Complexities in integrating IPPs in Indian power system

The Electricity Act, 2003 has de-licensed generation and provided enabling provisions for setting up of generating plants by the independent power producers (IPPs). Till the X^th plan period (2002-2007), the private sector did not play a significant role. However, during the XI^th (2007-2012) and XII^th (2012-2017) plan periods, the initiative for the capacity addition from the private sector has increased multi fold. More than 40,000 MW capacity addition is expected in the private sector through IPPs over the next five years. Increasing number of IPPs has created complexities in planning and operation of the power system. These complexities involve challenges related to transmission planning, open access, generation scheduling, metering, accounting and settlement, integration issues, system operational problems, etc. The paper discusses in detail all the above mentioned issues along with the perspective and apprehensions of IPPs and concerns of stakeholders. Various issues related to the control centers are also highlighted in the paper.