Growth of Power Sector in Bangaru Telangana

The power sector is the core engine of growth in any economy and more so in the newly formed State of Telangana. Providing quality and reliable power at an affordable cost are critical towards fulfilling the high growth aspirations of the people in the State of Telangana.

Telangana is one of the top IT exporting the States of India and about one-third of the bulk drugs in the country are manufactured in the State. Besides these, the economy of Telangana is also dependent upon agriculture. The government of Telangana intends to provide 9 hours of daytime supply of power to agricultural consumers in the State. In addition to the quality and reliability of power supply, the other key aspect which needs to consider is sustainability. Thus, thereby Telangana is amongst the high power intensive States in India, with per capita power consumption of over 1394 units as against 1010 units

Going forward, energy deficit in the State was in the range of 4%-12% in the past and energy requirement is expected to see an exponential growth owing to various factors such as buoyancy growth in capital city and other urban centres, high domestic and agricultural consumption and upcoming major projects such as ITIR, HMR, NIMZs and Hyderabad-Nagpur and Hyderabad-Warangal Industrial corridors.

Telangana committed to providing 24x7 power available to all households, industry, commercial businesses, public needs, any other electricity consuming entity and adequate power to agriculture farm holdings by 2018-19. Telangana plans to meet the demand by a number of capacity additions in the pipeline and enhancing the energy availability from the existing sources. The gaps and challenges across the power value chain of Fuel-Generation- Transmission- Distribution must be addressed to meet the energy requirement.

Present Power Supply Scenario

The current energy requirement in Telangana was 50,916 MU, of which only 2,128 MU could not be met resulting in an energy deficit of nearly 4.2% with a maximum historic peak demand of 8,331 MW in 2014-15. Energy availability from existing sources 48,788 MU inclusive of market purchases and coal based from long-term services committed nearly 66% of energy availability.

Power generation by Different sources in 2014-15

Sl.No	Source	Generation(MU)
1	TSGENCO –Thermal	7949
2	TSGENCO-Hyderabad	1667
3	APGENCO-Thermal	9701
4	APGENCO-Hyderabad	1995
5	CGS	13957
6	IPPS&GPCL	1093
7	NCEs	767
8	OTHERS	1573
9	Market Purchase	10086

Energy-Mix by Source

Coal based	66%
Hydel	7%
Gas	2%
Market purchase coal based	21%
NCE (Non-conventional energy)	2%
Nuclear	2%
Total	100%

Telangana has been allocated 53.89% of TSGENCO and APGENCO stations. The existing Installed Capacity of Telangana State as on November 2015 stands at 9326.33 MW, which includes State Sector, Central Sector, and Private Sector.

Demand Supply Scenario

Quality power to various competing sectors is a sine-quinine to meet the objective of the newly formed state of Telangana. The demand supply projections for the next five years are detailed below in a given Table. The energy requirement takes into account, assured 7 hours of power supply to agriculture consumers and 6% increase in agriculture sales every year and ensuring 24x7 power supplies to all the other consumers. The urban development in the capital city of Hyderabad and planned urbanization in the other centers of Nizamabad, Karimnagar and Warangal along with upcoming projects such as ITIR, Metro Rail, Industrial Corridors, lift irrigation schemes add to the additional energy requirement.

Demand-Supply Projections (MU)

Item	FY 14-15	FY15-16	FY16-17	FY17-18	FY18-19
Energy requirement	50,916	60,313	74,081	92,475	105,974
Energy availability from existing sources	48,788	56,236	70,599	88,546	114,593
Energy Deficit/Surplus	-2,128	-4,076	-3,482	-3,928	+8,619
Deficit as% of demand	-4.2%	-6.8%	-4.7%	-4.2%	+8.1%

Transmission sector of Telangana is amongst the high-performing utilities in the country with the transmission losses were 3.59% and transmission system availability as high as 99.94%. Transmission losses have seen an impressive downtrend from 4.50% in 2010-11 to 3.59% in 2013-14.

The two distribution companies namely –TSSPDCL and TSNPDCL that supply electricity to consumers in Telangana. The distribution companies cater to 1.12 crore customers.
Category-wise consumption of Power:
About 72 percent of the total power produced in the State is being used for domestic sector, followed by agriculture which consumes about 16 percent and non-domestic purpose (9 percent). Power used for public lighting, industrial use etc. constitute less than one percent.

Key Challenges Demand supply Gap:

Telangana has inherited a power deficit was approximately 5%. During FY 2014-15, energy requirement was 50,916 MU of which only 48,788 MU could be met from various sources. With the state’s growth plans in the forthcoming years, there is enormous energy requirement to fuel the development initiatives.

Integrating Non-Conventional Energy:

Telangana is keen on increasing the power generation from Non-conventional Energy. As Telangana is a landlocked state, the potential to exploit wind energy is limited. The state is looking forward to avenues to improve the energy mix and is looking forward to integrating solar power and other non-conventional energy.

Solar capacity is being taken up by way of competitive bidding. For wind capacity additions are allowed as and when developers are coming forward to put up a plant in the State and they are being provided grid connectivity by conducting feasible studies.

Transmission corridor augmentation:

Transmission corridor augmentation to ensure evacuation from up-coming generation centers should be monitored proactively to ensure that transmission corridor leads gen¬eration availability.

DISCOM challenges:

The key challenges being reducing technical and commercial loss in the distribution of power, minimizing interruptions and breakdowns in network infrastructure and meeting customer expecta¬tions on new connection release and complaint resolution. TSDISCOMS are facing severe financial crunch due to longer cash conversion cycle resulting from metering exceptions, low collection and billing efficiencies, unpaid dues from Government departments and dependence on agricultural subsidy. There is a need for agriculture feeder segregation so that the agriculture connections consumption can be captured.

Measures Aimed at Capacity Additions

To make the State self-sufficient in Power Sector in the next 3 years, it has been proposed to add 6000 MWs by TSGENCO and 4000 MWs through NTPC exclusively dedicated to the State as mandated by AP Reorganization Act and necessary steps have already been initiated by such Capacity Addition. The Transmission & Distribution (T&D) Network strengthening is also being planned and executed.

Out of the total installed capacity, a major portion of power is generated by the state sector followed by central and private sector (see Figure 6.3).The total energy generated for the year 2015-16 (as on 30-11-2015) is 9,326 Mega Watt.Table 6.3 gives us a picture of the energy supply by different sectors and different plants in Telangana.

Table 6.3: Energy generated in Telangana among the sectors (Capacity in MW)

SNo	Name of the Sector	As on 31-03-2015 Telangana State	Capacity added during 2015-16 Up to Nov’’15	As on 30-11-15
1	State Sector	4813.60	80	4893.60
2	Joint Sector	146.58	-	146.58
3	Private Sector	1968.37	-	1968.37
4	Central Sector	1942.69	105.64	2048.33
5	Case-I Bidding	-	269.45	269.45
	Total	8871.24	455.09	9326.33

Capacity Addition Program by TSGENCO:

Keeping in view of future power needs, TSGENCO has taken up 6 new power projects of total capacity 6840 MW for power generation. Kakatiya Thermal Power Project (Stage-II) with the capacity of 600MW was commissioned and Synchronized with a grid on 22.10.2015. New projects proposed to be commissioned are Lower Jurala HEP, Pulichintala HEP, Bhadradri, Kothagudem (Station-VII) and Yadadri (see Table ).

Table : New Capacity addition by TSGENCO and Projects under development

Projects Proposed to be Commissioned
S.N	Name of the Project	Capacity in MW
1	Kakatiya Thermal Power Project, Stage-II (1x600 MW) (Synchronized with grid on 22.10.2015)	600
2	Lower Jurala HEP (6x40 MW) (U-3 & U-4 will be commissioned by Dec-2015 & balance 2 Units by March-2016)	160
3	Pulichintala HEP (4x30 MW) (Will be commissioned during FY 2015-16)	120
4	Bhadradri Thermal Power Station (4x270 MW), Manuguru (M), Khammam (Dist.) (will be commissioned in 2016-17)	1080
5	Kothagudem Thermal Power Station –VII (1x800 MW), Paloncha, Khammam (Dist.) (will be commissioned in 2017-18)	800
6	Yadadri Thermal Power Station (5x800 MW), Dameracherla(M), Nalgonda Dist., (will be commissioned in 2018-19)	4000
Total (Projects under development)		5880

TS DISCOMS

TSDISCOMS have initiated competitive bidding for procurement of 2000 MW of power on a long-term basis. There is an additional spare capacity of about 6000 MW with SR generators which can be booked without transmission constraints. To improve the energy mix, the TSDISCOMS have already concluded bid process and have contracted 505 MW of solar power. Plans to purchase another 500 MW are underway.

To augment and strengthen the transmission network, the TSTRANSCO line from Suryapet to Nandivanaparthy and Shankarpally (825 MW/Ckt) is in progress.

Moreover for 765 KV-Wardha-Nizamabad-Maheshwaram, downstream strengthening by establishing 400 kV SS and associated line at Maheshwaram is being taken up. And network strengthening is proposed at Warangal and Hyderabad for the 765kV-Warora¬Warangal-Hyd-Kurnool. Strengthening of Kalapaka to Khammam line is proposed for onward transmission from Vemagiri. Telangana plans to setup mega solar parks and generates about 5000 MW of solar power in the state.

Way forward

The TS power utilities have identified an array of interventions across the Generation-Transmission-Distribution value chain for ensuring power sufficiency to all consumers in the state. Some of the key interventions identified are as follows.

Generation

The state generation utility, TSGENCO is planning significant investments to the tune of 6,840 MW amounting to a total project cost of Rs.42,491 crore from its upcoming thermal power stations including Kakatiya, Kothagudem, Bhadradri and Damercherla Thermal Power Stations to meet the increasing demand for capacity additions by FY 2018-19. Also, TSDISCOMS are planning to procure capacity from various sources including 4,733 MW of power from CGS sources and 4,819 MW of power from other long-terms sources and 6,016 MW from Renewable Energy Sources. These capacity additions together sum up to 22,408 MW in installed capacity terms by the end of FY 18-19.

In a realistic scenario taking into account manageable delays in COD of power sources and an anticipated onset of demand from various major projects, the State will move from a deficit position till FY 2017-18 to a surplus position by FY 2018-19.

Transmission

TSTRANSCO would ensure required transmission infrastructure for evacuation of Power from CGS and Power Plants. The key action points are augmenting the existing 400 kV lines and erect new 400 KV / 765 KV network to meet the projected energy requirement and identifying Transmission lines / projects to be constructed through Tariff based competitive bidding and Viability Gap Funding (VGF) based on grant by GoI and also identifying lines with high losses and thereby undertake system augmentation works.

Distribution

Investments to the tune of Rs 23,817 Crs are planned in the distribution sector across the state of Telangana. Out of the above investments, Rs 9,973 Crs is towards Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) in which key priority is connecting the unconnected by putting in place a plan for electrifying all the un-electrified households in the state by FY 2017-18.

The other key focus areas include reducing AT & C losses, improving the reliability and quality of supply and schemes have been formulated for feeder separation, HVDS roll out, metering etc. GoI intervention in the form of grants is required to the extent of 75% of the project cost under DDUJGY and IPDS schemes to meet the objectives of providing 24x7 Power For All in the state of Telangana.

Presently the distribution transformation capacity at 33 kV level is about 15,038 MVA over and above the DISCOMs are planning to add 7,960 MVA amounting to a total of 22,998 MVA by the end of FY 2018-19. Analysis of the peak load at each voltage levels indicate that the system is capable of handling peak loads which are amounting to only 11,953 MVA at 33 kV level.

Solar Energy Programme

Telangana has a vast solar potential with 20.41 G.W and with average solar insolation of nearly 5.5 Kwh/m2 for more than 300 sunshine days. The government is keen to promote renewable energy in the State particularly harnessing the solar potential. Towards this, the investor friendly solar policy has been announced.

The DISCOMs have successfully tied up the solar capacity of 515 MW through the competitive bid process which was concluded in Feb 2015. The tender has floated for procuring another 2000 MW solar capacity.

The government is encouraging solar roof top net metering systems in the State to reduce the pressure on grid supply with the subsidy by GOI. It was decided to extend 30% subsidy in the Domestic sector for 1 KW of a grid system for 4,200 numbers, in addition to the GoI subsidy. To support agricultural farmers, the Government initiated to provide financial assistance to take up solar sets at large scale in order to provide uninterrupted power supply. As on 28-01-2015, Renewable Energy power projects in the State commissioned are 396.775 MW.

Major Government Programs on Power Sector

Power Supply to Agriculture Sector:

Telangana State is committed to the welfare of farmers and is providing 7 Hours/ day, free power to all agriculture consumers. The Government of Telangana State has declared 9 Hrs day-time agricultural supply during 2014-15 Budget Assembly session and proposed to implement the same from 01-04-2016 onwards. To extend 9 Hours day-time power supply to agriculture consumers, additional transformation Capacity of 5053 MVA has been projected to be added at a cost of Rs. 628.50 crore. The Transmission Network Augmentation works are in progress and are programmed to be completed by March 2016

24X7 Power for All (PFA) Scheme:

Telangana has been selected as one of the Pilot States in the Country for implementation of prestigious Power for All (PFA) – flagship program of Government of India. This program will be implemented jointly by the Government of India and Government of Telangana. Substantial enhancement of transmission network is planned as a part of 24X7 Power for All Scheme, which envisages providing of 24 hours un-interrupted power supply to all categories of consumers other than Agriculture. It is proposed to add 17 number of 400kV, 35 number of 220 kV and 92 number of 132 kV substations along with associated lines at an estimated cost of around Rs.19,000 crore, in the Transmission Sector for implementing the above Scheme by FY 2018-19.

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY):

Erstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana scheme has been subsumed as Rural Electrification component in Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY). The Ministry of Power, Government of India approved DDUGJY with following major components such as (i) Separation of agriculture and non-agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in the rural areas; and (ii) Strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas, including metering of distribution transformers /feeders/consumers.

Telangana State Rural High Voltage Distribution System Project (TSRHVDSP):

Currently, the energy losses due to supply to agricultural services are estimated to be around 25%. The High Voltage Distribution System (HVDS)aims at reduction of losses through replacement of the low voltage network with high voltage network and installation of a large number of smaller capacity Distribution Transformers viz 25 KVA/16 KVA DTRs in place of higher capacity Distribution Transformers viz., 100 KVA/63 KVA for supply to agricultural consumers. This system is best suited to meet the scattered low-density loads observed in rural areas in India. Based on sample studies, the system loss reduction due to an adoption of HVDS system is expected to be around 10%.

Open Access Application:

Various Power Traders / Generators / Consumers approach State Load Dispatch Center of TSTRANSCO for an issue of No Objection Certificate used for bidding (day-ahead) in Power Exchanges i.e. Short-term Open Access. An online web based IT application is deployed for an issue of such ‘No Objection Certificate ‘by SLDC. This application increased the transparency and made the business proven user-friendly to Power Traders / Consumers / Generators.

G.Rajendera Kumar