[PPT] - Electricity Market Email: info@iexindia.com May15 www.iexindia.com PowerPoint Presentation

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Electricity Market

www.iexindia.com

Email: info@iexindia.com May’15

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In this presentation

Introduction to Indian Power Market Product Portfolio Trading Mechanism Market Snapshot Trade @ IEX

Participation Volume Price

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Indian Power Market Development trend

Single buyer/seller Multi Buyer/Seller OTC Markets Spot trading

n Exchanges

Improved liquidity and Efficiency

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Indian Power Market: Present Status

Long Term

Power Purchase Agreements Upto 25 Years

Medium Term

3 months- 3years

OTC

Licensed traders (61)

Short-Term

OTC Intraday- 3 months Exchanges

Balancing Market

Intraday - 3 months Unscheduled Interchange

1. Intra-day
2. DAM
3. DAC
4. Daily
5. Weekly

Real Time

89% 6% 3% 2%

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Company Snapshot

94% Market Share ~80,000MWh average daily trade 3400+ Participants 3000+ Industries

Competition Liquidity Transparency

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Growth in Volume

Volume across product portfolio

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Increasing Participation

Participation

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Product Portfolio

Intra ra Day REC

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IEX Market Segments

Delivery-based Contracts Day-Ahead Market

since June,08 Closed , Double-sided Auction 10-12 am bidding Each 15-min block , 0.1 MW min NOC required

Term-Ahead Market since Sep,09

Day-Ahead Contingency – Another window 3-5pm Intra-Day - for the same day starting 2 pm Daily- for rolling seven days (delivery starting after 4 days) Weekly- for 1 week (Monday-Sunday)

Renewable Energy Certificates since Feb,11 Next… Energy Saving Certificates

Green Attributes as Certificates Sellers : RE generators not under feed in tariffs Buyers: Obligated entities 1MWh equivalent to 1 REC

Auction Continuous

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DAM and TAM Trading Timeline

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Trading Mechanism

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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 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

12 Bid Areas

N1 N2 A2 A1 W3 E2 E1 N3 W2 W1 N2 S2 S1

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Congestion Management Risk Management Bidding and Matching

Understanding exchange mechanism

Treatment

f losses

and charges

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DAM trading process

Bidding Matching Review corridor and funds availability Result Confirmation Scheduling

Bids for 15- min each or block bids can be placed MCP &MCV calculated Corridor availability and funds verified Collective transaction confirmation by NLDC Final Schedule sent to RLDC for incorporation Final ACV and ACP calculated. Market splitting if congestion

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

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120 100 80 80 20

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Price Tick (Rs.)

Portfolio A, MW

Bid Quantum by different portfolios

Total Sell Quantum received, MW Total Buy Quantum received, MW Net Transaction, MW Portfolio B, MW Portfolio C, MW Price

MW Market clearing price (MCP) Market Clearing Volume (MCV)

Supply (Sell) Demand (Buy)

Volume 2.5 60

Model Price Calculation algorithm

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BID MATCHING Open/Closed Auction

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.

Continuous Trading

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

f the order received.

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CONTINUOUS TRADING PROCESS

TWS Screen

Pending Buy Order Pending Sell Order

Buy 10 MW @ Rs 4500/MWh Sell 15 MW @ Rs 5500/MWh Sell 15 MW @ RS 5500/MWh Buy 10 MW @ Rs 4500/MWh

Trading Engine

Buy 10 MW @ RS 4500/MWh Sell 15 MW @ RS 5500/MWh

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TWS Screen

Pending Buy Order Pending Sell Order

Buy 10 MW @ 5000/MWh Sell 15 MW @ Rs 5500/MWh

Buy 10 MW @ 4500

Trading Engine

Buy 10 MW @ RS 5000/MWh Buy 10 MW @ RS 5000/MWh Buy 10 MW @ RS 4500/MWh

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Sell 15 MWh @ 5500 TWS Screen

Pending Buy Order Pending Sell Order

Sell 15 MW @ RS 5000/MWh

Sell 15 MW @ 5500

Trading Engine

Sell 15 MW @ Rs 5000/MWh

Buy 10 MW @ 5000 Buy 10 MW @ 4500 Sell 15 MW @ 5500

Sell 5 MW @ Rs 5000/MWh Trade 10 MW @ RS 5000/MWh Buy 10 MW @ RS 4500/MWH

Bid Modified

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Congestion Management

SR WR

S1 50 MW RS 8000 B1 50 MW RS 8500 S1 50 MW Rs 8/u B1 50 MW RS 8.5/u B2 150 MW RS 9000 B2 160 MW Rs 9/u S2 40 MW RS 8500 S2 40 MW Rs 8.5/u S3 50 MW RS 7500 S3 50 MW Rs 7.5/u B1 100 MW Rs 6/u S1 80 MW Rs 9.5 B3 30 MW Rs 7/u B3 30 MW RS 7000

Deficit 100 MW

S1 80 MW RS 9500

B1 100 MW RS 6000 S2 120 MW RS 8000

S2 20 MW Rs 8/u

S3 100 MW RS 5500

S2 100 MW Rs 5.5/u

Surplus 100 MW

Required Flow 100 MW

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Congestion Management

SR WR

S1 50 MW RS 8000 B1 50 MW RS 8500 B2 160 MW RS 9000 S2 40 MW RS 8500 S3 50 MW RS 7500 B1 100 MW RS 6000 S1 80 MW RS 9500 B3 30 MW RS 7000

Deficit 100 MW

S2 20 MW RS 8000 S2 100 MW RS 5500

Surplus 100 MW

Allowed Flow 20 MW

Surplus 20 MW

Highest Seller getting rejected Lowest Buyers getting rejected

Deficit 20 MW

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Both Buyers and Sellers to absorb losses
Average Transmission Losses of the Region where the Entity is geographically

located.

Treatment of Losses

Draw less than contracted power (Contracted Power – losses) Inject more than contracted power (Contracted Power + Losses)

Buyer Seller

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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

100 MW

at NR periphery

POC Loss

1.5%

98.5 MW

at State periphery

State Loss

4.85%

93.72 MW at Buyer End

X

(Buyer) Bid Volume Scheduled Drawal <= SLDC Clearance

Maximum Bid= Volume in standing clearance + Regional & State losses

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Treatment of Losses… for seller

POC Loss: 1.5%
State loss: 4.85%
Seller Y bids for 100 MW at its respective regional periphery

POC Loss 1.5% 106.69MW

Injected by seller

State Loss 4.85% Y (Seller)

101.52MW at state periphery

100 MW at regional periphery

Bid Volume Scheduled Generation <= SLDC Clearance

Maximum Bid= Volume in standing clearance – Regional & State losses

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Market Snapshot

Participation Volume Prices

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Key statistics: Electricity & REC Market

Market Share

(FY 13-14)

State Utilities Generators Industrial Consumers Average Daily Volume

77% 16 States I 5 UTs 701 >3 million RECs

Highest: 4,23,731 RECs

ELECTRICITY REC 96% 29 States I 5 UTs 301 ~80,000 MWh

Highest : 131,356 MWh

1604 3069

IEX Data as on 30 April, 2015

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6 3

6 216 25 672 38 79 1 398 22 33 16 1 1 2 1 48 7 15 4 1 1 761 2 59 57 3 3 1 2 7 23 273 4

Consumer: 3069 Generator: 301

Participation at IEX

No Open Access

Consumers Generators

Uttar Pradesh Uttar Pradesh Jammu & Kashmir Delhi Himachal Pradesh Bihar Delhi Jharkhand Bihar Tamil Nadu Goa Kerala Jharkhand Union Territories Sikkim NE States (except Meghalaya) DVC Chattisgarh West Bengal Union Territories (except Daman & Diu) NE States (except Assam, Meghalaya & Arunachal Pradesh)

402 8

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Industrial segments with IEX

Textile 29% Manufacturer 15% Metal 24% Chemical 9% Auto Components 6% Cement 4% Paper 3% Cotton 1% Others 9%

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CERC MMC Report for FY 2013-14

Prices

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IEX monthly Average MCP in DAM

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DAM Cleared Volume v/s MCP

Volume

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IEX Monthly Cleared Volume

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Trade @ IEX

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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

Who Can become Members of IEX ?

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IEX Membership Types

Proprietary Member

Right to trade and clear on its

wn account

Generator- Distribution licensees- IPPs - CPP- MPPs –O A consumers

Professional Member

Trade and clear

n behalf of its

Clients NO CREDIT /FINANCING

Electricity Traders

Trade and clear

n behalf of its

Clients CREDIT /FINANCING

Clients

Grid Connected Generator, Distribution licensees, IPPs, CPP, MPP, OA consumers Trader Client With valid PPA

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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

Rs. 25,00,000
Rs. 10,00,000

Annual Subscription Fees

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

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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
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

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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

Thank You for your attention

www.iexindia.com