Electricity Market

December’16

Email: info@iexindia.com
Web: www.iexindia.com

For Public Use

In this presentation

Introduction to Indian Power Market

Product Portfolio

Trading Mechanism

Market Snapshot
Participation Volume Price

Trade @ IEX
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

 Market Share: 96%

 Average daily trade: 5000 MW
 High Participation: 3700+
3300+ Industries I 50+ Discoms (all) I 350+ Generators

Transparency Liquidity

Competition
Participation
Increasing Participation
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 for Day-Ahead.
Term-Ahead Market Extended Market: Trading window increased to 1500-2300 Hours
since Sep,09 -
Intra-Day Extended Market: Trading window increased to
0030 – 2000 Hrs for same day delivery, with delivery starting at 0400 Hours
Extended Markets
Daily- for rolling seven days (delivery starting after 4 days)
introduced
Weekly- for 1 week (Monday-Sunday)
20th July’15
Renewable Energy Green Attributes as Certificates
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
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
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.
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
S3 B2
50 MW 160 MW
Rs 7.5/u Rs 9/u Required S2
Flow 100 MW
100 MW Rs 5.5/u
S1 B1
50 MW 50 MW S2
Rs 8/u RS 8.5/u 20 MW
Rs 8/u

S2 B3 S1 B1
40 MW 30 MW 80 MW 100 MW
Rs 8.5/u Rs 7/u Rs 9.5 Rs 6/u
Congestion Management
SR WR

Deficit Surplus
100
20 MW
MW 100
20 MW
MW
Lowest Buyers getting rejected Highest Seller getting rejected

B2 S2
S3
160 MW Allowed 100 MW
50 MW
RS 9000 Flow RS 5500
RS 7500
20 MW
S1 B1
S2
50 MW 50 MW
20 MW
RS 8000 RS 8500
RS 8000

S2 B3 S1 B1
40 MW 30 MW 80 MW 100 MW
RS 8500 RS 7000 RS 9500 RS 6000
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
Loss Loss X
100 MW 98.5 MW
93.72 MW at (Buyer)
at NR 1.5% at State 4.85% Buyer End
periphery periphery

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

Key statistics: Electricity & REC Market

ELECTRICITY REC
Market Share
(FY15-16) 98% 63%

State
Utilities
29 States I 5 UTs 16 States I 5 UTs

Generators 379 847

Industrial 3688 2489

Consumers

Average Daily >90,000 MWh >6 million RECs

Volume Highest : 144,649 MWh Highest: 865,675 RECs
IEX Data as on 30 NOVEMBER, 2016
Participation at IEX
0 5

17 6

429 7 91 1
13 1
5 0
421 4
0 0
1 0 13 0
319 10

7 0
497 19
57 11
6 1
1 46 0 1
0 2

19 18
8 24

0 1 480 27

222 12
140 61
Consumer: 3688
810 14 Generator: 379

22 0
Volume DAM Cleared Volume v/s MCP
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

Leader in Market Development– India Power

Awards ‘15

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