Workshop on Open Access in Maharashtra - PowerPoint Presentation

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 SectorSlide26
Slide27

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 PotentialSlide28
Slide29

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