculate an error value.
The net power interchange (together with a gain B (MW/0.1Hz) called the frequency bias) as a
multiplier on the frequency deviation is called the area control error (ACE)and is given by
k
ACE = (Pk - Ps) + 1OB (fa fo) MW

k =1
AGC sensing only ACE does not control the flow on the individual tie lines but is concerned
with area net generation. Often, the tie lines transfer power through the area from one neighbor
to the next, called wheeling power.
2.2.3 Economic Load Dispatch
It is on-line computer control generally performed everyone two minutes to supply the existing
system load demand from each committed units in the most economical manner in terms of
minimal fuel cost and minimal losses. Even pollution control can be a feature of economic dispatch
operation.
2.2.4 Stability
Power systems are becoming increasingly complex because of interconnections and faster
dynamic response of plant, particularly if equipped with solid state controllers. Also, heavier
loading on the existing circuits to cope with increasing energy transfers without constructing
new lines has made the system operate closer to its transient stability limits.
New techniques for the on-line evaluation of stability criterion and for detecting in real time
operation through many recent techniques & methods are available.
Fast transient stability methods are categorized under three main groups
(i) Direct and hybrid methods based on energy functions,
(ii) New computing hardware including parallel processors,
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(iii)Artificial intelligence approaches (pattern recognition and expert system).

2.3 MAINTENANCE
Maintenance needs to be given due priority while protecting capital investment and making sure
that the system is operative in a cost-effective manner.
It has been observed that more than 50 per cent of all the accidents and equipment failures
investigated are caused by either faulty maintenance or operator error.
Successful maintenance depends upon:
1.The prerequisite for any maintenance programme is that well trained and adequate Tools and
Plants equipped maintenance staff is posted. Good quality of spares and materials are used.
2. Manufacturer's instructions should always be given due consideration while carrying out the
maintenance of a particular equipment.
3. A correct record of fault investigations, test results, inspections, tripping should be maintained.
4. Required safety precautions must be observed while carrying out the maintenance jobs.
5. Hot line maintenance for important transmission lines and essential supply distribution lines
should be carried out. Other latest practices in maintenance of substations and lines such as infrared thermography in temperature scanning of equipment or lines must be adopted.
6. A good communication between the maintenance staff and operation staff is essential to cut
down the shutdown period. The communications can be VHF, paging etc., with desirable features.
7. The ultimate aim should be Total Productive Maintenance (TPM) to achieve zero breakdowns,
zero defects and zero accidents.
There are THREE types of maintenance
1. Preventive maintenance
The aim of preventive maintenance is to find the defects by periodical inspections and replace the
unreliable parts or units so as to prevent accidents or damage and keep the equipment efficiency up
to the mark.
The measures taken in preventive maintenance are,
1. Each power station or network region should have an emergency and insurance stock of spare
electrical equipment (generator exciter, LP turbine blades, HP/IP rotors, generator rotor, electric
motors, circuit-breaker arc chutes, brushes, brush and commutator gear, etc.) which should be
checked at regular intervals.
2. All required repairs should be performed at the power stations, lines and substations at
convenient periods of time. Lean months are most suitable for thermal power stations & low water
period for hydro plants when load is very less & can be easily diverted.
3. Repairs should be planned so that main equipment and its auxiliaries could be repaired
simultaneously in order to avoid the maximum duration of power interruption.
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4. In order to improve the reliability of the machines and in turn improve the availability of the
same, the preventive maintenance schedule should be drawn in advance, for at least a year, on a
weekly basis.
5. No unplanned work other than emergency repairs should be undertaken.
2. Capital maintenance and modernization
The schedule for replacing various ageing equipment in power system such as turbines, boilers,
generating units, transformers, breakers, convertors etc., must be prepared in advance on a
rolling basis for the next five years and should be updated on the basis of actual achievements.
An engineering declaration should be made before overhaul (Replacement), giving details of
the present condition of the units and expected performance levels after overhauling.
A performance evaluation test should invariably be conducted on the equipment after overhaul
to confirm the achievements of overhaul.
The aim of modernization and improvement of various parts is to increase the service-span of
electrical equipment and improve its performance and efficiency.
3. Condition Based Maintenance
Condition based maintenance is condition monitoring for timely prediction and diagnosis of
failure in advance.
Condition based maintenance can achieve cost benefits through reduction of 'in-service'
failures, reduction of regular preventive maintenance routines and deferral of major overhauls.
Points to be considered should include,
(i) additional transducers and signal conditioning required,
(ii) system architecture--a distributed processing architecture, featuring intelligent front end
hardware, is preferred as it minimizes the extent of cabling required,
(iii) installation and cabling costs,
(iv) computer hardware costs,
(v) system interfacing requirements,
(vi) system software costs,
(vii) on-line/off-line mix.
The final stage of the analysis involves a cost-benefit assessment to establish the financial viability
of applying condition monitoring to the nominated auxiliary plants.
Condition based techniques for power plants
Equipment
Technique
Rotating Machines
Vibration monitoring, Performance Monitoring, Acoustic Emission
Steam/Gas turbines
Vibration monitoring, Performance analysis, Oil analysis,

Acoustic Emission
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Alternators
Insulation condition checking, Vibration monitoring, Performance

analysis
Boilers & furnaces
Temperature monitoring, corrosion monitoring, smoke & flue gas

composition monitoring, leak monitoring
3. LOAD MANAGEMENT
The utilization of load management techniques is becoming more important in the operational
planning process of Indian power system as there is small spinning reserve available.
The peak demands are difficult to meet and generally at night after 10.00PM hours, power
stations start experiencing very low demand to the order of 30 per cent or less. This compels
the coal-fired thermal stations to resort to costly oil support to the boilers due to back down in
most cases.
Load management has two aims, one is to bring up economic advantages, especially in the
operation of power plants and in the necessary investment in the new plants and transmission
capacity. To reach this, the utility has to try to get a flat load curve. The second aim is to avoid
the spreading of an emergency in case there is over-loading or unbalancing in the system.
The differentiation of tariffs (time-of-day-tariffs) has an influence on filling of load valleys and
reducing the peak load.
Fig showing the different Load management measures.

3.1 GENERATION SCHEDULE
Figure shown in next page illustrates how a typical utility may meet its daily load demand. The
base load is carried by generators that run at 100 percent capacity on a 24-hour basis. Intermediate,
or controllable generators run most of the time but are not necessarily fully loaded. Peaking units
are kept on-line only for a few hours every day. Reserve capacity is needed to meet unforeseen
emergencies.
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Generation to meet typical load demand.

Base-Load Units
Nuclear units and thermal power stations typically fall in this category. Due to the need for
keeping the nuclear reactor and steam system in thermal balance, it is desirable to maintain the
megawatt output of such units at as constant a level as possible.
Intermediate Units
When the megawatt output must be regulated, hydro-powered units are the most convenient
choice. The power output of a hydro generator is controlled simply by changing the water flow
through the turbine. Not all electric utilities have hydropower available and must then use
controllable thermal units--coal or gas.
Peaking Units
Gas turbine driven generators can pick up load very fast and are therefore often used for
peaking purposes. Hydro-powered generators are also an excellent choice when available. Pumped
hydro storage is a special type of peaking equipment used for supplying the peak loads.
Reserve Units
The required generator margin can consist of generators maintained at partial output spinning
reserve or generators standing by at various levels of readiness.
The energy cost, expressed in rupees per megawatt hour, will vary greatly between the above
types of units. Peaking units are the most expensive because, on the average, they are greatly
underused. If a utility can shave its peak demand by load management, it may be possible to
postpone for years the need for acquiring such units.
Maintaining a proper generation mix is a most important requirement for a power utility of any
size.
The problem is not only due to the hourly shift in power demand All generating units must be
regularly maintained and, in case of nuclear units, also refueled. The operating success of a
utility depends to a great extent upon the ability to optimally match the generation to the load
not only over the 24-hour daily time span but over seasons and years.
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Pooling can benefit the individual utilities in terms of spinning reserve margin need, peak
capacity and better use of load and generation diversity.
Contingency plans
Typical plans are,
The coal mines tend to flood during monsoon. Therefore, before the onset of monsoon, the railhead non-pit-head and pit-head thermal power stations should have coal stock of 30 days and
15 days respectively.
Island generation should be allowed for supplying important local loads.
Frequency should be maintained constant by balancing the load & supply.
4. LOAD PREDICTION
The total demand may be divided into components with varying time constants-the seasonal
and economic factors have large time constants of several months while the variations due to
consumer habits and rapid weather fluctuations have small time constants of a few hours.
In consequence, the load at any time y (t) can be written in the form of the equation below
which is the basis for the prediction techniques discussed here,
y (t)=A (t) + B (t) + C (t)
A (t) is the long term or base load, B (t) daily variations, C (t) hourly variations.
The prediction methods may be broadly classified into two categories, those which require
meteorological information and those which require past load data only.
The method of weather weighting uses a set of weather dependent weights that act as
percentage changes on a base load to form an estimate of the future load.
The load is therefore considered as two components, a fixed or base load and a variable
deviation due to the effect of the weather.
The meteorological factors included are temperature, cloud cover, rains and wind velocity.
Hence, by estimating the weights associated with varying degrees of each of these weather
variables, a base for a given time of the day and week may be derived by subtracting ~
postulated total weather dependent load from the recorded total load.
These weights together with the deduced based load can be checked using other data relating to
the same period. If poor correlation is found between the predicted load and the actual load
then the weights must be revised. After a trial and error period, the appropriate weather weights
for a given time of day and year can be deduced, which may then be used for load estimation in
conjunction with weather forecasts.
Two important methods of load prediction are as follows
Regression analysis
It is a more mathematical approach to the load prediction problem, the effects of various
weather components are obtained by a regression analysis on previous load and weather data.
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The meteorological parameters considered are an effective temperature T, a cooling effect of

the wind W, an illumination index L, and a rate of precipitation P. With the assumption that the
weather sensitive component of the load C(t)can be expressed as the sum of functions of the
respective meteorological factors,
Y = Y B+ YW + YD+ A1 T + A2W+ A3L + A4P
where the long-term base load is given by YB, and Yw and YD represent correlation for a particular
week and day of the week respectively.
The base load YB is only changed when the average load has increased due to long-term factors
such as economic growth.
The coefficients YB, Yw, YD can be estimated from the load data of the previous year. The
Coefficients a1, a2, a3, a4 indicate the change in demand per unit change of corresponding
meteorological variable and may also be determined from previous load and weather data by
regression analysis. Now, from past records of load and weather conditions Y, T, W, L and P
are known and YB is assumed constant.
Thus, the regression analysis consists of estimation of the best values for the coefficients a1,
a2,a3,a4and the values of YD. The values of Yw are considered to be represented by orthogonal
Polynomials which are constant during each week, given 52 polynomials in total. Using a
maximum of sixth order polynomials was found to give a good fit to a year's data.
Spectral Expansion
Only past load data is required in the form of N discrete load values for each day.
If M previous days data is used then any load samples may be denoted as X
mn,
Where M
indicates the day & N the time of the day.

The load variation during any day may be regarded as a time series which has a similar form
every day due to the similarity of the load pattern.
5. REACTIVE POWER BALANCE
5.1 REACTIVE POWER SHEDULING
Reactive power scheduling is operational planning of reactive power balance for the coming
year with analysis on seasonal, weekly, daily and hourly basis and minimization of power losses in
a power system, by control of the VAr devices.
The optimization studies are made with the following constraints,
(i) Acceptable voltage profiles
(ii) Limits of VAr devices
(iii) Keeping reactive power reserve suitably shared in different areas
(iv) Planned maintenance outages of generation and transmission equipment
(v) Normal operating regimes and emergency and post-emergency states based on set of
contingencies
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(vi) Reactive power requirements of the load

Reserve allocations to different areas/regions in a network should be done, considering the
aspects of,
(i) Response time of VAr devices
(ii) Effect of loss of VAr devices on voltage stability of area as well as on consumer load
requirement
(iii) Flexibility in re-allocation of reserve under planned or forced outages
(iv) Locational distribution of reserve throughout the areas/regions
(v) impact of reserve on power transfer capability of transmission lines on tie-lines etc.
While deciding reactive reserve, the response time of reactive device is an important
consideration.
The function of reactive power scheduling
normally catered to higher levels of priority
controlled utilities, is also referred to as secondary and tertiary control or regulation in the
power utility.
5.2 MAINTAINING THE SYSTEM VOLTAGE
The management of MW requirements is far more easy than the management of MVAr
requirement in the sense that the MW capacity to be commissioned has to take care of the MW
load requirement, the losses and auxiliaries.
The solution is not as straightforward in the case of fulfilling MVAr requirements because a
simple balance of MVAr load requirement and overall MVAr losses in the system with MVAr
generation would, by itself not ensure maintaining of declared voltages all through the system.
Maintaining declared voltages within permissible tolerance at each busbar in the system calls
for balancing the MVAr inputs and outputs at each of the buses keeping the voltage as an
invariable function. .
The drop in voltages due to MW flow still requires to be made good by suitable means by
adjusting taps on transformers. This, therefore, puts limits on tolerable voltage regulation on
transmission lines, sub transmission lines and distribution feeders. The system voltage can be
easily controlled by properly adjusting the reactive power sources at the suitable places.
5.3 POWER GRID
Unlike any other industry, the electric supply industry is one in which there has to be an
instantaneous balance between supply and demand.
Electricity cannot be stored and therefore the grid must stay balanced at all times.
The uneven distribution of resources calls of effective interconnections between various
regions to allow inter-regional exchanges of power so as to optimize the economics of
operation.
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Power planning is generally done on a regional basis and efforts are made to make them selfsufficient.
In India, five such regions have been recognized: Western, Eastern, Southern, Northern and
Northeastern. There is a big difference between one region and another which results in
different peak load.
The operation of each regional grid is controlled by the regional electricity board. Regional
electricity boards promote development of regional grids and establish regional / state load
dispatch centres for the following benefits with the support computer programs of EMS and
SCADA,
(i) optimum utilization of hydro-thermal and nuclear stations.
(ii) reduction in installed capacity requirement due to diversity in peak demand of various
constituent systems.
(iii) reduction in spinning reserve requirement.
(iv) installation of large size units with less cost / MW and less operating cost/kWh.
(v) better frequency control and stability due to high inertia.
(vi) coordinating optimized maintenance schedules for generating units, transmission lines and
other equipment.
(vii) reactive power planning in the region.
5.4 GRID CODE
A grid code is a set of standard rules within the power industry to which the utilities, power
producers and grid maintaining companies would need to comply.
The grid code includes technical provisions covering planning, connections, metering,
scheduling and dispatch, and grid working restrictions.
The operating companies keep the grid code to have restoration plans based on their restoration
objectives, operating philosophies and practices and for familiarity with the characteristics of
peculiarities.
The provisions regarding load shedding (u.f. or df/dt relaying), island facilities at various nodes
in the grid, transaction of power (MW and MVAr) within the grid are covered in the code &
the grid codes will remain different in different countries.
In the code the details of interconnection between systems of different countries must also be
specified. Typical details for our countries is, India having interconnection with Bhutan &
Nepal, type of the voltage is 220kV 3 circuit lines & power exchange through radial modes.
5.5 TRADING OF POWER
Wheeling is defined as the use of a utility's transmission facilities to transmit power for the
other buyers and sellers. Wheeling is necessary for any non-utility generation (NUG) and will
be an important problem over the coming years.
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Short-run marginal cost (SRMC), long-run incremental cost (LRIC)and embedded cost
methods are generally used for calculating the wheeling cost rate.
Currently bulk power is wheeled from the central sector projects to the beneficiary states on the
basis of long-term contracts.
With the coming up of private power generation companies and small power generation,
wheeling of power in the state or regional grid is becoming increasingly important to operate
the power system at adequate security levels and in an economically optimal way.
Wheeling is the use of the electric power system of one utility to transmit power to another
utility or utilities, the power delivered to the recipient being of like quantity (MW, MVAr) and
characteristics (duration and time of the day, month, year) as that delivered by the wheeling
utility.
Energy trading in generation is based on economic, environmental, political and geographical
factors.
Frequency based tariff for power trading
At a given time, the frequency is the same all over the system, and can be measured precisely
with ease anywhere.
Grid frequency and its trend are continuous indicators of generation-load balance.
A high frequency invariably means generation-surplus situation in which some costly operating
stations may have to back down. A low frequency condition invariably means a generation
deficit in which more costly generation plants such as diesel generator, gas turbine or storage
hydro etc., support may be required.
Due to the above, the frequency-linked tariff structure would be incremental cost based, which
is ideal for power exchange pricing in the grid, depending upon the grid frequency increment.
Regional electricity boards are levying this tariff for average frequency of more than 52.2 Hz
on six hours block basis at present.
There is large variations in system frequency in the range of 47.5 to 51.5 Hz in Indian power
grids due to grid indiscipline. Rationalized tariff structure based on system frequency and time
of the day metering for bulk power transactions and unscheduled interchanges besides free
governor operation of generating unit is desirable. Billing of reactive power drawl is necessary
and urgent.
6. ONLINE POWER FLOW STUDIES
An interconnected power system represents an electric network with a multitude of branches and
nodes, where the transmission lines typically constitute the branches. The nodes are referred to as
'buses'.
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Even a power utility serving a mixed urban and rural population operates a network that may
contain typically hundreds of buses and thousands of branches, not counting the distribution
network.
At some of the buses, power is being injected into the network, whereas at most other buses it
is being tapped by the system loads. In between, the power will flow in the network meshes.
A given set of loads can be served from a given set of generators in an infinite number of
'power flow'. Or 'load-flow' configurations. Power-flow analysis concerns itself not only with
the actual physical mechanism that controls the power flow in the network meshes but also
with how to select a 'best' or 'optimum' flow configuration from among the various possibilities
for system operations.
Some of the important aspects of power-flow analysis are,
1. The total amount of real power in the network arising from the generator stations, the location
and size of which are fixed. The generation must equal the demand at each moment, and since this
power must be divided between the generators in a unique ratio in order to achieve optimum
economic operation, the individual generator outputs must be closely maintained at predetermined
set points. It is important to remember that the demand undergoes slow but wide changes
throughout the 24 hours of the day and therefore, slowly, either continuously or in discrete steps,
these set points must be changed as the hours wear on. This means that a load-flow configuration
that fits the demand of a certain hour of the day may look quite different the next hour.
2. Transmission links can carry only certain amounts of power and must not be operated too close
to their stability or thermal limits.
3. It is necessary to keep the voltage levels of certain buses within close tolerances. This can be
achieved by proper scheduling of reactive powers.
4. If the power system is part of larger grid, it must fulfill certain contractual power-scheduling
commitments via its "tie-lines" to neighboring systems.
5. The disturbances following a massive network fault can cause system outages, the effects of
which can be minimized by proper prefault power-flow strategies.
6. Power-flow analyses are very important in the planning stages of new networks or additions to
existing ones.
The overall power-flow problem can be divided into the following sub problems, for the
on-the-line analysis,
(i) Formulation of a suitable mathematical network model - The model must describe adequately
the relationships between voltages and powers in the interconnected system.
(ii) Specification of the power and voltage constraints that must apply to the various buses of the
network.
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(iii) Numerical computation of the power-flow equations subject to the above constraints. These
computations give us, with sufficient accuracy, the values of all bus voltages.
(iv) When all bus voltages have thus been determined, then, finally, the actual power flows in all
transmission lines can be computed.
Operational power flow programs
Power-flow programs are available and used by electric utilities as a planning tool on-line
monitoring mechanism, or a simulation of the real system. The size of the programs in terms of
number of buses and lines is set at compilation time and varies with the application.
The power-flow programs of utilities are usually more dedicated in purpose and have fewer
diagnostics to assist with difficulties. Virtually all operational power-flow programs have
features that facilitate data handling in terms of reading base-case information, storing results,
and manipulating power system control variables. The capability to delete lines, change a bus
type during iterations, check limits, use a different slack bus, and so on.
Some typical features of a program are,
1. Buses are often identified by a combination name-voltage, for example, KARNATAKA 110,
where the 110 refers to the line-to-line voltage. Bus number referring to this name are internal,
changeable program labels.
2. Generation, load, shunt capacitors, and shunt resistors are represented separately, so ratings and
limits are available individually. The internal program may combine quantities such as MW
generation and MW load at a bus, but their external identity is maintained.
3. Bus types are tabulated in below table The slack bus identity is retained because its phase angle
is a reference (slightly different from a swing bus).
4. Shunt admittances are usually represented as fixed. admittance, inductive or capacitive, switched
capacitor in steps with on and off voltage points, switched reactor in steps with on and off voltage
points.
5. Branches (lines or elements)
(i) The series element of a branch between two buses may be specified in terms of impedance (R
+jX) or admittance (G+jB) in per unit on MVA base or bases as specified by the user.
(ii) There are no restrictions on the magnitude or sign of branch impedances. Zero, low-value, or
negative impedances are acceptable, but at least one non-zero value per branch.
(iii) Pi elements having unequal legs are acceptable, with both capacitive or inductive shunt
elements.
(iv) Parallel lines are permitted with identity retained. Mutual coupling is an input quantity.
(v) Branches are identified by terminal bus names. Branch numbers are not required.
(vi) Provision is made for line current ratings and transformer MVA ratings for overload checking.
(vii) Provision is made for calculating line currents at terminals on selected lines.
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TYPES OF BUSES FOR POWER FLOW

Specified
Definition
parameters (p.u.)
P,Q(or unregulated)
Scheduled real and reactive power injections into the network. Power
flow calculations determine the voltage magnitude and phase angle. High
and low voltage limits are possible. In the event that a voltage limits is
reached, the MVAr rating is converted to a fixed reactive element.
P, V (or regulated)
Scheduled real power injections into the network at fixed voltage

magnitude. The voltage is maintained at a constant level by means of an
adjustable internal or remote reactive source, such as a synchronous
condenser, generator field excitation, static VAr generator, saturable
reactor, or other control device. Both (+} and (-) MVAr limits are
entered. In the event that a MVAr limit is reached, the voltage schedule is
no longer held, and the reactive source is fixed MVAr.
Remote
Scheduled MW and variable MVAr. The MVAr injection is varied to

maintain constant voltage at a remote bus. MVAr limits are enterable,
beyond which the bus becomes a P.Q. type, with Q at the limit. The
remote bus changes to a fixed reactive element and specified P.
Swing (area)
Variable MW and schedule voltage. The MW injection is varied to

maintain the real power part of desired area control error. In the event
that a MVAr limit is reached, the voltage schedule is no longer held.
Slack
Scheduled voltage magnitude and fixed phase-angle reference for the

power flow calculation but has variable MW, MVAr output.
6. Transformers and phase shifters

(i) Fixed tap transformer ratios may be entered in terms of rated kV on each terminal.
(ii) OLTC (on-load tap control) transformer voltage range and step size are specified by the
program user.
(iii) OLTC control on MVAr injection at a remote or adjacent bus specified by user.
(iv) Phase shifters have through power or angle set by means of the user's schedule. Phase shifters
have 1:1 voltage ratio. Phase-shifter impedance adjustment with step change is automatic phaseshifter angle range and step size are inputs by the user.
7. STATE ESTIMATION
Methods have been developed using measurements from the network to calculate the state of
the network such as voltage magnitude, phase angle etc., at every bus.
These methods are called state estimators because they are essentially weighed least squares
techniques to find the best state vector to fit scattered of data.
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The scattered data is due to imperfect measurements of rapidly changing voltage or currents on
the network in addition to errors in the assumed values, and variations in the transmission line
linear models, line charging, and so on.
Imperfect measurements, the first source of errors, is due to signal noise, metering accuracy
and analog-to-digital conversion.
The network topology and parameters are assumed as known until they are 'fitted' to the data in
parameter estimation.
The power system is assumed to be operating in a steady-state condition with fixed voltages,
currents, and power flow. The remote terminal units (RTUs) which sample network analog
variables and convert the signals to digital form are periodically examined for the latest values
of the signals.
For example showing the block diagram of state estimator, the RTUs are sequentially
examined which causes a 'times skew' in the data from unit 1 compared to unit N depending on
when the unit was scanned and the time when the actual analog signal was sampled. The set of
N measurements is called a snapshot of the power system, even though the data may have a
time skew at as much as 2 s.
The data collected by the RTUs are often redundant. There may be voltage sensing by stepdown transformers on each phase of the transmission line, whereas only one is needed for a
balanced operation.
In addition, each transmission line voltage to the substation may be monitored on the line side
of a circuit breaker, introducing redundancy when all lines are in service. There may be singlephase watt and VAr meters in addition to current measurements on all phases. The state
estimator should incorporate all measurements to obtain the greatest possible accuracy.
Because the poor system data are redundant, the state estimator may be used with statistical
methods to detect bad or grossly incorrect data.
Fig showing the block diagram of state estimation of power system.

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Another purpose of a state estimator is to detect changes in network configuration. If one phase
of a transmission line becomes abruptly open circuited, the average power flow on the intact
phases will be far less than the values given by the last state estimate. The operator is alerted to
this condition at the first data scan. As of this data, corrective action by the control computer is
not automatic but may be implemented in the future through 'remedial action' programme.
Another purpose of a state estimator is to complete a set of measurements in order to replace
faulty or missing data. It is possible to estimate power flows and voltages at a bus whose
measurements are lost due to a communication line failure or RTU failure. Significant
problems in this regard are to determine the minimum number of measurements in order to
calculate the state, often called observability, and how to improve state estimates by additional
measurements.
8. COMPUTERIZED MANAGEMENT
Computerized management of the power systems is required to ensure a secure and economic
operation of the system as well as to facilitate the minute by minute tasks carried out by the
operational staff.
1. Secure operation - It includes the following main aspects,
(i) State estimate,
(ii) Security analysis,
(iii) Optimal power and water flow / fuel consumption.
2. Economic operation - It signifies the following functions,
(i) Automatic Generation Control (AGC),
(ii) Economic dispatch,
(iii) Unit commitment and load forecasting.
The main aim is to computerise all the above functions so that the human operator only
interacts for any feedback action if required.
Considering the nature and size of the problem, a suitable model is required to envelope the
functional modules such as,
(i) Main computer system at master station,
(ii) Remote terminal unit (RTU) system for controlling the power stations and grid-substations
(iii) Storage of data
(iv) Mode of output.
The main computer would handle the computational activities, accept input, store the desired
information, process it and send back the requisite instructions to the respective RTUs. It will
perform the task of a decision and maintenance support system.
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The RTUs will transmit data and receive the processed information. Storage unit will store
information, for retrieval as and when required in future. The mode of output could be printer,
console or dynamic map board.
Computer configuration
Consistent with the principles of high reliability and fail-safe features, electric utilities have
almost universally applied a redundant set of dual digital computers for remote supervision
data acquisition and control, energy management and system security.
Both computers have their own core memory and drive an extensive number of input-output
devices, such as printers, telemetering, magnetic tape drives, disks, and so on. Usually, one
computer, the on-line unit, monitors and controls the power system.
The backup computer may execute off line batch programs such as load forecasting or hydro
thermal allocation. The on-line computer periodically updates a disk memory shared between
the two computers.
Upon a fail over or switch in status command, the stored information of the common disk is
inserted in the memory of the oncoming computer. Thus, the information used by the
oncoming computer has maximum age of the update cycle (typically 30 seconds). All the
peripheral equipment is interfaced with the computer through input-output microprocessors
that have been programmed to communicate as well as preprocess the analog information,
check for limits, convert to another system of units, and so on.
The microprocessors can transfer data in and out of computer memory without interrupting the
central processing unit. Often, the microprocessors are also redundant, in that equipment
interfaces may be switched to spare units upon detecting a malfunction.
As a result of these precautions, for all critical hardware functions there is often a guaranteed
99.8 percent or more availability. Software also allow for multilevel hardware failures and
initialization of application programs if failures occur. Another feature of the computer system
is that critical operating functions are maintained during either preventive or corrective
maintenance. Besides hardware, new digital code to control the system may be compiled and
tested in the backup computer, then switched to online status.
The computers are usually employed in a fixed cycle operating mode with priority interrupts
wherein the computer periodically performs a list of operations. The most critical functions
have the fastest scan cycle. Typically, the following categories are scanned every two seconds,
All status points, such as switchgear position (open or closed), substation loads and
voltages, transformer tap positions, and capacitor banks,
Tie-line flows and interchange schedules,
Generator loads, voltage, operating limits, and boiler capacity,
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Telemetry verification to detect failures and errors in the bilateral communication links
between the digital computer and the remote equipment.
The turbine generators are often commanded to new power levels every four seconds, sharing
the load adjustment based on each unit's response capability in MW/min.
The absolute power output of each unit is typically adjusted every two minutes by the
computer executing an economic dispatch program to determine the base power settings. Many
other system operations, such as the recording of load, forecasting of load, determination of
which generators to start up or stop, are considered non-critical, so the computer executes these
programs on an hourly basis.
Most low-priority programs (those run less frequently) may be executed on demand by the
operator for study purposes or to initialize the power system.
An operator may also alter the digital computer code in the execution if a parameter changes in
the system. For example, the MW/min capability of a generating unit may change if one of its
throttle valves is temporarily removed for maintenance, so the unit's share of regulating power
must accordingly be decreased by the code. The computer software compilers and data handles
are designed to be versatile and readily accept operator inputs.
Fig showing the block diagram of configurations of computer management in power system.
9. POWER SYSTEM SIMULATOR
The operation of the power system is a complex task requiring the operator to make splitsecond decisions regarding integrity of the system.
It is important for those who operate power systems to be aware of the potential weak points of
the system and to provide counter-measures for overcoming the weak points. For this it is
necessary to develop the computer programs to simulate power system behaviour.
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Due to increasing interconnections the power systems are becoming complex. There is growing
need for higher operational skills. Trained operators are required urgently to improve system
efficiency, reduce down-time and maintenance costs.
The power system network simulator allows the operator to study both steady state and
dynamic behaviour through interactive graphics, menu driven formats and command line
inputs.
The simulator has a flexible man-machine interface and can easily be configured to any power
system. The Central Power Research Institute has facilities for development of software for
simulators for power systems network.
A training simulator is a device which creates the effects of an actual power system including
power plant by using a mathematical model. The mathematical model updates the database in
the computer (PC based) which is used to drive all indicators, recorders, annunciators etc. on
the control panel.
Training simulator comprises a processor, control panel and an instructor's console. It solves
the mathematical model representing power interactively to continuously predict the behaviour,
after taking into account the operator's action from the panel.
A math model comprises of differential equations, algebraic equations and Boolean equations.
The panel displays the system parameters dynamically to give feedback to the operator about
the system's operating conditions. The operator also uses a panel to start up, shunt down and
control the simulated plant and to change the operating condition.
The operator can check whether bus voltages are in order, line flows are well within thermal
limits,
and the generator reactive power limits are not exceeded. The instructor's console is used to
create real life disturbances, which the operator is supposed to handle and take remedial action.
A schematic arrangement is shown below.
The mimics prove complete perspective giving the details of various equipments (generator,
breakers, lines, transformers, shunt reactors, capacitors, loads etc.) and their interconnections.
Interaction with the instructor is minimum. All lining up procedures along with the necessary
interlocks and design specifications are available to the trainee through help files.
For each operation, explanation of right and wrong operations is provided, help files with
essential operational parameters (such as trip setting) are provided.
In the operation mode, all the interlocks are logic associated with various equipments
incorporated in it. In this mode, the 'help' facility is inhibited and a trainee performance
evaluation package is invoked.
The operator training simulator is built on a PC with associated peripherals & software thus
making the overall cost very minimal and affordable by the utilities.
- 106 -
- 106 -
Simulators are extensively customerized to a given plant or power system of the power utility
for specific operating conditions, down to actual response time. Since the software is user
friendly, the operator can learn many things independently without the help of a supervisor.
National Power Training Institute (NPTI), Faridabad, uses such facilities for training engineers,
operators and technicians for operation and maintenance in all aspects of power sector-thermal,
hydro, power network etc.
NPTI has 210MWand 500MWthermal plant simulators at Badarpur in the country. Simulators
are used for similar training in nuclear plants by Nuclear Power Corporation, by CPRI for
power system integrated operation. The thermal power station training is compulsory AS PER
THE Indian Electricity Act for deployment at the thermal power station of capacity 100MW &
above.
Fig showing the schematic of simulator.

10. SYSTEM FREQUENCY
It is technically impossible to store electrical energy in the form of alternate current.
This means that there must be continuous balance between the input of mechanical energy in
an ac system. If consumption is greater than production, the grid frequency drops. If production
is greater than consumption, the grid frequency rises. In this respect, the power system can be
compared to a set of scales, with production in one scale and consumption in the other.
The speed at which the pointer swings back and forth represents the grid frequency. The
transmission grid can be compared to a balance beam.
The number of weights in the scale for consumption is determined by a continuously
decentralized decision-making process. When an individual consumer turns on a light in the
morning, a small weight is placed in the scale. When another consumer turns off a light, a
small weight is removed from the scale. Each power utility in the regional power system grid
has a production scale and a consumption scale.
The power utilities in the grid have joint responsibility for putting the weights on the scale and
taking them off so as to obtain a continuous balance between generation and consumption. If
the balance beams were not interconnected, each subsystem would have to continuously move
the Weight son and off the scale in order to maintain the pointer at the midpoint.
- 107 -
- 107 -
The investment in tie-lines for joint operation is one of the more profitable investments in the
power industry. One prerequisite is the difference in structure of the generation systems in the
different utilities, which varies from thermal power system to the mix of hydro and thermal and
the hydro system.
Grid frequency is normally maintained within a narrow band around 50 Hz. Frequency
deviations can be regarded as a measure of the quality of the electrical energy delivered. In
normal operation, frequency is maintained within at 0.1Hz, with standard deviations of about
0.3Hz. This degree of accuracy appears to be quite sufficient for most consumers.
In connection with faults in the transmission grid that result in disconnection of parts of the
grid with generation surpluses, grid frequency can drop below 49.9 Hz. In this case, there is a
risk that the nuclear and thermal power plants must be disconnected in order to avoid damaging
vibrations in the steam turbines. Hydro power plants are more robust and normally tolerate a
drop in grid frequency to 45 Hz without sustaining damage.
Frequency variations
A frequency range between 49.8 and 50.2 Hz is considered safe for generation, transmission,
distribution and consumer end equipment, all of which are increasingly using frequencysensitive electronics.
Frequency is influenced by the balance in real power. At present, there is no regulation
regarding this in the regional power grids.
The generation meant for spinning reserve and regulation reserve is used to meet more load.
Also, more load is met at the cost of frequency.
Frequency effects
Constant normal frequency is the primary mark of a normal operating system and the system
frequency should not be allowed to deviate outside the strict tolerance values for the following
reasons,
1. Most ac motors run at speeds that are related to frequency.
2. Generator turbines, especially steam driven ones, are designed to operate at a very precise speed.
3. The turbines are generally set for tripping at 51.6 Hz and 47.5 Hz. Turbo rotor, with its many
huge turbine blades, constitutes a mechanical system of many natural frequencies. These
frequencies are quite undamped and are each subject to resonance at various rotor speeds.
Hydro turbines are not subject to this danger.
4. A large number of electrically operated clocks are driven by synchronous motors and the
accuracy of the clock is a function not only of the frequency error but also of the integral of
this error.
5. The frequency is normally related to the real power balance in the overall network. Under the
normal frequency the power generated is of all loads plus real transmission losses.
- 108 -
- 108 -
6. In case power balance does not exist then the difference would enter into or exit from kinetic
energy storage. In case of momentary surplus of generator power over the load, the total speed
(frequency) will increase. The rate of increase in speed would depend upon the amount of
surplus and inertia of the running equipment. As load being supplied by the network speeds up,
all the motors running would meet higher load torques and thus require to pull more power
from the network. A surplus of megawatts tends to increase of frequency of a system. A
frequency is a system-wide variable so the change will be left uniformly throughout the
system.
- 109 -
- 109 -
QUESTIONS BANK
1)
2)
3)
4)
5)
Explain system adequacy and security of power system reliability.

Explain reliability evaluation and calculations.
Explain basic methods to evaluate generation reliability.
Explain quality of supply for power system planning.
Explain the types of power disturbances and specify the equipments that are used to reduce
the problems encountered.
6) Explain the terms (i) Flexible systems (ii) System adequacy, and (iii) System security.
7) Describe the two methods of reliability assessment.
8) Write a descriptive note on CEAs reliability planning criteria.
9) Describe different types of disturbances and the devices used to suppress the disturbance.
10) Explain the various methods of load management.
11) What do you mean by state estimation? Explain with the block diagram the function of
state estimation.
12) Explain with the block diagram the functions of power system simulator.
13) Explain the reliability planning in power system.
- 110 -
- 110 -

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POWER SYSTEM PLANNING

Prepared by | ANILKUMAR K.M., Assistant Professor in E&EE, BIET,

AS PER VTU SYLLABUS

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

UNIT-1: INTRODUCTION OF POWER PLANNING

POWER SYSTEM PLANNING

UNIT-1: INTRODUCTION OF POWER PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

1.3 POWER SYSTEMS

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

1.4 STRATEGIC PLANNING

Time Frame (Yrs)

Corporate vision, mission, Values

Utility, Regional and National level

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

Flow chart showing the Components of Planning

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

1.5 POWER DEVELOPMENT

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

1.6 POWER GROWTH

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

2. NATIONAL AND REGIONAL PLANNING

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

More specifically, as a result of transmission interconnections, coordination offers distinct

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

2.2 INTEGRATED RESOURCES PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

The process of least cost planning

3. STRUCTURE OF POWER SYSTEM

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

Standard system KV Voltages (IS: 12360)

Maximum System Voltage

Distribution & Sub

Sub transmission &

Transmission & Tie

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

System performance is determined at an instant of time and is characterized by its functional

Power System Components

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING