Nagpur 14 th May 2016 For Public Use In this presentation Participation Volume Price 3 Industries Options For Power Procurement Company Snapshot 96 Market Share 100000MWh ID: 566788
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Slide1
Workshop on Open Access in MaharashtraNagpur14th May 2016
For Public UseSlide2
In this presentation
Participation
Volume
PriceSlide3
3Industries’ Options For Power Procurement Slide4
Company Snapshot96% Market Share ~100,000MWh average daily trade 3800+ Participants 3300+ Industries
Competition
Liquidity
TransparencySlide5
IEX Market SegmentsDelivery-based ContractsDay-Ahead Marketsince June,08Closed , Double-sided Auction 10-12 am biddingEach 15-min block , 0.1 MW min NOC requiredTerm-Ahead Market
since
Sep,09
Extended Markets
introduced
20
th
July’15
Day-Ahead Contingency
–
Another window for Day-Ahead.
Extended Market: Trading window
increased
to 1500-2300
Hours
Intra-Day
-
Extended Market: Trading window
increased
to
0030 – 2000
Hrs
for same day delivery, with delivery starting at 0400 Hours
Daily-
for rolling seven days (delivery starting after 4 days)Weekly- for 1 week (Monday-Sunday)
Renewable Energy Certificatessince Feb,11
Next… Energy Saving Certificates
Green Attributes as CertificatesSellers : RE generators not under feed in tariffsBuyers: Obligated entities1MWh equivalent to 1 REC
Auction
ContinuousSlide6
Features of Day Ahead Market12 Bid Areas
N1
N2
A2
A1
W3
E2
E1
N3
W2
W1
N2
S2
S1Slide7
DAM trading processBids for 15- min each or block bids can be placedMCP &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
pmSlide8
Bid TypesSlide9
Price Tick011.122.12.533.13.5
3.8
4
4.1
5
7
9
12
14
17
19
20
Portfolio A
20
20
20
20
20
20
20
10
7
4
0
0
0
0
0
0
0
0
0
0
Portfolio B
60
60
60
60
50
40
40
40
40
40
40
40
20
20
20
20
20
20
20
20
Portfolio C
70
70
70
70
70
60
50
50
50
50
5050
5010101010101010Portfolio D40
2000-40-60-80-81-85-100-120
-120-120-120-120-120-120-120
-120-120Portfolio E0000
0-40-50-50-50-50-60-60-90
-90-90-90-90-90-90-90Portfolio F00000-20
-20-20-20-20-20-30-40-40-40-40-40-40
-40-40190170150150140120
110100979490907030303030303030
0000-40-120-150-151-155-170
-200-210-250-250-250-250-250-250-250-250
Total Buy, MWTotal Sell, MW190170150150
1000-40-51-58-76-110-120-180-220-220-220-220
-220-220-220Net Transaction, MWMatching: Model Price Calculation algorithm (Example for a sample 15-min)MCP: Rs 2.5MCV: 120 MWSlide10
Treatment of Losses… for buyerPOC 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 lossesSlide11
ParticipationVolumePricesSlide12
Key statistics: Electricity & REC Market51%16 States I 5 UTs782>3 million RECsHighest: 4,23,731 RECsELECTRICITY
REC
96%
29 States I 5 UTs
311
>
90,000 MWh
Highest : 136,913 MWh
1793
3421
IEX Data as on 31 March, 2016 Slide13
DAM Cleared Volume v/s MCPVolumeSlide14
High Liquidity in Volume at IEX(Average Hourly Volume in MW) Slide15
Average Area Prices in DAM at IEX With commissioning of transmission Lines, market splitting observed majorly in two regionsArea DAM Prices (RTC)12 Bid Areas Slide16
Increasing ParticipationParticipationSlide17
6306
216
25
672
38
79
1
398
22
33
16
11
0
0
2
1
48
7
15
1
0
0
1
761
2
59
57
6
1
0
1
7
23
273
4
Consumer: 3421
Generator: 311
Participation at IEX
402
8
5
0
9
0Slide18
Industrial segments with IEXSlide19
Monthly Price Trend (WR)19Slide20
Open Access: What a consumer paysCharges Slide21
Open Access: What a consumer paysLossesAn open access consumer has to bear in kind the following losses as defined by the relevant regulationsSlide22
Cost Benefit Analysis for Express Feeder Industries Note:-FY 2015-16 Avg MCP Rate 2.49 Rs/UnitSr NoParticulars Rate (in Rs/KWh) In 2015
At 11 kV & 22kV
At 33kV
66 KV & Above
1
IEX Price
2.49
2.49
2.49
2
Regional Losses (2.04%)
0.06
0.06
0.06
3
Mah
Trans Losses ( 3.89%)
0.1
0.1
0.1
4
Wheeling Losses ( 9% And 6% )
0.24
0.16
0
5
Regional Transmission Charges
0.25
0.25
0.25
6
Mah Trans Charges
0.26
0.26
0.26
7
Wheeling Charges
0.83
0.15
0
8
IEX Transaction Fees
0.02
0.02
0.02
9
Operating Charges (SLDC, NLDC)
0.15
0.15
0.15
10
Cross Subsidy Surcharge
1.49
1.49
1.49
11
Trading Margin
0.02
0.02
0.02
Total Cost
5.91
5.15
4.84Slide23
Cost Benefit Analysis for Non-Express Feeder Industries Sr NoParticulars Rate (in Rs/KWh) In 2015
At 11 kV & 22kV
At 33kV
66 KV & Above
1
IEX Price
2.49
2.49
2.49
2
Regional Losses (2.04%)
0.06
0.06
0.06
3
Mah Trans Losses ( 3.89%)
0.1
0.1
0.1
4
Wheeling Losses ( 9% And 6% )
0.24
0.16
0
5
Regional Transmission Charges
0.25
0.25
0.25
6
Mah Trans Charges
0.26
0.26
0.26
7
Wheeling Charges
0.83
0.15
0
8
IEX Transaction Fees
0.02
0.02
0.02
9
Operating Charges (SLDC, NLDC)
0.15
0.15
0.15
10
Cross Subsidy Surcharge
1.09
1.09
1.09
11
Trading Margin
0.02
0.02
0.02
Total Cost
5.51
4.75
4.44Slide24
Cost Benefit Analysis for IndustriesSlide25
Impact of IEX on the SectorSlide26Slide27
Viability assessment: Open Access in States* Industrial tariff at 33/66kV, IEX landed cost includes OA charges and assuming cleared price at Rs 2.50/unitHigh Saving PotentialSlide28Slide29
RegistrationPRE -TRADINGSELECTION OF MEMBER1 week
MEETERING
Special Energy Meter
Identify vendor to procure and install
0.5-3
Months
SLDC Clearance/NOC
NOC from respective SLDC
Format PX 1
1
Month
Registration at IEX
Client registration for each point of drawal
Unique id created in Exchange system
0.15
Month
Member Related Activities
Exchange
Related Activities Slide30
Power Market OutlookPrices at Exchange will continue to be lower in the coming months.Installed capacity of India has reached about 281 GW.Peak demand was only 150 GW, hence surplus capacity.Coal production in the current year (1015-16) has increased by about 9% over previous year. There is no major change in demand pattern.E-auction prices have also come down due to increased availability of Coal.Sell quantum available in power market has increased due to higher availability of coal at reasonable prices. This is likely to continue in coming months.Transmission capacity has increased with commissioning of lines. No congestion for Northern region after Sept 15 except for brief period in Jan’16 due to tripping of line.Slide31
Register for IEX Monthly BulletinRegister for Daily SMS alertsUse IEX Mobile Application to track prices Follow us @IEXLtd
Thank You
www.iexindia.comSlide32
Cost Benefit Analysis for Industrial Consumers- IEX vis-à-vis DiscomS. No.Particulars 33kV132 kv
1
Price at
IEX (FY 16)
(assumed BID by the client if cleared at exchange)
2.46
2.46
2
Losses of WR (POC Loss=2.05%)
0.05
0.05
3
Losses of Western Transmission (Loss= 3.89%)
0.10
0.10
4
Losses of Maharashtra Wheeling (Loss= 6% (33KV)Or 9 % (22KV))
0.15
0.00
5
Transmission Charges of WR (POC Charge)
0.26
0.26
6
Transmission Charges of Maharashtra
0.26
0.26
7
Wheeling Charges of Maharashtra per unit
0.15
0
8
IEX Margin per unit
0.02
0.02
9
NLDC, SLDC Processing & Operating Charges
0.05
0.05
10
Cross Subsidy Surcharge
(Exp Feeder)
1.49
1.49
11
Trading charges
0.02
0.02
Total Landed Cost
through
IEX
5.00
4.70
Test Case - Cost Benefit Analysis
1
Power Consumption (In MW) through out the day
1
1
2
Number of Hours of Purchase
24
24
3
Number of Units Consumed per day
24,000
24,0004Rate of procurement from State Discom (In Rs/kWh)7.217.215Average rate of procurement through IEX
5.004.706Net payable as per state tariff (Rs)1730401730407Net payable as per IEX (Rs)119969
1128278Savings through IEX vis a vis state Discom on daily basis (Rs)53,07160,213Savings through IEX vis a vis state Discom on Monthly basis (Rs. Lacs)15.92
18.06Savings through IEX vis a vis state Discom on Yearly basis (Rs. Lacs)191.05216.77Slide33
Silent Features of Dist OA 2016Eligibility to seek Open Access Contract Demand >=1 MW has been allowed.DAM through power Exchange is allowed.Multiple Sources are allowed.Contract Demand Reduction Consumer availing STOA shall not be eligible to revise his Contract Demand with the Distribution Licensee during the tenure of the STOA, but may do so at the time of applying for OA permission.Banking of Energy is permitted.Slide34
Day-Ahead Open Access Permitted only if surplus capacity is available in the system of Distribution Licensee.The Application for grant of Day-Ahead Open Access shall be made to the Nodal Agency only one day prior to the date of scheduling, up to 12:00 Hours.Illustration:-An Application for Day-Ahead transaction on 15th August shall be received only on 14th August up to 12:00 hours. Application received after 12:00 hours of the day immediately preceding the date of scheduling or on the day of scheduling shall be considered in case of contingency of the Applicant, and the fee for such contingency Applications shall be five times the otherwise applicable Application fees.Slide35
Day-Ahead Open Access The Nodal Agency shall check for congestion and convey grant of approval or otherwise in the format provided in Annexure III [Format-ST2] by 14:00 Hours of the day preceding the date of scheduling of the transaction.” All applicable STOA provisions shall apply to application for Day ahead OA.Slide36
Annexure III Format – ST2Slide37
Annexure III Format – ST2 (Cont.) Slide38
Prices for various time blockMarch 2016Slide39
IEX Monthly Cleared VolumeSlide40
IEX Day Ahead Market Price & Volume Trend March 2016