Electricity Market. August 18

Transcription

1 Electricity Market August 18

2 In this presentation Introduction to Indian Power Market Product Portfolio Trading Mechanism Market snapshot Participation Volume Price IEX

3 Capacity (GW) Installed Generation Capacity of India Source: End of 10thEnd of 11th Plan Plan * Coal Gas & Diesel Nuclear Hydro RES 3 *As on 30 TH JUNE 2018

4 Power Situation in the Country Year Installed Capacity (at the end of FY) (MW) Peak Met ( MW ) Energy Available (Excluding RE Gen.) (MU) ,99, , , ,23, , , ,43, , , ,67, ,160 1,030, ,98,060 1,48,463 1,090, ,26,848 1,56,934 1,135, ,34,146 1,60,752 9,07,919 During the last 5 years, capacity has increased at a CAGR of 10 % i.e. from 199 GW to 327 GW, peak demand met increased at a CAGR of only 6.2% and energy supply has grown at 5.8% CAGR Installed capacity has grown at a faster pace compared to demand Source: 4

5 Indian Power Market Development trend OTC Markets Multi Buyer/Seller Spot trading on Exchanges Single buyer/seller Improved liquidity and Efficiency

6 Indian Power Market: Present Status Long Term Upto 25 Years Medium Term 3 months- 3years Short-Term Intraday - 3 months Balancing Market Real Time Power Purchase Agreements OTC Licensed traders (61) OTC Intraday- 3 months Exchanges 1. Intra-day 2. DAM 3. DAC 4. Daily 5. Weekly Unscheduled Interchange 89% 6% 3% 2%

7 IEX Market Segments Day-Ahead Market since June,08 Intraday Market & Day- Ahead Contingency Round the clock since Jul 15 Term-Ahead Contracts since Sep,09 Renewable Energy Certificates since Feb,11 Energy Saving Certificates since 27 Sep 17 Auction Delivery for next day Price discovery: Closed, Double-sided Auction Intraday: For Delivery within the same day Day Ahead Contingency: Another window for next day Gate closure : 3 hours For delivery up to 11 days Daily Contracts, Weekly Contracts Green Attributes as Certificates Sellers : RE generators not under feed in tariffs Buyers: Obligated entities; 1MWh equivalent to 1 REC 1 Ecert= 1 Mtoe( Metric Tonne Oil Equivalent) Trading Session on every Tuesday of the Week Trading time 1300 hrs to 1500 hrs Continuous 7

8 Company Snapshot 97% Market Share MW average daily trade Participants Industries 70+ Commercial 50+ Discoms 480+ Conventional Generators RE Participants Transparency Liquidity Market Share-FY 18 (DAM+TAM) Average Daily Trade- FY18(DAM) Participation-as on 31 July 18 Competition 8

9 What benefits does the power exchange provide? Nation-wide voluntary access Delivery Based contracts E-trading Robust Platform No counterparty risk

10 Cleared Volume (MU) 10 IEX Volume Growth : Strong trend line 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Electricity Volume 40,576 34,397 29,270 28,363 22,811 14,415 12,712 6,214 2,616 46,214 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY18 Source: IEX Data (DAM+TAM)

11 Intra Day REC Product Portfolio

12 Product Segments Day Ahead Market (DAM) Trade for the following day Contracts for every 15 min, closed auction Term Ahead Market (TAM) From 3 Hrs ahead to 11 days in advance 4 types of contracts Intraday Day Ahead Contingency Daily Weekly Renewable Energy Certificates (RECs) Trade green attributes of electricity 1 REC = 1 MWh of green energy

13 Contract Characteristics TERM AHEAD MARKET Contract Characteristic Day Ahead Market Intraday Contracts Day Ahead Contingency Daily Contracts Weekly Contracts Delivery Next day Hrs same day For next day From 4 th day to next 7 days For next week Auction Type Closed Auction Continuous trading Continuous trading Continuous trading Open Auction Contracts 15 min Hourly Hourly Block of Hours (Fixed) Block of Hours (Fixed) Trade Availability All Days All days All Days; All Days; Wed & Thurs; Financial Settlement Pay-In- D-1; Pay Out D+1 Pay in: T+1 Pay out: T+1 Pay in: T+1 Pay out: T+2 Pay-In- D-1; Pay Out D+1 Pay-In- D-1; Pay Out D+1 T = Trade D = Delivery

14 DAM and TAM Trading Timeline

15 Trading Mechanism

16 Features of Day Ahead Market A closed double-sided anonymous auction for each 15-min time block for the following day The intersection between the aggregated sale and purchase curves defines the market clearing price (MCP) 13 Bid area defined N2 W2 N3 N1 W1 N2 W3 E2 E1 A2 A1 Congestion Management through market splitting and determining Area Clearing Price (ACP) specific to an area Bid types: Portfolio Orders or Block Orders Minimum bid=re.1 for 0.1MWh Minimum Price & Volume Step = 0.1p * 0.1 MWh S1 S3 S2 S2 13 Bid Areas

17 Understanding exchange mechanism Bidding and Matching Risk Management Treatment of losses and charges Congestion Management

18 DAM trading process Bidding Matching Review corridor and funds availability Result Confirmation Scheduling 10:00 am to 12:00 pm 12:00 pm to 1:00 pm 1:00 pm to 2:00 pm 3:00 pm 5:30 pm 6:00 pm Bids for 15- min each or block bids can be placed MCP &MCV calculated Corridor availability and funds verified Final ACV and ACP calculated. Market splitting if congestion Collective transaction confirmation by NLDC Final Schedule sent to RLDC for incorporation

19 Bid Types Bids for each 15 min can be entered Varying price and quantum pairs Allow partial execution Single/Portfolio Bid Relational Block Bid for any 15 min Mother or child bid No circular links No partial execution Block Bid

20 DAM-Single Bid

21 DAM-Block Bid Rules for bid linking : A bid (bid B) can only be linked to one other bid (bid A) Both bid A and bid B must be of same type, i.e. sale-sale or purchase-purchase. Bid A and bid B can span any set of hours independently of each other Bid A and bid B can have any bid price independently of each other.

22 Matching: Model Price Calculation algorithm (Example for a sample 15-min) Price Tick Portfolio A Portfolio B Portfolio C Portfolio D Portfolio E Portfolio F Total Buy, MW Total Sell, MW Net Transaction, MW MCP: Rs Demand (Buy) Supply (Sell) MCV: 120 MW

23 Term Ahead Market 23

24 TAM Market Segments Open Auction Continuous Continuous Continuous 24

25 25 Types of Contracts Weekly and Daily FBA -- Firm Base 24 Hrs FNT -- Firm Night 8 Hrs (0-7 & 23-24) FDY -- Firm Day 11Hrs (7-18) FPK -- Firm Peak 5 Hrs (18-23) Day Ahead Contingency and Intra-Day Hourly ( DAC-24 hrs & Intraday-04-24) Region Specific Contracts

26 Intra-day & DAC contracts with current trading system Trading Date Trading Time Intra-Day contracts DAC contracts :30-01 H5 to 24 (of 17-04) H6 to 24 (of 17-04) H7 to 24 (of 17-04) H8 to 24 (of 17-04) H9 to 24 (of 17-04) H10 to 24 (of 17-04) H11 to 24 (of 17-04) H12 to 24 (of 17-04) H13 to 24 (of 17-04) H14 to 24 (of 17-04) H15 to 24 (of 17-04) H16 to 24 (of 17-04) H17 to 24 (of 17-04) H18 to 24 (of 17-04) H19 to 24 (of 17-04) H20 to 24 (of 17-04) H1 to 24 (of 18-04) H21 to 24 (of 17-04) H1 to 24 (of 18-04) H22 to 24 (of 17-04) H1 to 24 (of 18-04) H23 to 24 (of 17-04) H1 to 24 (of 18-04) H24 to 24 (of 17-04) H1 to 24 (of 18-04) H1 to 24 (of 18-04) H2 to 24 (of 18-04) H3 to 24 (of 18-04)

27 Market Place Functionality (TAM) 27

28 Market Snapshot Participation Volume Prices

29 Key statistics: Electricity & REC Market Market Share ELECTRICITY 97% REC 63% State Utilities 29 States I 5 UTs 17 States I 5 UTs Generators Industrial Consumers Average Daily Volume >120,000 MWh Highest : MWh (11 th Sep 18) 3,000+ >2 Crore RECs Highest: 32,39,142 RECs (Dec 17)

30 Participation Increasing Participation

31 Industrial segments with IEX Paper 3% Cement 4% Auto Components 6% Cotton 1% Others 9% Textile 29% Chemical 9% Metal 24% Manufacturer 15%

32 Quarterly Prices FY

33 Prices for various time block July 2018

34 Volume DAM Cleared Volume v/s MCP

35 Cleared Volume (Mus) IEX Monthly Cleared Volume Total Monthly Volume (MUs) Total Monthly Volume (MUs) Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Month

36 TAM: Performance so far Weekly Day-ahead Contingency 2,946,452 MWh 16,71,894 MWh Total Volume traded 6,793MUs Intraday Daily 14,27,729 MWh 7,47,616 MWh

37 TAM Monthly Snapshot July 18 Contracts Total Volume (MWh) Max Price (Rs./kWh) Min Price (Rs./kWh) Weekly Intraday 51, Day-Ahead Contingency 68, Daily - - -

38 Thank You Follow Use IEX Mobile Application to track prices Register for Daily SMS alerts Register for IEX Monthly Bulletin