power market scenario and functioning of power … - bikram singh guram - power... · power market...
TRANSCRIPT
Mr. Bikram Singh GuramAVP (Business Dev.) ,
Indian Energy Exchange
Department of Industrial and Management Engineering
Indian Institute of Technology Kanpur
3rd Capacity Building Programme for Officers of Electricity Regulatory Commissions
23 – 28 August, 2010
Power Market Scenario and Power Market Scenario and Functioning of Power ExchangesFunctioning of Power Exchanges
Forum of Regulators
IEX: Building Power Market for IndiaIEX: Building Power Market for India…Day Ahead Markety
Bikram SinghAVP – Business Developmentbikramsingh guram@iexindia com
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In this presentation …
Introduction to Power Market
Aspects of various PX model
Introduction to IEX
Products at IEX
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Power Markets
► A Transition » Vertically integrated monopoly to wholesale and retail competitiony g p y p
► The effect?
Effi i t li id d l t k t l» Efficient, liquid and complete marketplaces
» Increased private participation
» Organized marketplaces like power pools and power
exchanges
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Success Factors for Power Markets
► Open, free and competitive market
► Sufficient players on both supply and demand sides► Sufficient players on both supply and demand sides
► Trust in the physical reference on Exchange
W k bl l i l ti► Workable legislation
► Real-time market separated from day-ahead market
► Simple set of minimum rules
► Non-discriminatory access to transmission grid
► Price areas reflect physical network constraints
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Aspects for Different PX/Pool ModelsTi iTiming sequence:It is defined in terms of scheduling and time units.
►Scheduling» Day Ahead Scheduling
NordPool: Day Ahead Scheduling ex-ante price settlement
» Real Time BalancingNEMMCO (Australia): Real-time trade and ex-post settlement.
►Scheduling period» Hourly Contracts
Nordpool, PJM (USA), PowerNext (France), OMEL (Spain), EEX
» Half hourly Contracts. NEMMCO (Australia), time-weighted average of six 5 minute intervals
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Market clearing
► Uniform pricing» Provides the same price for every accepted bid» Provides the same price for every accepted bid» Nordpool & IEX
►Discriminatory Pricing►Discriminatory Pricing» pay-as-bid pricing » BETTA (UK)
►Vickerey Auction» The buyer of the highest bid gets the electricity at the second
highest bid price g p» OMEL (Spain)
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Auction Rules
► On the basis of No of bidding sides:» Single-Sided Auction» Double-Sided Auction
► On the basis of bid disclosed► On the basis of bid disclosed» Closed Auction» Open Auction
► On the basis of Time Block» Hourly» Time Block( Base peak Off Peak)» Time Block( Base, peak, Off-Peak)
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Transmission Pricing
► Nodal Pricing» Price at each individual node is calculated» Price at each individual node is calculated » PJM, NZEM (New Zealand)
► Zonal pricing» Set price is used for every zone without inner
congestion» NEMMCO, Nordpool
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Aspects for Different PX/Pool ModelsTi iTiming sequence:It is defined in terms of scheduling and time units.
►Scheduling» Day Ahead Scheduling
NordPool: Day Ahead Scheduling ex-ante price settlement
» Real Time BalancingNEMMCO (Australia): Real-time trade and ex-post settlement.
►Scheduling period» Hourly Contracts
Nordpool, PJM (USA), PowerNext (France), OMEL (Spain), EEX
» Half hourly Contracts. NEMMCO (Australia), time-weighted average of six 5 minute intervals
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Market clearing
► Uniform pricing» Provides the same price for every accepted bid» Provides the same price for every accepted bid» Nordpool & IEX
►Discriminatory Pricing►Discriminatory Pricing» pay-as-bid pricing » BETTA (UK)
►Vickerey Auction» The buyer of the highest bid gets the electricity at the second
highest bid price g p» OMEL (Spain)
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Auction Rules
► On the basis of No of bidding sides:» Single-Sided Auction» Double-Sided Auction
► On the basis of bid disclosed► On the basis of bid disclosed» Closed Auction» Open Auction
► On the basis of Time Block» Hourly» Time Block( Base peak Off Peak)» Time Block( Base, peak, Off-Peak)
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Transmission Pricing
► Nodal Pricing» Price at each individual node is calculated» Price at each individual node is calculated » PJM, NZEM (New Zealand)
► Zonal pricing» Set price is used for every zone without inner
congestion» NEMMCO, Nordpool
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Indian Power sector… History
First 5 Decades of 20th Century…• Private licensees
Post Independence (1947)p ( )
• State monopoly in Generation, Transmission & Distribution• Provinces optimized within own boundaries• Entry of Central Government Power Plants• Entry of Central Government Power Plants
Early 90’sEarly 90 s
• Difficult to provide budgetary support for Power Sector•The Law was amended for IPPsF il f Si l b d l ENRON
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• Failure of Single buyer model ENRON
Evolving Industry Structure
No Competition• No choice• Government makes
decision
Generation Competition• Single buyer has choice
Wholesale Competition• Distribution/retail
companies have choice
Retail Competition• Consumers have choice
No Competition• No choice• Government makes
decision
Generation Competition• Single buyer has choice
Wholesale Competition• Distribution/retail
companies have choice
Retail Competition• Consumers have choice
G G G G G G G G G EG G G G G EGG G G G G G G G G EG G G G G EG
T T / SB T / SB T / MO T / MOT T / SB T / SB T / MO T / MO
D/R D/R D/RD/RD
R R R RD/R D/R D/RD/R
D
R R R R
Consumers Consumers Consumers ConsumersConsumersConsumers Consumers Consumers ConsumersConsumers
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= Who has choice
MO = Market OperatorEG = Embedded Generator
= Who has choice
MO = Market OperatorEG = Embedded Generator
Indian Power Market
Long Term Power Purchase Agreements
Upto 25 Years
Medium Term3 months 3years
OTCLicensed traders (42)3 months 3years
Short-Term OTC Intraday 3 months
Exchanges Intraday 3 months
1. Intraday2. DAM
h d l d h
3. DAC4. Daily5. Weekly
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Balancing Market Unscheduled Interchange
Real Time
E hExchanges are“one stop shop”
to buy and sell electricity for
Any hour of the dayAny day of the weekAny day of the week Any week of the month
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Who are we ?
PromotersPromoters
Joint Equity Partners: Jo t qu ty a t e s
Technology :
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Market Development Milestones
2005 IEX Conceptualized PXFor capacity addition
2006 •Created awareness among Stakeholdersacross the country
2007 • CERC issued guidelines for setting PX• IEX got in principle approval2008June 27Flawless Operations
ill d15th September’09 Term-ahead Marketh d•CERC approved commencement of
Day Ahead Market2008 2008June 27till date…15 September 09 Launched
Aug’ 2009 • CERC approves IEX Term-ahead Market
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What is IEX
Voluntary
On-line
National
Delivery…
National
Automated StandardisedContracts
•Spot•Intra-Day•Day-ahead
•Forwardk
Electronic
Central
•Weeks•Months
Counterparty
Exchange as Organized Marketplace Power-specific
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Exchange as Organized Marketplace Power specific
IEX IEX -- DAM Product DescriptionDAM Product Description
• Order Types:– Hourly or Portfolio Orders
• Min 1 hourMin 1 hour
• Different Price‐Quantity Pairs
• Partial Execution Possible
Bl k O d– Block Orders
• Consecutive hours during the same day– Customized block bid allowed
• Firm commitment to purchase or sell
• Order CharacteristicsSLDC Clearance should be ≥ 1 MW– SLDC Clearance should be ≥ 1 MW
– Minimum Order quantity can be less than 1 MW
– Minimum volume step: 0.1 MW
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– Minimum price step: Rs 1 per MWh ( 0.1p/kWh)
IEX - DAM Product DescriptionT di A il bilit• Trading Availability– Every Calendar Day
• Order Entry / revise /cancel– Entry of orders on D‐1 from 10:00 hrs to 12:00 hrs related to Delivery Day (D day)
• Contract– Clearing Price : Area Clearance Price– Cleared Volume – Total Contract Value: Cleared Volume multiplied by ACP– Final settlement adjusted for any force majeure deviations
• Delivery PointDelivery Point– Periphery of Regional Transmission System in which the grid‐connected entity, is located
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Time Line for scheduling of Collective Transaction
10:00 14:00 18:0012:00 13:00 15:00 17:30
Market P ti i t t
RLDCs/SLDCs to incorporate Collective Transactions in the Daily
NLDC to confirm acceptanceParticipants to
place their Bidsthe Daily Schedule
PX to send provisional unconstrained
NLDC to check for congestion. In case of congestion shall intimate PX
acceptance. PX to send files to SLDCs for scheduling
PX to send Scheduling Request to NLDC based on margin specified by NLDC
unconstrained solution to NLDC and flow on TS as informed by NLDC
intimate PX regarding to the period for congestion and available
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p yNLDC margins
Price Calculation Algorithm ….each hourPrice (Rs./kWh) 0 20 1 2 2.1 3 3.1 4 4.11.1 2.5
Portfolio A, MW 20 020 020
Portfolio B, MW 6060 2040 40 2040 4040
SUM, Purchase 120 100 80 80 60 60 40 40 202060
Portfolio C, MW 40 -400 -12020 0 -120-80 -81-60
SUM Sale
Price
SUM, Sale 0 0 -40 -120-120-80 -81-60
Net transaction 120 20 -100-80-20 -21100 80 80 -1000
2502505
SalePurchase
Rs/kWh
3
4
100
150
200
ice
($/M
Wh)
100
150
200
ice
($/M
Wh)
2
3
4
/kW
h 2.52.52.5
MCP:
/
MW40 80 120
2
MW 0
50
-150 -100 -50 0 50 100 150
Pri
0
50
-150 -100 -50 0 50 100 150
Pri
1Rs.
/
60
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MW balanceMW balance60
MCV (Market clearing volume):
Treatment of Losses
• Both Buyers and Sellers to absorb losses– Buyer
d l h C d P• draw less than Contracted Power(Contracted Power – losses)
– Seller• inject more than Contracted Power• inject more than Contracted Power(Contracted Power + Losses)
• Average Transmission Losses of the Region where the Entity isg g ygeographically located
• Additional Losses for Wheeling, if necessary– To be notified in advance by NLDCy– Only for Injection
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Treatment of Losses… for buyer
• NR (Regional) Loss: 6%• S1 (State) loss: 4.85 %
B X bid f 100 t it ti i l i h• Buyer X bids for 100 mw at its respective regional periphery
Bid VolumeScheduled Drawal< SLDC Cl
100 MW
NR S1 X
Bid Volume <= SLDC Clearance
100 MWat NR
periphery
Loss 6%
94 MWat S1 periphery Loss
4.85%
89.44 MW at Buyer End (Buyer)
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Maximum Bid= Volume in standing clearance + Regional & State losses
Treatment of Losses… for seller
• SR (Regional) Loss: 6%• A1 (State) loss: 4.85%• Seller Y bids for 100 mw at its respective regional periphery
Bid VolumeScheduled Generation < SLDC Cl
SR A1Y
Bid Volume <= SLDC Clearance
Loss
6%
111.14 MW Injected by
seller at its end
Loss
4.85%
Y (Seller)106 MW at state
periphery 100 MW at regional periphery
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Maximum Bid= Volume in standing clearance – Regional & State losses
CongestionSR WRSR WRS1
50 MWB1
50
B2150 MW
S240 MW
S350 MWB330 MWDeficit S1
80 MWB1
100 MWS2
120 MWS3
100 MWSurplus
50 MWRS 800050 MWRS 8500
150 MWRS 900040 MWRS 8500RS 750030 MWRS 7000100 MW
80 MWRS 9500100 MWRS 6000120 MWRS 8000100 MWRS 5500100 MW
B2150 MWS3
Required Flow
S1B1
50 MW
Rs 9/uS3
50 MWRs 7.5/u
S2
S2100 MWRs 5.5/u
100 MW
S150 MWRs 8/u
50 MWRS 8.5/u
S2 B1S1B3
S220 MWRs 8/u
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40 MWRs 8.5/u
100 MWRs 6/u
80 MWRs 9.5
B330 MWRs 7/u
CongestionSR WRSR WR
Deficit SurplusSurplusDeficit100 MW
Surplus100 MWSurplus20 MW
Lowest Buyers getting rejected
20 MW
B2150 MWRS 9000S3 S2
Allowed Flow
Highest Seller getting rejectedLowest Buyers getting rejected
S1
B150 MW
RS 9000S350 MWRS 7500
S2
S2100 MWRS 5500
20 MW
S150 MWRS 8000
RS 8500
S2 B1S1B3
S220 MWRS 8000
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40 MWRS 8500
100 MWRS 6000
80 MWRS 9500
B330 MWRS 7000
Risk Management System
D‐1 At 09:30 Hrs : Pre‐trade Margin Check. equal to the initial margins or average of last 7 days’ trading valueequal to the initial margins or average of last 7 days trading value, whichever is more.
D‐1 At 12:30 Hrs : Preliminary Obligation Margin CheckPreliminary Obligation =< Funds Available (incl initial margin)Preliminary Obligation =< Funds Available (incl initial margin)Block funds.D‐1 At 15:30 Hrs : Pay‐ins
At D+1 14:00 Hrs : Pay‐out.
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Performance so far…
IEX won India Power Award for“ Best e-enabled consumer platform”
17th November,2009
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Over 2 years of Adequate Liquidity
•29 State Utility• 450+ Portfolios• 450+ Portfolios• 260+ Direct consumer• 286 participants on single dayCl d V l 11 72 Billi U it• Cleared Volume : 11.72 Billion Units
• Trade Value: Rs 6,425 Crs• DAM Volume Record
54.16 MUs constrained (20th August’ 10)
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Participation at IEX
STATE No. of CPP's Open Access Industrial Consumers
Maharashtra 4 0
Rajasthan 7 17
Karnataka 7 0
Andhra Pradesh 5 17
Punjab 4 68
Orissa 1 2
Madhya Pradesh 9 3Madhya Pradesh 9 3
Chhattisgarh 31 0
Haryana 2 5
Tamilnadu 0 147
Gujarat 7 0
Arunachal Pradesh 0 2
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Total 80 261
Nationwide participation in Market…
State Utilities
Total Participants460
CPP
Green Power
Open Access consumer
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Recent Developments…
• Addition of Industrial Consumers (Buyers)
JSL (Haryana) 75 MW
PXIPXI
– JSL (Haryana)‐ 75 MW
– RSWM (Gulabpura, Rishabhdev, Hamirgarh, Rajasthan) – 22.5 MW
DCM E Ltd (P j b) 10 MWIEX
PXI– DCM Engg. Ltd. (Punjab) – 10 MW
– Cheslind Textiles (TN) – 4 MW
IEX
– Sterlite Industries (TN) – 23 MW
• Largest 75 MW and smallest 1MW
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IEX monthly Average Price
10 7812
IEX Monthly Average Spot Price
7.66 7.73 7.50 7.688.46
7.568.36
10.78
7.297.91
8
10
Rs/
kWh
6.145.62
6.42 6.21 6.41
4.674.08
4.54
3.142 78
3.18 3.24
5.76
4.52
3.43 3.594
6
e Pr
ice
in R
2.78
0
2
Aver
ag
Months
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MonthsMonthly Avg Price (Rs/kWh)
IEX hourly Price & VolumeJune’10IEX Average Hourly MCV & MCP for June' 2010
10
1,300
1,400
IEX Average Hourly MCV & MCP for June 2010
7
8
9
1,000
1,100
1,200
,
kWh)
5
6
600
700
800
900
Pric
es (R
s/k
Volu
me
(MW
h)
2
3
4
300
400
500
600V
0
1
0
100
200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
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Hours Avg MCV (MWh) (cleared) Avg MCP (Rs.kWh)
Prices for various time block June'10
6.00
Prices for various time block- Jun'10
Price in Rest of India and the congested region
4.00
5.00
Rs/
kWh)
g g
2.00
3.00
Pric
e (
0.00
1.00
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Time Blocks
IEX Membership CategoryP i t M bProprietary Member
(right to trade and clear on its own account)Generator‐ Distribution licensees‐ IPPs ‐ CPP‐ MPPs –O A consumers
Professional
(trade and clear on behalf of its Clients)Clients
Grid Connected(t ade a d c ea o be a o ts C e ts)NO CREDIT /FINANCING
Electricity Traders
Grid ConnectedGenerator, Distribution
licensees, IPPs, CPP, MPP, OA consumersElectricity Traders
(trade and clear on behalf of its Clients)
CREDIT /FINANCING
consumersTrader Client With valid PPA
RE Member(right to trade in Renewable Energy
RE ClientsRE Generator Distribution
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(right to trade in Renewable Energy Certificates on self account and on behalf of
Clients)
RE Generator, Distribution licensees, CPP, OA consumers
Introducing A New Market Segment…
1) Weekly Contract
Week 1
Week 2
2) Daily Contract
Trading day D2Trading day D5
D3 D4 D5 D6 D7D1
3) DayAhead Contingency & Intraday
Delivery dayDelivery day ‐1
DAM DAC Intra day
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DAM DAC Intra day
Types of Contracts
• Weekly and Daily– FBA ‐‐ Firm Base – 24 Hrs– FNT ‐‐ Firm Night – 8 Hrs (07 & 2324)– FDY ‐‐ Firm Day – 11Hrs (718)FPK Firm Peak 5 Hrs (18 23)– FPK ‐‐ Firm Peak – 5 Hrs (1823)
• Day Ahead Contingency and IntraDay• Day Ahead Contingency and IntraDay– Hourly ( DAC‐24 hrs & Intraday‐18‐24)
Region Specific Contracts
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Trading of Weekly & Daily Contracts
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1 2 3 4 5 6Weekly
7 8 9 10 11 12 13
14 15 16 17 18 19 20
Daily
21 22 23 24 25 26 27
28 29 30
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IEX Trading - Timeline
10.00 Hrs
13.00 Hrs
12.00 Hrs
15.00 Hrs
14.00 Hrs
17.00 Hrs
Market Close
11.30 Hrs
PreTrade Session
DAMClose Auction
Weekly (FBA,FNT,FDY,FPK)
Open Auction
DayAhead ContingencyCont. Trading
Daily ContractsCont. Trading
IntraDay MarketCont. Trading
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Treatment of Losses…TAM
• An Example: Seller in NR, Buyer in SR, FBA Contract of 100 MW at Seller’s State Periphery (Delivery Point).p y ( y )
State
Buyer 84.48 MW at Buyer
NR
Loss
SR
Loss
ER
Loss
State
Seller X
(Sell)103.09 MW at Seller
Y
(Buy)100 MW at 96.5 MW at Region
88 MW at State
92.64 MW at Region
4%at Buyer end3.5% 5%4%3%
(Sell) at Seller end
(Buy)State Periphery
Region Periphery
State Periphery
at Region Periphery
Contract Region(Delivery Point)
* d h d l f d
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* Loss and charge details are of indicative purposes
The SellersThe BuyersTrade MatchedSelected Sellers : S1,S2,S3,S4 (partial)Selected Buyers : B1,B2,B3,B4MCP :Rs 8000/MWh Volume: 125 MW10 MW @ Rs
S4 S5 S650 MW @ Rs
5,50040 MW @ Rs
7,00050 MW @ Rs
8,000
50 MW @ Rs 9,000
50 MW @ Rs 10,000
6,000
S1 S2 S3 S4
B1B2
B3 B4B3 B4B6B5
B7
10 MW @ R
40 MW @ Rs 9,000 50 MW @ Rs
8,000
25 MW @ Rs 8,000
25 MW @ Rs 7,000
50 MW @ Rs 6,000
50 MW @ Rs 5 500
125
10 MW @ Rs 10,000
5,500
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TWS ScreenPending Buy Order Pending Sell Order
Sell 15 MW @ RS 5500/MWhBuy 10 MW @ Rs 4500/MWh
Trading EngineTrading Engine
Buy 10 MWh @ RS 4500/MWh Sell 15 MWh @ RS 5500/MWh
Buy 10 MW @ Rs 4500/MWh Sell 15 MWh @ Rs 5500/MWh
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TWS ScreenPending Buy Order Pending Sell Order
Sell 15 MW @ Rs 5500/MWhBuy 10 MWh @ 4500Buy 10 MW @ RS 5000/MWh
Buy 10 MW @ RS 4500/MWh
Trading EngineTrading Engine
Buy 10 MW @ RS 5000/MWh
Buy 10 MW @ 5000/MWh
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TWS ScreenPending Buy Order Pending Sell Order
Sell 15 MWh @ 5500Buy 10 MWh @ 5000
Buy 10 MWh @ 4500
Sell 15 MWh @ 5500Sell 5 MW @ Rs 5000/MWhBuy 10 MW @ RS 4500/MWH
Trading EngineTrading Engine
Sell 15 MW @ Rs 5000/MWh
Sell 15 MWh @ 5500Sell 15 MW @ RS 5000/MWh
Trade 10 MW @ RS 5000/MWh Bid Modified
Sell 15 MWh @ 5500
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Risk Containment Measures
Initial Margin(Operational Limit)
5% of the trade, this need to be deposited in cash(Operational Limit)
B i M i *
deposited in cash
to be collected in trenches of 10% orBasis Margin *
V i i M i *
to be collected in trenches of 10% or 30% or 50% depending upon the contract.
ff h diff i i fVariation Margin * to offset the difference in prices of a contract arising out of the trading on different days.
Extreme Loss * To counter any unforeseen event
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* All the above mentioned margins can be deposited in form Cash , BG, FD and LC
TAM: Performance so far…Weekly Dayahead Contingency
362,124 MWh 20,617 MWh
Renewable Energy CertificatesTotal Volume traded
390,699 MWh
Renewable Energy Certificates
Intraday Daily
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7,958 MWh ‐
Renewable Purchase ObligationsState 2010-11 2011-12 2011-13 Remarks
MP
Wind - 6% Wind - 6%
Draft Regulation, Biomass - 2% Biomass - 2% MP g ,
April 13 - 2010 Cogen & Others - 2% Cogen & Others - 2%
Total- 10% Total- 10%
Non-Solar - 5.75%% Non-Solar - 6.75% Non-Solar - 7.50%
Maharashtra Final Regulation, 2010 Solar - 0.25% Solar - 0.25% Solar - 0.5%
Total - 6% Total - 7% Total - 8%%
Non-Solar - 4.5% Non-Solar - 4.75% Non-Solar - 5.0%
Orissa Draft Regulation, March 16 - 2010 Solar - 0.25% Solar - 0.75% Solar - 1%
Total - 4.75% Total - 5.5% Total - 6%
Draft Regulation AprilTN Non-Solar-14% Draft Regulation April 28, 2010
UPNon-Solar - 3.75% Non-Solar - 4.5% Non-Solar - 5.0%
Draft Regulation 2010Solar - 0.25% Solar - 0.5% Solar - 1%
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UP 2010 Solar 0.25% Solar 0.5% Solar 1%
Total- 4% Total-5% Total- 6%
Introducing an another option… REC
Feed-in Tariff[State Regulated T iff]
REC Option
S l f El t i it Sale of electricity to
Tariff]
REC
Electricity Green Attributes
Sale of Electricity at Market Price in open market
Sale of electricity to DISCOMs at State regulated tariff
REC [Solar & Non‐Solar]
Sell to DisComs at
Sale of RECs at Power Exchange
* ‐Weighted Average Pooled Price at which distribution licensee has purchased electricity (including cost of self
Price ≤ Pooled Cost of Power Purchase*
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generation, long‐term and short term purchase) in the previous year, but excluding the cost of RE power purchase
KEY characteristics of RECParticipation Voluntary
REC Denomination 1 MWh
Validity 365 Days after issuancey y
Categories 1. Solar REC 2. Non-Solar REC
Trading Platform Power Exchanges only
B ki N t All dBanking Not Allowed
Borrowing Not Allowed
Transfer Type Single transfer only, repeated trade of the same certificate is
not possible
Penalty for Non-compliance ‘Forbearance’ Price (Maximum Price)Non-Solar (Rs. 3,900/REC), Solar (Rs. 17,000/REC)( , ), ( , )
Price Guarantee Through ‘Floor’ Price (Minimum Price)Non-Solar (Rs. 1500/REC), Solar (Rs. 12,000/REC)
Price Discovery Mechanism As per Power Exchanges’ Business Rules for REC
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Price Discovery Mechanism As per Power Exchanges Business Rules for REC
RECs Floor/Forbearance Price
Fl P i F b P iFloor Price Forbearance Price
Solar RECs Rs. 12,000/REC Rs. 17,000/REC
Non-Solar RECs Rs 1 500/REC Rs 3 900/RECNon-Solar RECs Rs. 1,500/REC Rs. 3,900/REC
1 REC is equivalent to1 MWh
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Key Stakeholders in REC Framework
NLDC – Central AgencyResponsible for registration, issuance of RECs, maintaining accounts settlements repository monitoring and such otheraccounts, settlements, repository, monitoring and such other functions incidental to the implementation of REC mechanism
State Nodal Agency - Accreditation Body An approving Authority which Checks RE generators against theirAn approving Authority which Checks RE generators against their eligibility criteria and the norms specified by MNRE
State Load Despatch Centres - Monitoring Body Verifies electricity generation from RE sources and notifies theVerifies electricity generation from RE sources and notifies the Central Agency
Power Exchange - Trading Platform Facilitates transactions [IEX]Facilitates transactions [IEX]
Compliance AuditorsMonitors effective compliance by RE producers
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Cleared volume : 600 RECs MCP: Rs 2200/REC
s 17
00
s 20
00
Rs
1500
Rs
3900
sell
@ R
s
Sell
@ R
s
EC S
ell @
RC
Buy
@ R
00 R
EC s
00 R
EC S
100
RE
100
REC 20 30
2200
600 REC Buy @ Rs 2200 200 REC Buy@ Rs 1700
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600
Schedule of Trade DaySchedule of Trade Day
Time on Trade DayTime on Trade Day DetailsDetailsTime on Trade DayTime on Trade Day DetailsDetailsPrePre‐‐trade Phase:trade Phase:By 12.00 HrsBy 12.00 Hrs ExchangeExchange toto checkcheck initialinitial marginmargin checkcheck forfor MembersMembers
( )( )Order Accumulation phase (Bidding)Order Accumulation phase (Bidding)13.00 Hrs to 15.00 Hrs13.00 Hrs to 15.00 Hrs OrderOrder AccumulationAccumulation
Order matching and trade Order matching and trade finalisationfinalisationBy 15.30 HrsBy 15.30 Hrs •• ExchangeExchange toto sendsend detailsdetails ofof maximummaximum offeroffer placedplaced byby SellersSellers toto CentralCentral AgencyAgency
By 16.00 HrsBy 16.00 Hrs •• CentralCentral AgencyAgency toto sendsend reportreport confirmingconfirming validvalid RECsRECs withwith EligibleEligible EntitiesEntities
By 16.30 HrsBy 16.30 Hrs •• FinalisationFinalisation ofof tradetrade resultsresults afterafter removalremoval ofof defaulters’defaulters’ ordersordersE hE h tt i fi f ti i tti i t b tb t t dt d ltlt•• ExchangeExchange toto informinform participantsparticipants aboutabout tradetrade resultsresults
By 17.00 HrsBy 17.00 Hrs •• ExchangeExchange toto informinform CentralCentral AgencyAgency thethe detailsdetails ofof buyersbuyers andand sellerssellers
Settlement PhaseSettlement PhaseBy 17 00 HrsBy 17 00 Hrs •• FilesFiles toto bebe sentsent byby ExchangeExchange toto banksbanks forfor actualactual debits/creditsdebits/credits (Pay(Pay‐‐inin && PayPay‐‐out)out)By 17.00 HrsBy 17.00 Hrs •• FilesFiles toto bebe sentsent byby ExchangeExchange toto banksbanks forfor actualactual debits/creditsdebits/credits (Pay(Pay inin && PayPay out)out)
By 11.00 Hrs (next bank By 11.00 Hrs (next bank working day)working day)
•• FilesFiles toto bebe sentsent byby ExchangeExchange toto banksbanks forfor actualactual creditscredits (Pay(Pay‐‐out)out)
Delivery PhaseDelivery Phase
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By 18.00 HrsBy 18.00 Hrs •• CentralCentral AgencyAgency toto extinguishextinguish RECsRECs inin Seller’sSeller’s AccountAccount
•• ExchangeExchange toto raiseraise invoicesinvoices toto eacheach participantparticipant asas proofproof ofof transfertransfer ofof RECsRECs..
Conclusion
Flexibility for obligatory entities to meet RPO requirements
St t h i li ibl l RE t ti l l t dStates having negligible or very low RE potential can also set and
meet targets for RPO compliance
REC trade through Power Exchanges would result into a better price
discovery and increased liquidity
Improved cash flow for RE producers
RECs pave the way for Greener India !
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IEX InitiativesContinuous communication with Users
IEX Daily SMS Service for
IEX Monthly Bulletin
IEX h lService for Trade Details IEX hourly
Trade Prices displayed ondisplayed on its website
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