Monday, 20 August 2012

India’s power grid collapse - by Bobet Coral

http://gmpsiaprec.blogspot.com.au/2012/08/indias-power-grid-collapse-by-bobet.html  - Two weeks ago, India’s power grid collapsed twice in as many days resulting in outages in 20 states across north, east and northeast India and affecting more than 600 million people, or half of India's population.  Public services like water supply, hospital, rail and road-traffic operations were brought to a standstill in what had been touted as the world’s biggest black-out.

Power produced by plants flows to grids through transmission lines; state-owned Power Grid Corporation runs the grids. There are five power grids in India – northern, southern, western, eastern, northeastern.  Each state has a quota of power it can draw from the grid, and states are expected to stick to ‘grid discipline.’  Many states deviate from the schedule and overdraw leading to grid collapse.  Overdrawing leads to fluctuations and tripping of transmission lines that halts power supply to distribution companies and eventually to consumers. On July 30, the northern grid collapsed and was restored six hours later; the next day, three grids failed – northern, eastern and northeastern. 

Power officials were quick to blame overdrawal of power from the grid  by northern states such as Uttar Pradesh, Punjab, Haryana and Rajasthan. Others blamed government’s failure to enforce discipline in the management of the power grid, enforce existing rules or punish ‘states that cheat’ or ‘politically powerful’ states that overdraw power 'with impunity.' They seek legislative changes to the Electricity Act of 2003 to imprison those responsible for drawing excessive electricity and putting at risk power supply to 'law-abiding' states.

Business leaders opined the blackouts may have been caused by a mix of coal shortages and other problems on the grid, and called for more reforms in the power sector.

Power experts are pointing to serious technical issues such as absence and improper functioning of essential safety equipment, and outdated transmission lines. But many believe that like most other systemic failures, the grid failure has at its root a crisis of accountability and governance – e.g., the autonomy and authority of load dispatch centres  in politically sensitive decisions such as ‘load shedding.’  Lack of transparency results in decisions based on short-term economic and political considerations rather than system stability and equity-based norms. Moreover, power utilities also should be put through a paradigm change in management culture.

India's electricity distribution and transmission is mostly state-run, with private companies operating in Delhi, Mumbai and Kolkata. Less than a quarter of generation is private nationwide. 

Shailendra Dubey (All India Power Engineers Federation/AIPEF) argues that the power grid failure is caused by a gross mismanagement by bureaucrats and politicians. Local politicians put enormous pressure on power utilities to supply more electricity in their areas, leaving them with no choice but to overdraw from the grid to satisfy the politicians. The AIPEF also calls for  a review of the quota of power allocation to the northern states as they are forced to overdraw power from the grid due to shortage; as a result, these states pay heavy penalty on account of UI or ‘unscheduled interchange’.  Meanwhile, Delhi's private distributions companies (Discoms) are earning profit from surplus power – UI has become a regular mechanism to earn more revenues, which in itself proves that the Delhi Discoms have been allocated power more than their requirement.  Corrective measures should be instituted to reallocate power in the Northern Region so that states facing power shortage may get more power from the Central sector and no utility is allowed to earn money regularly through UI. (see attached)

Our colleague power engineer Vinay Pandey raises several issues. (1) Whether the trippings were result of over drawl:  Both trippings started with tripping of 400 KV line with no generator on it; the ‘cascading’ was initiated due to over frequency and not due to under frequency. Although over drawl is a vicious evil, it can never trigger a grid collapse on high frequency. (2) What about system strengthening? Whenever a problem arises, there is tough talk about enforcing discipline, and farmers are blamed, that there is over-drawl because state governments are allowing farmers to consume more.  More than 74000 Cr has been collected by the Power Ministry as unbalanced UI fund. The Power Sector Development Fund (PSDF) regulation drafted by CERC is lying with power ministry since 2010. Transmission conservation penalties of more than 1400 Cr; if used as equity, 1400 Cr could fund 7000 Cr worth of projects that will strengthen the transmission corridor. There is wind power capacity available in Tamil Nadu but cannot be transmitted. (3) Is the quota rational: UP, Bihar, Punjab, etc are blamed, but was their allotment judicial or fair, and why do the Delhi Discoms have higher chunk than what was due them. (4) What the reforms achieved: The Ex power secretary pleaded that reform must go forward, ‘open access’ to be encouraged. The root of all the problems of electricity sector today lies in the un-thoughtful reform adopted in the country. There is no sensitivity to the people’s need or capacity or to the national interest.  The disintegration of system has already lead to chaos in the system. With the push for private sector agenda in the name of 1 MW open access, the system is doomed to crash more frequently, tariff for common man to spiral up and shortages to remain in the farm sector. If rural electrification helped the green revolution, be prepared to witness a reversal. With increasing stress on commercialization of electricity, the farm sector may get stuck up.  The big question is – Who will ask for probe against all the scandals of power sector and review of Electricity Act 2003 in its entirety.

In a related development, the Power Ministry reiterated its directive to the Central Electricity Regulatory Commission (CERC) and the Forum of Regulators (FoR) to implement the provisions of ‘open access’ in the Electricity Act. In November 2011, the ministry had issued a circular stating consumers with a capacity of 1 Mw or more were considered ‘open access’ consumers and the regulator had no jurisdiction on fixing energy charges for them. This could mean bulk consumers (e.g., industries) can choose to no longer be connected to their Discoms, while captive smaller (e.g. residential) consumers -- who have no choice -- may have to pay higher prices for their electricity.


Bobet Corral