Electricity Market. July 15.

Transcription

1 Electricity Market July 15

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

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

4 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%

5 Company Snapshot 96% Market Share ~80,000MWh average daily trade Participants Industries Transparency Liquidity Competition

6 Growth in Volume Volume across product portfolio

7 Participation Increasing Participation

8 Intra Day REC Product Portfolio

9 IEX Market Segments Delivery-based Contracts Day-Ahead Market since June,08 Closed, Double-sided Auction am bidding Each 15-min block, 0.1 MW min NOC required Term-Ahead Market since Sep,09 Renewable Energy Certificates since Feb,11 Day-Ahead Contingency Another window 3-11 PM Intra-Day - for the same day starting 12:30 AM (24X7) Daily- for rolling seven days (delivery starting after 4 days) Weekly- for 1 week (Monday-Sunday) Green Attributes as Certificates Sellers : RE generators not under feed in tariffs Buyers: Obligated entities 1MWh equivalent to 1 REC Next Energy Saving Certificates Auction Continuous

10 DAM and TAM Trading Timeline

11 Trading Mechanism

12 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) 12 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 S2 12 Bid Areas

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

14 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

15 Price Model Price Calculation algorithm Bid Quantum by different portfolios Price Tick (Rs.) Portfolio A, MW Portfolio B, MW Portfolio C, MW Total Buy Quantum received, MW Total Sell Quantum received, MW Net Transaction, MW Demand (Buy) Supply (Sell) Market clearing price (MCP) Volume Market Clearing Volume (MCV) MW

16 BID MATCHING Open/Closed Auction Continuous Trading Orders accumulated during call phase (no matching) Orders matched after call period Orders are used for calculation common price i.e. Equilibrium Price. All successful orders matched at Equilibrium Price. Price-time priority based continuous matching The highest Buy order & lowest Sell order gets the priority If the prices are same then priority is given to the time of the order received.

17 TWS Screen CONTINUOUS TRADING PROCESS Pending Buy Order Pending Sell Order Buy 10 Rs 4500/MWh Sell 15 RS 5500/MWh Trading Engine Buy 10 RS 4500/MWh Sell 15 RS 5500/MWh Buy 10 Rs 4500/MWh Sell 15 Rs 5500/MWh

18 Pending Buy Order Buy Buy 10 RS 5000/MWh TWS Screen Pending Sell Order Sell 15 Rs 5500/MWh Buy 10 RS 4500/MWh Trading Engine Buy 10 RS 5000/MWh Buy /MWh

19 Pending Buy Order Buy Buy 10 RS 4500/MWH TWS Screen Pending Sell Order Sell Sell 5 Rs 5000/MWh Buy Trading Engine Sell 15 Rs 5000/MWh Trade 10 RS 5000/MWh Bid Modified Sell MW RS 5500

20 Congestion Management SR S3 B2 S1 50 B1 MW B3 S2 150 RS MW 8000 RS Deficit 100 MW WR S1 Surplus B1 S2 S MW RS MW S3 50 MW Rs 7.5/u S1 50 MW Rs 8/u B2 160 MW Rs 9/u B1 50 MW RS 8.5/u Required Flow 100 MW S2 100 MW Rs 5.5/u S2 20 MW Rs 8/u S2 40 MW Rs 8.5/u B3 30 MW Rs 7/u S1 80 MW Rs 9.5 B1 100 MW Rs 6/u

21 Congestion Management S3 50 MW RS 7500 S1 50 MW RS 8000 S2 40 MW RS 8500 SR Deficit MW Lowest Buyers getting rejected B2 160 MW RS 9000 B1 50 MW RS 8500 B3 30 MW RS 7000 Allowed Flow 20 MW S2 100 MW RS 5500 S2 20 MW RS 8000 S1 80 MW RS 9500 WR Surplus MW Highest Seller getting rejected B1 100 MW RS 6000

22 Treatment of Losses Both Buyers and Sellers to absorb losses Buyer Draw less than contracted power (Contracted Power losses) Inject more than contracted power (Contracted Power + Losses) Seller Average Transmission Losses of the Region where the Entity is geographically located.

23 Treatment of Losses for buyer POC Loss: 1.5 % S1 (State) loss: 4.85 % Buyer X bids for 100 MW at its respective regional periphery Bid Volume Scheduled Drawal <= SLDC Clearance POC State X 100 MW at NR periphery Loss 1.5% 98.5 MW at State periphery Loss 4.85% MW at Buyer End (Buyer) Maximum Bid= Volume in standing clearance + Regional & State losses

24 Treatment of Losses for seller POC Loss: 1.5% State loss: 4.85% Seller Y bids for 100 MW at its respective regional periphery Bid Volume Scheduled Generation <= SLDC Clearance 100 MW at regional periphery POC Loss 1.5% MW at state periphery State Loss 4.85% MW Injected by seller Y (Seller) Maximum Bid= Volume in standing clearance Regional & State losses

25 Market Snapshot Participation Volume Prices

26 Key statistics: Electricity & REC Market Market Share (FY 13-14) ELECTRICITY 96% REC 77% State Utilities 29 States I 5 UTs 17 States I 5 UTs Generators Industrial Consumers Average Daily Volume IEX Data as on 30 June, 2015 ~80,000 MWh Highest : 131,356 MWh >3 million RECs Highest: 4,23,731 RECs

27 Participation at IEX Consumer: 3121 Generator:

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

29 Prices CERC MMC Report for FY

30 IEX monthly Average MCP in DAM

31 Volume DAM Cleared Volume v/s MCP

32 IEX Monthly Cleared Volume

33 IEX

34 Who Can become Members of IEX? Entities eligible for Membership: Inter-State Generating Stations (ISGS) Distribution Licensees State Generating Stations IPPs CPPs and IPPs (with consent from SLDC) Open Access Customers (with consent from SLDC) Electricity Traders / Brokers

35 IEX Membership Types Proprietary Member Professional Member Electricity Traders Right to trade and clear on its own account Trade and clear on behalf of its Clients Trade and clear on behalf of its Clients Generator- Distribution licensees- IPPs - CPP- MPPs O A consumers NO CREDIT /FINANCING Clients CREDIT /FINANCING Grid Connected Generator, Distribution licensees, IPPs, CPP, MPP, OA consumers Trader Client With valid PPA

36 Financial Requirements Membership Category: Proprietary / Professional Member The financial criteria for payment options available on IEX are: Fees Professional & Proprietary & Electricity Trader (Full Payment Option) Proprietary member (Light Payment Option) Admission fee Rs. 35,00,000 Rs. 10,00,000 Interest Free Security Deposit Annual Subscription Fees Rs. 25,00,000 Rs. 10,00,000 Rs. 5,00,000 Rs. 2,50,000 Processing Fees Rs. 10,000 Rs. 10,000 TOTAL Rs. 65,10,000 Rs. 22,60,000 Exchange Transaction 2p/kWh 3p/kWh

37 How to Move Ahead Become Member or Client (of a Member) options Rs 22.6 Lacs +3p/kWh transaction fee Rs 65.1 lacs + 2p/kWh transaction fee 1Lakh Technical Requirements Standing Clearance from UTs/State SLDC ABT Meters Sufficient transmission capacity Connectivity with exchange can be done in two ways Internet Immediate Leased Line Start Buying from IEX or Sell surpluses to IEX

38 Thank You for your attention Best Power Exchange in India Enertia Awards 14, 13 & 12 India Power Award 2014 Power Business View Award 2014 Inc India Innovative 100 Award for Innovation in Product and Technology Best Performing Power Exchange Power Line Awards 13 & 12 Best E-enabled consumer platform India Power Awards 09