national transmission & despatch company limited...

Engr. Salis Usman, General Manager, Power System Planning

National Transmission and Despatch Company10th January 2020, WAPDA House, Lahore

Today’s Focus

1. Where it all began?

2. Where do we stand today?

3. Major Challenges for NTDC

4. NEPRA Approves Market Model

5. Layout of Electricity Market

6. Mandate for NTDC

7. Mandate for NPCC

National Transmission and Despatch Company

To set the perspective, particularly for NTDC

professionals and generally for power sector

professionals, with respect to understanding the

envisioned roles and responsibility under the

upcoming competitive wholesale power market

in Pakistan.

Objective of this Presentation


1. WAPDA, a vertically integrated utility (1958)

2. Major functions of WAPDA Power Wing:

a. Power Generation

b. Power Transmission

c. Power Distribution

Pakistan WAPDA


Restructuring of Power Sector


NTDC Mandate


1. NTDC was granted

license in 2002 under

section 17 of the

NEPRA Act 1997

2. “For the purpose of this

License the minimum

transmission voltage is

declared to be 220 kilo

volts and above”.

NTDC: A Major Stakeholder


`

Generation Transmission Distribution

WAPDA

NTDCDISCOs

K-Electric

PAEC

IPPs

Public Lightening

AgriculturalConsumer

DomesticConsumer

IndustrialConsumer

CommercialConsumer

Bulk BuyerK-Electric

500 kV220 kV

500 kV220 kV

132 kV11 kV

NTDC Responsibilities


1. System Planner

2. Transmission Network Operator

3. System Operator

NTDC Core Functions


The Wire Business

1. Transmission & Generation Planning

2. Project Development and Execution

3. Operation & Maintenance of Transmission Assets

4. Design and Engineering

System Operation and Despatch

1. Economic Generation & Despatch

2. Power System Operation and Control

CategoryGrid Stations Transmission Lines Capacity

Nos. km MVA

Existing System (2020)

500 kV 16 5,970 22,350

220 kV 45 11,322 31,240

Total 61 17,292 53,590


NTDC Transmission Network

NTDC Transmission Network 2020

CategoryGrid Stations Transmission Lines Capacity

Nos. km MVA

Existing System (2020)

500 kV 16 5,970 22,350

220 kV 45 11,322 31,240

Total 61 17,292 53,590

Future System (2025)

500 kV 24 12,633 39,150

220 kV 71 15,894 54,100

765 kV 1 500 3,600

±660 kV 2 (Converter Stations) 886 4,000

±500 kV 1 (Converter Station) 110 1,000

Total 99 30,023 101,850


1. Upcoming ARE Policy 2019/2020

2. Upcoming Electricity Policy

3. Unprecedented transmission development plans

4. Effective Regulatory compliance

5. Sind Transmission and Despatch Company secures license from NEPRA

6. Implementation of Performance Culture and Institutional improvements

7. Setting up of R&D Function

8. Revamping of training function at NTDC

9. Development of NTDC Business Plan

10. IT revolution (ERP and many other initiatives)

11. Strengthening the CSR dimension

12. Right of Way issues

13. Revamping the Procurement processes

14. Upcoming competitive power market – more expectations from NTDC


Major Challenges for NTDC

IGCEP2040

Feb. 2019

Procurement of Modern Software

Sep. 2019

Lahmeyer VRE Study

Nov. 2019

Longterm Forecast (EV+NPHS)

Nov. 2019

Jan. 2019

IGCEP2047

Jan. 2019

Transmission Expansion Plan 2047

Transmission Investment

Plan

Jun. 2020 Sep. 2020

Completed Ongoing To be Started

Pakistan VRE Locational

Study

Feb. 2019

ARE Policy 2019

NTDC Transmission Investment Plan


NEPRA Approves Market Model


NTDC in the Competitive Market

Stakeholders

ServiceProviders

System Operator

Market Operator

Metering Service

Providers

Transmission Service Provider

IAAPlanner

MarketParticipants

DISCOsGenerators

SuppliersBPC


Layout of Electricity Market


Regulatory

• Grid Code

• Open Access

• Licensing

• Tariff

• Loss Administration

• Payment Security

• Dispute Settlement

Planning

• Medium Term

• Long Term

• Grant of Access

• Protection Coordination

• Standards

• Metering

System Operation

• Security

• Reliability

• Scheduling

• Despatch

• Congestion Management

• SCADA

• Ancillary Services

Stakeholders

• Generators

• IPPs

• Transmission Licensees

• Distribution Licensees

• Traders

• Power Exchanges

Mandate for NTDC


1. Managing transparency in all the business functions

2. Data institutionalization

3. Metering (Completion, Fine Tuning of SMS at CDPs)

4. Strengthening of demand forecasting function

5. Strengthening of generation & transmission planning

6. Improving processes and structure

7. Amendments in Grid Code and

8. Proposing Connections Agreements

9. Awareness and Capacity building for market readiness

Mandate for NPCC


1. Managing transparency in all the business

functions

2. Data institutionalization

3. Efficiency in the dispatch of power plants

4. Improving processes and structure

Motivation


Effective compliance

with regulatory

requirements

minimizes any risks

involved with non-

compliance events.

Critical Strategies

1. Identify regulatory requirements as laid down

in the Licence and assess the risks associated

with each non-compliance event;

2. Ensure that NTDC staff is aware of these

requirements and their own roles and

responsibilities in this context; and

3. Provide a program, guidelines, and procedures

to facilitate efficient and effective compliance.


Regulatory Compliance Framework


How We Reached Here?


1958

Provisional Electricity Departments

were transferred to WAPDA and

accordingly Area Electricity Boards

(AEBs) were established in 1982

199419821947-58

Localized generation

and distribution of

power

Independent Power Producers (IPPs)

How We Reached Here?


1997 20191998 2002 2005

IGCEP

NEPRA Grid Code

Power Policy 2002

Power Sector Hierarchy


NTDC

1. System Operation

2. Transmission Network Operator

1994 IPPs

2002 &

onward IPPs

GENCOs

PPAs

WAPDA

(Hydel)

CPPA-G

Market Rules

1. Market Operator

2. Market Operations

Commercial Code

1. Meter Reading Verification

2. Billing

3. Settlements4. Payments

Grid Code

EPP & CPP

(EPP & CPP)

+UoSC

(EPP & CPP) +UoSC+ MOF

DISCOs

IESCO

FESCO

LESCO

SEPCO

MEPCO

GEPCO

HESCO

QESCO

PESCO

TESCO

(EPP & CPP) +UoSC+ MOF+ DM

Generation

Portfolio

Renewables Power Flow

Financial Flows

Ownership Structure


Ownership Structure

GenerationTransmission and

DespatchDistribution

IPPs+K

Electric

GENCOs+

WAPDA+

PAEC


10DISCOs

K Electric

State Owned Privately Owned

Privately Owned

NTDC Mission Statement


Contribute in the development of a prosperous

Pakistan by managing a stable, reliable and

economical transmission and despatch system

through professional excellence in terms of team

efforts and delivery

NTDC of Tomorrow


NTDC aims to be the best Transmission Company while

adopting best utility practices, ensuring Transmission

System Reliability and Safety and committed to become the

best service provider to the power producers, distribution

companies and bulk power consumers connected to its

Network.

Working to acquire new technologies including 765 kV AC

and ± 660 kV DC for better dispersal and transmission of

power.

Performance at NTDC


• Understand and communicate clarity on the purpose

• Follow rules yourself and then expect from others

• Ensure regulatory compliance proactively

• Have total faith in Allah Almighty & trust on team’s abilities

• Be brave to own your mistakes and failures

• Assess and review thoughts before shaping in ideas

• Manage your resources well – humans come first

• Acknowledge others’ performance specially of juniors

• Say No to tentativeness, comprising and pessimism

• Exhibit highest level of commitment with organizational goals

• Keep excelling and aim to stay at top – nothing short

NTDC: Existing Network


NTDC: Future Network


Financial Perspective


Tariff

1. Source of earning is Use of System Charge through

NEPRA tariff

2. Applicable tariff 2017-18 is Rs. 148.33 /kWh/month

3. KE and other few adjustments not allowed by NEPRA

4. Allowed losses @ 2.8% against demanded @ 3%

Financial Perspective


Financial Performance

1. 2016: Net after tax profit of Rs. 9,227 million



4. 2018: Current Ratio (Current Asset/Current Liability) = 1.48

5. 2018: Debt Equity ratio for 2018 = 86%

Factors for Electricity Market


Robust Transmission System Control Area Demarcation & Boundary Metering Streamlined Scheduling and Settlement Mechanism Assessment of Transfer Capability Congestion Management Imbalance Handling Mechanism Methodology for Transmission Charge Sharing Treatment of Transmission Losses Transparent and Non-discriminatory Implementation Compliance Monitoring and Regulatory Oversight Dispute Redressal Mechanism

Competitive Regime


STDC features


1. "Transmission Business" means

planning, development, construction and

maintenance and operation of

transmission facilities;

2. The term is thirty (30) years;

3. The Licensee shall comply with the

provisions, terms & conditions of the

Grid Code;

4. The Licensee shall adhere to the IGCEP;

5. The Licensee shall offer its transmission

and inter-connection services to NTDC

STDC License Granted


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