4.1. INTRODUCTION[ http://www.pmintpc.com/interface/research_activities_published_paper_ICPS04.pdf]
Electricity is a non-storable commodity, which indicates the electricity generated should be consumed timely. In competitive environment, the price is determined by stochastic supply and demand functions. The price can change at any time.As a consequence of increased volatility, a market participant could make trading contracts with other parties to hedge possible risks and get better returns.
Open access is the key to a free and fair electricity market. Power producers (sellers) and dealers/customers (buyers) have to share a common transmission network for wheeling the power from the point of generation to the point of consumption. Thus, interconnected transmission system is considered to be a natural monopoly so as to avoid the duplicity, the problem of right-of-the-way, huge investment for new infrastructure and to take the advantage of the interconnected network viz. reduced installed capacity,increased system reliability and improved system performance.
4.2. POWER TRADING
According to the Electricity Act 2003,
“Power trading is an activity in which the utility having surplus power transfers electricity to the utility having deficit of power, at some price (mostly Rs/Kwh)”
According to Section 2(Definitions), Sub-section 71 of the Act,
„Trading‟ means purchase of electricity for resale thereof.
According to Section 2(Definitions), Sub-section 47 of the Act,
„Open access‟ means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the appropriate commission.
Indian Energy Exchange (IEX) is a publicly traded company on the National Stock Exchange (NSE), founded in 2007 and headquartered in New Delhi. It is India’s first and largest automated electronic trading exchange regulated by Central Electricity Regulatory Commission (CERC). The company brings together buyers and sellers of power and electricity such as independent power producers, distribution companies, government owned power generation companies and industrial and commercial power consumers. It provides them with an automatic electronic platform for trading of electricity.
4.1. INTRODUCTION[ http://www.pmintpc.com/interface/research_activities_published_paper_ICPS04.pdf]
Electricity is a non-storable commodity, which indicates the electricity generated should be consumed timely. In competitive environment, the price is determined by stochastic supply and demand functions. The price can change at any time.As a consequence of increased volatility, a market participant could make trading contracts with other parties to hedge possible risks and get better returns.
Open access is the key to a free and fair electricity market. Power producers (sellers) and dealers/customers (buyers) have to share a common transmission network for wheeling the power from the point of generation to the point of consumption. Thus, interconnected transmission system is considered to be a natural monopoly so as to avoid the duplicity, the problem of right-of-the-way, huge investment for new infrastructure and to take the advantage of the interconnected network viz. reduced installed capacity,increased system reliability and improved system performance.
4.2. POWER TRADING
According to the Electricity Act 2003,
“Power trading is an activity in which the utility having surplus power transfers electricity to the utility having deficit of power, at some price (mostly Rs/Kwh)”
According to Section 2(Definitions), Sub-section 71 of the Act,
„Trading‟ means purchase of electricity for resale thereof.
According to Section 2(Definitions), Sub-section 47 of the Act,
„Open access‟ means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the appropriate commission.
Indian Energy Exchange (IEX) is a publicly traded company on the National Stock Exchange (NSE), founded in 2007 and headquartered in New Delhi. It is India’s first and largest automated electronic trading exchange regulated by Central Electricity Regulatory Commission (CERC). The company brings together buyers and sellers of power and electricity such as independent power producers, distribution companies, government owned power generation companies and industrial and commercial power consumers. It provides them with an automatic electronic platform for trading of electricity.
Electricity generation in Nigeria started in 1896 although it was not until 1929 that the first utility company, the Nigerian Electricity Supply Company was established.
In the 1950s and 1960s the Nigerian government created the Electricity Corporation of Nigeria to control all existing diesel/coal fired isolated power plants across the country and the Niger Dams Authority to develop hydroelectric power in Nigeria. These two entities were amalgamated into the National Electric Power Authority in 1972.
By the late 1990s it became clear that the publicly owned and operated electricity system was failing to meet Nigeria’s power needs. The National Electric Power Policy of 2001 set the go-forward framework for power reform in Nigeria, leading to the National Electric Power Policy and thus the NIPP.
The players in the Nigerian electricity market are often referred to as market participants. In order to carry on business as a market participant, it is imperative that such entity(ies) obtain the appropriate licence from the Nigerian Electricity Regulatory Commission (NERC).
Electricity Generation Licence.
Distribution Licence.
Transmission Licence.
System Operation Licence.
Trading Licence.
A generation licence authorises the licensee to construct, own, operate and maintain a generation station for purposes of generation and supply of electricity in accordance with the Electric Power Sector Reform Act, 2005. Subject to this Act, the holder ofa generation licence may sell power or ancillary services to any of the classes of persons specified in the licence. An electricity generation licence is needed for any power generation activity beyond 1MW.
A transmission licence authorises the licencee to carry on grid construction, operation, and maintenance of transmission system within Nigeria, or that connect Nigeria with a neighbouring jurisdiction limited to, the following activities as may be specified in the licence.
A trading license authorizes the licencee to engage in the purchasing, selling, and trading of electricity. The Commission (NERC) determines the terms and conditions of trading licences as may be appropriate in the circumstances.The Commission may also issue temporary bulk purchase and resale licence, giving the licensee, the ability to purchase electrical power and ancillary services from independent power producers and successor generation companies for the purpose of re-sale to one or more other licensees, or to an eligible customer. Example of a licensed trading entity in Nigeria is the NBET.
This is the Government administrative arm that deals with policy formulation and provides general direction to other agencies involved in the power sector.
The key function of the Ministry is to develop and facilitate the implementation of policies for the provision of adequate and reliable power supply in the country.
Webinar: Market & Customer Intelligence on Gwalior for Distribution Franchise...pManifold
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With 30+ companies in the race, already 3 RFP revisions with wider stakeholder engagement, and removal of stringent cash accrual qualification criterion, the bids will likely be more competitive and also volatile. It has become more important now to integrate various perspectives and data sets of information to validate assumptions and prepare informed bidding numbers.
Demand-Side Flexibility for Reliable Ancillary Services in a Smart Grid: Elim...Sean Meyn
A survey of our 2015 HICSS article (reference below), which is largely a survey of demand response technology developed at the University of Florida.
Presented at the Workshop on Electricity Markets and Optimization 27th of November 2014. Aalborg University, Denmark
@inproceedings{barbusmey14,
Address = {Kauai, Hawaii},
Author = {Barooah, Prabir and Bu\v{s}i\'{c}, Ana and Meyn, Sean},
Booktitle = {Proc. {48th Annual Hawaii International Conference on System Sciences (HICSS)}},
Note = {(invited)},
Publisher = {University of Hawaii},
Title = {Spectral Decomposition of Demand-Side Flexibility for Reliable Ancillary Services in a Smart Grid},
Year = {2015}}
Electricity generation in Nigeria started in 1896 although it was not until 1929 that the first utility company, the Nigerian Electricity Supply Company was established.
In the 1950s and 1960s the Nigerian government created the Electricity Corporation of Nigeria to control all existing diesel/coal fired isolated power plants across the country and the Niger Dams Authority to develop hydroelectric power in Nigeria. These two entities were amalgamated into the National Electric Power Authority in 1972.
By the late 1990s it became clear that the publicly owned and operated electricity system was failing to meet Nigeria’s power needs. The National Electric Power Policy of 2001 set the go-forward framework for power reform in Nigeria, leading to the National Electric Power Policy and thus the NIPP.
The players in the Nigerian electricity market are often referred to as market participants. In order to carry on business as a market participant, it is imperative that such entity(ies) obtain the appropriate licence from the Nigerian Electricity Regulatory Commission (NERC).
Electricity Generation Licence.
Distribution Licence.
Transmission Licence.
System Operation Licence.
Trading Licence.
A generation licence authorises the licensee to construct, own, operate and maintain a generation station for purposes of generation and supply of electricity in accordance with the Electric Power Sector Reform Act, 2005. Subject to this Act, the holder ofa generation licence may sell power or ancillary services to any of the classes of persons specified in the licence. An electricity generation licence is needed for any power generation activity beyond 1MW.
A transmission licence authorises the licencee to carry on grid construction, operation, and maintenance of transmission system within Nigeria, or that connect Nigeria with a neighbouring jurisdiction limited to, the following activities as may be specified in the licence.
A trading license authorizes the licencee to engage in the purchasing, selling, and trading of electricity. The Commission (NERC) determines the terms and conditions of trading licences as may be appropriate in the circumstances.The Commission may also issue temporary bulk purchase and resale licence, giving the licensee, the ability to purchase electrical power and ancillary services from independent power producers and successor generation companies for the purpose of re-sale to one or more other licensees, or to an eligible customer. Example of a licensed trading entity in Nigeria is the NBET.
This is the Government administrative arm that deals with policy formulation and provides general direction to other agencies involved in the power sector.
The key function of the Ministry is to develop and facilitate the implementation of policies for the provision of adequate and reliable power supply in the country.
Webinar: Market & Customer Intelligence on Gwalior for Distribution Franchise...pManifold
The revised MP Distribution Franchisee (DF) RFPs for Gwalior, Ujjain and Sagar has brought down on average coverage area by 100%, number of consumers and electricity sales by 60% and number of DTCs by 77%, with move from district level to city level. There is now mandated capex of Rs. 170 cr for Gwalior, Rs. 70 cr. for Ujjain and Rs. 30 cr. for Sagar and target ATC reductions to 15% in 2 years.
With 30+ companies in the race, already 3 RFP revisions with wider stakeholder engagement, and removal of stringent cash accrual qualification criterion, the bids will likely be more competitive and also volatile. It has become more important now to integrate various perspectives and data sets of information to validate assumptions and prepare informed bidding numbers.
Demand-Side Flexibility for Reliable Ancillary Services in a Smart Grid: Elim...Sean Meyn
A survey of our 2015 HICSS article (reference below), which is largely a survey of demand response technology developed at the University of Florida.
Presented at the Workshop on Electricity Markets and Optimization 27th of November 2014. Aalborg University, Denmark
@inproceedings{barbusmey14,
Address = {Kauai, Hawaii},
Author = {Barooah, Prabir and Bu\v{s}i\'{c}, Ana and Meyn, Sean},
Booktitle = {Proc. {48th Annual Hawaii International Conference on System Sciences (HICSS)}},
Note = {(invited)},
Publisher = {University of Hawaii},
Title = {Spectral Decomposition of Demand-Side Flexibility for Reliable Ancillary Services in a Smart Grid},
Year = {2015}}
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
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1. Regulators & Policymakers Retreat, 2012
Date: 24th August 2012
Regulators and Policymakers Retreat-2012
Presentation on
Operationalisation of Open Access
By
Ajoy Mehta, IAS,
Managing Director,
Maharashtra State Electricity Distribution Company Limited
2. Matter has raised important legal issues
Opinions of Attorney General of India, Solicitor General Of
India
Planning commission- working group on OA
Operationalisation in Feb-2010
Notification from Ministry of Power on Dt 30.09.2011
Discussions in the Forum of Regulators (FOR)
MoP has referred this matter for CERC to form regulations,
Comments on Operationalisation of OA has been asked by
MERC
2
MSEDCL
3. (a) Bulk consumers (above 1 MW) shall be deemed to be open access consumers w.e.f.
January 2009.
(b) The State Commission has no longer fix the energy charges to be paid by such a
consumer, but will continue to fix the wheeling charges and surcharges.
(c) Sec-49 shows that if certain consumers want to have the benefit of the option to buy
power from competing sources, then it is logical that DISCOMS/Distribution Licensees
do not have an obligation to compulsorily supply power to such consumers.
(d) Sec-42(3) is not a precondition for the implementation of open access as such a
notice is not for seeking permission to use the distribution licensee’s network, but
only to communicate the open access consumers intention of using such a network.
3
4. Ministry of Power Letter
Technical issues & Operational constraints
Financial Impact on MSEDCL.
Legal issues
5. Letter from MoP refers only legal issues in Open
Access Operationalisation.
Opinion is in isolation with provisions in Act. ( They
have not considered technical & operational
Constraints.)
Deciding of OA tariff by Utility : Complex issue.
Methodology for implementation of OA is not
mentioned any where.
It requires clarity/Change in regulation
CSS decided is not commensurate with migrated
consumers tariff.
Infrastructure problems for new consumers.
7. Particular Reguln Action by DL As per MoP Circular Remarks if MoP Circular is implemented
Application Reg. Scrutiny No Application, Just an MERC (Distribution Open Access)
for Open No. 4.2 intimation is required Regulations, 2005, needs to be
Access complied.
Eligibility Reg. 3 Scrutiny of application for OA Can not ascertain Open access may be granted to a non-
criterion capacity (should not be > eligible consumer
than CD)
Type of OA Sec. 9 / Ascertainment of applicability Can not ascertain The DL may lose the legitimate revenue
Captive / 10 of of in respect of cross subsidy surcharge
General OA Act CSS for General OA
Grid Reg. For existing consumer, For existing consumer, Utility has to bear cost of infrastructure
Connectivity connectivity is available, but connectivity available for new OA consumer
for new consumer, For new, the consumer
connectivity will be provided has to apply
Arrears / Reg. OA permission may be No control In case of arrears OA can not be granted
Dispute 4.2.7 rejected in case of non
settlement of dues
Installation of Reg. 7 Ascertainment No clear guidelines SEM is a pre-requisite of open access,
SEM must be complied. If SEM not installed,
proper Billing can not be done
Open Access Will be granted Permission is not SLDC has to monitor the fulfillment of all
Permission required, Will be regulatory requirements. SLDC has no
deemed to be granted man power neither it is highly equipped
to look into all matters.
8. Particular Regul Action by DL As per MoP Remarks if MoP Circular is
n Circular implemented
Contract Reg. CD will be reduced to the extent We can’t have If CD not reduced, the DL has to
Demand 4.2.1 / of OA capacity any control over make provision for supply of
Reduction / 4.2.2 its usage. Contracted capacity
Termination unnecessarily, resulting into
loss.Reg needs to be complied
Agreement Reg. 5 Will be executed between DL, No Agreement, will affect the
OA consumer & generator interests of both parties.Reg
needs to be complied
Joint Meter JMR will be carried out ??? JMR needs to be carried out.
Reading
Billing Reg. 8 Billing to include wheeling Who will bill OA Reg needs to be complied
charges, CSS, Losses,standby, PF, Consumer?
SLDC???
Standby Reg. 9 Will be provided at Temporary ??? No contract with DL, no
supply Tariff through Agreement obligation on DL to provide
standby supply
Inter- state Will be permitted subject to SLDC to Not mentioned in circular.
open access SLDC approval, generation units approve
to be given by SLDC/WRLDC
Over drawal Reg. 9 Will be charged at Temporary SLDC will charge The DL will decide tariff. Loss to
Tariff UI consumers in both cases.
9. Details of deemed OA consumers (Contract demand above 1 MW) for FY 2011-12
Migration of Consumers to Consumers below 1 MW
Category No. of Sales Revenue ABR
with MSEDCL
Open Access
Cons.
Mus Rs. Crs Rs./Unit % Sales Revenue ABR Sales Revenue ABR
HT & LT 14,08
1586 20,114 13,187 6.56 30% 6,034 3,956 6.56 9,231 6.56
Industries 0
HT & LT 10.8
231 888 964 10.86 50% 444 482 10.86 444 482
Commercial 6
PWW 63 708 340 4.80 0% - - 708 340 4.80
Agriculture 42 329 24 0.74 0% - - 329 24 0.74
Railway 43 1,386 945 6.82 100% 1,386 945 6.82 - -
Total deemed
open access 1965 23425 15460 6.60 7864 5383 6.85 15561 10077 6.48
consumers
1.94
Total 81,835 38,135 4.66
Crs
Proportion of
9.61 19.02
deemed OA 0.01% 29% 41% 14.12% 26.43%
consumers
% % 9
10. Impact on ARR for embedded consumers
Impact on tariff on common consumers
Impact on monthly revenue of utility.
Assumption of migration of consumers.
Fixed cost of Power procurement (Computation of
additional surcharge on case to case basis)
Loss of CSS due to migration of bulk consumers.
Increase in loss of utility.
Burden of Opex/Capex on consumers of utility
11.
12. 1 MW and above consumers are deemed OA
users
OA Category : SERC to fix wheeling charges &
surcharge only
Dist. Licensee not to have service obligation
Notice is not for seeking permission to use the
DL’s network but only to communicate
intention of using such network
13. • Planning Commission has formed task force in Feb-2010
– SERC should be advised by Govt. for Operationalisation of
OA & to specify wheeling charges.
– Standby charges should not exceed max.UI rate for
applicable hrs plus 5% adm.charges thereon.
– SLDC/RLDC should be separate entity with functional &
operational autonomy.
– Regulators should meet bulk consumers & act proactively.
– 25% of centers discretionary allocation of 15 % CPSU
generating capacity may be made available for direct sale of
CPSU to OA consumers.
– Amendment in Sec.62(1)(a) to make it explicit that supply
of electricity by a generating company to DL includes supply
through an electricity trader.
14. Not purchase excess energy injected
May charge temporary tariff for excess
consumption.
Can charge high tariff for standby supply or may
not provide stand supply.
O&M activity of consumers feeders.
Different negotiated tariff for OA consumers.
Can ask to revise CSS & wheeling charges