Business Plan for an

IT event in POWER

Technology
Energy

24 July, 2009 IT in POWER 1

 1 Technology
Energy
Growth of the Indian economy is targeted to be over 8%. Energy has to play critical role in sustainable
development of the economy. According to sectoral analysis for achieving growth of such a magnitude,
electricity, gas and water supply sector put together should also grow by 8%. Year wise actual growth
of GDP in real terms was to the tune of 4.2% during 2002-03, 8.5% during 2003-04, 7.5 % during 2004-
05, 9% during 2005-06, 9.4% in 2006-07, 9% in 2007-08 & expected to be 7.5% in 2009-10. Electricity
generation growth which was around 3.1% towards the end of IX Plan (2001-02) has increased to over
5.1% during the last three Years of Tenth Plan (2002-07), but due to the slack in thermal power
production the growth generation decreased to 2.71 in 2008-09. The government has revised its
target of power capacity addition to 90,000 MW in the 11th Five-Year-Plan (2007-12), up by 11,423
MW, from the earlier estimate of 78,577 MW for 11th Plan to sustain the growth momentum of the
economy. The capacity addition target has been set with a perspective of adding 100,000 MW by 2012,
which will take India's total installed capacity to 205,000 MW.
Since independence, there has been sizeable growth in the power sector. Generating capacity in the
country which was only 1362 MW has increased to 147 GW today. Despite, rapid increase in
population over period of time, per capita consumption has increased from 15 KwH to 740 KwH at
present and forecasting the same 1000 KwH by 2012 (See chart below).

Year Growth Installed Per Capita

(March) Generation Generating Consumption of
(%) Capacity Growth Electricity
2003 3.1 1,07,973

2004 3.1 592

2005 5.0 1,18,420 606
2006 5.2 1,24,310 631
2007 5.1 1,27,753

2008 6.33 1,47,806 740

2009 2.71

2012 2,05,000 1000

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 Technology Introduction
Energy
After United States, China, Japan, Russia, and Canada, India ranks Sixth in terms Electricity
Generation. India has the world’s largest decentralized solar energy programme, India has the world’s
2nd largest Bio gas programme, India ranks 2nd in the global renewable energy “Attractiveness Index”
poll, India ranks 4th as a global “Wind Super Power”, India ranks 5th in the world in terms of exploitable
hydro electricity generation.

Indian power system is demarcated into five independent regional grids viz. Northern, Eastern,
Western, Southern, and North-eastern Regions. All the regional grids, except Eastern and North-
eastern Regions, operate independently with only a limited exchange of power across the regions and
Power Grid Corporation of India has been designated by the concerned authorities as the Central
Transmission Unit.

With the advent of economic liberalization in 1991, the power sector was the focus of attention for
attracting private investment specially FDI in generation. Eight fast track projects were even offered
counter guarantees for payment by the Central Government in addition to the guarantees of the State
Governments. By 1995-96, 57,000 MW of projects were proposed by potential developers and 27,000
MW had received techno-economic clearance from the Central Electricity Authority. These were all
MOU based projects with negotiated costs and tariffs. In the absence of a transparent process of
bidding, many of these had high costs. Due to lack of adequate payment security mechanisms,
combined in some cases with public perceptions of high cost in tariffs, most of these projects did not
get implemented. Since 1990 till date only 17113 MW of generation has come in the private sector.

Share of installed capacity of electricity

Share MW Share %
(Sept 08)
Thermal 92,892.64 64.64

Hydel 36,347.76 24.73

Renewable Energy 12,194.57 07.72

Nuclear 4,120 02.91

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 Technology Introduction
Energy
While India has made impressive progress in the Power Sector since independence, it has not been
sufficient. In terms of generation, while new capacity has been added, demand has far outstripped the
supply leading to a widening gap. The primary reason of the widening gap lies in the distribution link in
the value chain. The generation companies have not found it easy to recover their dues from their
biggest buyers, mainly the State Electricity Boards (SEBs). SEBs suffer huge financial losses every
year due to power theft and ineffective practices of billing and collection. Apparently, the losses have
reached an alarming Rs. 26,000 crore. It is clear that the biggest fundamental issue hampering the
viability of the Indian Power Sector is the sheer volume or level of Transmission and Distribution (T&D)
losses that amount to 31%, a very high level by any standard. To make the matter worse, indirect
calculations show T&D losses to be much higher in the range of 40-50%.
Target v/s generated power in five year plans

Target MW Achieved MW Achieved %

5th Plan

6th Plan

7th Plan

8th Plan 30,538 16,422.40 53.80

9th Plan 40,245.20

10th Plan 41,110 17,995

11th Plan 90,000

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 Technology Introduction
Energy
In addition, the distribution system in India is often characterised by inefficiency, low productivity,
frequent interruption in supply and poor voltage. Evidently, some fundamental changes are imperative
in the working of the power sector entities to realise the vision of “reliable, affordable and quality power
for all by 2012”. The reform process is in progress in several states under the overall guidance of MoP.
It is aimed at bringing about sustainable improvements in the operations of the utilities and making
them viable businesses. The reforms have brought about various improvements in operational
structure, commercial orientation, transparency in operation and overall customer orientation in several
states. However, there has been limited success in institutionalising these changes and sustaining
these improvements over a period of time. Therefore, the need of the hour is to institutionalise the
changes and bring about sustainable, pervasive improvements. Enabling the core business operation
at the transaction level using information system would lay the foundation for sustainable reforms.

This will ensure world-class practices and controls at the operational level and would enable
substantial improvement in the overall health of the utilities. The overall quality of data will improve and
thereby an overall improvement in the flow of information for decision support. Information technology
(IT) would thus become the key enabler in the initiatives under the reform process. IT would not only
enable the success of reforms process, it would also act as the catalyst by providing an information
infrastructure essential to the reform process and practices.

With a view to use IT as a strategy to improve commercial and operational performance in distribution
and for its effective implementation, the MoP has set up an IT Task Force under the supervision of Mr.
Nandan Nilekani, Co-founder of Infosys for the power sector with a focus on distribution. The IT Task
Force endeavours to develop a synergy between IT and the Indian Power Sector. The objective of this
task force is to prepare a report defining the role of Information Technology in profitability improvement,
improvement in quality of service, etc.

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 Technology Introduction
Energy
The Electricity Act, 2003
The Electricity Act, 2003 has created a new paradigm for the development of power sector in the
country. It has abolished the monopoly of the State Electricity Boards created through the Electricity
(Supply) Act, 1948 and has created a new competitive framework for the development of the power
sector in the country with focus on the consumers and safeguarding of their interests by independent
Regulatory Commissions. The Act has eliminated / reduced entry barriers in the entire chain of the
electricity supply business. It marks the culmination of the process beginning in the mid nineties of
States enacting their own Reform Acts and the enactment of the Electricity Regulatory Commission Act
of 1998 which brought into place the Central Electricity Regulatory Commission and authorized the
States to create SERC if they wished to do so.
The key features of the Act are:
Independent Regulatory Commissions in the States as well as in the Centre.
Freeing up of thermal generation from the requirement of any prior clearances.
Full freedom for setting up captive power plants including group captive power plants.
Open access in transmission; creation of an all-India market.
Private investment in transmission through licensing by Regulatory Commissions. This is in addition

to full freedom for building dedicated transmission lines.

Open access in distribution to be introduced in phases with consumers above 1 MW getting the
right
of open access, latest by January, 2009.
Enabling provision for more than one distribution licenses in the same area.
Prescription of performance standards for distribution licensees and its enforcement by Regulatory
Commissions.
Multi-year tariff framework for performance based regulation to incentivise efficiency gains.
Competitively bid generation tariffs to be accepted by Regulatory Commissions. Power purchase
costs of customers availing of open access to be market determined.
An Appellate Tribunal for quick disposal of appeals against decisions of State Regulatory
Commissions / CERC.

Under the Act, most of the rules have been prescribed. Open access in transmission has
become a reality.

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 Technology Introduction
Energy
Accelerated Power Develeopment & Reforms Programme (APDRP)
APDP was introduced by ministry of power in the year 2000-01 to improve the power supply reliability
at distribution level and to achieve commercial viability of the State Electricity Departments. Intially 63
circles were identified for making centre of excellence few CPSU’s were appointed as advisor –cum-
consultants for capacity building of the state utilities. To rapidly restore and sustain financial viability in
the power sector, state specific reforms were recommended by Dipak parikh committee. Investment
and incentive component was introduced and APDP was recast as APDRP in 2002. Rs.20,000 crores
for investment and Rs. 20,000 crores for incentive component were planned.

Objectives of APDRP
 Targets towards the commercial viability of the utility by reducing their at&c losses to 15%.
 Improvement in quality and reliability of supply
 Improvement in consumer satisfaction.
The strategy involved technical, commercial, financial and it Interventions.

Investment component:
 Funds are provided as additional central assistance to the state
 Utilities through the state govt.
 Initially assistance to the tune of 50% of the project cost was given in form of 25 % grant and 25%
loan.
 For special category state the ratio is 90 to 10%.
 Since April 2005 only 25% grant to general and 90% to SPL category states is being given.

Incentive component:
 Assistance under the incentive component is primarily to motivate utilities to reduce their cash loss.
 Utilities are given incentive of 50% of the actual cash loss reduction by them as grant. The year
2000-01 has been fixed as the base year for calculating the reduction in loss.

Scope of works covered under APDRP

Category ‘A’ items:
 Metering of all types consumers.
 Feeder metering.
 DT metering
 R&M of power sub-stations
 Capacitor placement
 R&M of distribution transformers.
 Service connection improvement
 IT enabling including substation automation.
Category ‘B’ items:
 Construction of new substations.
 Construction of new lines
 Bifurcation of feeders.
 Reconductoring.

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 Technology Introduction

India’s power players

Energy
 Power Generation (Government)
Damodar Valley Corporation, Bhakra Beas Management Boad, National Thermal Power Corporation,
National Hydro Electric Power Corporation, North Eastern Electric Power Corporation, Tehri Hydro
Development Corporation, Satluj Jal Vidyut Nigam
 Power Generation (Private)
• World Private Players - Korea Electric Power Co., Mitsui & Co. Tokyo, Tronoh Alco Combine
(Malaysia), Duncan Macneil, London, Khanjee Holding (US) Inc. Texas, Sumitomo Corporation, AES
Corporation, CLP Power.
• Indian Private Players - Aditya Birla Power Company Ltd., Essar Power Ltd., GMR Energy Ltd.,
GVK Consortium, Jayprakash Associate, Larsen & Turbo Limited, Reliance Energy Limited, Tata
Power Limited, Torrent Private Limited.

 Power Transmission (Government)

Power Grid Corporation

Power Financers
• Power Finance Corporation, Rural Electrification Corporation, World Bank, Asian Development Bank

2000 2001 2002 2003 2004 2005 2007 Upto

Sept
08

FDI in power 4760.2 8225.1 30494.6 1907.4 2510.6 1518.5 3,875 2,285
sector

Total 100,923 158,419 161,234 95,640 147,814 192,707 98,664 120,531

FDI inflow

Share of power 4.72 5.19 18.91 1.99 1.7 0.79 3.92 1.89
sector (%)

•Actual FDI inflows in Power Sector – 2000 to 2008 (Rs. Million) – trend is positive

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 Technology Introduction
Energy
Indian Private Power Generation a glance
Installed Capacity (2007)

Central 45.121 GW 34%

State Sector 70.095 GW 53%
Private Sector 17.113 GW 13%

Total 132.329 GW

POWER IPOs
From Reliance Power to Sterlite Energy to JSW Energy to JP Associates, the list is long and all these
companies are going ahead with their plans for IPOs this year. The total capital these companies are
planning to raise from the market is whopping Rs 30,000 crore (US$ 7.69 billion).

 Adani Power – Planning to raise Rs.2000 crore, 330MW already in operational, 9900 MW targeting.
 India bulls – Planning to raise Rs.1500 Crore. Total planning 10000 MW. Achieved financial
closure for its upcoming 2,640 mw Amravati thermal power plant.
 JP associates – Planning to raise US$ 1 Billion. 700 mw already in operation. 2200 MW targeting
 Sterlite Energy – Plan to raise US$ 1 Billion. 2400 MW targeting.
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24 July, 2009 IT in POWER 9

 2 Technology
Introduction
IT in POWER

IT in POWER
By
Energy
Jayant Sinha, DGM & Head (IT), UPCL, Dehradun

Introduction
Information Technology (IT) has the potential to contribute significantly in the power reforms process,
particularly in the areas of business process automation, revenue and commercial management,
distribution system automation, consumer relationship management (CRM) and ATC loss reduction.
The power distribution utilities in India have initiating major reforms using IT as the key enabler for
improving revenue collection, minimizing ATC losses, proper energy accounting and efficient consumer
services.
Business challenges of Indian power utilities
In the wake of the Indian Electricity Act 2003, the complexity and challenges of the power sector have
increased manifold. The Act invokes the philosophy of liberalization, competition and commercial
motive for business survival. This makes the process of balancing the commercial objectives vis-à-vis
the social concerns even more challenging. In the present business environment, utilities have to re-
engineer and automate their business processes for sustainable growth and survival, with the following
objectives:
1. Capacity building and operational efficiency
2. Business process efficiency
3. ATC loss reduction
4. Metering, billing and collection efficiency
5. Total energy accounting
6. Better customer relations and consumer satisfaction
The adoption of latest and best-of-breed technology is essential to fulfill the above objectives and
therefore, Information Technology is perceived as the principal thrust area to spearhead our country's
agenda of power reforms, despite the difficulties faced due to the slow absorption of new technologies.

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 2 Technology
Introduction
IT in POWER
Energy
Challenges of IT in Power Sector
There is a plethora of IT options available in the market today and it is important not to get carried
away by the technology wave, but choose the appropriate (best-fit) technology, as per the industry
needs, at the right time for the right set of applications. The selection of IT systems and tools should be
based on long-term strategic and business continuity perspective. The following factors are critical in
any IT implementation:

1. Adoption of open architecture and adaptive communication network based on proven standards and
specifications
2. Consistent infrastructure for data collaboration, communication and interoperability
3. Authentication and role-based access to the network
4. Robust and scalable architecture to support large volume of transactions
5. 3-tier architecture for easy modifications of business logic and SW deployment
6. Platform-independent application components for easy migration to new platforms
7. Disaster Recovery and Continuity Planning

Adoption of open architecture and adaptive communication network

For implementing any hardware/ software based solutions for the enterprise, it is extremely important
and critical to have a robust, scalable, adaptive and open systems computing and communication
architecture. Going by the information systems lifecycle, emergence of new technologies and technical
obsolescence, the data network infrastructure, around which the enterprise applications are built,
survives the longest.
Therefore, the network infrastructure should be built around standards-based technology, conforming
to ISO/ IEC 11801 and EIA/ TIA 568B framework.

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 2 Technology
Introduction
IT in POWER
Energy
Data collaboration, communication and interoperability
The global best practices approach in applications development is to have a modular design,
integrating various applications and accessible through a common interface or “dashboard”, with
secured access control, multi-level user permissions and audit trail. The enterprise software
“dashboard” is the gateway to various integrated business applications – Automated meter reading,
data logging, billing, collection and CRMS.
Robust and scalable system architecture
The choice of hardware platform, OS, database and front-end tools would depend upon the type and
volume of transactions. Robust and scalable system architecture should support future expansion,
role-based authentication, secured databases and larger volume of transactions and disaster recovery.
Disaster Recovery and Continuity Planning
Automated data backups are essential for the protection of vital data and their recovery during
catastrophic failure. Apart from hot incremental backups, it is essential to take cold backups of the
entire database and applications. For mission-critical applications, it is better to have separate
Database and Application Servers. Clustering solution at both OS level and database level is
recommended, along with RAID support for data redundancy. The integration of Servers, RAID storage
and backup devices through Fiberchannel architecture enhances efficiency and performance. Cross
backups across multiple servers, preferably at remote locations, are healthy business practice. Many
installations now provide for a dedicated Disaster Recovery Server, with data replication facility.

Role of emerging technologies

The gap in IT adoption globally and in the Indian power sector is apparent. Globally IT is being used to
enable operations at a transaction level thus providing advantages like inbuilt process controls,
workflow enabled transactions, single point of data capture and support for timely strategic decision
making. On the other hand, in India, the core operations are still manual and therefore face issues like
ad-hoc decision making, poor data quality, long decision making cycles and under utilization of IT
investments. Therefore, IT has to be selectively adopted as a business strategy to improve commercial
and operational performance. The need is to develop a synergy between IT and the Indian Power
Sector and emerging technologies can play a defining the role in profitability and quality of services.

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 2 Technology
Introduction
IT in POWER
Energy
Consumer Database indexing and Electrical Network mapping
Development of electrical consumer and network database is necessary for a host of power sector
applications like asset management, revenue management, energy audit and load flow studies.
Several distribution companies (Discoms) are using GIS technology to map their HT/ LT consumers
and electrical network assets. This required a GPS survey of consumer households, the connected
electrical feeders and distribution transformers. All the consumers are given the unique electrical
address (or CIN, Consumer Index Number) so that it is possible to segregate the consumers feeder-
wise or DT-wise for energy audit and accounting purposes. The geo-referenced data is mapped on the
underlying satellite imagery of appropriate scale.

IVRS-based consumer call centre

Electrical consumer is the focus of an IVRS-based call centre where IT application can be adopted for
consumer's benefits. The IVRS-based system is aimed at improving customer services and increasing
staff efficiency. For example, an IVRS-based system is operational in Dehradun for single window
clearance of all types of customer complaints. The call center addresses consumer complaints ranging
from no power, billing, payment related and connection-related. In the round-the-clock facility offered to
electrical consumers of Dehradun town, the complainant logs the call through interactive voice
guidance to access information on bill-related matters, while the respective substations
track down electrical complaints.

Integration of business and IT strategy

The global IT market for the power distribution sector provides a wide range of technologies and
solutions. These solutions address the entire business value chain in power distribution – from setting
up distribution network and service connection to distribution load management, delivery of power and
customer services.
******

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 Introduction
2 Technology
IT in POWER
IT Players
• Alcatel Lucent Energy
• GE Energy

• HCL Infosystems

• IBM

• SAP

• Infosys

• Larsen & Toubro Infotech

• Leo Integrated Technologies

• Oracle India

• Siemens Information Systems

• Tata Teleservices

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 Introduction
IT Players
3 Technology
IT in POWER
Need for event
Energy
Why should we do this event

 Leverage the opportunity. Immediate expedite of Rs.10,000 crore worth orders for implementation/
up gradation of automation/software/hardware in all three phases of power ie Generation,
Transmission & Distribution

 There is no event covering IT in POWER as a segment.

 Forecasted growth in IT spends . India is short of 1 lac MW v/s the projected completion. In order to
achieve target of “Power to all by 2012” and minimise the monetary loss in electricity distribution
government planning ultra mega projects and focusing on CRM, ERP.

 Experience of TechSabha, This format of event is new to power sector

 Bridging the buyer seller gap is must in power
 Scalability from IT in power to IT in energy in future
 Large number of electrical/automation and other goods manufactures can be tapped for exhibition
stalls, ie. bonus revenue

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 Introduction
IT Players
IT in POWER
4 Technology
Need for event
Topics

Sessions
Energy
Apart from sponsors sessions below are the subjects for which we can plan for speeches, panel
discussions, round table conferences etc.

• A Integrated National Grid (why, how and ……..)

• ICT for power(Communication technologies, including PLCC, PCN and BPL)
• GENCO (IT in Generation, including ERP Solutions, Energy Efficiency, Monitoring Systems, DCS,
DMS, Material Management, Simulators, CFD)
• TRANSCO ( IT in Transmission, including Smart Grid, Open Access, Power Trading, Energy
Exchange, Substation, Automation & Integration
• DISCOM (IT in Distribution covering Performance Improvement, GIS, Smart Metering, AMI, AMR,
Revenue, Protection, Billing, CRM, Energy Audit, Customer Indexing, Trouble Call Management)
• ABT (Availability Based Tariff)
• MOD (Merit Order Dispatch)
• Pre & Post Indian Electricity Act 2003
• Requirement of standardisation of process/technology
• Disaster Recovery - IT Way
• Government overview – Past, Present and Demand, Central V/s State Generators, Private v/s Govt
run, Disinvestment.
• GPS based mapping system for power supply network
• SCADA Applications in Power
• Security Metrics and Compliance for IT Processes
• Emerging Trends : New Cos. floating power IPOs
• Investment Opportunity
• APDRP - a review

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 Introduction
IT Players
IT in POWER
Need for event
5 Technology
Topics
Budget

Budget
Energy
• Marcom (Mailers, onsite branding etc.) - Rs. 50,000/-

• Conference Mgmt (Audio/Visual, stage, backdrop etc) - Rs.1,70,000/-

• Food & Beverages (Alcohol, Beer etc.) - Rs. 55,000/-

• Stall Construction - Rs. 28,000/-

• Accommodation & Food Mgmnt (@ 4500 & 5500 for 2 nights) - Rs. 7,25,000/-

• Travel Management (@6000 return ticket) - Rs. 4,50,000/-

• Ground Transport & staff conveyance - Rs. 30,000/-

• Administration Cost - Rs. 50,000/-

• Miscellaneous cost - Rs. 14,000/-

• Total Expenses - Rs.15,72,500/-

* Budget is for 50 delegates, 20 sponsors & 5 staff

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 Introduction
IT Players
IT in POWER
Need for event
Topics
6 Technology
Budget
Audience

Delegates
Energy
The IT decision makers from Generation, Transmission & Distribution

State Electricity Boards

Power generation companies

Transmission Companies

Ministry of Power

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