COMPARATIVE OVERVIEW OF ENERGY COST IN SHORT TERM OPEN ACCESS MARKET AMONG ADVANCE, FIRSTCUM-FIRST-SERVE, DAY AHEAD AND

CONTINGENCIES TRANSACTIONS AND COLLECTIVE TRANSACTION

ORGANIZATION

Power System Operation Corporation Limited

Eastern Regional Load Despatch Centre Kolkata

Presentation Outline
Open Access Concept Power Trading Concepts Short Term Open Access

Bilateral Transaction
Collective Transaction

Project

DEFINITION OF OPEN ACCESS IN THE ELECTRICITY ACT, 2003

Open Access means the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee, or consumer, or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission.

Section 2(47) of Electricity Act 2003

INTRODUCTION
Open Access is necessary for utilization of short time

surpluses. Efficient Market Mechanism to address supply / demand mismatches Encourage investment in Transmission

Agencies involved in Short-Term Open Access Transaction

RLDC (s) SLDC (s) CTU

STU (s)
Buyer Seller Trader

Categorization of Open Access customers

The transmission customers divided into three categories:

(a) Long-term Access customers (LTA)- The customers availing or intending to avail access to the inter-state transmission system for a period of 12 years to 25 years shall be the long-term customers. (b) Medium-term Open Access customers (MTOA)The persons availing or intending to avail open access to the inter-state transmission system for a period of 3 months to 3 years shall be the medium-term customers. (c) Short-term Open Access customers (STOA) The persons availing or intending to avail open access to the inter-state transmission system upto a period of 3 months but 1 month at a time.
STOA are categorized into two different ways:
Bilateral Transaction Collective Transaction

Criteria for - Transmission Access

Long Term Open access: In accordance with the Transmission Planning criteria as per IEGC Short Term Open access Inherent design margins Margins available due to variation in power flow schedule Margins available due to in-built spare transmission capacity created to cater future load growth

NODAL AGENCY
For Long-Term and Medium Term Customers
Central Transmission Utility (CTU), if its system is used

For Short-Term Customers

RLDC of the Region in which the drawal point is located.

SHORT TERM OPEN ACCESS CERC REGULATIONS, 2008

Regulation, 2008 w.e.f 01.04.08

CERC/Regulations on Open Access

Final Order issued

: 30.01.2004

Final Regulations issued

Gazette Notification

: 30.01.2004
: 06.02.2004

CERCs Order effective from 06.02.2004

Amendments on 21-02-2005
Revised Regulations for Open Access in ISTS issued on 25.1.2008. These revisions effective from 1.4.2008. Amendments on 20.05.2009 Amendments on 28.10.2009

Highlights of CERC Regulations 2008 on Short-Term Open Access and Amendment thereof
S. No. Regulations, 2009 and Amendments thereof
Transmission Charges: Bilateral: - Injection POC charges - Drawal POC charges Collective Transactions(): - Injection POC charges - Drawal POC charges Retention by CTU - 25% to be retained by CTU - Balance adjusted with long term payment.

1.

2.

3.

RLDC Charges : Bilateral: a. Application fee Rs. 5000/b. Scheduling Charges Rs. 2000/day for each RLDC involved c. Regional/State Transmission Charges Collective Transactions: a. Application fee Rs. 5000/b. Scheduling Charges Rs. 5000/day to NLDC for each State involved - NLDC retains Rs. 2000 and to Share Rs. 500 with each RLDCs. c. Regional/State Transmission Charges
Open Access Duration Bilateral Advance (upto 3 months separate application for each month) FCFS Day Ahead Contingency Collective: Only Day ahead

4.

5.

Rate -in Rs / MWh - Based on Scheduled Energy

6.

Congestion Management Bilateral: E-Bid without price cap for advance category Prorata allocation for FCFS, day ahead and contingency (before 18:00) First Cum First Serve for contingency after 18:00 hrs. Collective: - Market Splitting

Case Study Short-Term Open Access transaction by Captive Power Plants

A typical example: From : SAIL Durgapur Steel Plant (DVC), To : SAIL Bhilai Steel Plant (CSEB) Quantum : 20 MW
Source : SAIL

Network Involved

Transmission Losses

Injection POC Loss 3.2 %

Withdrawal POC Loss 5.5 %

PROCEDURE FOR SCHEDULING OF OPEN ACCESS (BILATERAL TRANSACTION)

Advance, FCFS, Day-Ahead & Contingency

ADVANCE SCHEDULING
Advance Scheduling 3 months in advance Separate Application Month wise - each transaction Time Line for submission Last date for submission ( -10 / -5 / 0 days prior to end of current month MO for transaction in M1, M2, M3) Cut-off time of application: 17:30 Hrs. of last day (Day 0) Request for concurrence (RLDC) by 12:00 Hr. next day (Day 1) Concurrence - by 20:00 Hrs (Day 1) Congestion Information to Applicant next day 12:00 Hrs (Day 2) Revised Request next day 11:00 HRs. (Day3) E-bidding in case of Congestion (next day) (Day 4) Acceptance/Refusal of Scheduling Request (Day 5)

Time Line for Advance Scheduling

M0 10 5 5 M1 M2 M3

Last Day for submission of Applications for transactions in M1, M2, M3

Processing time for RLDCs

e-Bidding Procedure

Invitation of Bids from the concerned applicant period of congestion RTS/IR corridor expected to get over stressed Only Registered Users User ID & Password Electronic submission website of CTU Bid Closing time as specified Single Price Bid No Modification/withdrawal once submitted

Bid Price - in addition to Open Access Transmission Charges Multiples of Rs. 10/ MWh . ( Min. Rs. 10/MWh) Mandatory - Non-participation Rejection of Application Acceptance - Decreasing order of Price Quoted Equal Price Bids Pro-rata Applicants getting less quantum than applied shall pay the charges quoted by him. Applicant getting equal quantum of what sought by him shall pay the charges quoted by the last Applicant getting approval of its full scheduling request.

e-Bidding Procedure Case Study:

Margin available in a corridor = 200 MW Bid Submitted by the applicants are as followed:
Sl. No. 1 2 3 4 Applicant Name A B C D Bid Amount (MW) 100 50 100 50 Bid Amount (Rs.) 200 150 100 100

Sl. No. 1 2 3 4

Applicant Name A B C D

Bid cleared (MW) 100 50 33.33 16.67

Bid cleared price (Rs.) 150 150 100 100

FIRST-COME-FIRST-SERVED BASIS

Scope FCFS shall be considered only when transactions are commencing & terminating in the same calendar month. Separate Application for each month To be submitted 4 days prior to date of

Scheduling Processing time 3 days Processed on FCFS basis Application Received upto 17:30 Hrs in a day to be processed together same priority Application Received after 17:30 Hrs. - consider as received on next day Congestion Management pro-rata (proportional)

DAY-AHEAD BILATERAL TRANSACTION

Applications received within 3 days prior to the day of Scheduling and up to 15:00 Hrs. of the day immediately preceding the day of scheduling shall be treated as same priority. Processing will be done only after processing of the Collective Transactions of the Power Exchange (s). Congestion Management Pro-rata (proportional)

SCHEDULING OF BILATERAL TRANSACTION IN A CONTINGENCY

Applications received within 15:00 Hrs. to 18:00 Hrs. of the immediately preceding the day of scheduling shall be treated as same priority. Congestion Management Pro-rata (proportional) Applications received after 18:00 Hrs. of the immediately preceding the day of scheduling to 6th time block prior to scheduling shall be considered. Congestion Management First Cum First Serve basis

DOWNWARD REVISON OF SCHEDULE

In case of Advance Scheduling or First-Cum-First Served

basis Minimum two (2) clear days notice. Transmission Charges and Operating Charges for 2 days. In case of all the accepted bilateral subject to the following condition as per I.E.G.C. clause 6.5.19
The injecting utility is a generator of unit capacity of 100 MW and

above. At the time of applying for STOA the said unit of the generating station was mentioned in the application. The expected time of synchronization is mentioned in the application of revision.
Margin Available could be utilized for scheduling of other

Open Access Transactions

Example:

For example: Say an Applicant has been scheduled for 10 days from

21st day of a month to 30th day of a month for 100 MW on round the clock basis (i.e. for 2400 MWh per day). If this Applicant, on or before 18th day of that month, submits request for revision of schedule to 50MW on round the clock basis (i.e. 1200 MWh per day), the revised schedule will get implemented from the beginning of the transactions (i.e. 21st day of the month). The Applicant shall pay the Transmission Charges for 2400 MWh per day for the period from 21st to 22nd day of the month. Whereas for the period from 23rd day to 30th day of the month, Transmission Charges shall be payable for 1200MWh per day. However, if the Applicant requests for such revision on 20th day of the month, his request will be implemented from 23rd day of the month. He shall pay Transmission charges for 2400 MWh per day for 2 days i.e. from 23rd to 24th day of the month and for the remaining period he shall pay the Transmission Charges based on 1200MWh per day.

CURTAILMENT IN CASE OF TRANSMISSION CONSTRAINTS

Transmission constraint or to maintain grid

security Curtailed in the manner, which in the opinion of RLDC, would relieve transmission constraints/ enhance grid security Open Access Bilateral Transactions would generally be curtailed first followed by the Collective Transactions Pro-rata refund of Transmission Charges

DEFAULT IN PAYMENT OF OPEN ACCESS CHARGES

Nodal RLDC, at its discretion May not schedule the transaction or May cancel the scheduling of already scheduled transaction or May not entertain any Application of such Applicant in future until such time the default is cured. Simple interest at the rate of 0.04 % for each day of default from the Due Date of Payment If cheque has been dishonored

No cheque payment - next three (3) months

DISBURSAL OF PAYMENT
Reconcile the Open Access Charges
Nodal RLDC will reconcile the Open Access Charges collected during the previous

month and disburse the Transmission Charges and Operating Charges by 7 working days from the issuance of monthly Regional Energy Accounting by the respective Regional Power Committees.

Transmission Charges and Operating Charges for State

System
Concerned STUs/SLDCs

For ISTS To be disbursed to CTU

Refund due to curtailment Within 15th day of the next month

PROCEDURE FOR SCHEDULING OF

OPEN ACCESS COLLECTIVE TRANSACTION)

Agencies involved in Short-Term Open Access Collective Transaction

Power Exchanges (IEXL & PXIL) NLDC RLDC (s)

SLDC (s)
CTU STU (s) Buyer Seller Trader

 Collective Transactions (through PX) Nodal Agency National Load Despatch Center Both Buyers and Sellers of Collective transactions to bear

transmission charges.

Outline STOA- Collective

CERC Regulations on Open Access in inter-State

Transmission, 2008 and amendments thereof Applicable for Scheduling of Open Access (Collective Transactions) w.e.f. 01.07.2011

Bidding procedure

Time Line for submission of bid 10 a.m. to 12 a.m. of preceding day NLDC communicates the margin to PX at 11:00 hrs. During the bid hours the bid can be revised or cancelled. Volume and price of the bid submitted by market players are stored

in central order book. Matching of bids for each 15 minute time block in carried out. Price Determination Process (Provisional)

The aggregate supply and demand curves will be drawn on PriceQuantity axes. The intersection point of the two curves will give Market Clearing Price (MCP) and Market Clearing Volume (MCV). Successful members will be provided with clearing price and volume. After working out of provisional obligation funds available in the

settlement account of the Members shall be checked with the Clearing Banks. In case sufficient funds are not available in the settlement account of the Member then his bid (s) will be deleted from further evaluation procedure. Requisition for capacity allocation will be sent to NLDC at 13:00 hrs.

Bidding procedure
NLDC at 14:00 hrs. send the available margin to the PXs. Power Exchange at 14:30 hrs. will run the fresh iteration

for final MCP and MCV. Obligations will be sent to the bank of buying members at 14:30 hrs. for settlement. At 15:00 hrs. cleared volume will be send to NLDC for incorporation in schedules.
At 16:00 hrs. NLDC sends the cleared volume to respective

RLDCs. At 17:30 hrs. NLDC shall confirm the accepted schedule to PX.
At 18:00 hrs. RLDC issues schedule Rev-0.

Time Line for PX transaction

NLDC informs about the congestion in any link

PX submits application to NLDC

RLDCs communicates to NLDC and NLDC confirms the schedule to PX

10

11

12

13

14

15

16

17:30

18
RLDC issues schedu le Rev 0

NLDC communicates to all RLDC about the cleared volume

Bid submission by applicants NLDC sends the margin to PX

PX sends the cleared volume of different control area to NLDC

Congestion Management- Market Splitting

Congestion in a link is identified. The market is spitted into surplus part and deficit part.
Congest ed link

Surplus part
ATC < Margin Cleared

Deficit part

The price is reduced in surplus area and increased in

deficit area to reduce the link flow to the tune of ATC. In surplus area the already cleared (provisionally) sellers bid get rejected on following criteria:
Higher price Less volume Time priority

Congestion Management- Market Splitting

Congest ed link

Surplus part
ATC < Margin Cleared

Deficit part

In deficit area the already cleared (provisionally) buyers

bid get rejected on following criteria:

Lower price Less volume Time priority

Congestion Management : Market Splitting

area 1
price

area 2
price

available needed capacity capacity (exchange volume) area surplus at MCP

available capacity
price for area 2

price for area 1

Systemprice
(exchange volume) area deficit at available needed MCP capacity capacity
MWh

available capacity

MWh

SCHEDULE OF PARTICULAR ENTITY (BUYER/SELLER)

Project
COMPARATIVE OVERVIEW OF ENERGY COST IN

SHORT TERM OPEN ACCESS MARKET AMONG ADVANCE, FIRST-CUM-FIRST-SERVE, DAY AHEAD AND CONTINGENCIES TRANSACTIONS AND COLLECTIVE TRANSACTION FOR BUYER

What have we done ??

Select all the major power purchase utility across the

country (25 states). Take the power transaction of the power purchase utility in Open Access for both bilateral and collective transaction. Categorize the power purchase cost for both bilateral and collective transaction across all the states taken. Evaluate and analyse the data and plot the graph accordingly. Analyse the graph.

Purchase Price of various STOA Bilateral and Collective transaction for the state of Assam

Weighted Average Purchase Price of Various STOA Bilateral Transaction for the state of Assam

Inferences
From the above two charts it is clear that, state Assam should reduce power purchase from FCFS and Advance as the price is maximum in that category and should go for either DAM market or power exchange. So that their average cost of purchase reduces.