Transmission Policy and Wind Energy Grid Operational Challenges and Regulatory Measures V Subramanian, CEO and Secretary General Indian Wind Energy Association (InWEA)
Present Status and Enabling Provisions/Framework
Wind Energy Development in India Annual Addition, MW 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 National wind resource monitoring 600 & demonstration programme 500 400 300 200 100 0 Restructuring of power sector and emergence of ERCs Policy framework to push indegenisation National guidelines for tariff and Interconnection for captive & third party sales Emergence of EA 2003, and Textile Industry Investments Consolidation of wind energy Stakeholders Operationalisation of Kyoto Protocol % fixation and fixed tariff regime Mandated by ERCs * 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Learning from the past First burst : short one: early to mid-90 s Conducive policy framework First bust : long one: mid-90 s to late 90s Changes in policy framework Not enough thought on commercialisation Second burst : long one : 2000 onwards till last year Consistency in policy & regulatory framework Passage of EA 2003 Second bust :??? : already initiated Policy frameworks getting rigid, not much scope for leap-frogging Higher input costs Implementation bottle-necks!! Annual Addition, MW 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Grid-interactive renewable power - as on 30.09.2008 Sr. No 1 2 3 4 5 6 Sources / Systems Biomass Power (Agro residues) Wind Power Small Hydro Power (up to 25 MW ) Cogeneration-bagasse Waste to Energy Solar Power Total (MW) Installed Capacity 656.60 MW 9521.80 MW 2220.99 MW 993.83 MW 55.75 MW 2.12 MW 13,450.59 MW
Provisions in The Electricity Act 2003 Section 39 (2) the functions of the State Transmission Utility shall be (c) to ensure development of an efficient, coordinated and economical system of intra-state transmission lines for smooth flow of electricity from a generating station to the load centres; Section 61: The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following. (h) the promotion of co-generation and generation of electricity from renewable sources of energy Section 86(1)e: The State Commission shall discharge the following functions, namely: - (e) Promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence.
Issues with Wind Power
Issue 1 - Wind Transmission Transmission access is necessary because some windy sites are located far from population centers Transmission or distribution access is also necessary for direct third-party sales between the Wind Energy producer and a final consumer New transmission access to remote Wind Project sites may be blocked by transmission-access rulings or right-ofway disputes
Issue 2 - Deliverability VAr support may be required especially if power has to flow long distances Lack of voltage support Unlike conventional plants, wind farms require reactive support Adopt measure for mitigating reactive power losses To supply wind turbine-generator reactive power requirements (depends on type of wind turbine-generator)
Issue 3 - Intermittency and Variability Load and generation forecast variability Ancillary services and operating cost impacts Increasing wind penetration levels may require dispatch changes to conventional plants Thermal units may have to be adjust their schedules to accommodate must-take wind energy Overall generation costs of thermal power plants may increase Increased wear and tear and loss-of-life issues wind turbines Spinning reserve issue of buying replacement power to maintain system reliability, should wind suddenly drop off
Issue 4 - Regulatory and Policy Need for Grid Code to enforces Grid Reliability and Level Playing Field Power/Production Control Low-Voltage Ride Through Reactive Power Compensation Power Quality Need for Creation of Wind Market Implementation of RPS/RPO Implementation of REC Promotional Tariff National RE Law
Framework of Grid Connectivity RLDC, SLDC (CERC set standards)
Challenges in Planning
Key Challenges in Planning
Transmission Planning Planning Process No specific provision in National Transmission Plan, IEGC and State Grid Code for grid integration of renewable energy Wind Energy evacuation schemes, typically do not feature in long term transmission system plans of many STUs In-adequate attention to planning for Wind Evacuation has resulted in constraints in capacity addition. Planning Criteria Redundancy criteria Line loading
Transmission Planning: State Level Issues Responsibility for Transmission Planning at state level rests with the STUs However, STUs are yet to prepare detailed transmission capacity addition plan SERCs need to approve the plan Even after proper planning, STUs are unable to achieve their targets of system expansion due to several factors: financial resource constraints, availability of right of ways and land, adequate number of competent and quality suppliers of goods and erection contractors, etc.
Suggested Approach Planning Criteria: Planning Standards by CEA Seek Uniformity in planning approach across States through Forum of Regulators Planning Process Essentials : Transparency in Planning Process by STUs Involvement of Wind Developers/ Associations with strategic inputs for development. Participation through Grid Co-ordination Committees
Challenges in Construction
Key Challenges in Construction
Transmission Development Amongst RE technologies, wind farms with large capacities require interconnection with transmission infrastructure STUs typically do not give priority to RE evacuation infrastructure. Resource constraints make STUs averse to investing in RE evacuation infrastructure Existing RE projects are under-utilised despite resource availability RE Developers are called upon to invest in evacuation infrastructure
Inter-Connection Standards Due to variable nature of wind energy generation, Grid should have flexibility to sustain the variability In India, connection standards for wind energy are yet to be established The following aspects need to take into consideration for large scale grid integration: Active power control Frequency control Voltage control Tap changer Wind farm security issues Modelling and communication requirements
Suggested Approach Regulation on Grid Code, Grid connectivity and Grid standards would be required to cover provisions addressing concerns related to Grid integration of wind energy Transmission planning criteria needs to adequately address the specific requirements of RE source connectivity Need for creation of RE Transmission Agency for addressing Grid Integration issues may be examined CEA to be pursued to develop Connection Standards for Grid Integration of Wind Energy
Challenges in Operation
Key Challenges in Operation
Grid System Operation in India CERC and SERCs are responsible for specifying the operating framework through Grid Codes RLDC and SLDC are responsible for real time management of power system Transmission network has evolved from region based network to large inter-connected network Except southern region, rest four regions operates on same frequency Key characteristics of Indian grid system Wide variation in grid frequency in comparison to International Practices Voltage fluctuation Variable loading of transmission network No transmission margin
Suggested Approach Forecasting of wind energy can reduce the Grid operation issues As penetration of WEG increases, wind forecasting becomes necessary Scope of Rescheduling on Block basis Uncertainly should be mapped by System operator to quantify imbalances Significant cost reduction and benefits due to accurate forecasting Distributed or centralised forecasting methods can be used. Its value is greater than the cost associated with it.
Grid integration & management A detailed study for grid strengthening and load-flow at regional level is a must Transmission planning needs to be done at regional level Grid strengthening and planning for evacuation needs to be established well in advance Documentation of best practices needs to be looked into Forecasting solutions be developed
Evacuation schemes in windy states Rajasthan Developer is responsible for the development of evacuation and dedicated transmission arrangement up to pooling station. STU be develop evacuation system beyond pooling stations till the nearest Grid s/s Tamil Nadu Evacuation system to be Developed and owned by the STU/Discom Gujarat Developer is responsible for evacuation infrastructure up to nearest STU s/s upto the distance of 100km, beyond this STU will create the Infrastructure Maharashtra Developer is responsible for evacuation infrastructure up to nearest STU/DISCOM s/s upto interconnection point. Developer provides 50% of cost as interest free advance As per the EA 2003, providing suitable measures for grid connectivity is a responsibility of STU
India road ahead National Renewable Policy/Law Formulate a comprehensive action plan to develop Renewable energy Fix Target for each type of RE Fix state-wise targets along with intermediate milestones Impose Carbon Tax to support Renewable and Low Carbon Technology Cost the Carbon
India road ahead Renewable Portfolio Standard Single RPS mandate either at national or state level Implement Renewable Energy Certificate (REC) Trading System. Clearly define penalties & implement the same for noncompliance Extend Tax benefits to voluntary buyers of RECs ( Not mandated by RPS)
India road ahead Tax Benefits Increase the accelerated depreciation benefit to 100% -further stimulus for investment Tariff Policy Adopt flexible tariff system based on local wind condition as warranted for a weather-driven-resource\ Options to Investors : Fixed throughout the PPA term or Partly fixed and partly indexed to market price of energy equivalent Leave the CER proceeds with the Investors Operationalize third party sales with Nil Cross-subsidy Implement Generation Based Incentive for all Non-depreciation driven-tax planning investors To set the right tariff for Green-Power
India road ahead Higher the Wind PENETRATION a grid can accommodate satisfactorily Lower the constraints for the Wind Farm to perform at its peak Incremental costs vis-à-vis the benefits
India road ahead Wind Plant Integration Operating Aspects Cost & Reliability aspects associated with increasing levels of wind penetration Identification of Options to manage the impacts on the grid for those levels of penetration Costs include those of Reserve requirements, wind forecasting and market operation for increasing levels of penetration
More Wind On the Grid: Design & Operate Wind Farms as Wind Plants Optimize the Wind-plant operating characteristics largely in synch with the connected grid s requirements Grid Codes Evaluate wind- integration operating impacts Load Despatch Centers to incorporate the wind-plant forecasting into utility control-room operations LDCs to consolidate balancing areas into larger entities (Regional Grids or larger) or accessing larger resource base through the use of dynamic scheduling
More Wind On the Grid: Transmission & Distribution companies to make better use of physically (in contrast with contractually) available transmission capacity Transmission companies to Upgrade and expand the transmission systems Market participants to develop a well-functioning hourahead and day-ahead markets, and expand access to those markets Regulators to frame market rules and tariff provisions that are more appropriate to weather-driven resources
Nature have given us the wind, it s time to let modern energy power us. Thank you Mr. V Subramanian, CEO and Secretary General Indian Wind Energy Association (InWEA) PHD House,3 th Floor, Siri Fort Road New Delhi 110 016, India Tel: +91-11-2652-3452 Fax: +91-11-2652-3042 E-mail: subram71@gmail.com Web: www.inwea.org