Electricity Market

Email: info@iexindia.com

July’15

www.iexindia.com
In this presentation

Introduction to Indian Power Market

Product Portfolio

Trading Mechanism

Market Snapshot
Participation Volume Price

Trade @ IEX
Indian Power Market Development trend

Spot trading
OTC on Exchanges
Markets
Multi
Buyer/Seller

Single
buyer/seller

Improved liquidity and Efficiency

Indian Power Market: Present Status
Long Term Power Purchase Agreements
Upto 25 Years 89%

OTC
Medium Term Licensed traders (61)
3 months- 3years 6%
OTC Intraday- 3 months
Short-Term Exchanges
Intraday - 3 months 1. Intra-day
2. DAM 3%
3. DAC
4. Daily
5. Weekly

Balancing Market
Unscheduled Interchange 2%
Real Time
Company Snapshot

96% Market Share ~80,000MWh average daily trade

3400+ Participants 3000+ Industries

Transparency Liquidity

Competition
 Growth in Volume

Volume across product portfolio

Participation
Increasing Participation
 Intra Day
REC

Product Portfolio
IEX Market Segments
Delivery-based Contracts

Day-Ahead Closed , Double-sided Auction

Market 10-12 am bidding
Each 15-min block , 0.1 MW min NOC required
since June,08
Day-Ahead Contingency – Another window 3-11 PM
Term-Ahead
Market
Intra-Day - for the same day starting 12:30 AM (24X7)
Daily- for rolling seven days (delivery starting after 4 days)
since Sep,09
Weekly- for 1 week (Monday-Sunday)

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

Next… Energy Saving Certificates

Auction Continuous
DAM and TAM Trading Timeline
Trading Mechanism
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 N2 N2
A2

price (MCP)
A1
E1
W1
W3
12 Bid area defined W2
E2

Congestion Management through market splitting S1

and determining Area Clearing Price (ACP)

specific to an area
S2
Bid types: Portfolio Orders or Block Orders
Minimum bid=Re.1 for 0.1MWh 12 Bid Areas
Minimum Price & Volume Step = 0.1p * 0.1 MWh
Understanding exchange mechanism

Bidding and
Matching

Risk
Management

Congestion
Management
Treatment
of losses
and charges
DAM trading process

Review corridor
Bidding Matching and funds Result Confirmation Scheduling
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

Bids for MCP Corridor Final ACV Collective Final

15- min &MCV availability and ACP transaction Schedule sent
each or calculated and funds calculated. confirmation 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 Portfolio B, MW 60 60 60 60 50 40 40 40 40 40 20 20 20 20 20

portfolios Portfolio C, MW 40 20 0 0 -40 -60 -80 -81 -120 -120 -120 -120 -120 -120 -120

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

Demand Supply
(Buy) (Sell)

Market clearing
price (MCP) 2.5

60 Volume MW
Market Clearing Volume (MCV)
BID MATCHING

Open/Closed Continuous
Auction Trading

Orders accumulated during

call phase (no matching) Price-time priority based
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.
 TWS Screen
CONTINUOUS
Pending Buy Order TRADING PROCESS
Pending Sell Order
Buy 10 MW @ Rs 4500/MWh Sell 15 MW @ RS 5500/MWh

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

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

 TWS Screen
Pending Buy Order Pending Sell Order
Buy
Buy1010MW
MW@ RS
@5000/MWh
4500 Sell 15 MW @ Rs 5500/MWh

Buy 10 MW @ RS 4500/MWh

Trading Engine
Buy 10 MW @ RS 5000/MWh

Buy 10 MW @ 5000/MWh
 TWS Screen
Pending Buy Order Pending Sell Order
Buy
Buy1010MW
MW@ RS
@4500/MWH
5000 Sell
Sell515
MWMW
@ Rs@
5000/MWh
5500
Buy 10 MW @ 4500

Trading Engine
Sell 15 MW @ Rs 5000/MWh

Trade 10 MW @ RS 5000/MWh
Bid Modified

Sell
Sell1515
MWMWh
@ RS 5000/MWh
@ 5500
Congestion Management
SR WR

S3
S1
Deficit
50
50
150
30
B2
B3
S2
B1
MW
MW
MW
MW
407500
50 MW
Surplus
S1
B1
S2
S3
80 MW
120
100 MW
RS 8000
100 MW
RS
RS 9000
7000
8500
100
RS 9500
RS 6000
8000
5500
MW

B2 Required
S3 160 MW Flow
Rs 9/u S2
50 MW 100 MW
Rs 7.5/u 100 MW
Rs 5.5/u
B1
S1 50 MW S2
50 MW RS 8.5/u 20 MW
Rs 8/u Rs 8/u
S2 S1 B1
B3
40 MW 80 MW 100 MW
30 MW
Rs 8.5/u Rs 9.5 Rs 6/u
Rs 7/u
Congestion Management
SR WR

Deficit Surplus
100
20 MW
MW 100
20 MW
MW
Lowest Buyers getting rejected
Highest Seller getting rejected
B2
Allowed
160 MW
S3 RS 9000 Flow S2
50 MW 20 MW 100 MW
RS 7500 B1 RS 5500
S1 50 MW S2
50 MW RS 8500 20 MW
RS 8000 RS 8000
S2 S1 B1
B3
40 MW 80 MW 100 MW
30 MW
RS 8500 RS 9500 RS 6000
RS 7000
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
100 MW 98.5 MW
Loss at State
Loss 93.72 MW at (Buyer)
at NR Buyer End
periphery
periphery 1.5% 4.85%

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
101.52MW 106.69MW
Y
100 MW at Loss at state Loss Injected by (Seller)
regional
periphery
periphery seller
1.5% 4.85%

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

 Market Snapshot
Participation Volume Prices
Key statistics: Electricity & REC Market
ELECTRICITY REC
Market Share
(FY 13-14) 96% 77%

State
Utilities
29 States I 5 UTs 17 States I 5 UTs

Generators 307 755

Industrial 3121 1729

Consumers

Average Daily ~80,000 MWh >3 million RECs

Volume Highest : 131,356 MWh Highest: 4,23,731 RECs
IEX Data as on 30 June, 2015
Participation at IEX
0 6

6 3
402 8
79 1
4 1
273 4

216 25

398 22 33 16 3 3 1 2

1 48
0 2

7 15
7 23

672 38
59 57
0 1
Consumer: 3121
761 2 Generator: 307

11 0
Industrial segments with IEX

Paper Cotton
3% 1%
Others
Cement 9%
4%
Textile
Auto 29%
Components
6%

Chemical
9%

Manufacturer
15%
Metal
24%
Prices
CERC MMC Report for FY 2013-14
IEX monthly Average MCP in DAM
Volume DAM Cleared Volume v/s MCP
IEX Monthly Cleared Volume
Trade @ IEX
Who Can become Members of IEX ?
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
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 -
CPP- MPPs –O A /FINANCING /FINANCING
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…
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
Thank You for your attention
www.iexindia.com

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