Mr. Bikram Singh Guram AVP (Business Dev.) , Indian Energy Exchange Department of Industrial and Management Engineering Indian Institute of Technology Kanpur 3 rd Capacity Building Programme for Officers of Electricity Regulatory Commissions 23 – 28 August, 2010 Power Market Scenario and Power Market Scenario and Functioning of Power Exchanges Functioning of Power Exchanges Forum of Regulators
77
Embed
Power Market Scenario and Functioning of Power … - Bikram Singh Guram - Power... · Power Market Scenario and Functioning of Power Exchanges Forum of Regulators. ... – JSL ‐
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Mr. Bikram Singh GuramAVP (Business Dev.) ,
Indian Energy Exchange
Department of Industrial and Management Engineering
Indian Institute of Technology Kanpur
3rd Capacity Building Programme for Officers of Electricity Regulatory Commissions
23 – 28 August, 2010
Power Market Scenario and Power Market Scenario and Functioning of Power ExchangesFunctioning of Power Exchanges
Forum of Regulators
IEX: Building Power Market for IndiaIEX: Building Power Market for India…Day Ahead Markety
Bikram SinghAVP – Business Developmentbikramsingh guram@iexindia com
►Vickerey Auction» The buyer of the highest bid gets the electricity at the second
highest bid price g p» OMEL (Spain)
www.iexindia.com
Auction Rules
► On the basis of No of bidding sides:» Single-Sided Auction» Double-Sided Auction
► On the basis of bid disclosed► On the basis of bid disclosed» Closed Auction» Open Auction
► On the basis of Time Block» Hourly» Time Block( Base peak Off Peak)» Time Block( Base, peak, Off-Peak)
www.iexindia.com
Transmission Pricing
► Nodal Pricing» Price at each individual node is calculated» Price at each individual node is calculated » PJM, NZEM (New Zealand)
► Zonal pricing» Set price is used for every zone without inner
congestion» NEMMCO, Nordpool
www.iexindia.com
Monopoly……..Competitive Market
www.iexindia.com
Indian Power sector… History
First 5 Decades of 20th Century…• Private licensees
Post Independence (1947)p ( )
• State monopoly in Generation, Transmission & Distribution• Provinces optimized within own boundaries• Entry of Central Government Power Plants• Entry of Central Government Power Plants
Early 90’sEarly 90 s
• Difficult to provide budgetary support for Power Sector•The Law was amended for IPPsF il f Si l b d l ENRON
www.iexindia.com
• Failure of Single buyer model ENRON
Evolving Industry Structure
No Competition• No choice• Government makes
decision
Generation Competition• Single buyer has choice
Wholesale Competition• Distribution/retail
companies have choice
Retail Competition• Consumers have choice
No Competition• No choice• Government makes
decision
Generation Competition• Single buyer has choice
Wholesale Competition• Distribution/retail
companies have choice
Retail Competition• Consumers have choice
G G G G G G G G G EG G G G G EGG G G G G G G G G EG G G G G EG
T T / SB T / SB T / MO T / MOT T / SB T / SB T / MO T / MO
Any hour of the dayAny day of the weekAny day of the week Any week of the month
www.iexindia.com
Who are we ?
PromotersPromoters
Joint Equity Partners: Jo t qu ty a t e s
Technology :
www.iexindia.com
Market Development Milestones
2005 IEX Conceptualized PXFor capacity addition
2006 •Created awareness among Stakeholdersacross the country
2007 • CERC issued guidelines for setting PX• IEX got in principle approval2008June 27Flawless Operations
ill d15th September’09 Term-ahead Marketh d•CERC approved commencement of
Day Ahead Market2008 2008June 27till date…15 September 09 Launched
Aug’ 2009 • CERC approves IEX Term-ahead Market
www.iexindia.com
What is IEX
Voluntary
On-line
National
Delivery…
National
Automated StandardisedContracts
•Spot•Intra-Day•Day-ahead
•Forwardk
Electronic
Central
•Weeks•Months
Counterparty
Exchange as Organized Marketplace Power-specific
www.iexindia.com
Exchange as Organized Marketplace Power specific
Day-ahead Market
www.iexindia.com
IEX IEX -- DAM Product DescriptionDAM Product Description
• Order Types:– Hourly or Portfolio Orders
• Min 1 hourMin 1 hour
• Different Price‐Quantity Pairs
• Partial Execution Possible
Bl k O d– Block Orders
• Consecutive hours during the same day– Customized block bid allowed
• Firm commitment to purchase or sell
• Order CharacteristicsSLDC Clearance should be ≥ 1 MW– SLDC Clearance should be ≥ 1 MW
– Minimum Order quantity can be less than 1 MW
– Minimum volume step: 0.1 MW
www.iexindia.com
– Minimum price step: Rs 1 per MWh ( 0.1p/kWh)
IEX - DAM Product DescriptionT di A il bilit• Trading Availability– Every Calendar Day
• Order Entry / revise /cancel– Entry of orders on D‐1 from 10:00 hrs to 12:00 hrs related to Delivery Day (D day)
• Contract– Clearing Price : Area Clearance Price– Cleared Volume – Total Contract Value: Cleared Volume multiplied by ACP– Final settlement adjusted for any force majeure deviations
• Delivery PointDelivery Point– Periphery of Regional Transmission System in which the grid‐connected entity, is located
www.iexindia.com
Time Line for scheduling of Collective Transaction
10:00 14:00 18:0012:00 13:00 15:00 17:30
Market P ti i t t
RLDCs/SLDCs to incorporate Collective Transactions in the Daily
NLDC to confirm acceptanceParticipants to
place their Bidsthe Daily Schedule
PX to send provisional unconstrained
NLDC to check for congestion. In case of congestion shall intimate PX
acceptance. PX to send files to SLDCs for scheduling
PX to send Scheduling Request to NLDC based on margin specified by NLDC
unconstrained solution to NLDC and flow on TS as informed by NLDC
intimate PX regarding to the period for congestion and available
D‐1 At 09:30 Hrs : Pre‐trade Margin Check. equal to the initial margins or average of last 7 days’ trading valueequal to the initial margins or average of last 7 days trading value, whichever is more.
D‐1 At 12:30 Hrs : Preliminary Obligation Margin CheckPreliminary Obligation =< Funds Available (incl initial margin)Preliminary Obligation =< Funds Available (incl initial margin)Block funds.D‐1 At 15:30 Hrs : Pay‐ins
At D+1 14:00 Hrs : Pay‐out.
www.iexindia.com
Performance so far…
IEX won India Power Award for“ Best e-enabled consumer platform”
17th November,2009
www.iexindia.com
Over 2 years of Adequate Liquidity
•29 State Utility• 450+ Portfolios• 450+ Portfolios• 260+ Direct consumer• 286 participants on single dayCl d V l 11 72 Billi U it• Cleared Volume : 11.72 Billion Units
• Trade Value: Rs 6,425 Crs• DAM Volume Record
54.16 MUs constrained (20th August’ 10)
www.iexindia.com
Participation at IEX
STATE No. of CPP's Open Access Industrial Consumers
NLDC – Central AgencyResponsible for registration, issuance of RECs, maintaining accounts settlements repository monitoring and such otheraccounts, settlements, repository, monitoring and such other functions incidental to the implementation of REC mechanism
State Nodal Agency - Accreditation Body An approving Authority which Checks RE generators against theirAn approving Authority which Checks RE generators against their eligibility criteria and the norms specified by MNRE
State Load Despatch Centres - Monitoring Body Verifies electricity generation from RE sources and notifies theVerifies electricity generation from RE sources and notifies the Central Agency
Power Exchange - Trading Platform Facilitates transactions [IEX]Facilitates transactions [IEX]
Compliance AuditorsMonitors effective compliance by RE producers
www.iexindia.com
Operational Framework of REC Mechanism
www.iexindia.com
Cleared volume : 600 RECs MCP: Rs 2200/REC
s 17
00
s 20
00
Rs
1500
Rs
3900
sell
@ R
s
Sell
@ R
s
EC S
ell @
RC
Buy
@ R
00 R
EC s
00 R
EC S
100
RE
100
REC 20 30
2200
600 REC Buy @ Rs 2200 200 REC Buy@ Rs 1700
www.iexindia.com
600
Schedule of Trade DaySchedule of Trade Day
Time on Trade DayTime on Trade Day DetailsDetailsTime on Trade DayTime on Trade Day DetailsDetailsPrePre‐‐trade Phase:trade Phase:By 12.00 HrsBy 12.00 Hrs ExchangeExchange toto checkcheck initialinitial marginmargin checkcheck forfor MembersMembers
( )( )Order Accumulation phase (Bidding)Order Accumulation phase (Bidding)13.00 Hrs to 15.00 Hrs13.00 Hrs to 15.00 Hrs OrderOrder AccumulationAccumulation
Order matching and trade Order matching and trade finalisationfinalisationBy 15.30 HrsBy 15.30 Hrs •• ExchangeExchange toto sendsend detailsdetails ofof maximummaximum offeroffer placedplaced byby SellersSellers toto CentralCentral AgencyAgency
By 16.00 HrsBy 16.00 Hrs •• CentralCentral AgencyAgency toto sendsend reportreport confirmingconfirming validvalid RECsRECs withwith EligibleEligible EntitiesEntities
By 16.30 HrsBy 16.30 Hrs •• FinalisationFinalisation ofof tradetrade resultsresults afterafter removalremoval ofof defaulters’defaulters’ ordersordersE hE h tt i fi f ti i tti i t b tb t t dt d ltlt•• ExchangeExchange toto informinform participantsparticipants aboutabout tradetrade resultsresults
By 17.00 HrsBy 17.00 Hrs •• ExchangeExchange toto informinform CentralCentral AgencyAgency thethe detailsdetails ofof buyersbuyers andand sellerssellers