Transcript Slide 1

IEX: Mitigating Power Shortage through
Open access & Energy exchange
Bikram Singh
AVP (Business Development)
www.iexindia.com
In this presentation …
• Indian Power Market Overview
• Open access
• Introduction to IEX
• Products at IEX
• Proposed Methodology
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Indian Power Market
Indian Power Market
Long Term
Medium
Term
PPA’s
Bilateral
Bilateral
1 Direct
2 Trader
1 Direct
2 Trader
86%
Short Term
1.Day Ahead
2. Same day
3. FCFS
4. Upto 3
months
5. Banking
8%
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Exchange
UI
Day Ahead
Real
Time
1.
2.
3.
4.
Intra day
DAC
Daily
Weekly
2%
4%
Success factor of Electricity Market
To make electricity market competitive following elements are essential:
► Several buyers and sellers to avoid exercise of market power
► Demand and supply responsiveness to price
► Equal access to essential facilities like transmission and distribution
► Liquid and efficient marketplacesMulti-buyer multi-seller model
► Open Access both at utility level and consumer level
► Competitive procurement for medium-term and long-term power
► Development of a vibrant trading platform
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Open access
Section 2 (47) of Electricity Act states Open Access as “The non
discriminatory provision for the use of transmission lines or distribution
system by any licensee or consumer or a person engaged in
generation in accordance with the regulations specified by the
appropriate commission”
Enabling of non discriminatory sale/ purchase of electric power /
energy between two parties utilizing the system of an in-between (third
party) and not blocking it on unreasonable grounds.
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Benefits from Open Access
• State
– Transmission and Distribution Charges
– More generating capacity gets built up
– Idle generating capacities utilized
• Consumer –
– Savings from purchases at competitive prices
– Availability of power during load restriction/shedding
• Generator
– Access to multiple buyer
– Competitive prices from sales at market prices
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Necessary condition for Open Access
•
•
Price should be just, reasonable and acceptable to seller and
consumer (buyer)
Price to Consumer =
The seller price+
Cost of Inter-state Transmission+
Cost of Intra-State Transmission+
Cost of Distribution +
Surcharge (Cross Subsidy Element)
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Introduction to Indian Energy Exchange
A true marketplace…
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Who are we ?
Promoters
Joint Equity Partners:
Technology :
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Products at IEX
Spot
Market
Day-Ahead - Hourly for Next Day
Intraday- For the same day (last 6 Hours)
Day-ahead Contingency - Hourly for Next day
Forward
Market
Daily- for rolling seven days (starting after 5 days)
REC
National market for RE
Weekly- for Next 2 weeks
RE generators sell certificates
Obligated entities purchase to fulfill RPO.
Way forward… Escerts
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Day-ahead Market
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IEX - DAM Product Description
[1/2]
• Bidding
– Double sided Closed Auction
• Order Types
– Hourly or Portfolio Orders
• Min 1 hour
• Different Price-Quantity Pairs
• Partial Execution Possible
– Block Orders
• Relational Block Bid
• Any hour or series of hours during the same day
– Customized block bid allowed
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IEX - DAM Product Description
[2/2]
• Order Characteristics
–
–
–
–
SLDC Clearance should be ≥ 0.5 MW
Minimum Order quantity can be less than 1 MW
Minimum volume step: 0.1 MW
Minimum price step: Rs 1 per MWh ( 0.1p/kWh)
• Trading Availability
– Every Calendar Day
• Physical delivery
• IEX as central counterparty
• Order Entry / revise /cancel
– Entry of orders on D-1 from 10:00 hrs to 12:00 hrs
related to Delivery Day (D day)
• Delivery Point
– Periphery of Regional Transmission System in which the grid-connected
entity, is located
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Price Calculation Algorithm ….each hour
Price (Rs./kWh)
0
Portfolio A, MW
20
Portfolio B, MW
60
Portfolio C, MW
40
SUM, Purchase
SUM, Sell
1
1.1
2.1
2.5
3
3.1
4
20
20
20
10
0
60
50
40
40
40
40
20
0
0
-40
-60
-80
-81
-120
120 100
80
80
70
60
60
50
40
0
-40
-60
-80
-81
-120
80
20
0
-20
-21
-80
0
Net transaction
2
120 100
80
4.1
5.0
20
0
40
20
20
-120
40
20
20
-120
-100
-100
250
Purchase
Price (Rs./MWh)
5
Sell
Price ($/MWh)
Rs./kWh
200
4
3
150
2.5
100
2
50
1
0
-150
-100
-50
0
MW balance
Volume (MW)
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50
100
150
Treatment of Losses… for buyer
• NR (Regional) Loss: 6%
• S1 (State) loss: 4.85 %
• Buyer X bids for 100 mw at its respective regional periphery
Scheduled Drawal
<= SLDC Clearance
Bid Volume
NR
100 MW
at NR
periphery
Loss
6%
State
94 MW
at State
periphery
Loss
X
89.44 MW
at Buyer
End
(Buyer)
4.85%
Maximum Bid= Volume in standing clearance + Regional & State losses
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Treatment of Losses… for seller
• Regional Loss: 6%
• State loss: 4.85%
• Seller Y bids for 100 mw at its respective regional periphery
Scheduled Generation
<= SLDC Clearance
Bid Volume
Regional
Loss
100 MW at
regional
periphery
6%
State
106 MW at
state
periphery
Loss
4.85%
111.14 MW
Injected by
seller
Y
(Seller)
Maximum Bid = Volume in standing clearance – Regional & State losses
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Risk Management System
Facilitator Member
Trader/ Proprietary Member
D-1 At 09:30 Hrs : Pre-trade
Margin Check.
equal to the initial
margins or average of last
7 days’ trading value,
whichever is more.
D-1 At 12:30 Hrs :
Preliminary Obligation Margin
Check
Preliminary Obligation
=< Funds Available (incl initial
margin)
Block funds.
D-1 At 15:30 Hrs : Pay-ins
 D-1 At 09:30 Hrs : Pre-trade
Margin Check.
 equal to the 100% of the
bid value to be provided
by Client directly to IEX
in Client Settlement
account
 D-1 At 15:30 Hrs : Pay-ins
 At D+1 14:00 Hrs : Pay-out.
At D+1 14:00 Hrs : Pay-out.
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Experience so far…
IEX won India Power Award for
“ Best e-enabled consumer platform”
17th November,2009
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3 years of Adequate Liquidity
•
43 Discoms from 26 States and 4 Union Territories
IEX Market Share (as on Nov 30, 2011)
•
1100+ Participants
•
881 Open access consumers
11%
IEX
PXI
•
600+ participants on single day
•
Cleared Volume : 29 Billion Units
•
Average Daily Volume : 45,000MWh(~1700MW)
•
DAM Volume Record : >60MUs
•
113 private generators
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89%
Participation at IEX
Open Access
STATE
No. of Private Generator
Industrial Consumers
Maharashtra
8
1
Rajasthan
12
82
Karnataka
18
10
Andhra Pradesh
9
9
Punjab
3
292
Orissa
3
1
Madhya Pradesh
8
6
Chhattisgarh
24
2
Haryana
1
38
Tamil Nadu
0
426
Gujarat
12
15
Uttarakhand
0
14
Arunachal Pradesh
0
4
Others
15
1
Total
113
881
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Increasing Participation
1400
Members +Clients
OA Consumers
1200
1000
800
560
600
363 357
400
200
58
64
78
89
213 251
175
147
145
52
23
9
0
Month
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1063
924
842
810
702
606
1082 1104
1158
852 873 881
IEX Monthly Volume
IEX Monthly Cleared Volume
Monthly Volume(MUs)
1600
1400
1200
1000
888
723
800
638
600
1308
1232
1244
1159
1159
1211
1205
1176
1147
1121
1163
1090
1181
1128
1089
472
536
541
563
656
563
873
748
591
400
200
0
Months
IEX Monthly Cleared Volume
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Линейная (IEX Monthly Cleared Volume)
IEX monthly Average Price
Rs./KWh
9,00
8,00
7,00
Monthly Avg Price (Rs/kWh)
8,36
7,66 7,68
6,14
6,41
5,76
6,00
5,43
5,00
4,14
4,08
4,00
3,00
3,43
3,39
2,78
2,34 2,36
2,00
1,00
0,00
Month
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2,99 3,10
2,79 2,98
Monthly Exchange Volumes(DAM+TAM)
1 800,0
IEX
Others
1 600,0
1 400,0
1 200,0
1 000,0
800,0
600,0
400,0
200,0
-
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Price and Volume Trend at IEX in Nov’11
Volume (MWh)
120000
Price (Rs/MWh)
Buy Bid (MWh)
Sell Bid (MWh)
Cleared Volume (MWh)
MCP (Rs/MWh)
6000
100000
5000
80000
4000
60000
3000
40000
2000
20000
1000
0
0
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Term Ahead Market
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TAM Market Segments
Open Auction
Continuous
Continuous
Continuous
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Trading of Intra day Contracts
Trading Hours
5 (12-17)
Delivery Hour
6 (18-24)
12-13
13-14
18-19
19-20
20-21
14-15
15-16
21-22
22-23
16-17
23-24
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Trading of Weekly & Daily Contracts
SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Weekly
Daily
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TAM: Performance so far…
Weekly
Day-ahead Contingency
1,575,833 MWh
37,666 MWh
Total Volume traded
1,730 MUs
Intraday
Daily
30,304 MWh
86,192 MWh
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Open Access- Challenges
• Independence of SLDCs
• Rationalization of charges for Open Access by SERCs
• Availability of surplus power at reasonable rates
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Open Access- Challenges
• Central Govt. Notified Power System Operation Corporation
(POSOCO) w.e.f. 1.11.2010
• Independence of State Load Dispatch Centers
– Non-independence of SLDC defeated open access on several
occasions in States due to conflict of interest arises mostly
because of de-facto common top management of the trading
licensee, transmission licensee, distribution licensee and load
dispatch centre.
• Role of State Governments
–
–
–
–
SEBs yet to unbundled in true spirit.
Single buyer model need to be given up
Need to insulate SLDC from influence of incumbent licensees.
In phase of acute power shortages State Govt. issuing orders
under section 11 of the Act to prohibit export of power.
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Open Access- Challenges
• Regulatory
access
interventions
for
facilitating
open
– Need to rationalize Open Access charges.
– Monitoring of open access transactions and display of various
charges in Commissions’ websites.
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Road Blocks in Way of Complete Open Access
Lack of accountability of concerned parties for according open access
approval
• Multiple instances where the STU/ SLDC/ Distribution Utility have kept
the open access application on hold
• Accountability needs to be fixed by Regulators to provide assurance about
timely processing of applications
Requirement of assurance of uninterrupted power supply through the
open access route
• Power interruptions to open access consumers may occur on account of:
– Network quality issues of the Distribution Utility and;
– Load shedding by the Utility
• To the extent the network configuration permits, a consumer’s power
should not be interrupted if his own generator is supplying power
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Suggestions…
• No Cross-subsidy surcharge for States with shortages and
purchasing through short-term transactions. Otherwise nominal
charges(25-30p/kWh)
• Notification of STU charges in Rs/MWh (not Rs/MW/day)
• Buyers not to require ABT Meters… ToD Meters adequate
• Treatment of deviation
• No UI Charges for Buyers… buyers pay excess demand charges
for exceeding contract demand
• Any purchase (IEX or Bilateral) within Contract demand
should be reduced from total drawal.
• Simple settlement system … easy to implement
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Proposed Methodology
Admissible
Drawal
OA granted after
checking
availability of
transmission for
OA quantum
over and above
CD
OA
Granted
/ NOC
CD
10 MW
Pays
Demand
Surcharge
/UI for 3
MW
Power
Purchased
Scheduled
9 MW
5 MW
27-Apr-20
Case 1
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Receives
UI for 2
MW
Actual
Drawal
12 MW
Actual
Drawal
7 MW
Proposed Methodology
Case 2
Pays
Demand
Surcharge
for 5 MW
No Check
required for
Transmission
availability
CD
5 MW
Admissible
Drawal
OA
Granted
/ NOC
5 MW
Power
Purchased
Receives
UI for 2
MW
Actual
Drawal
10 MW
Scheduled
5 MW
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Actual
Drawal
3 MW
Proposed Methodology
Case 3
Pays
- HT Tariff for 3 MW (CDScheduled)..drawal over
scheduled & under CD
Admissible
Drawal
CD
7 MW
No Check
required for
Transmission
availability
Power
Purchased
Receives
UI for 1
MW
Actual
Drawal
9 MW
OA
Granted
/ NOC
5 MW
27-Apr-20
-Demand Surcharge for2
MW (Actual drawal –
CD)..Drawal over CD
Scheduled
4 MW
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Actual
Drawal
3 MW
Proposed Methodology..Seller
Case 4
Gets UI for 5
MW
Admissible
Drawal
Power Sold
No Check required
for Transmission
availability
OA
Connectivity
5 MW
Granted
/ NOC
5 MW
Pays UI for
2 MW
Actual
Injection
10 MW
Scheduled
5 MW
Actual
injection
3 MW
27-Apr-20
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Renewable Energy
Certificates
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Introducing an another option… REC
Feed-in Tariff
[State Regulated Tariff]
Sale of Renewable
Power @ market price
REC Option
Green
Attributes
REC
Sale of electricity
to DISCOMs at
State
regulated
tariff
Third Party Sale
[Solar & NonSolar]
Sale of RECs at
Power Exchange
Electricity
Sale of Electricity
at Market Price in
open market
Sell to Discoms at
Price ≤ Pooled Cost
of Power Purchase*
* - Weighted Average Pooled Price at which distribution licensee has purchased electricity (including cost of self
generation, long-term and short term purchase)www.iexindia.com
in the previous year, but excluding the cost of RE power purchase
Trading at IEX
Trading Day
Last Wednesday of every Month
Market Clearing
Closed Double sided auction
Trading Time
1300-1500 Hrs
By 1530 Hrs
Verification by Central agency for Valid REC
by cleared seller at IEX
By 1600 Hrs
Central agency confirms REC
By 1630 Hrs
IEX finalizes trade
By 1700 Hrs
Buyer & Sellers informed to Central Agency
By 1800 Hrs
Invoice raised (proof of REC trade)
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2200
MCP: Rs 2200/REC
300 REC Sell @ Rs 2000
200 REC sell @ Rs 1700
100 REC Sell @ Rs 1500
100 REC Buy @ Rs 3900
Cleared volume : 600 RECs
BUY
SELL
A 100 REC
A
100 REC @
Rs 1500
B
200 REC @
Rs 1700
C
300 REC @
Rs 2000
@ Rs
3900
B 600 REC
@ Rs
2200
C 200 REC
@ Rs1700
MCP Rs. 2200 /REC, Cleared Volume : 600 RECs
200 REC Buy@ Rs
1700
600 REC Buy @ Rs 2200
600
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Non-Solar REC Trade at IEX
IEX REC Trade Details for FY 11-12
Sale Bid
Total Volume Traded
Equlibrium Price(Rs./REC)
260000
3 500
240000
2 900
220000
2 700
200000
2 500
2 300
180000
3 000
160000
120000
2 000
1 800
140000
1 500
1 500
1 505
1 555
1 500
100000
80000
1 000
60000
40000
500
20000
0
0
April'11
May'11
June'11
July'11
Aug'11
Month
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Sep'11
Oct'11
Nov'11
Equilibrium Price (Rs/REC)
REC Volume (1 REC=1 MWh)
280000
Buy Bid
IEX Initiatives
Continuous communication with Users
IEX Daily SMS
Service for Trade
Details
IEX hourly
Trade Prices
displayed on
its website
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IEX Monthly
Bulletin
Thank You
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[email protected]
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Industries in UP
NOIDA: IT
Kanpur (Industrial Hub of the
state) :Leather, engineering,
chemical
Meerut: Sports
Moradabad: Brassware
Aligarh: Locks
Mathura, Agra: Small-scale
industries
Lucknow, Allahabad, Varanasi,
Sonebhadra, Renukoot: Largescale industries viz heavy
industry, power plants, paper
etc.
Source: Maps of India
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