| www.iexindia.

com | August '11 | vol 43, issue 001 |

INDIAN ENERGY EXCHANGE

IEX celebrates successful completion of three years

In a grand event held on 28th July at Hotel Oberoi, New Delhi, Indian Energy Exchange, Indias first and No. 1 Power Exchange celebrated three years of its successful operations. Shri M. Deena Dayalan, Member, CERC was invited as a Chief Guest at the event. The other dignitaries included Shri R.V. Shahi, Former Secretary, Ministry of Power, Shri T.N. Thakur, CMD, PTC India Ltd., Shri Jignesh Shah, Non-Executive Director, IEX, Shri Venkat Chary, Chairman, IEX and Shri Jayant Deo, MD & CEO, IEX. IEX started its operations on 27th June08 and within a short span of just three years IEX has been able to create its mark in the ever expanding Indian Power Markets. More than 26 Billion Units traded have already been traded till date on IEX. Today IEXs pan India presence with more than 1000 participants spread over 26 states and 3 Union Territories have made it a preferred destination for buyers and sellers. On the occasion, a special book titled 3 Years of Indian Energy Exchange and a report on Impact of Electricity Exchange on the Power Sector and Indian Economy were unveiled by the Chief Guest. The event saw overwhelming response from members, industry experts, academicians and power sector fraternity. There was also a Sufi night after the event in which renowned Sufi singers Nanak and Manak Ali performed.

Mr. M. Deena Dayalan, Chief Guest unveiling the book 3 Years of Indian Energy Exchange (Up) & the report Impact of Electricity Exchange on the Power Sector & Indian Economy(down).

For private circulation only

Sitting (L-R): Mr. Jayant Deo, MD & CEO, IEX, Mr. Venkat Chary, Chairman, IEX, Mr. M.Deena Dayalan, Member, CERC, Mr. Jignesh Shah, Non-Executive Director, IEX, Mr. T.N.Thakur, CMD, PTC India Ltd, Mr. R.V. Shahi, Former Secretary, Ministry of Power, GoI.

IEX Bulletin, August '11

Tamil Nadu finalizes RPO The Tamil Nadu Electricity Regulatory Commission has amended the regulations relating to 'renewable energy purchase obligation', lowering the quantum of the obligation from 14% to 9% of consumption, out of which 0.05 per cent has been fixed for solar power. Obligated entities include a) open access consumers b) grid connected captive generating plants. The RPO for OA and captive consumers is implemented in a phased manner. In the first phase, till March 2012, all open access and captive consumers with sanctioned demand of 2 MVA and above are obligated. In the second phase in 2012-13, the sanctioned demand is lowered to 1 MVA and in the third phase (from April 2014) all open access and captive consumers are obligated irrespective of sanctioned demand. Plants commissioned in July' 11 Koderma TPS-1 (500 MW) of DVC. The plant is located at Koderma district in Jharkhand. Mundra TPP (Phase-2), U-2 (660 MW) of Adani Power Ltd. The plant is located at Mundra, District Kutch, Gujarat. Durgapur Steel TPP, U-1 (500 MW) of DVC. The plant is located at Burdwan district in West Bengal.

Registered renewable projects cross 100 mark The number of projects registered under the Renewable Energy Certificate scheme has crossed the 100 mark. As on 31 July 2011, the National Load Dispatch Centre had granted registration to 103 projects. Since the first project registered in January 2011, projects from nine states have been registered. Maharashtra leads all other states in the number of projects registered. A total of 62 projects from Maharashtra and 19 projects from Tamil Nadu have been registered. Thus nearly 80% of the total projects registered are from these two states. Both are located in Western and Southern India, the areas with maximum potential in renewable energy. Other states from which projects have been registered include Gujarat, Himachal Pradesh, Haryana, Rajasthan, Jammu & Kashmir, Chhattisgarh, and Uttar Pradesh. Wind energy leads all other forms in terms of generation capacity registered. 76 wind energy projects with combined generation capacity of 439.03 MW have been registered. 14 biomass-based projects, 10 small hydro power projects and 3 projects based on biofuel cogeneration have also been registered. No solar power projects have been accredited or registered so far. Tata BP Solar commissions PV plant Tata BP Solar India Limited has commissioned one MW rooftop photovoltaic (PV) plant at Osmanabad in Maharashtra. The plant is owned by Dr Babasaheb Ambedkar Sahakari Sakhar Karkhana Limited. The project has been developed under the Jawaharlal Nehru National Solar Mission. The project would generate about 1.56 million units of electricity per year. First solar plant commissioned in Orissa Raajratna Energy Holdings Private Limited (REHPL) has commissioned the first solar plant of Orissa. The 1 MW is located at Sadeipali in Western Orissa's Bolangir district. This is the third grid connected solar power plant in the country implemented under JNNSM Mission.

CERC MMC Annual Report 2010-11: IEX volume up by 91.2% in day-ahead and 855% in term-ahead market in FY 10-11. CERC published annual report for 2010-11 (available on website www.cercind.gov.in) IEX has registered a growth of 91.2% in the Day Ahead Market (DAM) and a growth of 855% in the Term Ahead Market (TAM). The short-term power market constituted 10% of the total electricity produced in the country during FY2010-11. The electricity traded volume in short-term markets increased to 81.56 billion units up from 24% more from the volumes in FY2009-10. The majority of this growth came from power exchanges. 43.22 billion Units were traded through trading licensees and at the power exchanges, out of which 15.22 billion units were traded at the power exchanges alone. Unscheduled Interchange accounted for 14.4% of the increase while bilateral transactions between distribution companies accounted for 6.3% of the 24% year-on-year growth. BSEB gets approval for restructuring The Bihar government has approved restructuring of the Bihar State Electricity Board (BSEB) into five separate companies. There will be one holding company, Bihar State Power Company, under which four other companies will be set up. This includes the Bihar State Power Generation Company, Bihar State Power Transmission Company. There will also be two distribution companies for supplying power to North and South Bihar respectively. RInfra gets distribution license for distribution in Mumbai suburban area Maharashtra Electricity Regulatory Commission (MERC) has awarded the distribution license for Mumbai suburban area to Reliance Infrastructure Limited (RInfra). For this, MERC had invited bids in October 2010. RInfra qualified for the license as any company seeking parallel license was required to have its own network. Also, MERC has allowed RInfra to recover arrears in tariff and levy cross-subsidy surcharge on industrial and commercial consumers who have migrated to Tata Power Company Limited.

NYSE Euronext Becomes Carbon-Neutral with REC Purchase NYSE Euronext, a global operator of financial markets, has decided to make the entire company carbon-neutral by purchasing renewable energy certificate (RECs) and carbon offsets that neutralize the remaining environmental impact of the company's global operations. This year's purchase would make NYSE Euronext carbonneutral for 2010. This is a step towards sustainability. ICE Unveils Brazilian Electric Power Exchange Global clearinghouse and exchange operator Intercontinental Exchange announced the launch of a Brazilian marketplace for trading electronic power contracts. This will boost pricing transparency in the Brazil's energy sector. BRIX will include risk management tools for eligible market participants, and will display bids, offers, and trades in realtime.

IEX Bulletin, August '11

IEX participated in Conference on Managing Cost of Energy IEX participated in annual Conference on " Managing Cost of Energy: PAT & beyond held at The Grand, Vasant Kunj, New Delhi on 25th July. Mr. Rajesh Kumar Mediratta, Senior VP (BD) delivered a presentation on Update on Power Trading: Journey till now and way forward.

for the Month of July, 2011

July 11 Total Purchase Bids received (MUs) Total Sell Bids received (MUs) 1607 1911 1159 1114 4.50 2.18 47.02 4652.83 36

IEX indices for the months of July, 2011

Time Block
Volume (in MWh) MCP (`/kWh)

Total Unconstrained Market Cleared Volume (MUs) Total Constrained Market Cleared Volume (MUs) Maximum Price (Rs/kWh)

RTC ( 00:24 hrs) Peak hr Avg(18- 23 hrs) Non-Peak Hr Avg(1-17& 24) Day Off Peak(11- 17 hrs) Night off peak( 01-06,24 hrs) Morning Peak( 7 - 11 hrs)

1498 1286 1569 1540 1536 1655

2.99 3.73 2.74 3.19 2.39 2.65

Minimum Price (Rs/kWh) Maximum Unconstrained Volume in a day (MUs) Cumulative Market Clearing Volume (MUs)
(April11 onwards)

Daily Constrained Average Volume (MUs)

** All figures are simple average for the month.

IEX Price & Volume Detail July' 2011

Volume (MUs) Delivery Date 1-Jul-11 2-Jul-11 3-Jul-11 4-Jul-11 5-Jul-11 6-Jul-11 7-Jul-11 8-Jul-11 9-Jul-11 10-Jul-11 11-Jul-11 12-Jul-11 13-Jul-11 14-Jul-11 15-Jul-11 16-Jul-11 17-Jul-11 18-Jul-11 19-Jul-11 20-Jul-11 21-Jul-11 22-Jul-11 23-Jul-11 24-Jul-11 25-Jul-11 26-Jul-11 27-Jul-11 28-Jul-11 29-Jul-11 30-Jul-11 31-Jul-11 Unconstrained 39.67 44.85 34.46 29.46 33.99 37.12 42.05 40.88 36.99 43.41 47.02 45.52 46.35 41.79 37.96 36.83 35.14 36.70 38.19 37.32 37.72 40.92 37.59 28.67 33.29 30.93 31.98 34.64 35.10 33.36 29.08 Constrained 37.01 44.85 34.46 29.46 33.99 37.12 41.63 40.88 36.99 43.41 46.85 43.53 38.35 41.48 36.43 35.92 31.32 35.59 36.64 33.99 33.75 36.87 34.39 28.63 33.30 28.36 31.23 34.34 34.05 31.96 27.65 MCP 2.18 2.70 2.83 3.71 4.13 4.50 4.31 3.96 3.17 2.32 2.70 2.83 2.99 3.36 3.01 2.75 2.18 2.62 2.40 2.60 2.64 2.57 2.50 2.23 2.39 2.89 3.54 3.90 3.35 2.83 2.45 ACP-North 2.17 2.70 2.83 3.71 4.13 4.50 4.31 3.96 3.17 2.32 2.70 2.80 3.23 3.34 3.05 2.70 2.11 2.57 2.39 2.50 2.57 2.54 2.43 2.23 2.39 2.72 3.35 3.87 3.27 2.81 2.41 ACP East 2.17 2.70 2.83 3.71 4.13 4.50 4.25 3.96 3.17 2.32 2.70 2.80 3.23 3.30 3.00 2.70 2.11 2.57 2.39 2.50 2.57 2.54 2.43 2.23 2.39 2.72 3.35 3.87 3.27 2.81 2.41 Price ( /kWh) ACP-West 1.80 2.70 2.83 3.71 4.13 4.50 4.25 3.96 3.17 2.32 2.70 2.68 2.47 3.30 3.00 2.70 2.11 2.57 2.39 2.50 2.57 2.54 2.43 2.23 2.39 2.72 3.35 3.87 3.27 2.81 2.41 ACP-North East 2.17 2.70 2.83 3.71 4.13 4.50 4.25 3.96 3.17 2.32 2.70 2.80 3.23 3.30 3.00 2.70 2.11 2.57 2.39 2.50 2.57 2.54 2.43 2.23 2.39 2.72 3.35 3.87 3.27 2.81 2.41 ACPSouth 1 3.10 2.70 2.83 3.71 4.13 4.50 4.25 3.96 3.17 2.32 2.70 3.22 3.45 3.66 3.15 3.16 3.14 3.27 3.01 3.36 3.44 3.41 2.98 2.54 2.59 3.17 3.77 4.16 3.71 3.50 2.77 ACPSouth 2 3.10 2.70 2.83 3.71 4.13 4.50 4.36 3.96 3.17 2.32 2.70 3.22 3.45 3.70 3.29 3.58 3.64 3.55 3.66 4.04 3.75 3.71 3.34 2.54 2.59 3.72 4.30 4.32 3.99 3.64 3.78

IEX Bulletin, August '11

IEX TRADING TIME-LINE

Day Ahead Market (DAM) Term Ahead Market (TAM) Closed Auction Every day 1000 hrs 1200 hrs for each hour of next day.
Weekly(Open Auction): o Every Wednesday 1200 hrs-1600 hrs for next week (Monday-Sunday). o Every Thursday 1200 hrs 1600 hrs for next 2 weeks (Monday-Sunday). Daily (Continuous Trade): o Every day 1200 hrs-1500 hrs on daily basis for next 7 days, starting 4th day. Day Ahead Contingency (DAC) (Continuous Trade): o Everyday 1500 hrs 1700 hrs for all hours of next day. Intraday (Continuous Trade): o Every day 1200 hrs 1700 hrs for each hour 1800 hrs 2400 hrs of the same day.

Renewable Energy Certificate (REC) Market

Closed Auction Last Wednesday of every month from1300 hrs 1500 hrs.

North

East, North-East

West

South (S1)

South(S2)

4.00

3.00

Price (Rs/kWh)

2.00

1.00

0.00
RTC (0-24hr) Peak (18-23 hr) Non Peak (1-17 & 24 hr) Night (1-6 & 24 hr)

IEX Bulletin, August '11

IEX Day-ahead Market daily Price & Volume Trend for July' 2011
MCV Avg Price MIN Price MAX Price

9.00 8.00 7.00

100.00 90.00 80.00

Price in Rs/kWh

6.00 5.00

60.00 50.00 4.00 40.00 3.00 2.00 1.00 0.00

1-Jul-11 8-Jul-11 15-Jul-11 22-Jul-11 29-Jul-11

30.00 20.00 10.00 0.00

IEX Market Snapshot for the Month of July 2011

DayAhead Market
Total Volume( MUs) 1,114 North Average Daily Volume (MWh) South (S1) 35,949 South (S2) Contracts

Term-Ahead market
Weekly Intraday Day-ahead Contingency Daily

Average * Prices in ( /kWh)

East, West NorthEast,

Total Volume( MWh) Avg Price (Rs/kWh) Max price (RS/kWh)

14,525 5.28 6.00 4.60

2,855 3.90 4.50 2.75

807 3.31 4.40 2.90

RTC (0-24 hr)

2.96

2.96

2.92

3.32

3.53

Peak (18-23 hr)

3.64

3.64

3.60

4.05

4.88

Min price (Rs/kWh)

Renewable Energy Certificate Market

Non Peak (1-17 & 24 hr) 2.74 2.73 2.69 3.07 3.07 Purchase Bids (REC) Sell Bids (REC) Cleared (REC) Price (Rs./REC)

Night (1-6 & 24 hr)

2.41

2.39

2.36

2.50

2.50

Non-Solar 81493 34976 14668 1555 Solar 1 REC=1MWh Next REC session will be held on 31 August 2011

* Simple Average of Area Clearing Prices for specified block of hours.

Volume (Mus)

70.00

IEX Bulletin, August '11

IEX Average Hourly MCV & MCP for July 2011

2,400 2,220 2,000 1,800 1,600 1,400 1,200 1,000 800 600 2 400 200 1 0 7 6 5 4 3 10 9 8

Now you can Trade

Renewable Energy Certificates

For detail email : iex-bd@iexindia.com

Dear Sir, Thanks again for the bulletin. The operation of Energy Exchange has resulted to fierce competition in Energy markets and bringing the Energy cost to achieve new horizons. Mahesh K Mandwarya Dy. General Manager-Electricals Jubilant, Bharuch. Dear Sir, The bulletin is very informative giving us the power industry update Thank & regards, Natarajan T B Sr.Manager-Electrical JK Tyre & Industries Limited Chennai Dear IEX Team, Thanks for updating us every month regarding new developments in Power Sector. With this bulletin we have been able to plan our future strategies regarding Open Access & REC. Keep the flag flying high. Thanks & regards. Er. Alok Sharma Ambuja Cements Limited Sr. Manager / Electrical Vill - Doburji, PO - Lodhimajra,Distt. - Ropar. Punjab Dear Readers, Thank you for the response, you are requested to drop in with your valuable feedback to help us in our effort to make this bulletin as informative as possible and to meet your expectations. Just mail the editor at mithun.dubey@iexindia.com or send it to IEX corporate office.

This bulletin has been compiled by Indian Energy Exchange Limited for circulation among direct stakeholders in the energy market of India. Though the contents of this bulletin are correct to the best of our knowledge at the time of printing, IEX does not vouch for their accuracy.

Indian Energy Exchange Limited

100A/1 Ground Floor, Capital Court, Olof Palme Marg, Munirka, New Delhi-110067. India Tel No. 011-4300 4000 Fax No. 011 - 4300 4015, E-mail: info@iexindia.com, Website: www.iexindia.com

08/11