Thursday, 23 August 2012

POWER GRID FAILURE IN INDIA Violeta P. Corral, PSI-APRO Consultant, 21 August 2012

http://gmpsiaprec.blogspot.com.au/2012/08/power-grid-failure-in-india-violeta-p.html - Three 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, however, deviate from the schedule and overdraw leading to grid collapse and tripping of transmission lines.  On July 30, the northern grid collapsed and then restored; 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, punish ‘states that cheat’ or ‘politically powerful’ states that overdraw power ‘with impunity.’ Business leaders blamed coal shortages and other problems on the grid and called for more reforms in the power sector.

Power experts called for strengthening of outdated transmission lines by utilizing, e.g., ‘unscheduled interchange’ (UI) funds or ‘transmission conservation’ penalties.  Many also believe that the grid failure has at its root a crisis of accountability and governance – e.g., the lack of autonomy, authority and transparency that results in decisions based on short-term economic and political considerations rather than system stability and equity-based norms.

Shailendra Dubey, Secretary General of the All India Power Engineers Federation (AIPEF), urges government to review the quota or power allocation to the northern states.  Was their allotment judicial or fair, and why do private distribution companies (Discoms) in Delhi have higher chunk than what is  due them? Northern states are forced to overdraw power from the grid due to shortage and have to pay heavy penalty on account of UI;  meanwhile, Delhi ‘s Discoms are earning profit from surplus power, and UI has become a regular mechanism to earn more revenues.

Vinay Pandey, Secretary General of the Western India Power Engineers Federation, believes that tripping of transmission lines are preventable through greater coordination in the power sector. The Electricity Act 2003, however, has systematically unbundled state electricity boards (SEBs) and weakened the system, resulting in systematic failure to ensure coordination in planning and execution. Pandey adds:  “In the name of commercial reforms, the principles of physics have been ignored; but electricity follows principles of physics only, without any regard to the commercial concepts or complicated laws.”

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. 

With the push for private sector agenda in the name of 1 MW ‘open access,’ the system is doomed to crash more frequently, the tariff for common man will spiral up and shortages will remain in the farm sector. The bigger question is – Who will ask for probe against all the scandals of power sector and review of Electricity Act 2003 in its entirety.

The Indian National Electricity Workers Federation (INEWF), along with the Delhi State Electricity Workers Union (DSEWU), have taken actions to shelve the policy of unbundling of integrated utilities.  Unbundling is resulting in harmful impacts to workers and communities that include: Multi-fold tariff hikes; Poor quality of service; Retrenchment/lay-offs of employees by way of forced “Voluntary Retirement Scheme”; Gross violation of labor laws; Contractual service/outsourcing.

The Power Ministry has stepped up efforts to implement the provisions of ‘open access’ in the Electricity Act 2003. This would mean bulk consumers of 1MW or above (e.g., industries) can opt to choose their electricity suppliers, while captive domestic or agricultural consumers – who have no choice – may be left paying higher prices for their electricity.

REFERENCES:
http://www.hindustantimes.com/India-news/NewDelhi/Lights-out-in-20-states-Uttar-Pradesh-gets-the-blame/Article1-905820.aspxhttp://indianpowersector.com/2012/07/yet-another-grid-failure-halts-life-in-half-of-india/http://timesofindia.indiatimes.com/liveblog/15291183.cmshttp://www.reuters.com/article/2012/07/31/uk-india-blackout-idUSLNE86U01G20120731http://www.hindustantimes.com/India-news/NewDelhi/Power-restored-after-two-days-of-massive-outages/Article1-906297.aspx ; http://news.yahoo.com/power-restored-across-india-historic-failure-054521548.html?_esi=1 ; http://ph.news.yahoo.com/video/official-says-power-completely-restored-233917073.htmlhttp://timesofindia.indiatimes.com/india/Hackers-can-cripple-Indias-power-grids/articleshow/15320294.cms  ;  http://punjabnewsexpress.com/news/5428-Outage-of-400-KV-Bina-Gwalior-Agra-line-likely-cause-of-grid-failure.aspx#.UBphlBcSVJM.facebookhttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/power-grid-failure-agra-line-gave-hints-of-impending-collapse/articleshow/15334223.cms; http://economictimes.indiatimes.com/news/news-by-industry/energy/power/need-to-step-up-power-infrastructure-investment-ntpc/articleshow/15335908.cms ; http://economictimes.indiatimes.com/news/news-by-industry/energy/power/states-seek-legislative-changes-to-to-punish-those-drawing-excess-power-from-grid/articleshow/15334125.cms ; http://www.washingtonpost.com/world/asia_pacific/huge-blackout-fuels-doubts-about-indias-economic-ambitions/2012/08/01/gJQAtjeYOX_story.html?fb_ref=sm_btn_fb&socialreader_check=0&denied=1  ;