Evolution of Power Exchange. S. C. Saxena National Load Despatch Center Power System Operation Corporation Ltd.

Size: px

Start display at page:

Download "Evolution of Power Exchange. S. C. Saxena National Load Despatch Center Power System Operation Corporation Ltd."

Emma O’Connor’
5 years ago
Views:

1 Evolution of Power Exchange S. C. Saxena National Load Despatch Center Power System Operation Corporation Ltd.

2 Market Design Four Pillars of Market Design ELECTRICITY MARKET SCHEDULING & DISPATCH CONGESTION MANAGEMENT ANCILLARY SERVICES IMBALANCES Making Competition Work in Electricity, Sally Hunt

Power Market, REC 2009: Grant of Connectivity, LTA and MTOA 2009: Trading License 2009:

3 Evolution of Power Market in India FUTURE Ancillary Market Capacity Market Peaking Power April, 2012: Sub-Hourly Market (15 Min Bidding in PX) 2011: Transmission Pricing (POC) 2010: Power Market, REC 2009: Grant of Connectivity, LTA and MTOA 2009: Trading License 2009: Congestion Management 2009: Imbalance (UI) 2008: Power Exchange 10/5/ : Open Access NLDC - POSOCO 3

4 Products in Different Time Frames Years Long Term 3 Years 3 Months Medium Term < 3 Months Short Term Products in the Short Term Market Bilateral - Advance Bilateral -FCFS PX Day - Ahead Contingency

5 Implementation of Power Exchanges in India - The Milestones July 2006 Staff Paper by CERC February 2007 CERC Guidelines for establishment of Power Exchange August 2007 In principle approval to the first power exchange in the country January 2008 Revised Regulations for Open Access in Inter-state Transmission, Effective 1st April 2008 June 2008 Procedure for Scheduling of Collective Transactions Commencement of operations of first Power Exchange (IEX) October 2008 Second Exchange (PXIL) begins operations 5

6 Regulatory Framework for Market by CERC Indian Electricity Grid Code (IEGC) Short Term Open Access Regulations Bilateral Transactions Collective Transactions Power Market Regulations Scope & Extent OTC Markets Power Exchange Market Other Power Exchange Markets Types of Contracts Delivery based OTC Contracts Delivery based contracts transacted on Exchange REC Contracts Financially settled electricity derivatives contracts transacted in OTC market (future) Capacity, Ancillary, Derivative based contracts (future) NLDC 6

7 Indian Regulator s Approach CERC Guidelines for setting up of a Power Exchange: The general approach of the Commission is to allow operational freedom to the PX within an overall framework. The regulation would be minimal and restricted to requirements essential for preventing derailment/accidents and collusion. Private entrepreneurship would be allowed to play its role. The Commission shall keep away from governance of PX, which would be required to add value and provide quality service to the customers NLDC 7

8 Power Exchange Operations Salient Features Multiple Power Exchanges Competition amongst Exchanges Day-ahead exchange Voluntary participation Double sided bidding Uniform pricing 15 Minute bids Congestion management by market splitting Social Welfare Maximization Accepted Purchase Bids (>= MCP) (Consumers Discount) Purchase Sale PRICE MCP MCV Accepted Sale Bids (<= MCP) (Generators Surplus) 8

9 Transfer Capability Assessment by System Operators

10 Intra-day STOA Day-ahead STOA Collective (PX) STOA First Come First Served STOA Advance Short Term Open Access (STOA) TTC ATC Medium Term Open Access (MTOA) Long Term Open Access (LTOA) Reliability Margin (RM) Available Transfer Capability is RM Total Transfer Capability less Reliability Margin POWERGRID 10

11 Congestion Management: Bid Area Area Region States N1 North JK, HP, CHD, HAR N2 North RAJ,DEL, UP, UTT N3 North PUN W1 West MP W2 West MAH,GUJ, GOA, DD,DNH W3 West CHTG S1 South AP, KAR, GOA S2 South TN, KER, PONDY E1 East WB, SIK, BIH, JHAR E2 East ORISSA A1 North-East TRIP, MEGH, MANI, MIZO A2 North-East AS, AP, NAGA

12 Charges and losses for any transaction Charges settled directly between buyer/seller and PX Energy charges as per schedule PX Charges Charges settled through System Operator Charges for imbalance/deviations Transmission charges For inter-state transmission system POC charges for injection and withdrawal For intra-state system As specified by respective SERC Operating Charges Application Fees Transmission Losses POC losses for inter-state system (additional losses are applicable for use of intra-state system) To be paid in kind 12

13 Trade under STOA (Bilateral + Collective) Energy (BUs) -----> Number of Transactions ----> Volume of trade (BUs) No. of transactions

17 17

18 Information dissemination by the Power Exchanges IEX PXIL

19 Market Monitoring Cell of CERC 19

Power Market, Power Trading and Power Exchange

Power Market, Power Trading and Power Exchange National Seminar Challenges & Opportunities in Power Generation, Transmission & Distribution 23-03-12 Power System Operation Corporation Ltd. Eastern Regional