Electricity Market - IEX
38
Transcript of Electricity Market - IEX
In this presentation
Introduction to Indian Power Market
Product Portfolio
Trading Mechanism
Market Snapshot
Trade @ IEX
Participation Volume Price
Indian Power Market Development trend
Single buyer/seller
Multi Buyer/Seller
OTC Markets
Spot trading on Exchanges
Improved liquidity and Efficiency
Indian Power Market: Present Status
Long Term Power Purchase Agreements
Upto 25 Years
Medium Term
3 months- 3years
OTC Licensed traders (61)
Short-Term
OTC Intraday- 3 months
Exchanges
Balancing Market
Intraday - 3 months
Unscheduled Interchange
1. Intra-day 2. DAM 3. DAC 4. Daily 5. Weekly
Real Time
89%
6%
3%
2%
Company Snapshot
96% Market Share ~80,000MWh average daily trade
3400+ Participants 3000+ Industries
Competition
Liquidity Transparency
Growth in Volume
Volume across product portfolio
Increasing Participation Participation
Product Portfolio
Intra Day REC
IEX Market Segments Delivery-based Contracts
Day-Ahead Market since June,08
Closed , Double-sided Auction 10-12 am bidding Each 15-min block , 0.1 MW min NOC required
Term-Ahead Market since Sep,09
Day-Ahead Contingency – Another window 3-5pm
Intra-Day - for the same day starting 2 pm
Daily- for rolling seven days (delivery starting after 4 days)
Weekly- for 1 week (Monday-Sunday)
Renewable Energy Certificates since Feb,11
Next… Energy Saving Certificates
Green Attributes as Certificates Sellers : RE generators not under feed in tariffs Buyers: Obligated entities 1MWh equivalent to 1 REC
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
The intersection between the aggregated sale and purchase curves defines the market clearing price (MCP)
12 Bid area defined
Congestion Management through market splitting and determining Area Clearing Price (ACP) specific to an area
Bid types: Portfolio Orders or Block Orders
Minimum bid=Re.1 for 0.1MWh
Minimum Price & Volume Step = 0.1p * 0.1 MWh
12 Bid Areas
N1
N2
A2
A1
W3
E2
E1
N3
W2
W1
N2
S2
S1
Congestion Management
Risk Management
Bidding and Matching
Understanding exchange mechanism
Treatment of losses
and charges
DAM trading process
Bidding Matching Review corridor
and funds availability
Result Confirmation Scheduling
Bids for 15- min each or
block bids can be placed
MCP &MCV
calculated
Corridor availability and funds
verified
Collective transaction
confirmation by NLDC
Final Schedule sent
to RLDC for incorporation
Final ACV and ACP
calculated. Market
splitting if congestion
10:00 am to 12:00 pm
12:00 pm to 1:00 pm
1:00 pm to 2:00 pm
3:00 pm 5:30 pm 6:00 pm
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
60 60 60 60 50 40 40 40 40 40 20 20 20 20 20
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
0 0 0 0 -40 -60 -80 -81 -120 -120 -120 -120 -120 -120 -120
120 100 80 80 20 0 -20 -21 -80 -100 -100
-100
-100
-100
-100
Price Tick (Rs.)
Portfolio A, MW Bid Quantum by different portfolios
Total Sell Quantum received, MW
Total Buy Quantum received, MW
Net Transaction, MW
Portfolio B, MW
Portfolio C, MW P
rice
MW
Market clearing
price (MCP)
Market Clearing Volume (MCV)
Supply
(Sell) Demand
(Buy)
Volume
2.5
60
Model Price Calculation algorithm
BID MATCHING
Open/Closed Auction
Orders accumulated during call phase (no matching)
Orders matched after call period
Orders are used for calculation common price
i.e. Equilibrium Price.
All successful orders matched at Equilibrium
Price.
Continuous Trading
Price-time priority based continuous matching
The highest Buy order & lowest Sell order gets the
priority
If the prices are same then priority is given to the time
of the order received.
CONTINUOUS TRADING PROCESS TWS Screen
Pending Buy Order Pending Sell Order
Buy 10 MW @ Rs 4500/MWh Sell 15 MW @ Rs 5500/MWh
Sell 15 MW @ RS 5500/MWh Buy 10 MW @ Rs 4500/MWh
Sell 15 MWh @ 4500
Trading Engine
Buy 10 MW @ RS 4500/MWh Sell 15 MW @ RS 5500/MWh
TWS Screen
Pending Buy Order Pending Sell Order
Buy 10 MW @ 5000/MWh
Sell 15 MW @ Rs 5500/MWh Buy 10 MW @ 4500
Sell 15 MWh @ 4500
Trading Engine
Buy 10 MW @ RS 5000/MWh
Buy 10 MW @ RS 5000/MWh
Buy 10 MW @ RS 4500/MWh
Sell 15 MWh @ 5500
TWS Screen
Pending Buy Order Pending Sell Order
Sell 15 MW @ RS 5000/MWh
Sell 15 MW @ 5500
Sell 15 MWh @ 4500
Trading Engine
Sell 15 MW @ Rs 5000/MWh
Buy 10 MW @ 5000
Buy 10 MW @ 4500
Sell 15 MW @ 5500 Sell 5 MW @ Rs 5000/MWh
Trade 10 MW @ RS 5000/MWh
Buy 10 MW @ RS 4500/MWH
Bid Modified
Congestion Management
SR WR
S1 50 MW RS 8000
B1 50 MW RS 8500
S1 50 MW Rs 8/u
B1 50 MW
RS 8.5/u
B2 150 MW RS 9000
B2 160 MW Rs 9/u
S2 40 MW RS 8500
S2 40 MW Rs 8.5/u
S3 50 MW RS 7500
S3 50 MW Rs 7.5/u
B1 100 MW Rs 6/u
S1 80 MW Rs 9.5
B3 30 MW Rs 7/u
B3 30 MW RS 7000
Deficit 100 MW
S1 80 MW RS 9500
B1 100 MW RS 6000
S2 120 MW RS 8000
S2 20 MW Rs 8/u
S3 100 MW RS 5500
S2 100 MW Rs 5.5/u
Surplus 100 MW
Required Flow
100 MW
Congestion Management
SR WR
S1 50 MW RS 8000
B1 50 MW RS 8500
B2 160 MW RS 9000
S2 40 MW RS 8500
S3 50 MW RS 7500
B1 100 MW RS 6000
S1 80 MW RS 9500
B3 30 MW RS 7000
Deficit 100 MW
S2 20 MW RS 8000
S2 100 MW RS 5500
Surplus 100 MW
Allowed Flow
20 MW
Surplus 20 MW
Highest Seller getting rejected Lowest Buyers getting rejected
Deficit 20 MW
• Both Buyers and Sellers to absorb losses
• Average Transmission Losses of the Region where the Entity is geographically located.
Treatment of Losses
Draw less than contracted power
(Contracted Power – losses)
Inject more than contracted power
(Contracted Power + Losses)
Buyer
Seller
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
100 MW
at NR periphery
POC
Loss
1.5%
98.5 MW
at State periphery
State
Loss
4.85%
93.72 MW at Buyer End
X
(Buyer)
Bid Volume Scheduled Drawal <= SLDC Clearance
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
POC
Loss
1.5%
106.69MW
Injected by seller
State
Loss
4.85%
Y (Seller)
101.52MW at state
periphery
100 MW at regional periphery
Bid Volume Scheduled Generation
<= SLDC Clearance
Maximum Bid= Volume in standing clearance – Regional & State losses
Market Snapshot
Participation Volume Prices
Key statistics: Electricity & REC Market
Market Share (FY 13-14)
State Utilities
Generators
Industrial Consumers
Average Daily Volume
77%
16 States I 5 UTs
701
>3 million RECs Highest: 4,23,731 RECs
ELECTRICITY REC
96%
29 States I 5 UTs
297
~80,000 MWh Highest : 131,356 MWh
1604 3024
IEX Data as on 28 February, 2015
6 3
0 6
216 25
672 38
79 1
398 22 33 16
11
0
0 2 1 48
7 15
4 1
0 1
761 2
59 57
3 3 1 2
7 23
273 4
Consumer: 3024
Generator: 297
Participation at IEX No Open Access
Consumers Generators
Uttar Pradesh Uttar Pradesh
Jammu & Kashmir Delhi
Himachal Pradesh Bihar
Delhi Jharkhand
Bihar Tamil Nadu
Goa Kerala
Jharkhand Union Territories
Sikkim
NE States (except
Meghalaya)
DVC
Chattisgarh
West Bengal
Union Territories
(except Daman &
Diu)
NE States (except
Assam, Meghalaya
& Arunachal
Pradesh)
402 8
Industrial segments with IEX
Textile 29%
Manufacturer 15%
Metal 24%
Chemical 9%
Auto Components
6%
Cement 4%
Paper 3%
Cotton 1%
Others 9%
CERC MMC Report for FY 2013-14
Prices
IEX monthly Average MCP in DAM
DAM Cleared Volume v/s MCP Volume
IEX Monthly Cleared Volume
Trade @ 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
Who Can become Members of IEX ?
IEX Membership Types
Proprietary Member
Right to trade and clear on its
own account
Generator- Distribution
licensees- IPPs - CPP- MPPs –O A
consumers
Professional Member
Trade and clear on behalf of its
Clients
NO CREDIT /FINANCING
Electricity Traders
Trade and clear on behalf of its
Clients
CREDIT /FINANCING
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:
Fees
Professional & Proprietary & Electricity Trader
(Full Payment Option)
Proprietary member (Light Payment
Option) Admission fee Rs. 35,00,000 Rs. 10,00,000
Interest Free Security Deposit
Rs. 25,00,000 Rs. 10,00,000
Annual Subscription Fees
Rs. 5,00,000 Rs. 2,50,000
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
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
Thank You for your attention www.iexindia.com
