Availability Based Tariff Availability Based Tariff (ABT)(ABT)

Submitted to: Dr. Suman BhowmickDr. Narendra Kumar

Submitted by: Vipul Gupta2k8/EE/889

POWER PLANT COSTS

Fixed Costs Variable Costs

Interest on Loan

Return on Equity

Depreciation

O & M Expenses

Insurance

Taxes & Interest on Working Capital

Fuel Cost

The Indian Version of ABT comprises of three components:

a) Capacity Chargeb) Energy Chargec) Unscheduled Interchange Charge

How do the Beneficiaries Share the Payments?

The Daily Scheduling Process

Central Generating Stations

SLDCs

RLDC

1

2

3

4

4

WHY ME???

“Till recently regional power system operation was more frightening than an Alfred Hitchcock horror movie. Scholars could be excused for getting a shock of their lives by a mere glance at the daily frequency and voltage profile of any region. System operation was an endless ‘jihad’ to prevent the system from collapsing.”

UI Rate

System Marginal Cost

STATE

Threshold Frequency Generation Vs Scheduled Generation

Depending on its variable cost, each generating unit has a threshold frequency, i.e. the frequency at which the UI rate equals the variable cost of the generating unit.

The output of the generating unit should be maximized as long as the grid frequency is below the threshold frequency, irrespective of the schedule given out by the RLDC / SLDC for the unit. And the unit should be backed down when grid frequency climbs up and exceeds the above threshold frequency.

Region-Wide Merit-Order in Generation

Frequency Based Dispatch of Generating Stations

Optimum Utilization of Intra-State Resources

Trading of States’ Surplus Generation

BilateralSale

RegionalUI Pool

Unscheduled Interchange (UI) Charges

ReferencesReferences

• Steven Stoft, “Power System Economics Designing Markets for Steven Stoft, “Power System Economics Designing Markets for Electricity”, IEEE Press, Wiley Interscience; John Wiley & SonsElectricity”, IEEE Press, Wiley Interscience; John Wiley & Sons

• Bhanu Bhushan, “ABC of ABT_A Primer on Availability Tariff”, Bhanu Bhushan, “ABC of ABT_A Primer on Availability Tariff”, 20052005

• S. K. Soonee, S. R. Narasimhan, V. Pandey, “Significance of S. K. Soonee, S. R. Narasimhan, V. Pandey, “Significance of Unscheduled Interchange Mechanism in the Indian Electricity Unscheduled Interchange Mechanism in the Indian Electricity Supply Industry”Supply Industry”

• Central Electricity Regulatory Commission (Unscheduled Central Electricity Regulatory Commission (Unscheduled Interchange charges and related matters) (Second Amendment) Interchange charges and related matters) (Second Amendment) Regulations, 2012Regulations, 2012

• Website: http://www.cercind.gov.inWebsite: http://www.cercind.gov.in

THANKS