Short Term Open Access in inter state transmission

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This paper deal with the Short term power market in India

transcript

By:

Chandan Kumar

Emp.No: 02616

ET,WRLDC

Project Guide :

Shri. P. Pentayya

GM,WRLDC

(c) All Right Reserved

� India : World Fifth Largest Energy Consumer.

� 4% of Global Energy Consumption by 17% of the World Population.

� Installed Generation Capacity 201637.04 MW.

� Consist of two Grid connected asynchronously : NEW Grid and Southern Grid.

Power System Constitutes of three entities :

� Generation.

� Transmission.

� Distribution.

Apart from them Grid Management is required for the Real Time operation.

(c) All Right Reserved

Indian Power Market can be categorized on the basis of duration

of trade between the buyer/seller and Generator/Drawee:

� Long Term Access : It is for a period of 12 years up to 25 years� Long Term Access : It is for a period of 12 years up to 25 years

� Medium term Open Access: It is for a period of 3 months up to 3

years

� Short term Open Access :It is for a period of up to 1 months

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(c) All Right Reserved

Short Term Market Constitutes of :

� Bilateral Market

� Power Exchange Traded Market

� UI

� Ancillary Services

� REC/Emission Market

Short Term open Access Constitutes of :

� Bilateral Transactions

� Collective Transactions

� Sometime STOA is used in literature for Short Term Market .

(c) All Right Reserved

11%

Indian Power Market

Jan 2011 - Feb 2012

Short Term Market Contribution 9% : 2009-10

10% :2010-11

10.75 % 2011-12 (As Projected)

89%

Short Term market

LTOA and MTOA

(c) All Right Reserved

Total electricity

transacted through

Traders and

PXs(MUs), 39%

Total electricity

transacted through

UI, 30%

ST Market

Jan 2011-Feb 2012

'Total electricity

transacted Through

Direct Trading

(MUs), 15%

Day Ahead market

of IEX, 15%

Day Ahead

market of

PXIL, 1%

(c) All Right Reserved

� Decreasing trend of UI

� PX contribution has shown the increasing trend

over the years.

� PXIL contribution is less compared to IEX � PXIL contribution is less compared to IEX

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1000

1200

1400

1600

En

erg

y (

MW

s) UNCONSTRAINED CLEAR

0

200

400

600

800

En

erg

y (

MW

s)

VOLUME IEX

ACTUAL CLEARED VOLUME

AND HENCE SCHEDULED IEX

UNCONSTRAINED CLEAR

VOLUME PXIL

ACTUAL CLEARED VOLUME

AND HENCE SCHEDULED PXIL

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� System constraints are more in Nov-April

leading to less cleared volume of power

� 9.8 % of the day ahead transaction through

power exchange was not approvedpower exchange was not approved

� The electricity demand through day-ahead

contracts from PXs is more in winter and

reduces in summer season

(c) All Right Reserved

4

5

6

Pri

ce (

Rs/

kW

h) 'Weighted Average Price of electricity

transacted through Traders (Rs/kWh)

0

1

2

3

Pri

ce (

Rs/

kW

h)

Weighed Average Price of electricity

transacted Through IEX (Rs/kWh)

Weighed Average Price of electricity

transacted Through PXIL (Rs/kWh)

(c) All Right Reserved

� Price of electricity through traders is more

compared to through PXs

� Month October the PXs price is more compared

to price through tradersto price through traders

� While in Feb-march 2011 the PXIL price is more

compared to traders pricing of electricity

� Tough completion between the traders and PXs

can be observed here as the price difference is

varying continuously

(c) All Right Reserved

10

12

14

Directly Through Power Exchange (Rs/kWh)

Through Term Ahead Market through Power Exchange

(Rs/kWh) WEEKLY CONTRACTS

0

2

4

6

8

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

(Rs/kWh) WEEKLY CONTRACTS

Through Term Ahead Market through Power Exchange

(Rs/kWh) DAY AHEAD CONTIGENCY CONTRACTS

Through Term Ahead Market through Power Exchange

(Rs/kWh) DAILY CONTRACTS

Through Term Ahead Market through Power Exchange

(Rs/kWh) INTRA DAY CONTRACTS

(c) All Right Reserved

10

12

14

Directly Through Power Exchange (Rs/kWh)

Through Term Ahead Market through Power Exchange

(Rs/kWh) WEEKLY CONTRACTS

0

2

4

6

8

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Through Term Ahead Market through Power Exchange

(Rs/kWh) DAY AHEAD CONTIGENCY CONTRACTS

Through Term Ahead Market through Power Exchange

(Rs/kWh) DAILY CONTRACTS

Through Term Ahead Market through Power Exchange

(Rs/kWh) INTRA DAY CONTRACTS

(c) All Right Reserved

� Power through direct trading from power

exchange is lowest.

� Cost of power increases as we proceed from

weekly, day-ahead, daily to intraday in PXsweekly, day-ahead, daily to intraday in PXs

trading.

� The cost is more when there is higher system

contingency and vice-versa.

� Cost of power through PXIL is more compared

to IEX.

(c) All Right Reserved

(c) All Right Reserved

� Direct trading through IEX is cheaper.

� Price of weekly contracts for electricity trading is

low for PXIL compared to IEX in winter (oct-feb).

� For summer season it has a varied trend.� For summer season it has a varied trend.

� Non uniformity of market in other types of

contracts

(c) All Right Reserved

6

7

8

Weighted Average Price of electricity transacted

Through UI (Rs/kWh)

NEW

0

1

2

3

4

5

Rs/k

Wh

NEW

Grid

SR Grid

(c) All Right Reserved

� The Price of electricity traded through UI is lower

in NEW grid and higher in SW grid in Jan-June

Period.

� Lower cost in .SR grid in the rest of the month.� Lower cost in .SR grid in the rest of the month.

� The price of UI in SR Grid is more as it is a

power deficit region.

� The synchronization of SR to NEW grid will

reduce the overall price vector of UI in NEWS

grid.

(c) All Right Reserved

� Evacuation Problem

� Intra State open access issues

� Contingency Problem

� Existence of Two Grids� Existence of Two Grids

(c) All Right Reserved

� Strengthening the upstream and down stream

transmission networks to better utilize the

existing Inter-regional transmission capacity.

� Increased Number of Power exchanges.� Increased Number of Power exchanges.

� Reduction in T/D Losses by Strengthening of old

Lines.

� Increasing the ATC/TTC margin of the available

lines using Reactors, FSC, TCSC and optimal

placement of phase shift transformer

(c) All Right Reserved

� Real time dynamic loadility with the introduction

of PMU technology.

� market rules should be such as to encourage

broad participation and ensure fairnessbroad participation and ensure fairness

� Introduction of Ancillary Services.

� Renewable Integration with the Grid.

(c) All Right Reserved

� 1. www.cercind.gov.in

� 2. www.cea.nic.in

� 3. “Consultation Paper on Modifications in Power Market Design: Evening Market, 15

minute Bidding time block and Ancillary market on Power Exchange” by CERC

� 4. “The India Electricity market outlook” by KPMG � 4. “The India Electricity market outlook” by KPMG

� 5. “Ancillary Services in Indian Context: An Approach Paper” by POSOCO.

� 6. “High capacity power Transmission corridor - Project inception report” by PGCIL

� 7. “The Indian Electricity Market: Country Study and Investment Context” by Peter M

Lamb

� 8. “Electricity Market Reform: Lessons for developing countries” by Erkan Erdogdu

(c) All Right Reserved

Questions

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