| www.iexindia.
com | December 2008 | vol 16, issue 001 |
news and information
bulletin.
INDIAN ENERGY EXCHANGE
REGULATORY NEWS
DERC gives in-principal approval to
BSES Gas- based power plant.
BSES Limited has received in-principle
approval from the Delhi Electricity Regulatory
Commission for setting up a 1,400 MW gas-
based plant in Tikri village in Delhi at an
estimated investment of Rs 7000 Crore.
KSERC to continue restriction on HT/EHT
consumers.
The Kerala State Electricity Regulatory
Commission has ordered the Kerala State
Electricity Board (KSEB) to continue with the
20 per cent power restrictions on the HT and
EHT consumers in the state which was
imposed by it in October 2008. It has also
asked KSEB to continue levying the 50- paise
thermal surcharge from these consumers.
INDUSTRY NEWS
GoI appoints a high-level committee for
preparing National Renewable Energy
Law.
The Government of India (GoI) has appointed
a high-level committee for preparing the
N a t i o n a l R e n e w a b l e E n e r g y L a w.
The proposed law will deal with issues of
providing Renewable Energy Certificates,
strict implementation of renewable purchase
obligations and penalty provisions for not
adhering to the same. As of now, 12 State
Electricity Regulatory Commissions have
fixed up to 10 per cent of renewable power
purchase obligation in the total power
portfolio of their respective states.
It will also facilitate tradable Renewable
Energy Certificates.
India to help Nepal set up power
trading entity .
India has entered into an agreement
with Nepal to help it set up a power
trading entity, for exporting power. To
end the monopoly of Nepal Electricity
Authority, it is proposed to set up
Nepal Electricity Regulatory
Commission. An agreement has
been reached where India will have
For private circulation only
a 30 per cent equity stake, while the rest will be owned
by Nepal. Currently Nepal will be buying power from
India; however by 2013 Nepal is expected to be a
power surplus country, thus the transmission line
improvement project will be implemented in the next
two years at a cost of Rs 200 crore. The Indo-Nepal
Power Exchange Committee had identified the
Butwal-Gorakhpur; Duhabi-Purnea; Dhalkebar-
Muzaffarpur and Anarmani-Siliguri power transmission
corridors for implementation.
Naptha goes cheap.
The import duty of 10% on naptha is lifted. The power
generation cost through such projects is expected to
come down by 50-55 paise and the end consumer may
reap the benefits.
INTERNATIONAL
APX launches UK day-ahead wholesale power
auction.
APX group launched the first day-ahead power auction
aimed at setting a reliable reference price for electricity
traded in Britain. NASDAQOMX and NORDPOOL are
favoured by some of the biggest players in the UK power
market to launch another power exchange next year.
EEX to launch spot trading in EUA.
The exchange council agreed to the launch of spot
trading in EUA on Xetra on January 16, 2009. The EEX
Spot Market for EU emission allowances comprises
continuous trading with intraday auction. After the end
of the Spot Market auction EEX publishes the Carbon
Index (Carbix) established on its internet site.
Japan to start trading in CO2- free electricity.
Japan will begin trading of carbon dioxide-free
electricity among power utilities and other power
producers as part of its efforts to fight global warming.
The trading of this "green electricity "will take place on
the Japan Electric Power Exchange. The power
industry has a voluntary target of reducing greenhouse
gas emissions by 20 percent from the 1990 level on
average between 2008 and 2012.
Europe to go for Renewable Power Obligation.
EU leaders agreed yesterday to combat climate
change by ordering that a fifth of Europe's energy mix
should come from renewable sources within 12 years.
They have set an ambitious target to cut greenhouse
gas emissions by 20% by 2020.
IEX Bulletin, Dec. 2008
EVENTS
IEX participated in Indian Energy Summit 2008 organized by
Indian Chamber of Commerce.
IEX participated in Indian Energy Summit 2008 organized
by Indian Chamber of Commerce from 14th-15th
November, 2008 at India Habitat Center, New Delhi.
The event marked presence of various dignitaries from
Ministry of Power, CEA, CERC, PFC, Tata Power, Alstom,
Lanco Infratech, GMR etc. Mr. Rajesh K. Mediratta, VP, IEX
delivered presentation on "IEX: New opportunities for power
trading." He shared the journey so far by IEX and how it has
offered true prices to the participants.
IEX TRADING MONITOR
For the month of November, 2008
Total Purchase Bids received (MUs) 985
Total Sell Bids received (MUs) 665
Total Market Cleared Volume (MUs) 450
Maximum Price (Rs/kWh) 11
Minimum Price (Rs/kWh) 1.30
Maximum Volume in a day (MUs) 21.44
Total Market Clearing Volume in MUS 1,412
(till 30th Nov, 2008)
Trading Made Easy - Vol IV
Open Access and Transmission
INTRODUCTION:
What is Open Access?
Imagine a toll road where the operator has a right to choose who
can use the road. Sounds absurd? Everyone knows that there
can be no discrimination among users as long as they pay the
toll and abide by the traffic rules. This can be described as non-
discriminatory open access to the toll road.
Much of the growth and tariff reduction in telecom is the
outcome of competition enabled by open access to networks. A
consumer can subscribe to a licensee of his choice, as access
to other networks is no constraint. Non-discriminatory open
access was clearly a pre-requisite of telecom reform.
The rationale for power reforms is similar, competition in
generation requires open access to the transmission and
distribution wires so that any competing producer can use
them.
Open Access in power supply means that a distribution
company will operate the network connecting your premises,
but other licensees can also reach you through that network.
Thus, a supplier need not lay a parallel network of wires for
carrying electricity to your premises; he can use the existing
network upon payment of an access charge called the wheeling
IEX sponsored "Captive Power Series", organized by IPPAI.
IEX sponsored Captive Power Series organized by IPPAI.
The conferences were conducted in Mumbai, New Delhi and
Ahmedabad on 12th Nov, 08, 3rd Dec, 08 and 10th Dec, 08
respectively. The focus of the conference was to address the
issues related to distributed generation, selling of surplus power
from captives and renewables.
Mr. Rajesh K. Mediratta, VP, IEX, Mr. Bikram Singh, AVP, IEX, and
Mr. Ghansham Thakkar, Manager, IEX, delivered presentation on
the topic "Selling through IEX" at Delhi, Ahmedabad and Mumbai
respectively. The presentation focused on Trading Mechanism,
performance of Day Ahead Market and concept and methodology
of proposed Term Ahead Market.
MONTHLY INDICES
IEX indices for the month of November, 2008
AVERAGE AVERAGE
INDICES MCP Volume
(Rs/kWh) (in MW)
Day Off Peak(11- 18 hrs) 8.20 613
Morning Peak( 7 - 11 hrs) 7.81 617
Night off peak( 00-06, 24 hrs) 6.32 694
Non-Peak Hr Avg(1-18& 24) 7.37 654
Peak hr Avg(18- 23) 7.90 457
RTC 7.50 626
** All figures are Hourly average for the month.
charge, to be determined by an independent regulator. Such
non-discriminatory open access is a pre-requisite for
competition and real reform.
Open Access and Transmission:
The main provisions of the Electricity Act-2003 which governs
the grant of Open Access are given in the functions of Central
Transmission Utility and State Transmission Utility. The same
are given below:
n As per the Section 38(2)(d) of Electricity Act, 2003, the
function of the Central Transmission Utility (CTU) is to provide
nondiscriminatory open access to its transmission system for
use by: (a) any licensee or generating company on payment of
the transmission charges; or (b) any consumer as and when
such open access is provided by the State Commission under
sub-section (2) of Section 42, on payment of the transmission
charges and a surcharge thereon, as may be specified by the
Central Commission.
n As per the Section 39(2)(d) of Electricity Act, 2003, the
function of the State Transmission Utility (STU) is to provide
non-discriminatory open access to its transmission system for
use by:(a) any licensee or generating company on payment of
the transmission charges; or (b) any consumer as and when
 IEX Bulletin, Dec. 2008

such open access is provided by the State Commission under The Open Access in Inter State Transmission has been
sub-section (2) of Section 42, on payment of the transmission categorized as:
charges and a surcharge thereon, as may be specified by the 1. Long term Access Duration: 25 years or more
State Commission. 2. Short term Access: Maximum 3 months in advance
For better understanding of Open Access let us go through the 3. Monthly
"(Open Access in inter-State Transmission) Regulations, 2008 • Advance
"issued by Hon'ble CERC dated 25th January, 2008.The
• First Come First Serve
regulation only covers Short Term Open Access Transactions
however Long Term Open Access Transactions is covered under 4. Day ahead
"Open Access in Inter-state Transmission) Regulations, 2004" . 5. Intra day transactions

OPEN ACCESS TIME LINE FOR SHORT TERM CAPACITY RESERVATION

DL-10 Last day for Advance Application for Month 2

{
Last day for Adv Application for Month 3
DL-5
Month 1 RLDC's Approvals for Month 2

{
Last day for Adv Application for Month 4
DL
RLDC's Approvals for Month 3

DL+5 RLDC's Approvals for Month 4

Month 2 DOP - 4
FCFS Application

DOP - 1 Day-Ahead Application / IEX Collective Transaction

DOP Intra Day Application

Month 3

Month 4
Note:
DOP : Day of Operation
DL : Last day of Month 1

Bilateral vs. Collective Transactions:
The Open Access in inter-State Transmission Regulation, 2008
has categorized Short Term Open Access transactions as Bilateral
and Collective (through IEX).
Bilateral Transactions: A transaction for exchange of energy
(MWh) between a specified buyer and a specified seller, directly or
through a trading licensee, from a specified point of injection to a
specified point of drawal for a fixed or varying quantum of power
(MW) for any time period during a month.
Collective Transactions: is defined as a set of transactions
discovered in power exchange through anonymous, simultaneous
competitive bidding by buyers and sellers.
IEX Bulletin, Dec. 2008

Features of Bilateral And Collective (IEX) transactions as per Open Access in

inter-State Transmission Regulations, 2008

Dimension Bilateral Collective (IEX)

Open Access Duration
Nodal Agency
Transmission Charges
Short Term (ST) Rate
Congestion Management
Balancing Mechanism
Revision of Schedules
Up to 3 months and Intra Day
Regional Load Dispatch Centre (RLDCs)
Rs.30/MWh - intra- regional
Rs.60/MWh - Between adjacent regions
Rs. 90/MWh - Wheeling through one
or more region
Charged in Rs/MWh
Based on reserved capacity in MWh
E-Bidding without any price cap
Frequency-linked-Unscheduled Interchange (UI)
Minimum 5 days notice
Only Day ahead
National Load Dispatch Centre (NLDC)
Rs. 30/MWh for each point of injection
and drawal
Charged in Rs/MWh
Based on Scheduled Energy
Market splitting (NLDC in coordination with IEX)
Frequency-linked-Unscheduled Interchange (UI)
No Revision

(Shashwat Srivastava)

Readers Corner
"I really appreciate the initiative take
n by IEX in apprising
the readers of its bulletin on the
latest events and
regulations related to power sector. Th
e Monitoring Report
& Monthly Indices will provide valuabl
and buyers on the market dynamics…."
e input to both sellers MEMBERSHIP
Mr. M.K.Ray APPLICATIONS INVITED
Ex-Director (Commercial)
WB State Elec. Dist Co..Ltd. Indian Energy Exchange Ltd. (IEX)
invites membership applications from
"IEX bulletin has set an example t
o know how trading Generators, MPPs, IPPs, CPPs,
takes place along with spreading
knowledge among
common people about CERC norms.
"
Distribution Licensees, Bulk
Keep ahead of all Consumers and Electricity Traders.
All the best
Mr. Veeresh Devaramani
JSW Energy Limited
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This bulletin has been compiled by Indian Energy Exchange Limited for circulation among direct stakeholders in the
energy market of India. Though the contents of this bulletin are correct to the best of our knowledge at the time
of printing, IEX does not vouch for their accuracy.