Restructured

MSG Smitha, Associate Professor in Tripple Department of Anantalakshmi Institute of Technology and Sciences. Our topic for today'session is restructured power system. The contents of the presentation today are basic structure of power system and what is restructuring, vertically integrated utility system, reasons for restructuring and the restructured power system. Let us now see what the basic structure of the power system. Power system consists of generation system, transmission and distribution and t Similarly, distribution is also divided into primary transmission and primary distribution and secondary distribution. T Here you can observe t 6 kV. From here it is distributed to the distribution automation. It is also sent to the commercial or industrial business cons This is the connection given to the commercial and industrial business cons Whereas before giving to the household cons 6 kV to 400 volts or 230 volts. Then coming to what is restructuring. In the previous years, generation, transmission and distribution, all the three were under one utility, considered as one utility. That is called as vertically integrated utility system. In the restructuring process, what has been done is the unbundling refers to the functional, structural and legal separation of different components of electricity production and supply, that is the generation, transmission, distribution and the retail supply or the sale of electricity. T Here you can observe how the vertically integrated utility system is. In the vertically integrated system, that is the generation, transmission and distribution were considered as one company. Here you can observe the energy flow. T Information will be transmitted from genco to transmission and distribution. Whereas if you observe here, the money flow will be from, will be only unidirection, that is customer to the company under vertically integrated utility system. Then coming to the characteristics of vertically integrated utility system. That is, it acts as a monopoly. That is, the cons The roles and responsibilities of vertically integrated utility system to minimize the total system cost w Okay. Operational issues such as vertically integrated utilities also had a centralized system of planning for the long term. All activities such as long term generation and transmission, expansion planning, medi Then coming to the reasons for restructuring. As I told you, it is a monopoly structure. Vertically integrated electrical utility is a monopoly structure in w Okay. That is, there won't be cost minimization can be done, but as there is no competition over there, therefore, whatever the cost set by the company will be the final. The services provided will also be, will also have, will not be having as per the requirement. Okay. The cons Therefore, in order to provide better service to the cons It also helps in privatization. T See here, t If you observe the industry, the energy flow will be from generation to transmission and then transmission and distribution and then to the cons Whereas the information flow, observe the information flow here, generation to transmission and distribution. It is also sent to the independent system operator. Okay. And the customer to retailer. Okay. That is, it introduces competition in the generation, transmission and distribution and provide better output that is better power supply to the cons T Independent system operator will be responsible for the smooth operation of this will help in open access as well as we can have a direct bilateral contracts between the customer, between the cons All t Coming to the characteristics of restructured power system, as I mentioned, it makes electric industry more palatable for potential investors. It is an open access system w It avoids monopoly. Cons T Assured good quality power system at competitive price. Though we get quality power in the vertically integrated utility system, that may not be at competitive price. As the competition has been introduced here in the restructured power system, we can get the power, good quality power at minim Okay, t Hope you understood the basic concept of vertically integrated utility system and restructured power system. Thank you.