www.iexindia.com iex: building power market for india... devesh singh – regional head (sr) email:...

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  • Slide 1
  • www.iexindia.com IEX: Building Power Market for India... Devesh Singh Regional Head (SR) Email: Devesh.Singh@iexindia.com Devesh.Singh@iexindia.com Website: www.iexindia.comwww.iexindia.com
  • Slide 2
  • In this presentation Power Trading in India Power Exchange - Mechanism Trading of Power Trading of REC
  • Slide 3
  • www.iexindia.com Who are we ? Promoters Joint Equity Partners: Technology :
  • Slide 4
  • www.iexindia.com EA 2003 and enabling provisions on Power Market Electricity Act 2003 The intent and object of the EA 2003 is to develop power market through increased competition, more players and protect consumer interests Development of Power Market EA 2003, Section 66, The Appropriate Commission shall endeavor to promote the development of power market, guided by the National Electricity Policy Suitable safeguards to prevent adverse effect on competition Recognize Trading as a distinct activity Definition under section(2) (47): Purchase of electricity for resale thereof Adequate and progressive provisions governing open access both : to transmission networks (inter-state and intra-state) and to distribution networks
  • Slide 5
  • www.iexindia.com Introduction of New Products Short & Medium Term transactions for peak/off-peak load balancing Duration of Transactions (Few hours to 3 years) Hours of Supply Round the Clock Evening Peak / Morning Peak Night Off Peak / After Noon Off Peak As and When Available Power for balancing Scheduled Interchanges Weekend / Holiday Power Banking of Power
  • Slide 6
  • www.iexindia.com Indian Power Market Long Term Power Purchase Agreements Upto 25 Years Medium Term 3 months- 3years OTC Licensed traders (42) OTC Licensed traders (42) Short-Term OTC Intraday- 3 months Exchanges Balancing Market Intraday - 3 months Unscheduled Interchange 1. Intra-day 2. DAM 3. DAC 4. Daily 5. Weekly 1. Intra-day 2. DAM 3. DAC 4. Daily 5. Weekly Real Time
  • Slide 7
  • www.iexindia.com What is IEX On-line National Automated Electronic Standardised Contracts Central Counterparty Delivery Exchange as Organized MarketplacePower-specific Spot Intra-Day Day-ahead Forward Weeks Months Voluntary
  • Slide 8
  • www.iexindia.com IEX capabilities Spot Auction (Closed or Open) for real time prices Continuous Trading for Long-term contracts Automated matching engine Online risk management system Online clearing & banking interface for margins & trade proceeds payment Derivatives - for Hedging & Price Discovery Forwards Futures Physical or financial settlement
  • Slide 9
  • www.iexindia.com IEX Self Regulating Institution Due diligence before Membership Networth Criteria Security deposit & Margins Voluntary participation IEX Counterparty SLDC Clearance
  • Slide 10
  • www.iexindia.com NASDAQOMX Six Sigma Efficiency Error Free operation since inception Capable for handling Day Ahead Auction Term Ahead Bilateral Market splitting upto 30 areas National, Regional and State level Contract RPS & Certificates Trading Tried & Tested Global Technology
  • Slide 11
  • www.iexindia.com IEX: Market Segments Day-Ahead Market (Since June,2008) Day-Ahead Market (Since June,2008) Term-Ahead Market (Since Sep,2009) Term-Ahead Market (Since Sep,2009) Intra Day Day-Ahead Contingency Daily Matching through Continuous Trade Session Weekly Contracts Matching through Open Auction Intra Day Day-Ahead Contingency Daily Matching through Continuous Trade Session Weekly Contracts Matching through Open Auction Hourly Contracts Matching through Close Auction* Hourly Contracts Matching through Close Auction* * Without Market split feature Market splitting feature REC Market (Since February,11) REC Market (Since February,11) REC Contracts Matching through Auction* REC Contracts Matching through Auction*
  • Slide 12
  • www.iexindia.com Day-ahead Market
  • Slide 13
  • www.iexindia.com IEX Bid Areas
  • Slide 14
  • www.iexindia.com IEX - DAM Product Description [1/2] Order Types: Hourly or Portfolio Orders Min 1 hour Different Price-Quantity Pairs Partial Execution Possible Block Orders Relational Block Bid Consecutive hours during the same day Customized block bid allowed Firm commitment to purchase or sell Order Characteristics SLDC Clearance should be 1 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)
  • Slide 15
  • www.iexindia.com Trading Availability Every Calendar Day Bidding Double sided Closed Auction Order Entry / revise /cancel Entry of orders on D-1 from 10:00 hrs to 12:00 hrs related to Delivery Day (D day) Contract Clearing Price : Area Clearance Price Cleared Volume Total Contract Value: Cleared Volume multiplied by ACP Final settlement adjusted for any force majeure deviations Delivery Point Periphery of Regional Transmission System in which the grid-connected entity, is located IEX - DAM Product Description [2/2]
  • Slide 16
  • www.iexindia.com Time Line for scheduling of Collective Transaction 10:0014:0018:0012:00 Market Participants to place their Bids PX to send Scheduling Request to NLDC based on margin specified by NLDC RLDCs/SLDCs to incorporate Collective Transactions in the Daily Schedule PX to send provisional unconstrained solution to NLDC and flow on TS as informed by NLDC 13:0015:00 NLDC to check for congestion. In case of congestion shall intimate PX regarding to the period for congestion and available margins NLDC to confirm acceptance. PX to send files to SLDCs for scheduling 17:30
  • Slide 17
  • www.iexindia.com Price (Rs./kWh) 0 20 122.133.144.11.1 Sale Purchase Rs/kWh MW 4080120 2 3 4 Price MW 2.5 Portfolio A, MW 200 0 SUM, Purchase 12010080 60 40 20 60 Portfolio C, MW 40-400-120200 -120 -80-80-81-60-60 Portfolio B, MW 60 2040 20 40 SUM, Sale 00-40-120 -80-80-81-60-60 Net transaction 12020-100 -80 -20-20-2110080 -1000 1 2 3 4 5 Rs./kWh 2.5 2.5 60 MCP: MCV (Market clearing volume): Price Calculation Algorithm .each hour
  • Slide 18
  • www.iexindia.com Trader Station: Single Bid
  • Slide 19
  • www.iexindia.com Trader Station: Block Bid
  • Slide 20
  • www.iexindia.com Both Buyers and Sellers to absorb losses Buyer draw less than Contracted Power (Contracted Power losses) Seller inject more than Contracted Power (Contracted Power + Losses) Average Transmission Losses of the Region where the Entity is geographically located Additional Losses for Wheeling, if necessary To be notified in advance by NLDC Only for Injection Treatment of Losses
  • Slide 21
  • www.iexindia.com 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 100 MW at NR periphery 100 MW at NR periphery NR Loss 6% NR Loss 6% 94 MW at S1 periphery S1 Loss 4.85% S1 Loss 4.85% 89.441 MW at Buyer End X (Buyer) X (Buyer) Bid Volume Scheduled Drawal

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