Powergrid Corporation of India Ltd's Q4 & FY 15 results

Power Grid Corporation of India Limited (POWERGRID), the ‘Central Transmission Utility (CTU)’ of the country and a ‘Navratna’ Company, is engaged in power transmission business with the responsibility for planning, co­ordination, supervision and control over inter­State transmission system and operation of National & Regional Power Grids.

POWERGRID is a listed Company, with 57.90% holding of Government of India and the balance 42.10% is held by Institutional Investors and public. As on 31st March, 2015 the Company owned & operated transmission network of about 115,600 ckm of transmission lines and 192 nos. of EHVAC & HVDC substations having transformation capacity of more than 231,000 MVA. The average availability of its transmission network for FY14­15 was 99.87%, and it wheels about 50% of total power generated in the country. For FY 2014­15, the Company’s Turnover and Net Profit was Rs. 17,780 Crore and Rs. 4,979 Crore respectively and as on 31st March, 2015 total Fixed Assets were Rs. 118,264 Crore on standalone basis.

On consolidated basis, the company posted a Net Profit of Rs.5,046 crore, surpassing Rs.5,000 crore mark for the first time. Recognizing the need for development of National Grid, POWERGRID has established / planned various inter­regional links as a part of different generation projects / grid strengthening schemes.

The long cherished dream of ‘One Nation – One Grid – One Frequency’ was accomplished with the successful commissioning of 765kV S/C Raichur­Solapur link of POWERGRID in Dec, 2013. The inter­regional power transfer capacity of the National grid which was 27,750MW at the end of XI Plan has now grown to 46,450MW. POWERGRID’s strong transmission network and modernised Regional Load Despatch Centres (RLDCs) have facilitated inter­regional energy transfer across the country of about 84 Billion Units (BUs) during FY 2014­15, as compared to about 78 BUs during the previous year, thereby meeting more demand in energy deficit regions.

POWERGRID is playing a catalytical role in facilitating interconnection between neighboring countries leading to formation of SAARC grid for effective utilization resources for mutual benefits. Transmission links have been established with Bhutan, Nepal and Bangladesh and are being further strengthened.

GROWTH since FY92­93 1,15,600 1992­93 2014­15 22,200 634 Line Length Turnover (Ckm) (Rs. Crore) 17,780 4979 237 Profit (Rs. Crore) Grid Management and Open Access Grid management function in the country is being looked after by Power System Operation Corporation (POSOCO), a 100% subsidiary of POWERGRID, with its State- of­the­Art Unified Load Despatch & Communication facilities. These facilities are being updated continuously to further improve quality and economy in operation of power systems besides improving data availability, visibility and transparency.

During FY 2014­15, POSOCO has executed Short Term Open Access (STOA) transactions to the tune of about 38,000 (Bilateral & Collective) Nos. involving about 81 Billion Units (BUs) of energy.

Integration of Renewable Energy Resources with conventional sources is a top priority worldwide and special attention is being given in our country to harness the Green Energy. CERC has provided a framework for trading in Green Certificates (Renewable Energy Certificates or RECs) and National Load Despatch Centre, NLDC of POSOCO has been designated as the Central agency for this purpose. Cumulatively, RECs worth about Rs.1710 crore have been traded till March, 2015.

Being the nodal agency for grant of Long Term Access (LTA) to private producers, POWERGRID has undertaken development of high capacity transmission corridors for evacuation of large quantum of power from various Independent Power Producers (IPPs) mainly coming­up in resource rich States, i.e. Odisha, Jharkhand, Sikkim, Madhya Pradesh, Chhattisgarh, Tamil Nadu, Andhra Pradesh etc. and this power is required to be transmitted to load centers located across the States and Regions. Accordingly, implementation of High Capacity Power Transmission Corridors (HCPTCs) has been taken up by POWERGRID.

These corridors have been planned by the Company in consultation with CEA, IPPs & beneficiaries and have been approved by the regulator, CERC. Implementation of these corridors has been taken up in a phased manner matching with progress of generation projects. This shall go a long way in integrated development of transmission system in the country. For efficient utilisation of precious RoW, Company is deploying State­of­the­Art technologies such as High Temperature Low Sag Conductors, Series Compensation including Thyristor Control, Multi Circuits, Compact & Tall Towers, High Surge Impedance Loading Lines, etc. Company gives priority to research activities with potential for societal, environmental & national benefits by application of advance technologies and finding solutions to gear up for future challenges.

Experienced with construction of 765kV UHVAC & ±500kV HVDC transmission system, POWERGRID is now working on next higher transmission voltages of ±800kV HVDC & 1200 kV UHVAC System to achieve efficient utilization of RoW and increased power transfer capability for transfer of bulk power over long distances.

The Company is currently establishing two ±800kV, 6000MW HVDC bi­pole lines: one from the North­Eastern Region to the Northern Region; and the other from the Western Region to the Northern Region. 1200kV UHVAC technology is being developed by the Company with the participation from indigenous manufacturers of equipment for the first time in the world and towards this direction, the 1200kV lines have been test charged at National Test Station Bina(M.P.) and field trials have been conducted.

POWERGRID is exploring viability of application of AC High Temperature Superconductor Power Transmission Cable in Indian power system, which will offer substantial saving in ROW by increasing the power transfer capability, reducing the losses.

POWERGRID is taking leadership initiative for implementation of Smart Grid Technology in the Country and has taken up implementation of Wide Area Measurement System (WAMS) using Phasor Measurement Units (PMUs) integrated with Phasor Data Concentrators as Unified Real Time Dynamic State Measurement Scheme.

POWERGRID in association with Electricity Dept, Govt. of Puducherry & Renewable Energy Agency of Puducherry (REAP) has taken up development of a Consumer­utility interactive Pilot Smart Grid/City project in Puducherry through open collaboration and in this direction, a “Smart Grid Control Centre” at Puducherry has already been established. The Company acts as ‘nodal point’ in prestigious “India Smart Grid Task Force” Secretariat for Government’s activities related to Smart Grid in transmission and distribution sectors of the country.

The Company has secured Consultancy assignments from 9 States in the area of Smart Grid and discussions are under way with other States also. Company is having a telecom network of about 33,000 kms providing back­bone connectivity to all metros, major cities & towns including remote areas of J&K & North- east States.

Company is one of the three agencies selected by Govt. of India for providing connectivity for the prestigious ‘National Knowledge Network’ project which connects knowledge centres across the country such as IITs, IISc, etc. on high speed connectivity. Further, in implementation of ‘National Optic Fiber Network’ (NOFN) for providing connectivity to Gram Panchayats in the country, POWERGRID has received allotment letter for 4 states and the work for connectivity of 6,900 Gram Panchayats has commenced.

The Company during FY14­15 also launched MPLS­VPN services over its network and secured assignments from a number of PSUs as well as private companies. Backed by its strong in­house expertise in various facets of Transmission, Sub- transmission, Distribution and Telecom sectors, the Company is executing various consultancy assignments and earning additional income for its shareholders.

POWERGRID has been assigned the work of providing consultancy services to the States of NER for implementation of “NER Power System Improvement Project” funded by World Bank and for implementation of Comprehensive Scheme for Strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim. Under Consultancy services, the Company is also implementing transmission project in J&K to provide grid connectivity and reliable power supply to the strategically important Ladakh region in addition to Strengthening of transmission network in Delhi and execution of transmission system for evacuation of power from Lalitpur power plant of Uttar Pradesh.

The Company has also been contributing to the Distribution Reforms through participation in APDRP and rural electrification programmes. During the year, the Company secured the rural electrification works in 15 districts of Odisha. In the international arena, today, Company has extended its footprints to 18 countries spread over Asia, Africa and CIS countries. POWERGRID is playing a catalytical role in facilitating interconnection between neighboring countries leading to formation of SAARC grid for effective utilization resources for mutual benefits.

Transmission links have been established with Bhutan, Nepal and Bangladesh and are being further strengthened. Energy Efficiency is one of the new initiatives taken up by POWERGRID and during the year, the Company released an Energy Efficiency Report ‘Negawatt – Makes a Watt.’

The Company is a Certified BEE Grade­1 Energy Service Company. Company has always committed itself for Environment preservation and taken up initiatives for Sustainable development of transmission system. POWERGRID was the first Company in power sector to come out with ‘Sustainability Report’ and 2 report was published in March 2013, providing all stakeholders a clear picture of our contributions to sustainable development through its activities. POWERGRID has planned a capital investment of Rs. 100,000 Crore for development of inter­State transmission system during XII Plan.

The Company has been assigned a Corporate Rating of “BBB­” (Outlook: Stable) by International Credit Rating Agencies namely Standard & Poor’s and Fitch Ratings. These ratings are consistent with Govt.of India’s sovereign rating. On the domestic front, the Company enjoys excellent credit rating with financial institutions, and thereby, is placed in a comfortable position in terms of resource mobilization. Integration of generation from Renewable Energy Resources with the grid is being given focused attention. In order to facilitate integration of large scale renewables into the grid, POWERGRID carried out extensive studies and prepared a comprehensive report titled “Green Energy Corridors”.

The implementation of Green Energy Corridors involves intra- state and inter­state transmission system strengthening for evacuation of renewable generation and transfer to major load centers as well as enlarging balancing area.

The intra­state scheme is to be implemented by the respective States and inter­state scheme has been taken up for implementation by POWERGRID. The Company has been assigned the work of Transmission System for Ultra Mega Solar Parks and the implementation has commenced. POWERGRID has also prepared a comprehensive report for the development plan for Desert Power and the same is under discussion.

Power Grid Corporation of India Limited (POWERGRID), a ‘Navratna’ Company and the ‘Central Transmission Utility (CTU)’ of the country, has posted a Profit After Tax of Rs.5,046 crore on consolidated basis, surpassing Rs.5,000 crore mark for the first time.