Appendix-A

Terms of Reference (TOR) For

Review and Update of Pakistan Grid Code

1. Introduction
NTDC is responsible for the administration and enforcement of Pakistan Grid Code.
NTDC’s transmission license requires the company to develop and maintain the Grid Code, to
ensure the smooth and effective functioning of NTDC transmission system together with the
facilities of others that are or will be connected to the NTDC's transmission grid (defined as
"Users" in the Grid Code). Users include (i) power plants, (ii) distribution companies; (iii)
other transmission licensees, defined as special purpose transmission in the Regulation of
Generation, Transmission and Distribution of Electric Power Act (NEPRA Act, 1997); (iv)
international interconnections and (v) large consumers (Bulk Power Consumers, BPCs)
connected directly or indirectly to the Transmission Grid.

The general objective of the Grid Code is to provide clear and non-discriminatory guidelines,
technical standards and procedures to ensure equal treatment to all Users, and to clarify the
rights and responsibilities/obligations of NTDC (differentiating the Planning Department of
NTDC as Planner, NPCC as System Operator, and other relevant departments as transmission
services provider), and of each type of User, for each to understand and comply with.
The detailed objectives of the Grid Code are defined in the Introduction as follows:

• To achieve the Performance Standards for Transmission Rule (PSTR), as established in

NEPRA regulatory framework. Within this objective, the Grid Code is an important tool
for NTDC to achieve its transmission performance standards. In addition, it needs to be
ensured that the Grid Code is consistent with NEPRA PSTR rules.
• “To facilitate the development, operation, and maintenance of an efficient, coordinated,
safe, reliable and economical system for the transmission of electric power”. This objective
is in line with reducing load shedding and developing a transmission grid to accommodate
new generation entry and supply demand;
• To facilitate competition in the provision of electric power as the market develops; and
• “To cover all material technical aspects relating to connection, the operation and Use of
the NTDC's transmission system including the operation of electric lines and electric plants
connected to the NTDC's transmission system in so far as relevant to the operation and use
of NTDC's transmission system.” This objective covers the coordination and harmonization
of technical standards of facilities connected to a transmission grid, independent on who
owns the transmission facility.
• The Grid Code, and in particular the rights and procedures of the System Operator apply to
“NTDC bulk transmission system” which, as defined in NTDC’s license, includes also
special purpose transmission (transmission facilities not owned by NTDC):

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 “Means one or more systems comprising electrical facilities including, without
limitation, electrical wires or circuits, electrical plant, transformers, sub-stations,
switches, meters, interconnection facilities or other facilities operating at or above
minimum transmission voltage constructed, owned, managed, controlled or operated by
the Licensee or by one or more special purpose transmission licensees and used for
transmission of electric power from the generation facility to sub-stations or to or from
other generation facilities or between sub-stations or to or from any interconnection
facilities or from the distribution facilities of one licensee to the distribution facilities of
another licensee or from a generation facility to a distribution facility or a bulk-power
consumer.”
• Additionally, the Grid Code establishes that if all or part of a User's system is, by agreement,
under the control of the System Operator, for the purposes of real time operation that
system will be considered and managed as NTDC’s system.
To achieve these objectives, NTDC performance standards and the conditions in NTDC license,
currently the Grid Code is organized in the following sub codes:

GLOSSARY and DEFINITIONS Code

• Code Management that covers governance arrangements (interpretation, the procedures to

modify the Code by proposals developed through a Review Panel and amendments
subject to NEPRA approval, etc) and general conditions.
• Data Registration Code identifying the data Users must provide to NTDC and the
information NTDC must provide to Users, and how the information will be exchanged.
Therefore, this sub-code has the purpose of collating all data required in all other sections
(connections, operation, planning, etc.)
• Operation Code sets out the principles, technical and operating standards, procedures,
and guidelines to be followed by NTDC and Users to ensure the safe and efficient operation
of the NTDC transmission system, covering mid- and short-term operational planning of
the system, characteristics and requirements of ancillary services, real-time operations,
and for normal and abnormal circumstances. Therefore, this sub-code establishes the
procedures (including operational planning, maintenance outages coordination and
operational frequency and voltage criteria and standards, system stability and transformer
loading.) the System Operator to carry out its functions and deliver system operation
services, as well as the operational responsibilities and procedures for NTDC as
transmission services provider and all Users. Users have the obligation to cooperate with
NTDC and the System Operator and follow the technical, design, and operation criteria
and procedures established in this sub Code.
• Connection Code establishes the principles and procedures for new connections by
generation, distribution companies, consumers that want to connect directly to
Transmission (Transmission connected consumers), and international interconnections.
• Planning Code establishes the principles, standards, processes, and procedures for long
term planning, including data exchange to ensure an efficient, economic, and timely
development of the NTDC bulk transmission system to meet the forecasted total system
demand and reserve margin requirements. It also describes in detail the data that the
Users must provide in a timely manner to meet the planning responsibilities of NTDC. In
accordance to the Planning Code, NTDC has to develop the Transmission expansion plan
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 that identifies transmission investments, and an indicative least costs generation
expansion plan.
• Protection and Metering Code establishes the protection and metering requirements
(standards and design) and procedures for Users and for NTDC (in connections and
interconnections).
• Scheduling and Dispatch Code covers the principles, standards and procedures for day-
to-day least cost generation scheduling and dispatch within system reliability and security
constraint, the allocation and administration of ancillary services, and timely exchange of
information between the System Operator and Users.

2. Background
The Grid Code was approved in 2005. Since then, there have been significant developments
that affect NTDC and Pakistan’s power system:

• Renewable Energy: In 2006, the promotion of renewable energy resources was initiated
by the “Policy for Development of Renewable Energy for Power Generation Employing
Small Hydro, Wind, and Solar Technologies”. This policy was complemented by the
Alternative and Renewable Energy Policy 2011. The policy has attracted significant
interest, a large number of wind and solar projects have requested licenses, and some
have entered operations. Two addendums to the Grid Code have been approved - one for the
integration of wind power, and one for solar –, but more comprehensive standards and
procedures are required to consider and enable an increase in the share of variable /
intermittent renewable energy.
• Extra High Voltage: The current Grid Code covers Transmission Voltage levels 220kV
and 500kV. Latest Transmission expansion plans consider extra high voltage (above
500kV) and direct current transmission links, which need to be incorporated and integrated
into the existing transmission system by establishing the technical standards, requirements,
performance and procedures in the Grid Code.
• Diversification in the number of Transmission Licensees: New Transmission investors
have been granted special purpose transmission licenses, including private investors and a
transmission company owned by provincial government. Although the Grid Code
envisaged and is applicable to special purpose transmission, the current document is silent
regarding NTDC authority over other transmission licensees, for NTDC to be able to comply
and deliver its responsibility of ensuring the reliability and security of the overall
transmission system. The rights and obligations of special purpose transmission as well as
the coordination and operational procedures for interaction between NTDC and other
transmission licensees need to be clarified.

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 • Ensuring adequate reliability and quality of service as sufficient new generation
capacity enter the system. New power plants are under construction or planned to end
load shedding and achieve security of supply. This requires updating and improving
procedures and details to ensure adequate provision of ancillary services and compliance
with technical and operational standards. Issues that need to be assessed include the
following:
o Operational testing. Purpose, commissioning of new connections, minimum
technical requirements for new connections,
o Emergency Control (Blackouts & Brownouts etc.) and System Restoration
protocols (duties, rights, categories, priorities).
o Regular/Periodic Testing and Monitoring of devices performances; evaluation
criteria, procedures, reporting and penalties.
o Annex for peculiarities of technologies and controllability, such as:
1. Wind Farm, for frequency and voltage control.
2. Solar PV Storage / CSP with control capabilities via inverter interface.
3. Generation technologies with Hybrid arrangements.
4. Demand Response Stakeholders for Energy and Power Services.
5. Fossil Fuel / Thermal based

• NTDC is no longer allowed to Procure Power. The initial Transmission License (granted
in 2002) assigned to NTDC as a transitional function procuring power on behalf of
the distribution companies created in the restructuring of the integrated power utility
WAPDA (Discos). In 2015, this function was separated from NTDC and assigned to a new
company (Central Power Purchasing Agency, CPPA G). Accordingly, NTDC license was
modified, for the transfer of PPAs signed by NTDC to CPPA G and NTDC is not allowed
to procure power (sign new PPAs). However, the Grid Code refers to and defines NTDC as
Buyer in PPAs and considers that the PPA may include technical and operational standards
or procedures. The Grid Code needs to be reviewed to reflect this separation, with the
consideration that technical and operational standards are set in the Grid Code and that
PPAs are procured by CPPA G on behalf of Discos (CPPA G acts as an agent of
Discos).As tall licensees and CPPA G have the obligation to comply with the Grid Code,
all other contractual arrangements, including commercial PPAs, would be shortened by
referencing that applicable technical, metering and operational provisions are established in
the Grid Code.

• Market Development. The 2005 Grid Code was drafted under the expectation that a
competitive electricity market would start during the next years, and therefore the Grid Code in
the generation scheduling and dispatch section refers to generation offering prices for dispatch, to
bilateral contracts and to a balancing market or mechanism. However, the market development
was delayed. In 2015, with the start of the commercial operation of CPPA G, NEPRA Market
Operator Rules 2015 include current Government’s policy of developing a market for direct
contracts of BPCs and the start of competitive electricity markets n o t l a t e r t h a n 2 0 2 0 .
There a r e a m e n d m e n t s t o t h e N E P R A A c t u n d e r consideration in the National
Assembly that differentiate participants in the industry identifying in particular, the retail
supplier and the wholesale trader. The generation scheduling and dispatch provisions in the
Grid Code need to be reviewed to reflect procedures prior to the start of a market with
generation offers.
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 3. Objective
The Grid Code was developed as a document to be updated from time to time, to adapt and
reflect the developments in the power system, new technologies and practices. A Grid Code
Review Panel meets and has the role of considering and reviewing the need for or proposed
modifications. However, except for the addendums for renewable generation, the review on
adequacy and completeness of the Grid Code to take into consideration the developments
since 2005 and the transmission investments plans is pending.
The general objective of this assignment is for an international consultant (the Consultant) to
provide international good practices and support NTDC in reviewing and developing the
modifications to update the current Grid Code. The revised Grid Code should meet the
objective of establishing standards, requirements and procedures for Users and NTDC that
enable to plan, develop and operate the transmission system with existing and new generation
and new transmission infrastructure for the economic dispatch and supply within system
security constraints, ensure reliable transmission and system operation services, and enable
NTDC to comply with transmission system performance obligations.

4. Scope of Work
The Consultant will review the Grid Code and its addendums to assess its adequacy to current
situation and future developments described in the Section Background of these TORs. Taking
into consideration the adequacy assessment and relevant international good practices, the
Consultant will develop the recommended revisions to achieve the objectives of the Grid Code
and this assignment. Moreover, the consultant is responsible for all presentations,
discussions, responses and replies to the comments from NTDC Board of Director (BOD),
Ministry of Energy, NEPRA and other stakeholders as and when required.

The scope of the review should include at least the following:

• Standards: Establish technical standards, design and operational requirements to

incorporate and integrate in the Grid Code high voltage alternate current (HVAC, up to
1000 kV) and direct current (HVDC up to +/-1000 kV) transmission facilities, and any issue
relevant for the reliable integration of HVDC facilities to NTDC AC Transmission System.
Renewables with/without hybrid and energy storage options
• Long term Planning and Connections: Clarify all the required power system studies (e.g.
power flows, steady state and dynamic state studies), reliability and planning criteria and
procedures for system planning and for the application, review and approval of new
connections (by power plants, by distribution licensees, by special purpose or provincial
transmission and international interconnections). Review and further clarify the standard
scope or content of the transmission connection agreement.

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 • Operational Planning and Reliability: Clarify power system studies, ancillary services
requirements, maintenance outage coordination of transmission and generation,
operational planning and system security constraints (including net transfer capacity in
transmission links and international interconnections), defining component loading limits
during short term and long term scenarios, coordination of import and export exchanges,
demand control, generation scheduling and economic dispatch, and real time dispatch and
operation, adequate criteria and allocation for Active Spinning Reserve (ASR) and for cold
reserve.
• Integration of Renewable Energy: Review and complete the requirements and
procedures for the integration of variable renewable energy generation (wind power and
solar) and other renewable energy resources as applicable for Pakistan, and incorporate into
the main codes the provisions in the current addendums.
o The review and recommended modifications and additions should be based in
international best practices.
o Additionally, the Consultant will review the recommendations in the report on
studies to determine limits of integrating intermittent renewable (wind and
solar), carried out by GOPA International Energy Consultant of Germany,
(financed by USAID, 2015) for NTDC.
• NTDC overall co-ordination of other Transmission Licensees and International
Interconnections: Clarify the authority, interaction and coordination of NTDC as national
transmission company and as System Operator with (i) other transmission licensee (K-
Electric, new special purpose transmission company such as STDC or others), and (ii) bulk
exchanges (cross-border imports and exports) in international interconnection with NTDC
transmission system; and
• Separation of CPPA function and market development: Ensure that all and any reference
to NTDC being the Buyer in PPAs is replaced to reflect the latest modification of NTDC
license (2015), and clarify or establish the procedures on data exchange or sharing
information between CPPA G (as agent of Discos procuring power on their behalf and as
centralized settlement) and NTDC NPCC as System Operator responsible for maintenance
outages coordination, generation scheduling and dispatch, and reliable balance of the
system in real time. Additionally, the metering conditions should be reviewed to clarify
further that NTDC’s role of metering services provider and the procedures to adjust
metered energy if the metering system is not located in the grid connection point defined in
the Grid Code.
o Review references to future market developments (such as bilateral contracts,
balancing mechanism, etc) to clarify those will be applicable only once
competitive markets start, and will be reviewed accordingly later when the
design of that market or markets is decided and approved;
o Review exchange of information such as CPPA-G to NTDC NPCC as System
Operator the PPAs prices (or latest generation tariff notification, as applicable)
and conditions required for NPCC centralized dispatch and ancillary services;

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 and NTDC NPCC shall send to CPPA G the generation availability
information required for verifying the invoices from PPAs of Generators.
o NTDC as metering services provider shall share or send the energy and capacity
resulting from metering reading and adjustments provisions in the Grid Code to
CPPA G and other relevant parties.

Other details on issues identified by NTDC for the Consultant to take into consideration are
described in Annex 1 of the TORs.

5. Tasks
The Consultant will carry out the following tasks to cover the scope of work and deliver the
recommended modifications to the Grid Code to achieve the objectives of this assignment.

5.1 Task-1: Data Requirement& Inception Report.

Within one week from the notice to commence, issued by NTDC, the consultant may ask NTDC
any additional data besides the Grid Code, addendums & Revision-I, including;

• The relevant parts or complete Report/Study by NTDC on setting limits to Wind Power and
Solar.
• 2015 NTDC license modification, to understand scope of functions and responsibilities of
NTDC;
• the Commercial Code to understand the limit of responsibilities between NTDC and CPPA
G; and
• Other documents, if any, required for the Consultant to carry out this assignment.
The Consultant will prepare and deliver the Inception Report with the detailed work plan
including timetable, any clarification on logistics arrangements, and request for clarifications or
additional information if and as necessary.

5.2 Task-2: Gap Analysis Report.

The Consultant will review the current Grid Code to identify any lack of clarity, gap or
weakness, or insufficient scope of standards, requirements procedures or studies to achieve the
objectives and intended scope of the Grid Code. The review will focus in particular in the issues
and matters identified in the Background and Scope of Work described in these TORs, but
should also include any other matter identified by the Consultant requiring updates or
improvements, or addressing gaps.

Based in this review, the Consultant will draft and deliver to NTDC the Gap Analysis Report,
summarizing the results of the gap analysis and identifying the scope of required revisions, in
particular the scope of revisions to cover and integrate HVDC transmission and renewable
generation. The scope of the gap analysis and proposed revisions should cover at the
minimum the scope of work defined in Section 4 of these TORs. The report should also include
relevant international good practices for the proposed revisions, and the request for
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 clarifications or additional information.

In preparation for the next Tasks, NTDC will review the report and within [3-4] weeks provide
comments to address in Task 3 Report. [NTDC will share the gap analysis report with the Grid
Code Review Panel to receive their comments, as applicable.

5.3 Task-3: Preliminary Draft Final Report: Initial Draft Revisions.

Based on the results on Task 2 gap analysis (the report delivered and comments received, if
any), the Consultant will draft the recommended additions and revisions to the Grid Code,
including in particular the following:

• Clarify the interpretation and implementation of N-1 security criterion in transmission

planning and in system operational planning, and for dispatch and system operation the
determination of maximum transfer capacity (flow) in transmission links (including as
relevant special purpose transmission), and in cross-border/back to back interconnections to
ensure compliance with system security constraints and transmission reliable
performance. Limit of compliance of N-1 to the size of power plant may also be defined.
• Based on relevant international good practices, incorporate standards, planning,
connection and operation (operational planning and scheduling) of new HVAC and HVDC
system to pre-existing transmission system, focusing on technical standards requirements and
security of supply criteria and studies that must be complied for planning, prior to
connection, and in operations
• Based on relevant international good practices, incorporate the integration of
variable/intermittent renewable energy (wind power and solar) related to design and
technical requirements, connection and operational;
• Address any other weakness or gap identified by the Consultant or NTDC in Tasks 1 and 2;

The Consultant will deliver Task 3 Preliminary Draft Final Report including:

• Covering the scope described in the Gap Analysis, each revision and addition recommended,
identifying the Code or Schedule, and explanation and justification or rationale;
• As one or more Annexes a summary of the results of the Gap Analysis (Task 2 report); and
• If necessary, questions and request for additional information by the Consultant in an
open forum comprising all relevant stakeholders within NTDC.
In preparation for Task 4, NTDC will share the report with the Grid Code Review Panel.

5.4 Task-4: Feedback from NTDC and Review Panel.

The Consultant will present, explain and discuss the results of gap analysis and recommended
revisions (Task 2 and Task 3 reports).

The Consultant will meet with NTDC relevant units to collect additional information or
clarifications discuss and clarify recommendations and receive feedback.

The Consultant will present to and discuss with the Grid Code Review Panel the assessment,
international practices and rationale of recommendations, to receive feedback from the

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 members of the Panel.

The duration of the visit to NTDC Head Quarter and NPCC, Pakistan will be not less than 2
weeks and will comprise of at least one open session/seminar to the satisfaction of NTDC.

5.5 Task-5: Final Report with Final Recommended Revisions.

Based on results of meetings (feedback, discussions, additional information and comments)
received during the assignment, the Consultant will revise report and prepare the final draft of
recommended modifications to the Grid Code. The report shall cover all aspects of
Technical, Commercial, Operational, governance and administration proposed modifications,
including but not limited to the following:

• An introductory chapter explaining the scope and rationale of the proposed revisions, in
particular on achieving the objectives of this assignment and addressing the issues defined in
these TORs;
• The Consultant shall provide explanation / justification / rationale for each revision and
addition, identifying the Code or Schedule. The consultant shall provide relevant
international experiences / practices, in particular for HVDC and integration of renewable
energy in the form of Annexures.
• Any other information or chapter to cover the work done during the assignment.

6. Indicative Time tables

Sr. No. Description/Activities Weeks

On contract signing, NTDC will provide the current Grid Code and
addendums, and the report(s) mentioned in these TORs to the
Consultant.
Submission of the Inception Report, proposing a schedule for
1 completion of the activities outlined in the Scope of Work by the 04
consultants.

2 Review of the Inception Report and comments by NTDC. 03

(after completion of Activity at Sr. No. 1)

3 Gap Anal ysis R eport : after obtai ning feedback from NT DC 04

to Inception Report. (after completion of Activity at Sr. No. 2)

4 Review of the Gap Analysis Report and comments by NTDC. 03

(after completion of Activity at Sr. No. 3)
Preliminary Draft Final Report
5 After review and feedbacks by the NTDC Grid Review Panel (GCRP) 05
after delivery of Gap Analysis Report.
Trip to Lahore and meetings with NTDC (including NPCC) and Grid
Code Review Panel, after delivery of Task 3 Report.
(after completion of Activity at Sr. No. 5)
6 The consultant will present the draft report to the relevant 01 (01 week in
stakeholders at a workshop/seminar which will be organized by parallel to
NTDC to obtain their feedbacks. activity 05)
(Days include the travel time)

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 7 Final Report within [3] weeks of finalizing the trip to Lahore 05
and receiving comments and information requested during that trip.

Total 25 weeks

7. Logistics Arrangements

NTDC will appoint the person from the Technical Department that will be the counterpart with the
Task Leader of the Consultant, for the purpose of coordination, information exchange and
reporting.

The dates for the Task 4 trip to Lahore, Pakistan, will be first proposed by the Consultant in
Inception Report as indicative date, to start discussions with NTDC counterpart. The final
dates for Task 4 will be agreed between NTDC counterpart and the Consultant Team Leader.
The date should not be earlier than [2-3] weeks after the Consultant delivers Task 4 Report, to
allow for sufficient time for NTDC and the Grid Code Review Panel to read the document prior
to meetings.

NTDC will be responsible of coordinating exchange of information and comments with the
Grid Code Review Panel, as well as scheduling of meetings with the Panel. NTDC will provide
the meeting arrangements for the Consultant while in Lahore to present discuss and receive
feedback from NTDC units and the Grid Code Review Panel.

8. Qualifications:

The Consultant will be a firm or a JV of firms including international and local consultants. The
International firm must have experience of at least three Grid Code development or review
of similar or larger size power systems in different parts of the world (more than one country)
in the last five to ten years. Firms should have grid codes experience in power system having
Conventional, Renewables, HVAC, HVDC, FACTS, as well as power quality aspect.

The Team would include the following experts, all with previous experience in Grid Code.

8.1. Power System Planning and Connections Expert

• At least bachelor degree in Electrical Engineering (or equivalent) from a recognized

university
• Not less than 15 year of experience in Grid Code, especially during last 5 years, covering
practices and tools on system planning, feasibility studies, technical international
standards (e.g. IEC, IEEE, ANSI, ASTM, DIN etc), planning criteria and tools.
• Knowledge or expertise in the field of HV and EHV transmission, planning tools, and
international planning practices in Grid Codes. Relevant experience in power system
studies, including load flow, short-circuits and system stability studies and power
quality for large power systems would be an advantage.
• Knowledge on connection requirements for different generation technologies, in
particular variable renewables;
• Good oral and written English communication skills.
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