Electricity Market

www.iexindia.com

Email: info@iexindia.com

July15

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 3-11 PM

Intra-Day - for the same day starting 12:30 AM (24X7) 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

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

Market Snapshot

Participation Volume Prices

Key statistics: Electricity & REC Market

Market Share (FY 13-14)

State Utilities

Generators

Industrial Consumers

Average Daily Volume

77%

17 States I 5 UTs

755

>3 million RECs Highest: 4,23,731 RECs

ELECTRICITY REC

96%

29 States I 5 UTs

307

~80,000 MWh Highest : 131,356 MWh

1729 3121

IEX Data as on 30 June, 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: 3121

Generator: 307

Participation at IEX

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