SUMMER INTERNSHIP PROJECT REPORT ONPRESENT & FUTURE POWER MARKET ANALYSIS AND OPEN ACESS POWER SALES IN LIGHT WITH INTER-REGIONAL TRANSMISSON CORRIDOR ANALYSIS.

SUBMITTED BY,ARYADIPTA JENAMBA (POWER MANAGEMENT)NPTI, CAMPS, FARIDABAD

Objective of Project To study and analyze region wise demand and

availability of Electricity to determine peak shortage and total energy deficit.

To study and analyze the power market size and structure.

To identify the need and importance of an efficient short term power market.

To analyse Volume and Price of short term Power market

Benchmarking of Trading Licensee To understand the development process of various

developed power market and identify various successful market tools that can be implemented in India.

To identify states for investment opportunities through analysis of different market parameters influencing the power market.

To understand the various risk associated with Short term power market for various stakeholders.

ABOUT THE ORGANISATION

In this presentation…..Indian Power Market

Scenario

Power Trading Market

Indian Energy Exchange

Open Access Power Sales Market

Unschedule Interchange

Corridor Research

Indian Power Market scenario

Trend of Power Requirement

Northern Western Southern Eastern North-Eastern All India0

200000

400000

600000

800000

1000000

1200000

Requirement(2013-14) MURequirement(2012-13) MURequirement(2010-11) MU

Trend of Power Availability

Northern Western Southern Eastern North-EasternAll India0

200000

400000

600000

800000

1000000

1200000

Availability(2013-14) MUAvailability(2012-13) MUAvailability(2010-11) MU

•Availability of electricity is increasing consistently.•The total installed capacity In may 2012 was 2,01, 637 MW and in may 2013 it increased to 2,25,133 MW having an growth of 11.65%.

Trend of Power Deficit region wise-

NR WR SR ER NER All India

-100000

-80000

-60000

-40000

-20000

0

20000

Surplus(+)/Deficit(-) (2013-14) MUSurplus(+)/Deficit(-) (2012-13) MUSurplus(+)/Deficit(-) (2010-11) MU

All India Power deficit has reduced as compared to previous year but it still having 6.7%. Southern region having highest power deficit 19.1%. Northern ,Western and North Eastern region having deficit 5.8%, 1.2% and 11.3% respectfully. Only Eastern region having surplus power 10.2%

Growth in term of resourcesFuel Installed as

may-2012Installed as may-2013

Growth in %

Coal 1,13,782.38 1,31,628.39 15.68

Gas 18381.05 20359.85 10.77

Total Thermal 1,33,363.18 153187.99 14.87

RES 24503.45 27541.72 12.40

Total 2,01,637.03 225133.11 11.65

COALGAS

OIL

TOTA

L THER

MAL

HYDRO

NUCLEAR

RES(M

NRE)

TOTA

L 0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

INSTALLED AS ON MAY-12 IN MWINSTALLED AS ON MAY-13 IN MW

Power Trading Market

There were 42 trading licensees as on 30.04.2013. But only 21 have engaged in trading during April 2013. Top 5 trading licensees had a share of 68.91% in the

total volume traded by all the licensees. Sterlite energy Ltd has sold highest electricity 13.67%

through bilateral in April 2013 . PTC is having 22.83% of total electricity traded.

Price Analysis of Top 4 Trading Companies for jan-13 to may-13

Jan-13 Feb-13 Mar-13 Apr-13 May-130

1

2

3

4

5

6

3.73 3.73 3.73.48

3.76

4.1 4.24.38

4.53

4.89

4.2 4.3 4.374.15 4.15

5.43 5.43

0

3.1

4.28

Tata tradingNVVNLPTCNETS

Weighted avg.Purchase price at trading licencees

Lanco trading has higher price rate then other trading licensees.

Price of electricity transacted through traders as on april-13

Minimum Maximum Weighted Average0

1

2

3

4

5

6

7

8

9

2.9

8.04

4.55

Sale Price of Traders (Rs/kWh),April 2013

Sale Price of Traders (Rs/kWh),April 2013

Price of electricity transacted through traders(time wise) as on april-13

RTC Peak Off-peak3.8

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.64.63

4.12

Sale Price of Traders (Rs/kWh),April 2013

Sale Price of Traders (Rs/kWh),April 2013

Price of electricity transacted through power exchange , April 2013

Minimum Maximum Weighted Average0

5

10

15

20

25

1.31

19.6

3.74

1.31

5

2.71

Price of IEX (Rs/kWh),April 2013Price of PXIL(Rs/kwh),Aprill 2013

Price of electricity transacted through power exchange , April 2013

Trend of Indian Energy Exchange Price Analysis region wise -

north east eastern northern southern Western0

1

2

3

4

5

6

7

3.02 3.11 3.15

3.6

3.163.4 3.47 3.39

5.12

3.323.09 3.04

3.22

6.52

3.18

2.3 2.272.49

6.72

2.43

2010201120122013

The price of electricity in Energy Exchange is decreasing in all region accept southern region. Due to highly shortage of electricity in southern region price of electricity in Energy Exchange is increasing.

Open Access Power Sales Mechanism

Long Term Open Access

Medium Term Open Access

Short Term Open Access

Long Term Open Access

Bidding Mechanism

Case 1 Case 2

• Location/technology/fuel- not specified• Bidder responsible for clearances/approvals• Relevant for state with limited fuel supply• higher risk for developer• Lower risk for state

•Land/fuel provided by procurer•Procurer will take clearances/approvals•Relevant for states with fuel source/having coastal area•Higher risk for state•Lower risk for developer

Medium Term Open Access

Total Western to southern

Total Western to

Western

Total Eastern to southern

Total Eastern to

Eastern

Total Northern to

southern

Total Northern to

Eastern

Total southern to

southern

0

500

1000

1500

2000

2500

30002846.2

626 710

200 150 175408.5

Power transfer in MW

Highest power sales from western to southernPower is not able to sell southern region due to transmission constraint.

Short Term Market1) 90% of electricity is

transacted through long term basis.

2) Remaining 9.81% is transacted through the short term basis.

3) In short term market electricity is transacted through bilateral, power exchange or UI .

4) Bilateral covers 45.35% of total short term power market with constitute 35.46% - traders and term ahead contract in PX and

9.81% - directly between distribution company.

UNSCHEDULED INTERCHANGE

HIMACHAL P

RADESH

ORISSA

CHHATTIS

GARH

GUJRAT

WES

T BEN

GAL0

500

1000

1500

2000

2500

594.1 601.74 527.8

2221.02

1225.15

373.19 310.86

495.289999999999

2028.4

673.670000000001

total vol (MU) export in 2011-12total vol (MU) export In 2012-13

• Comparison of top 5 exporter through UI

Gujrat is all time higher exporter through UI.

UI cont…….

PUNJA

B

RAJAST

HAN

UTTAR P

RADESH

MAHARASTRA

MADHYA P

RADESH

0

500

1000

1500

2000

2500

3000

3500

4000

total vol (MU) import in 2011-12

total vol(MU) import In 2012-13

Uttar Pradesh is the highest importer due to the high demand.

CRRIDOR ANALYSIS

Eastern To Southern

TTC = 830 MWATC =830 MW RTC = 0 MWFor LTOA & MTOA = 612 MW For STOA =218 MW

Northern to Western

TTC = 2500 MW RTC = 500 MW ATC = 2000 MWFor LTOA & MTOA = 286 MW For STOA = 1714 MW

TTC & ATC = 1000MW for only LTOA and MTOA. There is no power transfer capability available for short term open

access (STOA). The reliability margin between western region to southern region

is zero.

western to southern

Eastern To Northern

In this region TTC = 4000 MW RTC = 300 MW for LTOA and MTOA = 2189 MW FOR STOA = 1511 MW

Northern To Eastern

TTC = 1100 MW ATC = 900 MW RTC = 200 MW For LTOA and MTOA allowed = 0 MW For STOA allowed = 900 MW

RECOMENDATION

Sterlite Energy Ltd supply 600MW of power to Grid Corporation of Orissa through Bilateral agreement and other 600MW through short term open access (STOA). It can sell it’s power in power trading market to different open access consumers in different region of India to get maximum per unit price. The trading price in southern region is highest compare to other region in the country, so they should try to sell more volume of power to southern region for high gain for per unit power sold. 

 

RECOMENDATION CONT…..

The Sterlite Energy Ltd can put it’s power sell bid on the Indian Energy Exchange (IEX) by analysing different transmission corridor, availability transfer capability (ATC) and peak demand of different region . They can sell maximum volume of power in IEX which will generate revenue for operation of plant and also for the organisation.

RECOMENDATION CONT……

The Sterlite Energy Ltd can supply power to bulk power consumer through Open Access. With permission from concern SLDC, transmission utility, state electricity board it can supply to intrastate and interstate Open access consumer by paying transmission charges, wheeling charges, transmission loss charges and other surcharges as per agreement. This power sell through Open access to bulk consumer will generate revenue and also will help to increase the Plant Load Factor (PLF).

RECOMENDATION CONT……

Vedanta Aluminium Ltd can sign a long term Power Purchasing Agreement (PPA) with Sterlite Energy Ltd to purchase power for it’s new aluminium smelter plant. This will benefit Vedanta Aluminium Ltd by purchasing power in low price by without paying cross subsidy charges, transmission charges and other surcharges to the distribution company.