1. Understanding
Electricity Markets
Devesh Singh
Regional Manager - SR
Email: devesh.singh@iexindia.com
www.iexindia.com

2. Indian Power Market segregation
Long Term
Long Term
Upto 25 Years
Upto 25 Years
Medium Term
Medium Term
3 months- 3years
3 months- 3years
Short-Term
Short-Term
Intraday --3 months
Intraday 3 months
Power Purchase Agreements
Power Purchase Agreements
OTC
OTC
90%
Licensed traders (63)
Licensed traders (63)
OTC Intraday- 3 months
OTC Intraday- 3 months
Exchanges --Bilateral Transaction
Exchanges Bilateral Transaction
5%
Exchanges --Collective Transaction
Exchanges Collective Transaction
3%
1.Intra day
1.Intra day
2.DAC
2.DAC
3.Daily
3.Daily
4.Weekly
4.Weekly
1. DAM
1. DAM
Balancing Market
Balancing Market
Real Time
Real Time
Unscheduled Interchange
Unscheduled Interchange
Source: CERC Report on Short term transactions of Electricity in India, April 2013
2%

3. What is IEX?
Voluntary
Voluntary
Delivery…
Delivery…
On-line
On-line
National
National
•Spot
Standardized
Standardized
Contracts
Contracts
Automated
Automated
•Intra-Day
•Day-ahead
•Forward
•Weeks
•Months
Electronic
Electronic
Central
Central
Counterparty
Counterparty
Exchange as Organized Marketplace
Power-specific

4. Day-ahead Market

5. IEX - DAM Product Description
[1/2]
• Bidding
- Double sided Closed Auction
• Order Types:
–
–
15-min block or Portfolio Orders
• Min 15 Min
• Different Price-Quantity Pairs
• Partial Execution Possible
Block Orders
• Relational Block Bid
• Any 15-min block or series of 15-min blocks during the same day
– Customized block bid allowed
• Order Characteristics
–
–
–
–
SLDC Clearance should be ≥ 0.1 MW (Subject to state regulations issued by
concerned SLDC)
Minimum Order quantity cannot be less than 0.1 MW
Minimum volume step: 0.1 MW
Minimum price step: Rs 1 per MWh ( 0.1p/kWh)

6. IEX - DAM Product Description
[2/2]
• Trading Availability
– Every Calendar Day
• Firm commitment to purchase or sell
• Order Entry / revise /cancel
– Entry of orders on D-1 from 10:00 hrs to 12:00 hrs
related to Delivery Day (D day)
• Delivery Point
– Periphery of Regional Transmission System in which the grid-connected
entity, is located

7. IEX Day Ahead Market
10-12
12-13
Bidding
Matching
13-14
Trans
Check
15
IEX Final
Solution
1730
NLDC Final
Conf
18
Schedule
by SLDC

8. Price Calculation Algorithm ….each block
Price (Rs./kWh)
0
Portfolio A, MW
20
Portfolio B, MW
60
Portfolio C, MW
40
SUM, Purchase
SUM, Sell
1.1
2.1
2.5
3
3.1
20
20
20
10
0
60
2
4
50
40
40
40
40
20
0
0
-40
-60
-80
-81
120 100
80
80
70
60
60
50
-40
-60
-80
-81
20
0
-20
-21
-80
20
40
20
20
-120
80
5.0
0
40
0
4.1
-120
0
Net transaction
120 100
80
-120
40
20
20
-120
-100
-100
250
Purchase
5
Sell
Price ($/MWh)
200
4
3
150
Rs./kWh
Price (Rs./MWh)
1
2.5
100
2
50
1
0
-150
Volume (MW)
-100
-50
0
MW balance
50
100
150

9. DAM-Single Bid

10. DAM-Block Bid

11. Treatment of Losses
• Both Buyers and Sellers to absorb losses
– Buyer
• draw less than Contracted Power
(Contracted Power – losses)
– Seller
• inject more than Contracted Power
(Contracted Power + Losses)
•
Average Transmission Losses of the Region where the Entity is
geographically located.
•
Additional Losses for Wheeling, if necessary
– To be notified in advance by NLDC
– Only for Injection

12. 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
Scheduled Drawal
<= SLDC Clearance
<= SLDC Clearance
Bid Volume
Bid Volume
100 MW
at NR
periphery
POC
POC
Loss
Loss
1.5%
1.5%
98.5 MW
at State
periphery
State
State
Loss
Loss
4.85%
4.85%
X
X
93.72 MW at
Buyer End
(Buyer)
(Buyer)
Maximum Bid= Volume in standing clearance ++Regional & State losses
Maximum Bid= Volume in standing clearance Regional & State losses

13. 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
Scheduled Generation
<= SLDC Clearance
<= SLDC Clearance
Bid Volume
Bid Volume
State
State
POC
POC
100 MW at
100 MW at
regional
regional
periphery
periphery
Loss
Loss
1.5%
1.5%
1 01.52MW
at state
periphery
Loss
Loss
4.85%
4.85%
106.69MW
Injected by
seller
Y
Y
(Seller)
(Seller)
Maximum Bid= Volume in standing clearance ––Regional & State losses
Maximum Bid= Volume in standing clearance Regional & State losses

14. Congestion Management

15. Congestion Management
SR
WR
S3
S3
S1
S1
B2
B2
B3
S2
B3
S2
B1
B1
50 MW
50 MW
50 MW
50 MW
150MW
150MW
30 MW
40 MW
30
50 7500
50
RS40MW
RS7500
RS 8000
RS9000
8000
9000
RS 8500
7000
RS7000
8500
S1
B1
S3
S2
S1
B1
S3
S2
Surplus
Surplus
120 MW
100MW
80 MW
120
100 MW
80
RS 6000
RS5500
5500
8000
6000
RS 9500
RS8000
9500
100 MW
100 MW
Deficit
Deficit
100 MW
100 MW
S3
S3
50 MW
50 MW
Rs 7.5/u
Rs 7.5/u
S1
S1
50 MW
50 MW
Rs 8/u
Rs 8/u
S2
S2
40 MW
40 MW
Rs 8.5/u
Rs 8.5/u
B2
B2
160 MW
160 MW
Rs 9/u
Rs 9/u
B1
B1
50 MW
50 MW
RS 8.5/u
RS 8.5/u
B3
B3
30 MW
30 MW
Rs 7/u
Rs 7/u
Required
Flow
100 MW
S2
S2
100 MW
100 MW
Rs 5.5/u
Rs 5.5/u
S2
S2
20 MW
20 MW
Rs 8/u
Rs 8/u
S1
S1
80 MW
80 MW
Rs 9.5
Rs 9.5
B1
B1
100 MW
100 MW
Rs 6/u
Rs 6/u

16. Congestion Management
SR
WR
Deficit
Deficit
100MW
20 MW
100MW
20
Surplus
Surplus
100MW
20 MW
100 MW
20
Lowest Buyers getting rejected
S3
S3
50 MW
50 MW
RS 7500
RS 7500
S1
S1
50 MW
50 MW
RS 8000
RS 8000
S2
S2
40 MW
40 MW
RS 8500
RS 8500
B2
B2
160 MW
160 MW
RS 9000
RS 9000
B1
B1
50 MW
50 MW
RS 8500
RS 8500
B3
B3
30 MW
30 MW
RS 7000
RS 7000
Highest Seller getting rejected
Allowed
Flow
20 MW
S2
S2
100 MW
100 MW
RS 5500
RS 5500
S2
S2
20 MW
20 MW
RS 8000
RS 8000
S1
S1
80 MW
80 MW
RS 9500
RS 9500
B1
B1
100 MW
100 MW
RS 6000
RS 6000

17. Risk Management System
Trader Member
D-1 At 09:30 Hrs ::Pre-trade
D-1 At 09:30 Hrs Pre-trade
Margin Check.
Margin Check.
equal to the initial margins
equal to the initial margins
or average of last 7 days’
or average of last 7 days’
trading value, whichever is
trading value, whichever is
more.
more.
D-1 At 12:30 Hrs ::Preliminary
D-1 At 12:30 Hrs Preliminary
Obligation Margin Check
Obligation Margin Check
Preliminary Obligation
Preliminary Obligation
=< Funds Available (incl initial
=< Funds Available (incl initial
margin)
margin)
Block funds.
Block funds.
D-1 At 15:30 Hrs ::Pay-ins
D-1 At 15:30 Hrs Pay-ins
At D+1 14:00 Hrs ::Pay-out.
At D+1 14:00 Hrs Pay-out.
Facilitator Member
 D-1 At 09:30 Hrs ::Pre-trade
 D-1 At 09:30 Hrs Pre-trade
Margin Check.
Margin Check.
 equal to the 100% of the
 equal to the 100% of the
bid value to be provided
bid value to be provided
by Client directly to IEX in
by Client directly to IEX in
Client Settlement account
Client Settlement account
 D-1 At 15:30 Hrs ::Pay-ins
 D-1 At 15:30 Hrs Pay-ins
 At D+1 14:00 Hrs ::Pay-out.
 At D+1 14:00 Hrs Pay-out.

18. Accolades…
June 2013 Power Line Award as “Best Performing Trading
Company / Exchange”
Nov 2012 6th Enertia Award as “Best Power Exchange in India”
May 2012 Power Line Award as “Best Performing Power Exchange”
Nov 2009 India Power Awards as “Best E-enabled Consumer Platform”

19. OA status in India
East & North Eastern Region
Northern Region
States
Buy
States
Sell
Buy
Sell
Assam & Bihar
Haryana
Manipur & Mizoram
Punjab
Tripura & Sikkim
Rajasthan
Jharkhand
HP
Arunachal Pradesh
J&K
Meghalaya
Uttaranchal
Orissa
Delhi & U.P.
West Bengal
Western Region
States
Madhya Pradesh
DNH & DD-UT
Gujarat
Buy
Southern Region
Sell
States
Andhra Pradesh
Karnataka
Chhattisgarh
Tamil Nadu
Maharashtra
Kerala
Nov 14, 2013
Buy
Sell

20. IEX statistics at a glance…
•
27 States and 5 Union Territories
•
2,400+ Participants
•
2,129 Open access consumers
•
1,400+ participants on single day
•
Cleared Volume > 71 Billion Units
•
Average Daily Volume (for FY 12-13) =61,327 MWh (FY 13-14 so far =79,727 MWh)
•
DAM Volume Record : 117 MUs (8th September, 2013)
•
183 Generators

21. Participation at IEX
State-wise

22. Increasing Participation

23. IEX monthly Average MCP in DAM

24. DAM Cleared Volume V/s MCP

25. IEX Monthly Cleared Volume

26. Prices for various time block
September 2013

27. How to Move Ahead…
►
Become Member or Client (of a Member)
» Rs 22.6 Lacs +3p/kWh transaction fee
or
» Rs 65.1 lacs + 2p/kWh transaction fee
or
» 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

28. IEX Initiatives
Continuous communication with Users
IEX Daily SMS
Service for Trade
Details
IEX hourly
Trade Prices
displayed on
its website
IEX Monthly
Bulletin

29. Thank You