Electricity Market

March16
Email: info@iexindia.com
Web: www.iexindia.com
For Public Use

In this presentation
Introduction to Indian Power Market

Product Portfolio

Trading Mechanism
Market Snapshot
Participation

Trade @ IEX

Volume

Price

Indian Power Market: Present Status

Long Term
Upto 25 Years

Medium Term

Power Purchase Agreements

89%

OTC
Licensed traders (61)

6%

3 months- 3years

OTC Intraday- 3 months

Short-Term
Intraday - 3 months

Balancing Market
Real Time

Exchanges
1. Intra-day
2. DAM
3. DAC
4. Daily
5. Weekly

Unscheduled Interchange

3%

2%

Company Snapshot

96% Market Share ~90,000MWh average daily

trade

3800+ Participants

3300+ Industries

Transparency

Liquidity
Competition

Growth in Volume

Volume across product portfolio

IEX Market Segments

Delivery-based Contracts
Closed , Double-sided Auction
10-12 am bidding
Each 15-min block , 0.1 MW min NOC required

Day-Ahead
Market
since June,08
Term-Ahead Market
since Sep,09
Extended Markets
introduced
20th July15

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
Certificates
since Feb,11

Green Attributes as Certificates

Sellers : RE generators not under feed in tariffs
Buyers: Obligated entities
1MWh equivalent to 1 REC

Next Energy Saving Certificates

Auction

Continuous

DAM and TAM Trading Timeline

Features of Day Ahead Market

A closed double-sided anonymous auction for
each 15-min time block for the following day
N1

The intersection between the aggregated sale

and purchase curves defines the market clearing
price (MCP)

N3
A2
N2

N2
E1
W1
W3

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

W2

E2

S1

S2

12 Bid Areas

A1

DAM trading process

Bidding

Matching

10:00 am to
12:00 pm

12:00 pm to
1:00 pm

Bids for
15- min
each or
block bids
can be
placed

MCP
&MCV
calculated

Review corridor
and funds
availability

1:00 pm to
2:00 pm
Corridor
availability
and funds
verified

Result

Confirmation

Scheduling

3:00 pm

5:30 pm

6:00 pm

Final ACV
and ACP
calculated.
Market
splitting if
congestion

Collective
transaction
confirmation
by NLDC

Final
Schedule sent
to RLDC for
incorporation

Model Price Calculation algorithm

Price Tick (Rs.)

1.1

2.1

2.5

3.1

4.1

---

---

----

20

20

20

20

20

20

20

20

10

60

60

60

60

50

40

40

40

40

40

20

20

20

20

20

40

20

-40

-60

-80

-81

-120

-120

-120

-120

-120

-120

-120

Total Buy Quantum received, MW

120

100

80

80

70

60

60

50

40

40

20

20

20

20

20

Total Sell Quantum received, MW

-40

-60

-80

-81

-120

-120

-120

-120

-120

-120

-120

120

100

80

80

20

-100

-100

-100

Bid Quantum Portfolio A, MW

by different
Portfolio B, MW
portfolios
Portfolio C, MW

Price

Net Transaction, MW

Demand
(Buy)

-20

-21

-80

Supply
(Sell)

Market clearing
price (MCP) 2.5

60
Volume
Market Clearing Volume (MCV)

MW

-100

-100

-100

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.

Congestion Management
SR

WR

S3
S1
B2
B3
S2
B1
50
MW
50
MW
150
MW
30
MW
407500
50
MW
RS
8000
RS
7000
8500
RS 9000

Deficit
100 MW
S3
50 MW
Rs 7.5/u

B2
160 MW
Rs 9/u

S1
50 MW
Rs 8/u

B1
50 MW
RS 8.5/u

S2
40 MW
Rs 8.5/u

B3
30 MW
Rs 7/u

S1
B1
S2
S3
Surplus
120
100
MW
80 MW
RS 9500
6000
8000
5500
RS
100
MW

Required
Flow
100 MW

S2
100 MW
Rs 5.5/u
S2
20 MW
Rs 8/u
S1
80 MW
Rs 9.5

B1
100 MW
Rs 6/u

Congestion Management
SR

WR

Deficit
100
20 MW
MW

Surplus
100
20 MW
MW

Lowest Buyers getting rejected

S3
50 MW
RS 7500
S1
50 MW
RS 8000

S2
40 MW
RS 8500

B2
160 MW
RS 9000
B1
50 MW
RS 8500

B3
30 MW
RS 7000

Highest Seller getting rejected

Allowed
Flow
20 MW

S2
100 MW
RS 5500
S2
20 MW
RS 8000

S1
80 MW
RS 9500

B1
100 MW
RS 6000

Treatment of Losses
Both Buyers and Sellers to absorb losses
Buyer

Inject more than

contracted power
(Contracted
Power + Losses)

Draw less than

contracted power
(Contracted
Power losses)

Seller

Average Transmission Losses of the Region where the Entity is

geographically located.

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
Scheduled Drawal
<= SLDC Clearance

Bid Volume

100 MW
at NR
periphery

POC

State

Loss

Loss

1.5%

98.5 MW
at State
periphery

4.85%

X
93.72 MW at
Buyer End

(Buyer)

Maximum Bid= Volume in standing clearance + Regional & State losses

Treatment of Losses for seller

POC Loss: 1.5%
State loss: 4.85%
Seller Y bids for 100 MW at its respective regional periphery
Scheduled Generation
<= SLDC Clearance

Bid Volume
State

POC
100 MW at
regional
periphery

Loss
1.5%

101.52MW
at state
periphery

Loss
4.85%

106.69MW
Injected by
seller

Y
(Seller)

Maximum Bid= Volume in standing clearance Regional & State losses

Key statistics: Electricity & REC Market

ELECTRICITY

REC

96%

51%

29 States I 5 UTs

16 States I 5 UTs

Generators

307

782

Industrial
Consumers

3389

1793

~90,000 MWh

>3 million RECs

Highest : 136,913 MWh

Highest: 4,23,731 RECs

Market Share
(FY 14-15)

State
Utilities

Average Daily
Volume
IEX Data as on 29 FEB, 2016

Participation at IEX
6

6
8

402

79
4

273

22

33

6
0
7

23

672

57

59
0

48

16

1
7

25

216

398

15

38

Consumer: 3389
761
11

Generator: 307

Short Term Market Segments: In Volume terms

Total Short-Term Market Volume across the segments (in BUs)
65.9

81.6

94.5

98.9

104.6

16.10

24.00

30.40

27.80

24.80

21.47

19.45

35.20

35.60

35.40

35.50

98.9

28.46

16.40

7.20
25.80

26.70

28.10

26.80

6.20

10.30

15.40

14.50

17.38

15.58

FY10

FY11

FY12

FY13

FY14

FY15

Direct

Trader

UI

PXs

DAM Cleared Volume v/s MCP

IEX Membership Types

Proprietary
Member

Professional
Member

Electricity
Traders

Right to trade
and clear on its
own account

Trade and clear

on behalf of its
Clients

Trade and clear

on behalf of its
Clients

GeneratorDistribution
licensees- IPPs CPP- MPPs O A
consumers

NO CREDIT
/FINANCING

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

Thank You for your attention

www.iexindia.com
Leader in Market Development India Power
Awards 15
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