Electricity Market April��7 Email: info@iexindia.com Web: www.iexindia.com For Public Use
In this presentation Introduction to Indian Power Market Product Portfolio Trading Mechanism Market Snapshot Participation Volume Price Trade @ IEX
Indian Power Market: Present Status Long Term Power Purchase Agreements 89% Upto 25 Years OTC Medium Term Licensed traders (61) 6% 3 months- 3years OTC Intraday- 3 months Short-Term Exchanges Intraday - 3 months 1. Intra-day 3% 2. DAM 3. DAC 4. Daily 5. Weekly Balancing Market Unscheduled Interchange 2% Real Time
Company Snapshot Market Share: 98% Average daily trade: 4500+ MW High Participation: 4200+ 3700+ Industries I 40+ Discoms (all) I 380+ Generators Transparency Liquidity Competition
Increasing Participation Participation
IEX Market Segments Delivery-based Contracts Closed , Double-sided Auction Day-Ahead 10-12 am bidding Market Each 15-min block , 0.1 MW min NOC required since June,08 Day-Ahead Contingency – Another window for Day-Ahead. Term-Ahead Market Extended Market: Trading window increased to 1500-2300 Hours since Sep,09 Intra-Day - Extended Market: Trading window increased to 0030 – 2000 Hrs for same day delivery, with delivery starting at 0400 Hours Extended Markets Daily- for rolling seven days (delivery starting after 4 days) introduced Weekly - for 1 week (Monday-Sunday) 20 th July’15 Green Attributes as Certificates Renewable Energy Sellers : RE generators not under feed in tariffs Certificates Buyers: Obligated entities since Feb,11 1MWh equivalent to 1 REC Ne�t… Energ� Sa�ing Certificates Auction Continuous
DAM and TAM Trading Timeline Weekly (Wed and Thursday) Open auction
Features of Day Ahead Market A closed double-sided anonymous auction for each 15-min time block for the following day N1 N3 The intersection between the aggregated sale and purchase curves defines the market clearing A2 N2 N2 price (MCP) A1 E1 W1 W3 13 Bid areas defined W2 E2 Congestion Management through market splitting S1 and determining Area Clearing Price (ACP) specific to an area S2 S3 Bid types: Portfolio Orders or Block Orders Minimum bid=Re.1 for 0.1MWh 13 Bid Areas Minimum Price & Volume Step = 0.1p * 0.1 MWh
DAM trading process Review corridor Bidding Matching Result Confirmation Scheduling and funds availability 10:00 am to 12:00 pm to 1:00 pm to 3:00 pm 5:30 pm 6:00 pm 12:00 pm 1:00 pm 2:00 pm MCP Bids for Corridor Final ACV Collective Final 15- min &MCV availability and ACP transaction Schedule sent each or calculated and funds confirmation calculated. to RLDC for block bids verified Market by NLDC incorporation can be splitting if placed congestion
Model Price Calculation algorithm Price Tick (Rs.) 0 1 1.1 2 2.1 2.5 3 3.1 4 4.1 5 --- --- ---- 20 20 20 20 20 20 20 20 10 0 0 0 0 0 0 0 Bid Quantum Portfolio A, MW by different 60 60 60 60 50 40 40 40 40 40 20 20 20 20 20 Portfolio B, MW portfolios 40 20 0 0 -40 -60 -80 -81 -120 -120 -120 -120 -120 -120 -120 Portfolio C, MW 120 100 80 80 70 60 60 50 40 40 20 20 20 20 20 Total Buy Quantum received, MW 0 0 0 0 -40 -60 -80 -81 -120 -120 -120 -120 -120 -120 -120 Total Sell Quantum received, MW 120 100 80 80 20 0 -20 -21 -80 -100 -100 -100 -100 -100 -100 Net Transaction, MW Price Supply Demand (Sell) (Buy) Market clearing price (MCP) 2.5 MW 60 Volume Market Clearing Volume (MCV)
BID MATCHING Open/Closed Continuous Auction Trading Orders accumulated during Price-time priority based call phase (no matching) continuous matching Orders matched after call period The highest Buy order & lowest Sell order gets the Orders are used for priority calculation common price i.e. Equilibrium Price. If the prices are same then All successful orders priority is given to the time matched at Equilibrium of the order received. Price.
Congestion Management SR WR S3 S1 Deficit Surplus B2 B3 S2 S1 B1 B1 S3 S2 50 MW 50 MW 150 MW 30 MW 40 MW 80 MW 100 MW 100 MW 120 MW 50 MW RS 7500 RS 8000 100 MW RS 9000 100 MW RS 8000 RS 5500 RS 6000 RS 7000 RS 8500 RS 9500 RS 8500 S3 B2 50 MW 160 MW Required S2 Rs 7.5/u Rs 9/u Flow 100 MW Rs 5.5/u 100 MW B1 S1 50 MW S2 50 MW RS 8.5/u 20 MW Rs 8/u Rs 8/u B3 S2 B1 S1 30 MW 40 MW 100 MW 80 MW Rs 7/u Rs 8.5/u Rs 6/u Rs 9.5
Congestion Management SR WR Deficit Deficit Surplus Surplus 100 MW 20 MW 100 MW 20 MW Lowest Buyers getting rejected Highest Seller getting rejected B2 S2 S3 Allowed 160 MW 100 MW 50 MW RS 9000 Flow RS 5500 RS 7500 20 MW B1 S1 S2 50 MW 50 MW 20 MW RS 8500 RS 8000 RS 8000 S2 B3 S1 B1 40 MW 30 MW 80 MW 100 MW RS 8500 RS 7000 RS 9500 RS 6000
Treatment of Losses • Both Buyers and Sellers to absorb losses Draw less than Buyer contracted power ( Contracted Power – losses) Inject more than contracted power Seller (Contracted Power + Losses) • Average Transmission Losses of the Region where the Entity is geographically located.
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 Bid Volume <= SLDC Clearance POC State X Loss Loss 100 MW 98.5 MW 93.72 MW at (Buyer) 1.5% 4.85% at State at NR Buyer End periphery periphery Maximum Bid= Volume in standing clearance + Regional & State losses
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 Bid Volume <= SLDC Clearance POC State Y 106.69MW 101.52MW Loss Loss (Seller) 100 MW at at state Injected by regional periphery seller periphery 1.5% 4.85% Maximum Bid= Volume in standing clearance – Regional & State losses
Key Statistics ELECTRICITY REC Market Share 98% 63% (FY15-16) State 17 States I 5 UTs 29 States I 5 UTs Utilities 389 899 Generators Industrial 3,816 2,486 Consumers >90,000 MWh >1 Crore RECs Average Daily Volume Highest: 12,87,814 RECs Highest : 144,649 MWh IEX Data as on 31 March, 2017
Participation at IEX 0 5 18 6 428 8 103 2 26 1 5 0 455 4 0 0 1 0 14 0 331 10 7 0 514 20 58 10 6 1 0 47 0 1 0 2 31 19 21 25 0 1 483 30 221 12 210 61 Consumer: 3,816 Generator: 389 813 16 22 0
DAM Cleared Volume v/s MCP Volume 8 7.46 40 7.16 36.64 36.34 35.84 7 35.11 35.50 35 5.32 6 Price (Rs./kWh) 30 5.33 27.70 27.20 Volume (BU) 26.72 4.74 4.3 5 25 4.34 4.27 4.23 4.13 21.92 3.73 3.46 4 3.58 3.47 20 2.89 2.70 2.68 3 15 1.83 2 10 1 5 2.62 6.17 11.80 13.79 22.35 28.92 28.12 33.96 30.26 - -1 FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 (Till Dec) IEX Volume Trader Volume IEX Price Bilateral Price
IEX Membership Types Proprietary Professional Electricity Member Member Traders Right to trade Trade and clear Trade and clear and clear on its on behalf of its on behalf of its own account Clients Clients Generator- Distribution NO CREDIT CREDIT licensees- IPPs - /FINANCING /FINANCING CPP- MPPs – O A consumers Clients Grid Connected Generator, Distribution licensees, IPPs, CPP, MPP, OA consumers Trader Client With valid PPA
Financial Requirements Membership Category: Proprietary / Professional Member The financial criteria for payment options available on IEX are: Professional & Proprietary & Proprietary member Fees Electricity Trader (Light Payment (Full Payment Option) Option) Admission fee Rs. 35,00,000 Rs. 10,00,000 Interest Free Security Rs. 25,00,000 Rs. 10,00,000 Deposit Annual Subscription Rs. 5,00,000 Rs. 2,50,000 Fees Processing Fees Rs. 10,000 Rs. 10,000 TOTAL Rs. 65,10,000 Rs. 22,60,000 Exchange Transaction 2p/kWh 3p/kWh
How to Move Ahead… Be�o�e Me��er or Clie�t �of a Me��er�…optio�s • 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
Thank You for your attention www.iexindia.com Leader in Market Development – India Power A�ards ��� Best Power Exchange in India – Enertia A�ards ���, ��� &��� – India Power Award 2014 – Power Business View Award 2014 Inc India Inno�ati�e ��� A�ard for �Inno�ation in Product and Technolog�� Best Performing Power Exchange – Power Line A�ards ��� & ���
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