NPTI - MBA (PM) Siddartha & Sanket GI-rT0Z uonequaweldwiy | quawissasse aaAroetD JOJDIS JAMOd UEIPUT U! oY io a ll |Ee POODDOTEForeword Even after 11 years of the effect of The Electricity Act 2003, Open Access is still a distant dream for many stakeholders of the sector. Reasons may be transmission bottlenecks or political will, the end result is the same. Though bulk consumers trade around 40% of the power traded through leading power exchanges to procure power by-passing the local utilities, serious issues in Open Access still remain. Indian GDP is stalled by 0.4% because of power cuts to the industries as per FICCI and the loss of markets because of higher prices, which is the key resultant of higher power procurement cost, is still not found in books of India Inc. A 100% Open Access implementation throughout India by empowering the infrastructure, consumer and local utility is very much important in the scenario to minimize this loss. More than the government's will, itis the lack of Infrastructure and the lack of information for the bulk consumers in performing the cost benefit analysis in the respective states of their businesses, which is the reason for very few consumers availing Open Access even in the states which are permitting the Open Access to the fullest. This year after elections, there will be a positive scenario in the Indian markets providing lots of opportunities for the industries to grow globally by imparting the competitiveness in prices by minimizing the cost of power procurement, ‘This report focuses on providing information on costs and benefits which can incur to the consumers by opting Open Access and will actually pave a way to empower the bulk consumers in the state to get the idea on how Open Access in Electricity is going to be a boon for their businesses. The report have the cost benefit analysis of Open access in the major industrially groomed states of the country and the major constraints in its implementation under its sleeves. Authors SIDDARTHA RAMAKANTH | SANKET oHExecutive Summary “NTPC, the country’s largest generation utility, reported a drop in plant load factor (PLF) due to idling of nearly 5,000 MW capacity (including 2,000 MW of gas-based and 3,000 MW of thermal power).” Business Line “Country’s peak power deficit in the month of January, 2014 is 5,378 MW” Central Electricity Authority ‘The two statements when observed in isolation, are mutually contradicting to each other in evaluating the power scenario of the country. But the scenario is not completely assessed. The poor financial health of the distribution utilities is not allowing them to buy power from the generating utilities, resulting in load shedding and power cuts for all its users. The users include domestic, commercial and industrial. The un- availability of power to the industries not only affects the production of the specific industry but also results in poor GDP, which is an index of the financial condition of the country. This poor financial health of the country is again leading to the in-ability of the consumers to pay electricity bills and the circle forms. The best antidote for the problem is Open Access of electricity for the industries (Bulk Consumers). This helps the industries to procure power un-interruptedly, resulting in better production and thus leading to increase in the financial health of the country. Open Access in electricity is not only a reliability arm for the industries but also a commercially benefitting tool. Open Access consumers can save atleast 7 paisa and up to Rs.1.72 per unit and opportunity cost of not is totally eliminated. This report is a guide for bulk consumers in assessing the cost benefit sis of Open Access and also discusses the issues in the implementation of Open Acces SIDDARTHA RAMAKANTH | SANKET oOPEN ACCESS 2014-15 TABLE OF CONTENTS Bene Introduction Legal Frame work for Open Access Evolution of Open Access Segments of Electricity Market 4.1. Long Term and Medium Term Procurement 4.1.1. Cost - Benefit Analysis of Intra State Open Access over Discoms’ A111. Gujarat 4.1.1.2. Maharashtra 4.1.13. Odisha 41.14. Bihar 4.1.15. Andhra Pradesh 4.1.1.6. Rajasthan 41.17. Punjab 4.1.18. Kerala 4.1.19. Tamil Nadu 4.11.10. Karnataka 4.2. Short Term Power Procurement 4.2.1, Price Dynamics 4.2.2. Analysis 4.3. Best Mix of Power Procurement for Different Time Blocks Current Status of Open Access consumers in India Transmission Constraints 6.1. Congestion in Transmission Corridor for Day Ahead market on Power Exchanges 6.2. Recent Bid areas that faced the problem of Transmission congestion 6.3. Impact of National Grid and southern Corridor Issues to be Addressed in Open Access Conclusion SIDDARTHA RAMAKANTH | SANKET oINTRODUCTION It has been almost 11 years since the Indian electricity act 2003 passed in which the concept of open access has been mentioned. In fact, open access in India owes its genesis to electricity (supply) act 1948 and we still believe that open access is in very nascent stage in our country. ‘The basic objective of Indian electricity act 2003 was to induce competition in the sector for performance and efficiency improvement. But various factors such as technical feasibility of open access in different states and political will create hurdles for the implementation of the idea. ‘The cross subsidy surcharge in some states is very high making the Open Access unviable. Power sector was re-structured to commercialize and create competition among all the stake holders of the power sector all sectors of consumption. Through Open Access the competition at wholesale (more than MW) was introduced in order to decrease the cost of power Procurement at the consumption level which could help in the Industrial Growth of the country. Power, which is treated as a commodity is open for buying and selling in the markets. Open Access is one the vital features of the act to introduce competition both in upstream and downstream market among generators and distributors. LEGAL FRAMEWORK FOR OPEN ACCESS SECTION 2 (DEFINITIONS) ‘The Indian electricity act defines open access under section 2(47) as: ““Open access means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or a consumer or a person engaged in generation in accordance with the regulations specified by the appropriate commission.” This definition simply points towards the regulators’ intention of separating ‘wire business’ from that of ‘electricity’. The one who ‘owns some network in an area will no longer necessarily be the supplier of electricity to the destination. Hence the consumers are now free to choose their own supplier without laying off new network for the same which increases competition among the suppliers all over the country. SECTION 9 (RELEVANCE WITH CAPTIVE, GENERATION) Not only the consumers, the concept also helps industries to reduce unavailability of quality power supply. The captive generating plant ‘owners also now have the right to open access to supply electricity from their generating plant to the point of use. This has been mentioned in section 9(2) of the act. Moreover under section 38(2d), section 39(2d) and section 40(c), captive generating utilities have been made free from the payment of cross subsidy surcharge to the utilities providing open access of their transmission network. SECTION 38 AND SECTION 39 (CENTRAL, AND STATE TRANSMISSION UTILITIES’ FUNCTIONS) Under section 38 and section 39, the functions of central and state transmission utilities have been provided. Under these, the subsections (24) of both the sections specify the role of CTUs and STUs respectively in providing open access to transmission network to the generating utilities and consumers on the payment of transmission charges and surcharges for meeting the requirements of cross subsidies. Since the consumers shall procure power through distribution utilities and cross subsidies is imposed only through distribution utilities, the SIDDARTHA RAMAKANTH | SANKET BHtransmission utilities in such case shall not levy cross subsidy surcharge on the consumers. SECTION 40 (DUTIES OF TRANSMISSION LICENSEE) Section 40(2) specifies the role of central and state transmission utilities and divides the responsibility to appropriate commission for looking into the matters of cross subsidy surcharges. SECTION 42 (DUTIES OF DISTRIBUTION LICENSEE) Section 42(2) specifies the role of state commission to lead the concept of open access in EVOLUTION OF OPEN ACCESS the respective states in successive phases. Also state commissions have been made responsible for determining the wheeling charges and cross subsidy surcharges to be levied on the open access consumers. SECTION 86 (FUNCTIONS OF STATE COMMISSION) Under section 86 subsection (a) of the act, the state commissions have been allowed to determine the wheeling charges and surcharges to be levied on the open access consumers with in the respective states. Stage of Evolution Electricity Act 2003 30.01.2004 First CERC Regulation 21.02.2005 Open Access 2005 (First Amendment) Open Access 2006-07 (Second Amendment) 25.01.2008 Open Access Regulation 2008 20.05.2009 Amendment 2009 Description Introduction of Competition in Power Sector and Open Access in Inter State Transmission. Introduced LTOA & STOA and Congestion Management through Fax/Email. Introduction of new products under STOA: Advanced Scheduling, FCES, Day Ahead, Same day, E-bidding invited for STOA. Developing a common platform for Electricity Trading and ‘grant of permission for setting up and operating Power Exchange. Exit Option provided with payment of up to 5 days of ‘Open access charges. Exit Option provided with payment of up to 2 days of Open access charges. ‘CERC Power Market regulation 2010 SEGMENTS OF ELECTRICITY MARKET ‘There are three ways to procure wholesale electricity in India: Long term Power Purchase Agreements between Buyers and sellers which are essentially bilateral contracts, medium term markets and short term markets which are called Term-ahead market (including weekly and Introduction of REC contracts monthly power procurement contracts) & Day- ahead market (including a real-time balancing mechanism called unscheduled interchange now replaced by deviation settlement mechanism). SIDDARTHA RAMAKANTH | SANKET BHLong term and Medium term procurement, Long term and medium term power procurement is mainly done by bilateral PPAs in case of open access and through Discoms in case of traditional methods. Bilateral contracts can be made inter- state as well as intra-state, In case power is procured through more than one state then the charges as mentioned by the respective states depending up on the point of delivery would also be levied over the consumer in addition to charges fixed by the central transmission utility. In the next part of our report we will discuss the cost benefit analysis of power procured by the consumer through intra-state open access, Cost benefit analysis of intra-state open access over Discoms Opting for open access is not feasible for bulk electricity consumers in every state. There are many charges apart from power procurem from the generators that are to be paid to the intermediaries. In case of intra-state open access, charges like transmission charges, distribution charges, cross subsidy surcharges and state load dispatch center charges are levied over consumers. Moreover, the intermediate losses are also bone by the consumer only. This makes open access costly for the consumer. ‘Though there are so many constraints in the path of opening up of Indian power market through open access, many consumers requiring power opt for open access for better quality and reliability of power for better performance of their assets. Power through Discoms being unreliable causes a number of problems for smooth functioning of the industries. Therefore it becomes necessary for these industries to have some back up source of power. For that source industries have two major options, either to hold a DG set at their premises with huge operating cost or to go for open access. Open access, in that case, is more cost effective alternative for addressing this issue. In this report, Average power procurement cost from generating stations has been assumed to be Rs.4 per unit. Each consumer can find a generator at lower tariff for himself which can further reduce his cost of open access power. SIDDARTHA RAMAKANTH | SANKET oOGUJARAT [Ue ReE We Oe OT UNIT) Et ors ENERGY(RS.4/K WH) TRANSMISSION CHARGES(RS.0.12/K WH) DANO OE ANSEL RE LOS COO MOL Oe SL SUMP Lan | SLDC OPERATING CHARGES(RS2000/DAY) (RODEO ea ORL) PNR OSS DRO MEU EKO Re EOE) Drago a eta AON) oOo oy; DEMANDED ADDITIONAL SURCHARG Open access in Gujarat as shown in the above table is not much beneficial at lower levels as far as cost is concemed. On the other hand, bilateral power transaction with TATA Power, Mundra can be a great option for such consumers as the power procurement cost in that case comes down to about Rs.2.73 per unit and therefore reduces the overall landed cost. Opting for open access in that case becomes very cost effective and reliable. As an estimate, the difference between per unit landed cost and Discom tariff may reach up to Rs.0.53 which can save as high as Rs.19 SMW SMW SMW SMW 24.00 24.00 24.00 24,00 120.00 12000 120.00 120.00 481% 481% 4.81% 4.81% 114.23 11423 114.23 114.23 10.01% 10.01% 10.01% 0.00% 102.79 102.79 10279 114.23 Sine oer ae) lakhs per month for a 24 hour running industry (at 5 MW-11 KV) Moreover, for EHT consumers, power Procurement through other sources is much beneficial than through Discoms. The cost saving for such consumers is Rs.0.09 per unit which makes Rs.3.25 Lakhs per month for the industry (if the above mentioned conditions are considered). somnmanmncor seer IEMAHARASHTRA Nee Re ees ena) Teme OO) a OF POWER DEMANDED ENERGY TRANSFERRED(MWH) rare inte) VVC TKO PONENT I ENERGY(Rs.4.48/K WH) TRANSMISSION CHARGES(RS.0.43/KWH) WHEELING CHARGES PAID BY CONSUMERS(Rs.0.6:Rs.0.11:Rs.0/KWH) ‘CROSS SUBSIDY SURCHARGES(non- eR CHE eee Mil) SLDC OPERATING CHARGES(Rs2000/DAY) TOTAL CHARGES(PER 5 MWH) PANU TRO DNC GONE DURKEE ENC ENO AUD) ENCE(PER UNIT) Maharashtra is a state which has high industrial tariff through Discoms. The industrial consumers with non-express feeders have been taken into consideration in this report. The net difference for all levels of voltages for such consumers comes out to be positive which means shopping malls, industries and other consumers must opt for open access in order to curtail their energy expenses. A 22kV consumer can save up to Rs.0.23 per unit if he could find an appropriate power producer for him, ‘This can save up to Rs.8.28 lakhs per month for such an industry. If the voltage level is too high for consumption, installing a step down transformer in the fr MENT COST(PER Sine ean ee) premises would prove to be a more cost effective option in the long run than installing DG Sets. Similarly if the drawl point is at 132kV, one can save Rs0.35 per unit and thereby, Rs.12.6 Lakhs per month. The industrial parks developed by MIDC (including Automobiles and Auto Components, Biotechnology, Consumer Durables, Chemicals, Engineering, Electronics, Information Technology, Petrochemicals, Pharmaceuticals, Transportation, Textile, Wine) in various regions like Pune, Aurangabad, Amravati, Nagpur and Konkan may certainly opt for open access as a cost saving measure, SIDDARTHA RAMAKANTH | SANKET | «|ODISHA COMO Oe OE NUT eo) DISCOMS Tra oMnW Io) Wav} SINEea te NTE CESU —-NESCO_ WESCO—SESCO oMW sMW SMW SMW 24.00 24.00 24.00 24,00 120.00 120.00 120.00 120.00 3.80% 3.80% 3.80% 3.80% 1154411544 115.44 115.44 8.00% 8.00% 8.00% 8.00% 106.20 106.20 106.20 106.20 4.00 4.00 4.00 4.00 -480000.00 480000,00 489000.00 480000.00 7200.00 7200.00 7200.00 7200.00 9360.00 97200.00 73200.00 120000.00. 23640000 188400.00 189600.00 331200.00, 2000.00 2000.00 2000.00 81920000 774800.00 752000.00 940400.00, a Toa 7 708 8.85 443 4a3 443 443 a a 3.28 2.87 265-442 On 2" march 2014, members of Rourkela Chamber of Commerce and Industries had a meeting with the officials of GRIDCO and WESCO to demand uninterrupted supply to the industries. Being an intensive iron ore producing region of the country and having a large number of industries situated, there is a huge demand of quality and reliable power in the state. In such a scenario, these industries may either go for their own DG sets for backup during power cuts or may opt for open access as an option of procuring quality and reliable power. The cost of power through diesel generator comes out to be about Rs.12-15 per unit and on the other hand the landed cost of power procurement through open access comes out in the range of Rs.7-8 per unit. In case there is a few hours of scheduled power cut in a region, one should opt for short term open access rather than setting up a new DG unit as ‘open access power procurement would cost Rs.5- 6 per unit lesser than DG set. Of course open ‘access is somewhat costly than the tariff charged by Discoms in Odisha but can be utilized as a backup source of power during power cuts at critical times for smooth functioning. SIDDARTHA RAMAKANTH | SANKETBIHAR 5MW 24,00 120.00 4.00% 115.20 6.00% 108,29 COS Ren Re MON AVERAGE POWER PROCUREMENT CeO a OURO RO TRENT) ENERGY(Rs.4/KWH) EN ISS | CHARGES(RS.0.15/K WH) Dia CER eT Me URSELF WIT ES ern ese SLDC OPERATING Fer ete ON) ORO Ue PASSO NEN DISCOM TARIFF(TOD CHARGES Pe nm oO) Popa e ne AON Bihar is one of fastest growing states in India. According to Indian Brand Equity Foundation, the Gross State Domestic Product of Bihar in the year 2012-13 was $56.8bn and CAGR reported was 18.8%. In 2012-13. The total outstanding investments in Bihar were $52.5bn out of which 70% was for electricity industry. Open access in Bihar according to above analysis is cost beneficial at every level of voltage at drawl point. For an 11kV drawing industry, per unit saving for open access consumer is about Rs.0.7. This can make about Rs.25.2 lakhs per SMW SMW SMW) SMW 2400 24.00 2400, 24.00 12000 120.00 120.00 120.00 4.00% 4.00% 4.00% 4.00% 11520 1152011520 115.20 6.00% 5.00% 5.00% 0.00% 108.29 109.44 109.44 115.20 Sone eee ‘month for the consumers of electricity through ‘open access. For larger industries, which draw the power at higher level of voltage, this amount escalates further. The key industries of Bihar like rubber and plastics, chemicals, tobacco, leather and textile have this golden opportunity to save cost on their electricity usage. Moreover, the news of identification and evaluation of a site for an UMPP in Bihar may attract more industries to the state, sommmanmancor seer IEANDHRA PRADESH TOTAL POWER REQUIRED COTULLA OED) Andhra Pradesh is the state with the most cost beneficial scope of open access for industrial consumers. In this report, the comparison for industrial colonies and industrial tariff has been done with open access landed cost. For each Discom of the state, the comparison gives positive results for an industry drawing at 11kV. ‘The highest difference for the cost of power through Discom and Open access is given by NPDCL that is of about Rs1.98 per unit. On a monthly basis, this saving amounts to Rs.71.28 lakhs. Also, if one opts for open access for industrial colonies, per unit cost benefit comes out to be Rs.1.10 for consumers procuring power INE WOU ROL UTS SES CPDCL = EPDCL = SPDCL_——NPDCL. SMW SMW SMW SMW 24.00 24.00 24.00 24.00 120.00 120.00 120,00 120.00 3.43% 3.43% 3.43% 3.43% 115.88 115.88 115.88 115.88 3.92% 367% = 4.12% 4.15% 11134 111.63 un 11.07 372 3.72 372 372 446400.00 446400.00 446400.00 446400.00 1080.00 10800.00 1080.00 —-10800.00 5040.00 3840.00 7200.00 27600.00, 0.00 0.00 0.00 0.00 2000.00 2000.00 200,00, 2000.00) 509603.72 497603.72 496403.72_ 486803.72 458 4.46 aay 4.38 6.36 636 6.236 6.36 5.68 5.68 5.68 5.68 178 1.90 1.89 1.98 1.10 1.22 1.21 1.30 from CPDCL at 11kV voltage. This amount grosses up to Rs.39.6 Lakhs on monthly basis. ‘The net saving for this category of consumers (SMW) procuring power from open access over other Discoms of the states is much higher. Hyderabad and Vishakhapatnam — the most favorable cities for upcoming ITIR projects proposed by the Government of India, can attract even more of such projects by providing a better inter-regional transmission infrastructure as it is a major bottleneck now. The count of 623 consumers in the state is a clear indication of feasibility of OA in the state. SIDDARTHA RAMAKANTH | SANKETRAJASTHAN COST CALCULATION AVERAGE POWER PROCUREMENT COST(PER TiN) TOTAL (ery NOLEN eS TRANSMISSION CHARGES(RS.0.37/KWH) Pa NeRe Ene As Cosy SUBSIDY | SURCHARGES(0.05,0.13,0.18/K WH) OF DEMANDED Seo DUNS LL LLU) (ROR UROL COL) LANDED TARIFF OPEN ACCESS DISCOM TARIFF DIFFERENCE(PER UNIT) Rajasthan is one of the most favorable state for Open access. Being a hub for electricity intensive industries like Textiles, Granite and Chemicals, the need for reliable and economic power is very prominent. Rajasthan is among the leading investment destinations in India, Hundreds of Industries are expected to come up in IT and Manufactui Mahindra World City, Jaipur and the areas facing National Capital fields in In this state, the difference in cost between the traditional power procurement and open access is considerable at 11KV and significant at 33, SMW SMW SMW SMW 24.00 24,00 24.00 24.00 120.00 120.00 120.00 120.00 4.20% 4.20% 4.20% 4.20% 11496 114.96 114.96 114.96 12.60% 3.80% 0.00% 0.00% 10048 110.59 114.96 114.96 EX (as on 1 may 2014) 66KV. A bulk consumer of 11KV can save up to Rs.2.52 Lakhs per month on the other hand bulk consumers at 33KV and 66 and 132KV can save Rs.26.28 Lakhs and Rs.34.92 Lakhs per month respectively. Apart from economic power procurement, the reliability factor is very much important because scheduled and unscheduled power cuts in areas of Udaipur, Jaipur and Kota are prominent and the cost comparison between DG sets as well as opportunity cost for the businesses in highly regarded with Open Access. SOAR | HETPUNJAB COST CALCULATION INO Ce RCO Sree TiN) TOTAL ra NOLEN eS TRANSMISSION CHARGES(RS.0.27/KWH) DNC CRO MUL TROL SU) ‘CROSS SUBSIDY SURCHARGES(.07/KWH) OF DEN) SRO LAUER EU EPO) KOM URO TRU CONT PEND RU Leg! DISCOM TARIFF Dyn po eA resvi) CGS Punjab has an agrarian economy with a lower industrial output as compared to other states of India. A prominent feature of the industrial scenario of the Punjab is its small sized industrial There 194,000 small. scale units in the state in large medium units. Ludhiana is an important center for industry units, are_nearly industr addition to 586 and ‘The state has a significant number of other industrial towns like Jalandhar and Mandi Gobindgarh which deals with sugar, dairy and other agro based industries. Apart from that, textile ty intensive industries which have been reported of shutting industries are elect sMW SMW SMW SMW 24.00 24.00 24.00 24.00 120.00 120.00 120.00 120.00 2.50% 2.50% 2.50% 2.50% 117.00 117.00 117.00 117.00 6.03% 2.26% 2.26% 0.00% 109.94 114.36 11436 117.00 their operations for hours because of unscheduled cuts by distribution companies. Though Power procurement in Punjab is not economical compared to open access but when the reliability is considered then Open access is life saver for industries because on an average i there is a scheduled power cut for 3 hours then the cost benefit analysis of Open Access over DG sets always ends up with a green ink in the balance sheet, And during unscheduled power cuts, Open access is always reliable and opportunity cost of spending 41 paisa less by procurement power through Discom is not calculable in peak demand season, SOAR | HETKERALA COST CALCULATION AVERAGE POWER PROCUREMENT COST(PER UNIT) REECE SIMO MOAI A ENOL CEM Und! TRANSMISSION CHARGES(RS.0.19/K WH) PLLA RO EUS LONE OOLL) CROSS SUBSIDY SURCHARGES(0.AND 0.52/KWH) SLDC OPERATING CHARGES(RS2000/DAY) TROP URSL RU eo ROL) TENE COIS DISCOM TARIFF DIFFERENCE(PER UNIT) In Kerala, the power procurement cost through Open access is 78 paisa less than traditional source for 66KV drawl industries. This is because of the great performance of existing SEB in the state (recently corporatized). The point to be noted during the study about the electricity scenario of the state is its projected zero per cent cross subsidy surcharges for the consumers below 220KV. But as the level of drawl voltage reaches 220KV, cross subsidy surcharges are imposed over the consumers atthe rate of Rs.0.52 per unit which increases the landed cost of power SMW SMW SMW 24.00 24.00 24.00 120.00 120.00 120.00 3.00% 3.00% 3.00% 116.40 11640 116.40 0.00% 0.00% 0.00% 116.40 116.40 116.40 al Ee [ees Sie ce ee through open access significantly i.e. from Rs.4.14 per unit to Rs.4.68 per unit The reliability factor is not a factor in the state when the state receives good rainfall. But still the state is not so industrially exploited throughout However, because of the possible El Nino effect and state being majorly dependent on the rain fed hydro power projects, the Medium Power procurement through CGS and other private generating stations for the period from August to November through Open Access will prove to be highly beneficial for the industrial units. SOAR | HETTAMIL NADU sMW SMW 24.00 24.00 120.00 120.00 352% 3.46% 11578115385 0.00% 0.00% 115.78 115.85 COST CALCULATION RAGE POWER Pa erent aN) Reton aoa) Ono DEMANDED PLE ea TRANSMISSION COTA ESRD a WHEELING CHARGES(Rs.0.17,0/KWH) ‘CROSS SUBSIDY SURCHARGES(WKWH) SLDC OPERATING COTA ett OM) eRe eo Ayia PCC MO) a ACCESS Peon mney Doig pone ONT ED) Tamil Nadu is the most prospectus state for Open Access with the difference of Rs.1.60 per unit for IIKV consumer, which counts to a profit of Rs.1152000 per month for a 1 MW consumer. Though there is a transmission constraint for inter-regional open access, the open access is throwing better opportunities to the Open Access consumers. In Tamil Nadu, the share of manufacturing sector in GDP is 34%, sMW 5sMW 5MW 5MW 24.00 24.00 24.00 24.00 120.00 120.00 120.00 120.00 2.08% 3.52% 1.90% 0.80% 11750 1578 117.72 119.04 0.00% 0.00% 0.0 0.00% 117.50 115.7 117.72 119.04 Source: IEX (as on 1° which clearly shows the count of Industries in the state, Apart from the economic benefits through Open Access, it is also more reliable for HT consumers in Chennai which has been experiencing powers cuts ranging from 32% to 40%. The indus holiday apart from Sunday when power procured through Discom can increase the productivity by 30% if the consumers go for Open Access. jes also have a 1 day power SCOANTHA AMAT | HETKARNATAKA SMW sMw 24.00 24.00 120.00 120.00 usa7 us.27 0.00% 0.00% 11827 115.27 COST CALCULATION AVERAGE POWER Pert AVION Coots at) eRe OD NECN) ENERGY(Rs.4/KWH) TRANSMISSION CHARGES(RS.0.08/K WH) Taal Cer eT SEN ‘CROSS SUBSIDY SURCHARGES(Rs.0.64/KW ny SLDC OPERATING CHARGES(RS2000/DAY) TOTAL CHARGES(PER AN PCCM EX Da DIFFERENCE(PER UNIT) Karnataka, in the southern region of the country, which falls in the $2 bid region is consistently recorded as the state which overdraws Power in the time blocks between 41 to 56 (as per NDLC Congestion monitoring data) and constantly HUKERI sMw 5 MW SMW SMW 24.00 24.00 2400 24.00 120.00 120.00 120.00 12000 3.94% 3.94% 394% 394% us27 u1s.27 usz7 11527 0.008 1.00% 0.00% 0.00 lis’ 11527 us27 11827 Sic eere) subjected to shed load due to the orders from the SRLDC. Since load sheds are generally applicable to Distribution companies, they are subjected to shed loads and especially of Industrial consumers by unscheduled power cuts. SORTA RAMA | HETBangalore which is a highly prospect state for the upcoming prestigious projects of the Union government need to attract the industrial cluster with reliable power and good prospects of Open Access. The current hindrance for the Inter regional Open access is the constraints in the transmission lines from western region and Eastern region but the Intra State Open Access is highly favorable with a balanced supply and Industrial Demand. So, procuring power through Open Access i highly recommended to Kamataka through intra- state open access, The cost difference between ‘Traditional Power procurement and Open access procurement is 77 paisa in the state, which means that a bulk consumer of | MW can save up to Rs.5.544 Lakhs per month at the draw! voltage of 66K. The power procurement through OA costs around Rs.4.93, whereas power procurement through Distribution companies costs around Rs.5.70 which clearly shows the difference. ‘Short term Power Procurement Short term indicates the power procurement agreement which is done for less than 12 months. Most of the times Day Ahead or Term Ahead markets (weekly contracts) play in the short term power markets. Power Exchanges facilitate day-ahead transactions and power trading of electricity, which like any other market matches demand and supply for each time block, while providing a public price index. Voluntary participation in any of the markets has been provided- bilateral or the Power Exchanges unlike in many other countries where transaction through power exchanges is mandatory. It is the decision of the market participant to choose the market place for buying or selling electricity. Currently we have 2 Power exchange platforms namely TEX and PXIL. They enables a neutral platform, a market place, which provides the necessary electronic trading platform and associated infrastructure to facilitate buying and selling of electricity by the participants. Power Exchange in no way influences the price determination process, which is dependent and driven only by market forces. There is freedom and choice in terms of the products, the market place and time frame. Multiple products are available both in the Over the Counter (OTC) Bilateral market segment and the Power Exchange segment. In erm of the time frame, bilateral contracts are available for products ranging from monthly basis to day- ahead and contingency. Though Power Exchanges provide primarily a day-ahead market, it also offers termahead products also. They declares a single price i.e., the Market Clearing Price (MCP) or Area Clearing Price (ACP) in a market. The principle of uniform pricing adopted in Power Exchanges ensures that the offers are placed on the marginal cost pricing method. The trades discovered on the Power Exchanges are delivered by the System Operator utilizing the spare margins available on the transmission network. These margins, also known as the Total Transfer Capability and Available Transfer Capability, are made open to public upfiont transparently on the websites of the System Operator ‘well ahead in time for the market players. In the case of congestion, the market is split into different price areas across the congested corridor. The prices in the deficit area (Which is a net buyer area) are inereased to reduce the demand and inerease supply and the prices are decreased in surplus areas on the other hand. This process is continued till the flow on the constrained corridor is restricted to the quantum permitted. Hence a price differential is created between the two areas and the inclusion/exclusion of bids and offers is done purely ‘on merit basis without any bias. However, it is important to mention here that market splitting may not necessarily result in a reduction of the total volume. The quantum of clectricity through this wholesale power market, because electricity cannot economically be traded by road or rail, depends on the constraints, © Trai jion networks were built according to Generating Utilities in many countries when generators were regulated and there was no scope of market SIDDARTHA RAMAKANTH | SANKET Hiforces and competition. Now since the competition has arrived in the market, these networks do not have enough capacity to take care of competition when markets are deregulated, So, in order to study the congestion and inadequacy in the transmission system of the country, the day-ahead electricity market is a suitable source in the whole power system. The day-ahead market though comprises a very small share of volume but is an important platform for perfect market, because it uses the un-allotted or left away or the reliable margin on the transmission capacity of the grid, receiving whatever capacity is left over after participants in, earlier contract markets book their own corridor, and therefore the power system as a whole is considered to be congested ifand only ifthe short term market is congested. The intra-day market is also the platform where electricity prices reflect transmission constraints, which makes the status of transmission on this platform clear. In the day-ahead market, congestion means that in some areas transmission system is not adequate to import power from the market as required. When congestion occurs, prices differ from one bid area to other, and generators may have the chance to increase the price in congested lines and bid areas that are prevented to be completed due to transmission constraints, Price dynamics ‘The average MCP across the North, North-East, East regions, the State of Chhattisgarh (W3 bid- area) and the state of Punjab (N3 bid area) was 8.3.06, Rs.3.08, Rs.3.05, Rs.2.09 and Rs.3.06 respectively for FY 2013-14. Pri inthe Souther region (§1 and S2 bid areas) were higher as compared to prices in other regions. In $1 bid-areas (Karnataka and Andhra Pradesh) the average price was at RS.3.65 per unit, marking a negligible increase in price over the last month. While in the $2 bid-area (Tami Nadu and Kerala), price could not even be discovered for most of the months mainly due to persistent constraints in power flow. (Source: weighted average of MCP at IEX and PXIL). The Area Clearing Prices (ACP) is different from the Market Clearing Price as the rise/fall of price in an area occurs due to the effect of transmission congestion which causes market splitting, Congestion in the corridor is made easy to understand by comparison of the actual allotment of corridor for long term contracts with the capacity available for short term markets. If the flow is more than the capacity, the ACP comes into picture so that excess demand is trimmed. And if the flow is not more than the capacity, MCP is calculated for the whole area. This is because if the flow is more than the capacity at the market price for the whole area, market splitting takes place. The average ACP (DAM+TAM) for NEW regions for the FY 2013-14 remained at Rs.2.92 per unit, reflecting a decrease of 10% over the price last year. Prices in the Southern region (S1 and S2 bid areas), where the congestion is the ‘most prevailing hurdle, were higher as compared to prices in other regions. In SI bid-areas (Kamataka and Andhra Pradesh) the average price was at Rs.3.65 per unit, marking a negligible increase in price over the last month. While in the S2 bid-area (Tamil Nadu and Kerala), price was recorded at 6.87 (moving average) (Source: Inferred from the data of IEX) ‘The price was reduced in the surplus area (sale > purchase) and increased in the deficit area (purchase > sale).This reduces the sale and increase the purchase in the surplus area. In the same way, it reduces the purchase and increase the sale in the deficit area. Therefore, the prices are higher in the Areas with transmission congestion SIDDARTHA RAMAKANTH | SANKET oiArea Clearing prices in 2013-14 (Source: IEX) 7000 000 s000 4000 2000 2000 1000 aL A2 el NLM S2 www MCP ‘The graph clearly indicates the Area Clearing prices in the regions $1, S2 are significantly higher as compared to other 9 exchange regions. The ACP recorded at IEX is taken on the simple average for all the 12 months in a financial year because there aren’t any constraints and thus no special weightage is given to any month in a year. Market Clearing price in 2013-14 (Source: IEX & PXIL) May jun ulAug Sep Nov Dec Jan Feb. Mar Apr ‘The Market clearing price is calculated by taking the weighted average recorded at IEX and PXIL based on the volumes traded at each exchange between May 2013 and April 2014. As shown in the graph, the observation can be made that from October the prices gradually increased because of the elections in five states and at the same time surged agricultural demand was being met by the Discoms by procuring power from exchanges, SIDDARTHA RAMAKANTH | SANKET |Short Term OA - Analysis ‘The short term Open Access is done through Power Exchanges. This tool is basically used in order to meet the scheduled emergency needs for Industries when the demand for production is Emo Eee ee EEE Aaa cr Price at Bus Bar for Solar is taken as Rs.7 and for Non-Solar itis taken as Rs.4 more. The procurement of power through this means is cheaper than the Traditional and long term Open Access but there is a significant risk involved in it because of market forces, unavailability of power and unavailability of transmission corridor. Price through Open Access Price through CPP ‘TOA er ET solar Non Solar AP 7.96 6.45 7.88 4a7 Gujarat 4s 5.20 774 4.88 i 6.56 6.15 8.19 4.98 TN 823 - 7.20 431 Creed 5.69 6.50 9.85 6.19 i 467 498 9.80 5.77 5.37 - 7.94 4.85 ‘The above table shows the electricity procurement cost through short term open Access and compares the same with cost of power procurement through Captive Power plants in various states Even though for consumers, if the emergency need for electricity doesn’t exist, still with dynamic management, forecasting of needs and supply chain optimization, one can procure power with a maximum payoff. Out of 96 time blocks of electricity scheduling, there are few time blocks where the demand of electricity is less which results in low market cost of clectricity. The graph below shows the fluctuations in the short term market prices in the high demand regions of the country ie, Andhra Pradesh, Karnataka and Gujarat, SIDDARTHA RAMAKANTH | SANKET BoBest mix of power procurement for different time blocks S1 (Source: ACP at IEX & PXIL) ‘3000 77000 4000 3000 2000 1000 0 gegaesesegeeag ReegnseR BesSaBas888588 8 BEQRR ANA 102.3 4.5 6.7 8 9 10 11 12 13/14 15 16 17 18 19 20 21 22 23 24 In the states of Andhra Pradesh and Kamataka, though the power procurement in the major part of the day is done through discom or Long term power procurement, the power procurement from 64 time block 1071 time block should be procured through medium term or short term procurement, Since the cost in that time block is less because of lesser demand as compared to other time blocks (Data is analyzed for the months September’ 13 to March’14). The numbers in the above graph are generated by the weighted average of ACP recorded at the two power exchanges W2 (Source: ACP at IEX and PXIL) 000 4500 ‘4000 3500 3000 2500 2000 43500 3000 500 0 BSSSSSSSESSSSSSLARSALAALORAARRAAK 1203/4 5 6 7 8 9 10 11 12/13 14 15 16 17 18 19 20 21/22 23 24 In the state of Gujarat, though the power procurement in the major part of the day in done through discom. or Long term power procurement, the power procurement from 16" time block to 25 time block should be procured through medium term or short term procurement. Since the cost in that time block is less SIDDARTHA RAMAKANTH | SANKET oO‘because of less demand (Data is analyzed for the months September to March). The numbers in the above graph are generated by the weighted average of ACP recorded at the two power exchanges. ae pen Acar _, OR Consumers state-wise) Consumers Generators srr anne on ff = ae HII li i = is = vey. Lape en Sess met SEE on ——— = Aecess alowed i principe aed plemented om ful force CURRENT STATUS OF OPEN ACCESS CONSUMERS IN INDIA (STATE WISE) Others 21 \2 Jammu & 4 0 Total 180 2145 Kashmir ‘As on Dec 2013 | Source: SLDCs, Power Himachal Exchanges Pradesh ‘No Open Access Punjab 2 [312 Generators Consumers Haryana | 0 158 Uttar Pradesh Uttar Pradesh Uttarakhand | 1 74 Bihar JK Rajasthan 12 139 Delhi 2 Madhya 10 19 Jharkhand Delhi Pradesh Tamil Nadu Bihar Gujarat 16 258 Union Territories | Goa Maharastra 10 16 North East (Except North East (except Goa 1 0 Meghalaya and | Meghalaya and Odisha 12 [2 Arunachal Pradesh) Arunachal Pradesh Chattisgarh | 18 lo Sikkim Arunachal 1 lg DVvC Pradesh Chhattisgarh West Bengal | 2 0 West Bengal ‘Meghalaya 3 i Union Territories [Karnataka | 44 36 (except Daman & [Andhra 21 623 Diu) Pradesh ‘Sharkhand 0 499 0 [3 sonarus samc ElTRANSMISSION CONSTRAINTS Under intraday market, the Indian Energy Exchange (IEX) traded 2409 MUs of electricity in the month of December’ 13 which was almost similar to the quantum traded in the previous month, The total purchase bids (3800 MUs) were also comparable to the total sell bids (3812 MUs). Transmission congestion, especially in the Southern corridor, remained severe across the month which adversely affected the quantum of power traded in the short-term power market via exchanges. In the $2 bid area (Tamil Nadu and Kerala) where power deficit is of the highest order, power could reach only for eight days during the month further worsening the deficit situation. On an overall basis, approximately 458 MUs (Million KWh) couldn't be transmitted due to the unavailability of inter-state transmission corridor and congestion. With the recent synchronization of the NEW grid with the SR ‘grid, the situation is expected to improve in the months to come. ‘The average MCP for the month of December remained at Rs.3.22 per unit, reflecting an increase of 16% over the price last month. the commissioning of a single circuit 765 KV AC Raichur-Sholapur transmission line, the expected benefits in near future are little as a single line may not be enough to handle the amount of congestion in the region, With another circuit which is about to come the connectivity with southern region is expected to improve further. And if both the lines are commissioned, transmission capacity will definitely improve but till then the existing transmission line may be charged fully and operated without scheduling in order to maintain margins for emergency. Congestion _in Inter-State Transmission Corridor for Day-Ahead Market on Power Exchanges Power Exchanges use a price discovery ‘mechanism in which the aggregate demand and supply are matched to arrive at an unconstrained market price and volume. This step assumes that there is no congestion in the inter-state transmission system between different regions. However, in reality, the system operator, NLDC in coordination with RLDCs, limits the flow due to congestion in the inter-state transmission system. In such a situation, Power Exchanges adopt a mechanism called “Market Splitting” MMC Report, CERC In the financial year 2013-14, congestion ‘occurred in both the power exchanges, the graphs of which are shown below. The volume of electricity that could not be cleared due to congestion and could not be transacted through power exchanges is the difference between unconstrained cleared volume (volume of electricity that would have been scheduled, had there been no congestion) and actual cleared ‘volume and the clear indication for congestion in the power exchanges is the difference between MCP and ACP. During the FY 13-14, the volume. of electricity that could not be cleared in the power exchanges due to congestion was 20.16% and 14.32% of the unconstrained cleared volume in IEX and PXIL, respectively. In terms of time, congestion occurred was 98.20% in TEX for southern region (The decline in the congestion in some time slots is because of no demands due to various reasons including economic slowdown). Recently the bid areas that face the problem of transmission congestion are * Souther Import (WR to SR and ER to SR) © Transfer of electricity between $1 and S2 bid area © W3 bid area export © N3° bid Area import have also experienced transmission congestion in the past The congestion is measured in terms of the difference between ACP and MCP. The graphs represent the congestion in the various corridors for the period, June 2013 to February 2014. SIDDARTHA RAMAKANTH | SANKET iEast to North East (Source: IEX) 07 06 os oa 203 02 oa june duly Aug Sept Oct Nov Dec an Feb —eMax —e=Mode Corridor revised due to shut down of Balipara-Bongaigoan I during July 2013 South Import (Source: IEX) Incupees. sun July Aug Septet Nov Dee Jan Feb eM ein Corridor availability increased marginally for short term due to non-utlization of MTOA by KSK Mahanadi during August 2013 and the congestion during.Jan and Feb is the congestion between W to S. SIDDARTHA RAMAKANTH | SANKETS11 to $2 (Source: IEX) 2 10 In Rupees eax e=Mode Corridor revised from 1400 to 700 for STOA in the month of June 2013. In the months of December, January and ‘February there was no congestion recorded during most pat ofthe day because of No load from S2. East to North (Source: IEX) In Rupees Jun July Aue sept oct Nov Dec Jan Feb —eMax oe Mode Corridor revised due to shutdown of 400 kV Purnea-Muzaffarpur Ckt-1 in August 2013 and commissioning of 400 KV Purmea - Biharshariff D/C and network reconfiguration at Maldea and Purnea increased the corridor availability jin December 2013. SIDDARTHA RAMAKANTH | SANKETn nd_southern gon By synchronizing the NEW grid with southern grid by Raichut-Sholapur transmission line on 1 January 2014, the connectivity with southem region has improved; but the benefits addition from the National grid through one circuit line in near future are still not enough. After the commissioning of both the circuits, transmission capacity will improve. Apart from the principle synchronization of southern grid with other grid to form national Grid, the strengthening of southem corridor seems to be the solution to the problem of power deficit in the southem states. This year, around 10 Thermal Power projects in the north counting to nearly 15200 MW have reduced production in spite of having good coal reserves due to lack of demand. This situation ‘was observed in Punjab and Haryana states in the month of March. Experts said that because of non-availability of demand, these power plants did not lift their coal reserves with CIL. At the same time the southern states have seen a huge power deficit of around SO0OMW. With the synchronization and good transmission corridor, the deficit can resolved by purchasing surplus power from these states of the northern region. The availability of a cheaper power from these states can be provided to southern states at less than Rs.3 per unit. For instance, the landed cost of power from such surplus states to Tamil Nadu ‘would be as cheap as Rs.5 per unit. The current projects of PGCIL are expected to finish within 18 months. Though they are delayed they are expected to be in operation by the end of 2015 which can compensate the deficit to large extent. New Transmission Corridors completed in 2013- 14 paved way for better prices in the short term. markets by reducing congestion, Apart from the Raichur-Sholapur_ line, Bhoopalapally (Kakatiya)-Gajwel, Alamathy- ‘Sunguvarchatram, Thudiyalur-Mandapam, LILO. of Gobi- MTPS at Anthiyur, Arasur — Palladam, Oslapur-Durshed, _Ghataprabha-Chikkodi, Tadikanda-Ongole ete were commissioned in 2013-14 (sept-feb) decreasing the conge: in the intra-regional power transmission, but because of the current situation of all the 4 states being starved for power the relaxed congestion is not yet capitalized. But these lines will be very useful in order to transmit power within the region during monsoon because of the Hydel projects. The planning of the transmission lines for the next 3 years is a boon for open access both Long termand short term as transmission of more than 3000MW would become possible. And finally there will a pause to starvation of availability of corridor. ‘A project of Sankarapalli (Hyderabad) - Wardha (Maharashtra) (440 km-765 KV) is aimed to be completed by the end of 2016 by power grid. Recently, the proposals of a single circuit line from Telangana to Raipur and Andhra Pradesh~ Orissa (250 Km-765KV) were made to evacuate power from the Eastem Grid to Andhra Pradesh. If all the above proposals are accepted another 4000MW can be transmitted to Southern Region. SIDDARTHA RAMAKANTH | SANKET 2s |ISSUES TO BE ADDRESSED IN OPEN ACCESS Though the Open Access is formulated well with ease and flexibility from the regulatory side by incorporating user friendly norms in the act, it still have few issues to be addressed in terms of infrastructure and political will along with the current financial status. of distribution companies, Key issues in open access and strategic way to make Open Access, a real time feasible, 1, The physical infrastructure should be categorized into two: + Network infrastructure “> Metering infrastructure ‘Commissions need to focus on getting reliable and real time data and work in order to make the system more robust and viable for having a mix in procurement of power. 2. Problem to Distribution Utilities due to Open Access in a current scenario: As due to access of energy from open market it will create complexity in the Distribution utilities system mainly with respect to Revenue Loss. Due to open access agreement and open market scenario, open access consumers purchase power from open market. It will lead to revenue loss to the Discoms .As the ‘open access consumers are mostly of large industry and they are having a 100% realization in terms of revenue. Discoms will have to face over drawl and revenue loss scenario. 3. Gujarat government recently has blocked inter-state open access on account of internal power producers. This kind of approach of state governments may discourage investors will to invest in the states, The industries in Gujarat may now have to pay higher electricity charges to procure power: increasing their cost of production and finally the profitability, CONCLUSION Though open access is being looked at with eyes full of expectations by market developers, there is still a long and circuitous road to be covered for the dream to be fulfilled. The issues mentioned in the report are significant and need considerable attention. Moreover, lack of transmission corridors to make inter-regional open access feasible in the southem states may take long time to be taken care of. Many of the transmission projects are still under planning phase which may take at least a decade to be completely implemented because of various hurdles like the ROW issue. During the past decade, a lot of generation capacity has been added to the Indian power sector. And now it looks like the regulatory commissions are trying to optimize the usage of power markets and develop new opportunities for better functioning of distribution companies. This new approach of regulators which has been indicated through the new terms and conditions for tariff for 2014-19 is being taken as a cure for financially sick distribution utilities and also as an optimizing tool for inefficient generating utilities. SIDDARTHA RAMAKANTH | SANKET BiNOTES SIDDARTHA RAMAKANTH | SANKETANNEXURE I INTRA-STATE LONG TERM OPEN ACCESS PROCEDURE 1, Submission of Application for long term Open access to STU in the prescribed format, 2. STU to carry out system studies within 30 days of receipt of application to determine whether open access can be allowed without any system strengthening or Additional system strengthening would be required. 3. If the current transmission system in the state is ready for desired Open Access, applicant to confirm within 30 days to sign BPTA (Bulk Power Transmission Agreement), otherwise application shall be canceled. S Long term Open access — effective only after signing of BPTA for the consumer 5. If the current transmission is not enough for desired Open Access. Responsibility ‘Time Frame ‘Activities Receipt of application ‘STU 30 days ‘Communicate necessity of system strengthening Cost for carrying out studies Consent for Studies ‘Applicant 30 days Communicate to POWERGRID the consent for carrying out studies Receipt of cost ‘STU 90 days Communicate study results, preliminary cost estimate & completion schedule Receipt of study result ‘Applicant 30 days Confirm acceptance of results 90 days Execute BPTA with POWERGRID and other transmission licensee 15 days Forward agreement, signed with other transmission licensee SIDDARTHA RAMAKANTH | SANKET6. Many STU’s developed following format/documents for long term open access . Application Form with its covering letter ii, Guidelines iii, Terms and Conditions iv, Format for intimation of open access 7. Applicants shall deposit STU prescribed application fees through DD 8 STU’s Guidelines for application Applicant shall complete the Application form for seeking Long Term Open Access and provide following in a prescribe format 1. Details of the applicant 2. Power transfer requirement (peak load, average load) 3. Details of points of injection and drawl 4, Date of commencement and duration 5. Generating station details including various clearances in case of new Gen. Sua 6. Name of trader (if any) 7. Confirm acceptance of Terms & Conditions SIDDARTHA RAMAKANTH | SANKET BANNEXURE II SUBMISSION OF SHORT-TERM OPEN ACCESS APPLICATION (1) A short-term customer or the power exchange (on behalf of buyers and sellers) intending to avail of short-term open access for use of the trans! ion *s or associated facil for such lines on the inter- State transmission system, shall make an application to the nodal agency in accordance with these regulations. (2) The application for a bilateral transaction shall contain the details, such as names and location of supplier and buyer, contracted power (MW) scheduled and interface at which it is referred to, point of injection, point of drawl, starting time block and date, ending time block and date, and such other information that may be required in the detailed procedure. (3) The application for a collective transaction shall contain the requisite details in accordance with the detailed procedure. Application Fee An application made for each bilateral transaction or the collective transaction shall be accompanied by a non-refundable fee of Rupees five thousand (Rs.5000/-) only: Provided that the fee for bilateral transaction on the day of the application or on the day immediately following the day of the application may be deposited within three working days of submission of the application. Concurrence of State Load Dispatch Centre for bilateral and collective transactions 1. Wherever the proposed bilateral transaction has a State utility or an intra-State entity as a buyer or a seller, concurrence of the State Load dispatch Centre shall be obtained in advance and submitted along with the application to the nodal agency. The concurrence of the State Load dispatch Centre shalll be in such form as may be provided in the detailed procedure. 2. When a State utility or an intra-State entity proposes to participate in trading through a power exchange, it shall obtain a “no objection” or a prior standing clearance from the State Load dispatch Centre in such form as may be prescribed in the detailed procedure, specifying the MW up to which the entity may submit a buy or sell bid in a power exchange. 3. (A) For obtaining concurrence or ‘no objection’ or prior standing clearance an application shall be made before the State Load dispatch Centre who shall, acknowledge receipt of the application, either by e-mail or fax, or any other usually recognized mode of communication, within twenty four hours from the time of receipt of the application, SIDDARTHA RAMAKANTH | SANKET B(B) While processing the application for concurrence or ‘no objection’ or prior standing clearance, as the case may be, the State Load dispatch Centre shall verify the following, namely- (i) Existence of infrastructure necessary for time-block-wise energy metering and accounting in accordance with the provisions of the Grid Code in force. Gi) Availability of surplus transmission capacity in the State network. (©) Where existence of necessary infrastructure and availability of surplus transmission capacity in the State network has been established, the State Load dispatch Centre shall convey its concurrence or ‘no objection’ or prior standing clearance, as the case may be, to the applicant by e-mail or fax, in addition to any other usually recognized mode of communication, within three working days of receipt of the application. (D) In case the State Load dispatch Centre finds that the application for concurrence or ‘no objection’ or prior standing clearance, as the case may be, is incomplete or defective in any respect, it shall communicate the deficiency or defect to the applicant by e-mail or fax, in addition to any other usually recognized mode of communication, within two working days of receipt of the application: Provided that in cases where the State Load dispatch Centre has communicated any deficiency or defect in the application, the date of receipt of application shall be the date on which the application has been received duly completed, after removing the deficiency or rectifying the defects, as the case may be. 4, In case the application has been found to be in order but the State Load dispatch Centre refuses to give concurrence or ‘no objection’ or prior standing clearance as the case may be, on the grounds of non- existence of necessary infrastructure or unavailability of surplus transmission capacity in the State network, such refusal shall be communicated to the applicant by e-mail or fax, in addition to any other usually recognized mode of communication, within the period of three (3) working days or seven (7) working days, as the case may be, from the date of receipt of the application along with reasons for such refusal. *SOURCE: CERC-Open-Access-in-inter-State-Transmission Regulations-2008 Further for the detailed procedure for advance scheduling for bilateral transactions, day-ahead transactions and transaction in contingency, one can go through open-access in inter-state transmission regulation 2008 available on CERC website. SIDDARTHA RAMAKANTH | SANKETSanket Gupta ‘Sanket has done his graduation in B.Tech (Hons) in Electrical and Electronics Engineering from ‘Gautam Buddh Technical University,Utiar Pradesh f He has Industrial exposure in Uttar Pradesh Power AB transmission Company Limited as an Inter He is currently pursuing MBA Power Management from ‘National Power Teising Taste Faidabel i keys areas of interest are Power Distribution Sector, Finance and Business Research, Siddartha Ramakanth Keshavadasu Siddartha Ramakanth Keshavadasu has done his graduation in B.Tech in Mechanical Engineering Pe ence cereeelee ry Hyderabad. He has got various OEM companies like BHTETs Rane EVI. as an Inter. He isa fresher and currently pursuing MBA Power Management from National Power Training Inst Faridabod. His key interest areas are Electricity Industry Regulations Optimization in Business Research amd Financial solutions ‘The report deals with Open Access Regulations, it's evolution, Cost Benefit Analysis of Open Access (Long Term) over traditional power procurement for industries, Cost computation for short term Open Access considering the congestion in the transmission corridor, best ‘power procurement mix based on the time of the day and seasonal demand, the current issues in implementation of Open Access etc. This reportis @ one stop solution for decision making for bulk consumers in various states which are discussed in the report. ** An Open Access consumer can save up to Rs.20,00,000 per month by Open Access Key Highlights Objectives Recommended for eis uae ; © Bulk Consumers * Out & Out Coverage of OA is Sst rerio | 6 lvoam create career ‘© Regulatory issues in the regulations pertaining to a Dee _ implementation of OA ‘© Tocompute the financial arenes cose ict ism of OA implications of Open Access a wel Pricing Mechanism 3 ee * Comparison between OA-Discom | * and Opportunity assessment for To power the bulk consumers in availing reliable and economic Contact © Siddartha Ramakanth ce eee es idu,ramakanth@gmail.com ‘© Best Power Procurement Mix '* Identification of constraints and oe Fe Ph. 491-8447732247 *© Operational Constraints challenges in OA implementation canal G © Market Solutions ‘+ Recommendations and way meet Cue forward to optimize OA . in Ph. 991-8960837926 State specific will and Transmission constraints are the main hurdles for Open Access in India Outreach Partners } INDIAN POWER SECTOR.COM | POWERPLUS CONS SULTANTS