Dr Devesh Singh- PPT

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Dr Devesh Singh- PPT

  1. 1. Understanding Electricity Markets Devesh Singh Regional Manager - SR Email: devesh.singh@iexindia.com www.iexindia.com
  2. 2. Indian Power Market segregation Long Term Long Term Upto 25 Years Upto 25 Years Medium Term Medium Term 3 months- 3years 3 months- 3years Short-Term Short-Term Intraday --3 months Intraday 3 months Power Purchase Agreements Power Purchase Agreements OTC OTC 90% Licensed traders (63) Licensed traders (63) OTC Intraday- 3 months OTC Intraday- 3 months Exchanges --Bilateral Transaction Exchanges Bilateral Transaction 5% Exchanges --Collective Transaction Exchanges Collective Transaction 3% 1.Intra day 1.Intra day 2.DAC 2.DAC 3.Daily 3.Daily 4.Weekly 4.Weekly 1. DAM 1. DAM Balancing Market Balancing Market Real Time Real Time Unscheduled Interchange Unscheduled Interchange Source: CERC Report on Short term transactions of Electricity in India, April 2013 2%
  3. 3. What is IEX? Voluntary Voluntary Delivery… Delivery… On-line On-line National National •Spot Standardized Standardized Contracts Contracts Automated Automated •Intra-Day •Day-ahead •Forward •Weeks •Months Electronic Electronic Central Central Counterparty Counterparty Exchange as Organized Marketplace Power-specific
  4. 4. Day-ahead Market
  5. 5. IEX - DAM Product Description [1/2] • Bidding - Double sided Closed Auction • Order Types: – – 15-min block or Portfolio Orders • Min 15 Min • Different Price-Quantity Pairs • Partial Execution Possible Block Orders • Relational Block Bid • Any 15-min block or series of 15-min blocks during the same day – Customized block bid allowed • Order Characteristics – – – – SLDC Clearance should be ≥ 0.1 MW (Subject to state regulations issued by concerned SLDC) Minimum Order quantity cannot be less than 0.1 MW Minimum volume step: 0.1 MW Minimum price step: Rs 1 per MWh ( 0.1p/kWh)
  6. 6. IEX - DAM Product Description [2/2] • Trading Availability – Every Calendar Day • Firm commitment to purchase or sell • Order Entry / revise /cancel – Entry of orders on D-1 from 10:00 hrs to 12:00 hrs related to Delivery Day (D day) • Delivery Point – Periphery of Regional Transmission System in which the grid-connected entity, is located
  7. 7. IEX Day Ahead Market 10-12 12-13 Bidding Matching 13-14 Trans Check 15 IEX Final Solution 1730 NLDC Final Conf 18 Schedule by SLDC
  8. 8. Price Calculation Algorithm ….each block Price (Rs./kWh) 0 Portfolio A, MW 20 Portfolio B, MW 60 Portfolio C, MW 40 SUM, Purchase SUM, Sell 1.1 2.1 2.5 3 3.1 20 20 20 10 0 60 2 4 50 40 40 40 40 20 0 0 -40 -60 -80 -81 120 100 80 80 70 60 60 50 -40 -60 -80 -81 20 0 -20 -21 -80 20 40 20 20 -120 80 5.0 0 40 0 4.1 -120 0 Net transaction 120 100 80 -120 40 20 20 -120 -100 -100 250 Purchase 5 Sell Price ($/MWh) 200 4 3 150 Rs./kWh Price (Rs./MWh) 1 2.5 100 2 50 1 0 -150 Volume (MW) -100 -50 0 MW balance 50 100 150
  9. 9. DAM-Single Bid
  10. 10. DAM-Block Bid
  11. 11. Treatment of Losses • 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
  12. 12. 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 Scheduled Drawal Scheduled Drawal <= SLDC Clearance <= SLDC Clearance Bid Volume Bid Volume 100 MW at NR periphery POC POC Loss Loss 1.5% 1.5% 98.5 MW at State periphery State State Loss Loss 4.85% 4.85% X X 93.72 MW at Buyer End (Buyer) (Buyer) Maximum Bid= Volume in standing clearance ++Regional & State losses Maximum Bid= Volume in standing clearance Regional & State losses
  13. 13. Treatment of Losses… for seller • • • POC Loss: 1.5% State loss: 4.85% Seller Y bids for 100 MW at its respective regional periphery Scheduled Generation Scheduled Generation <= SLDC Clearance <= SLDC Clearance Bid Volume Bid Volume State State POC POC 100 MW at 100 MW at regional regional periphery periphery Loss Loss 1.5% 1.5% 1 01.52MW at state periphery Loss Loss 4.85% 4.85% 106.69MW Injected by seller Y Y (Seller) (Seller) Maximum Bid= Volume in standing clearance ––Regional & State losses Maximum Bid= Volume in standing clearance Regional & State losses
  14. 14. Congestion Management
  15. 15. Congestion Management SR WR S3 S3 S1 S1 B2 B2 B3 S2 B3 S2 B1 B1 50 MW 50 MW 50 MW 50 MW 150MW 150MW 30 MW 40 MW 30 50 7500 50 RS40MW RS7500 RS 8000 RS9000 8000 9000 RS 8500 7000 RS7000 8500 S1 B1 S3 S2 S1 B1 S3 S2 Surplus Surplus 120 MW 100MW 80 MW 120 100 MW 80 RS 6000 RS5500 5500 8000 6000 RS 9500 RS8000 9500 100 MW 100 MW Deficit Deficit 100 MW 100 MW S3 S3 50 MW 50 MW Rs 7.5/u Rs 7.5/u S1 S1 50 MW 50 MW Rs 8/u Rs 8/u S2 S2 40 MW 40 MW Rs 8.5/u Rs 8.5/u B2 B2 160 MW 160 MW Rs 9/u Rs 9/u B1 B1 50 MW 50 MW RS 8.5/u RS 8.5/u B3 B3 30 MW 30 MW Rs 7/u Rs 7/u Required Flow 100 MW S2 S2 100 MW 100 MW Rs 5.5/u Rs 5.5/u S2 S2 20 MW 20 MW Rs 8/u Rs 8/u S1 S1 80 MW 80 MW Rs 9.5 Rs 9.5 B1 B1 100 MW 100 MW Rs 6/u Rs 6/u
  16. 16. Congestion Management SR WR Deficit Deficit 100MW 20 MW 100MW 20 Surplus Surplus 100MW 20 MW 100 MW 20 Lowest Buyers getting rejected S3 S3 50 MW 50 MW RS 7500 RS 7500 S1 S1 50 MW 50 MW RS 8000 RS 8000 S2 S2 40 MW 40 MW RS 8500 RS 8500 B2 B2 160 MW 160 MW RS 9000 RS 9000 B1 B1 50 MW 50 MW RS 8500 RS 8500 B3 B3 30 MW 30 MW RS 7000 RS 7000 Highest Seller getting rejected Allowed Flow 20 MW S2 S2 100 MW 100 MW RS 5500 RS 5500 S2 S2 20 MW 20 MW RS 8000 RS 8000 S1 S1 80 MW 80 MW RS 9500 RS 9500 B1 B1 100 MW 100 MW RS 6000 RS 6000
  17. 17. Risk Management System Trader Member D-1 At 09:30 Hrs ::Pre-trade D-1 At 09:30 Hrs Pre-trade Margin Check. Margin Check. equal to the initial margins equal to the initial margins or average of last 7 days’ or average of last 7 days’ trading value, whichever is trading value, whichever is more. more. D-1 At 12:30 Hrs ::Preliminary D-1 At 12:30 Hrs Preliminary Obligation Margin Check Obligation Margin Check Preliminary Obligation Preliminary Obligation =< Funds Available (incl initial =< Funds Available (incl initial margin) margin) Block funds. Block funds. D-1 At 15:30 Hrs ::Pay-ins D-1 At 15:30 Hrs Pay-ins At D+1 14:00 Hrs ::Pay-out. At D+1 14:00 Hrs Pay-out. Facilitator Member  D-1 At 09:30 Hrs ::Pre-trade  D-1 At 09:30 Hrs Pre-trade Margin Check. Margin Check.  equal to the 100% of the  equal to the 100% of the bid value to be provided bid value to be provided by Client directly to IEX in by Client directly to IEX in Client Settlement account Client Settlement account  D-1 At 15:30 Hrs ::Pay-ins  D-1 At 15:30 Hrs Pay-ins  At D+1 14:00 Hrs ::Pay-out.  At D+1 14:00 Hrs Pay-out.
  18. 18. Accolades… June 2013 Power Line Award as “Best Performing Trading Company / Exchange” Nov 2012 6th Enertia Award as “Best Power Exchange in India” May 2012 Power Line Award as “Best Performing Power Exchange” Nov 2009 India Power Awards as “Best E-enabled Consumer Platform”
  19. 19. OA status in India East & North Eastern Region Northern Region States Buy States Sell Buy Sell Assam & Bihar Haryana Manipur & Mizoram Punjab Tripura & Sikkim Rajasthan Jharkhand HP Arunachal Pradesh J&K Meghalaya Uttaranchal Orissa Delhi & U.P. West Bengal Western Region States Madhya Pradesh DNH & DD-UT Gujarat Buy Southern Region Sell States Andhra Pradesh Karnataka Chhattisgarh Tamil Nadu Maharashtra Kerala Nov 14, 2013 Buy Sell
  20. 20. IEX statistics at a glance… • 27 States and 5 Union Territories • 2,400+ Participants • 2,129 Open access consumers • 1,400+ participants on single day • Cleared Volume > 71 Billion Units • Average Daily Volume (for FY 12-13) =61,327 MWh (FY 13-14 so far =79,727 MWh) • DAM Volume Record : 117 MUs (8th September, 2013) • 183 Generators
  21. 21. Participation at IEX State-wise
  22. 22. Increasing Participation
  23. 23. IEX monthly Average MCP in DAM
  24. 24. DAM Cleared Volume V/s MCP
  25. 25. IEX Monthly Cleared Volume
  26. 26. Prices for various time block September 2013
  27. 27. How to Move Ahead… ► Become Member or Client (of a Member) » Rs 22.6 Lacs +3p/kWh transaction fee or » Rs 65.1 lacs + 2p/kWh transaction fee or » Client @ 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
  28. 28. IEX Initiatives Continuous communication with Users IEX Daily SMS Service for Trade Details IEX hourly Trade Prices displayed on its website IEX Monthly Bulletin
  29. 29. Thank You

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