Contents

 Present scenario
 Rules & Regulations
 Options for industries
 Power exchange & its functioning
 Requirements for purchasing power
 Procedure for open access
 Trending of IEX & PXIL
 Different calculations
 Challenges facing now a days
 Conclusion
 Definition and Essence of Open Access

 Definition in The Electricity Act 2003

 The non-discriminatory provision for the use of transmission lines or

distribution system or a associated facilities with such lines or system by
any licensee or consumer or a person engaged in generation in
accordance with the regulations specified by the Appropriate
Commission

 Meaning

 Non-discriminatory sale/purchase of electric power/energy between two

parties utilizing the system of an in-between (third party), and not
blocking it on unreasonable grounds

 Objective

 To ensure consumers receive adequate supply from alternate

competitive sources and enabling the captive generators to sell their
surplus capacities while the distribution licensee improves performance
 Landmark

 2003- Enactment of the Electricity Act

 2004-Inforcement of the Electricity Act

 2005-Enactment of GERC open access regulation

 Open access was allowed for capacity of 4 MW @ 66 KV & above

Network.

 2008-Establishment of Power Exchange.

 Indian Energy Exchange

 Power Exchange of India Ltd.

 2011-Re-enactment of GERC open access regulation

 Open access capacity has been reduced to 1 MW @ 11 KV & above

network
 Purchase Options Available for
Industries

 Purchase of Power from State Utilities (as-is)

 Bilateral
 Purchase of Power on Short Term arrangements (Intraday – 3
months)
 Purchase of Power over Medium Term arrangements (3 months
– 3 Yrs)
 Power Solutions through Long Term Agreements (3 yrs– 35
Yrs)

 Purchase of Power through Power Exchanges (IEX/PXIL)

 Power Exchange
Power Exchange is a platform on
which buyers and sellers come
together to trade whereby power
is bought or sold.
 Key features of PX
- Online
- Automated
- Transparent
- Standardized Contracts
- Central Counterparty
- Market-driven principle
There are currently 2 power
exchanges operational in
India.
1. Indian Energy Exchange
(IEX)
 Promoted by PTC India
Financial Services Ltd
(PFS) & Financial
Technologies
2. Power Exchange India
Limited (PXIL)
 Promoted by National
Stock Exchange (NSE)
and
 National Commodity &
Derivatives Exchange
(NCDEX)
 FUNCTIONING OF POWER
EXCHANGE
Invoice/Cred
it Note

System RTC Clearing

Operators Power Exchange Bankers
House
NLDCs/SLDCs ATC

Submit Bids FINANCIAL

POWER SETTLEMENT
(Trading)
Schedule Debit/
Credit

Distribution
Generators TRADER Licensees/
OA users

PARTICIPANTS
 Power Exchange
Operation

Day Ahead Market Term Ahead

(DAM) Market (TAM)

Trading Day Delivery Day

(Today) (Tomorrow)
 Continued…
This market segment covers Contracts for
One day delivery period (24 hourly or 96
15minute contracts) on day ahead basis
which will be matched through closed
double-sided auction.

 Key Features Day Ahead Market

- Entry of orders on D-1 from 10:00 hrs to 12:00 hrs related to Delivery
Day (D day)
- SLDC clearance >= 1 MW
- Minimum Order Quantity will be 1MW at drawl point
- Delivery Point stands Periphery of Regional Transmission System in
which grid connected entity is located.
- Different Order Types
 Pre-requisite of open access

 Contract Demand of minimum 1 MW

 Installation of 0.2S accuracy class ABT (availability based
tariff) Energy Meter.
 Installation of CT of 0.2S accuracy class & PT of 0.2 accuracy
class.
 Installation of RTU if connected at 66 KV & above network or
having demand of more than 4000 KVA
 No Objection Certificate (NOC) from SLDC.
 Maximum bidding cannot exceed the contract demand
 Procedure of open access

Application to GETCO/SLDC/Discom for ABT Meter

Procurement of ABT Meter, CT/PT & RTU.

Testing of ABT Meter and CT/PT

Installation of ABT Meter ,CT/PT & RTU

Signing of undertaking with Discom

Application for NOC with SLDC

What we did

 Being a new concept specifications of ABT meter CT & PT

were obtained from GETCO.
 Modification in our switch yard to incorporate the above
equipments.
 Installation of RTU (Radio terminal unit)
 Registration with WRLDC for Wheeling of power from
Paradeep unit.
Purchase started form Energy
exchanges

 Agreement was signed with M/S Power trading

corporation
 NOC obtained from SLDC
 Undertaking given to PGVCL
 Bidding started from 06/12/2013
Bid Format
 Treatment of Losses for Buyer

Regional Periphery
2 MW

State Periphery
1.96 MW
Bid Volume
2 MW

POC Losses
(1.76%)

Sub Station

Generating STU Losses Factory

station (4.16%)

Power at Premise
1.88MW
 Market Scenario

Base Price Landed Rate UGVCL Variable cost

5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70

4.46
3.87 4.27 4.02 3.73
3.04 3.22 3.53 3.59 3.25 3.38
2.83 2.89 2.66

3.50 2.94 3.32 3.08

2.15 2.32 2.62 2.67 2.36 1.95 2.00 1.79 2.81
2.47
 IEX & PXIL

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
IEX
Rate 3.08 2.32 2.62 2.67 2.36 1.95 2.00 1.77 2.81 2.47 2.56
PXIL
Rate 3.23 2.35 2.60 2.67 2.42 2.12 2.10 1.85 2.79 2.56 2.46

3.08
3.23 IEX Rate
2.35 2.60 2.67
2.32 2.62 2.67 2.42 2.79
2.36 2.12 2.10 2.56
2.81
1.95 2.00 1.85 2.47
1.77

Jan Feb
Mar Apr
May Jun
Jul Aug Sep Oct
 Saving Calculation

IEX PXIL
Units/Amoun Units/Amoun
Description Per unit Cost
t t
Unit Purchased 52800 52800
Unit after Losses 49920 49920
Total Amount Paid to IEX in Rs. 176895 186385
Cross Subsidy @ Rs.0.45/KWh 0.45 22464 22464
PTC Margin @ 1 Paisa/Kwh 0.01 593 593
Total cost of Open Access Power
199952 209442
in Rs.
Per unit cost of open access
4.01 4.20
power in Rs.
PGVCL Variable cost in Rs. 5.80 289536 289536
Saving in Rs. 89584 80094
Saving Per unit in Rs. 1.79 1.60
Total Saving in Rs. 169678
Rate for last three days

Bidding date 06/12/2013

IEX Rate PXIL Rate

RTC Price for W2 Region
in Rs./KWh
3.13 3.25

Bidding date 07/12/2013

IEX Rate PXIL Rate
RTC Rates for W2 Region
in Rs./KWh
2.69 2.71

Bidding date 08/12/2013

RTC Rates for W2 Region in IEX Rate PXIL Rate
Rs./KWh
3.05 2.69

IEX Rate PXIL Rate

RTC Rates for W2 Region in
Rs./KWh
2.96 2.87
Power sector at a glance in India
as on April 2014

Sector MW Percentage

State Sector 92264.6 37.60

Central Sector 85002.99 34.64
Private Sector 68125.95 27.76
Total 245393.5

Fuel MW Percentage

Total thermal 168390 68.62

Hydro 40531.41 16.52
Nuclear 4780 1.95
Renewable 31692.14 12.91
Total 245393.5
Sector MW Percentage
State Sector 7220.6 26.12
Central Sector 16794.8 60.75
Private Sector 3631.86 13.14
Total 27647.26

Fuel MW Percentage

Total thermal 21885.74 79.16

Hydro 772 2.79
Nuclear 559.32 2.02
Renewable 4430.2 16.02
Total 27647.26
In 2011-2012

Per capita In kWh

consumption
India 883.6
Gujarat 1,663.2