13 - S S Barpanda - Open Access in Inter-State Transmission

8/7/2019 13 - S S Barpanda - Open Access in Inter-State Transmission

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S S Barpanda,

DGM, GM, NRLDC

Department of Industrial and Management Engineering

Indian Institute of Technology Kanpur

3rd Capacity Building Programme forOfficers of Electricity Regulatory Commissions

23 28 August, 2010

Forum of Regulators

Open Access in

Inter State Transmission System

Open Access

Presentation Outline

Overview o f Ind ian Pow er Market

Open Ac cess Othe r a rea s

Provisions of Elec tric ity Ac t 2003

Open Ac c ess in Inte r-sta te Transmission

Bila teral

Collec tive

Congestion management in PX

Co nnec tivity, LTA and MTOA


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Indian Power Market AnOverview

NEW Grid

South

Grid

South

West

North

East

Northeast

Five Reg iona l Grids

Five Frequenc ies

Oc tober 1991

East and Northea st

synchronized

March 2003

West sync hronizedWith East & Northea st

Aug ust 2006

North synchronized

With Central Grid

Central Grid

Five Reg iona l Grids

Two Frequenc ies

Installed Capacity 163 GW

MERGINGOF

MARKETS


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INDIAN ELECTRICITY MARKET

Execution

CTU/STU, NLDC/ RLDC/ SLDC

ABT sett lem ent : in sta ges 2002-03

Regulation

IEGC-Feb 2000

ABT Ord er-Jan2000

Open Access-May-2004

PX Guidelines Feb .07

Co nnec tivity, LTA, MTOA - Aug-09UI Regulations Mar-09

Rea l time Co nge stion reg . De c -09

Pow er Ma rket reg. Jan-10

Nationa l Elec tric ity Policy

12-Feb-2005, Para 5.7.1(d)

Legislation

Ind ian Elec tric ity Ac t 2003

ENABLERS

Medium-term Bilateral

Intra-day STOA

Long-term Bilateral

Sha red resourc es (ISGS)

Ow n resource s

Short-te rm Bilatera l

Day-ahead

First -c ome-first served

Three-month ahead

Day-a head PX

Balanc ing Mec hanism

Frequenc y linked

Unsc hed uled Intercha nge

STRUCTURE

Grid CodeFeb.2000

AncillaryMarket

Settlement System

2002-03

Open Access

2004

Power Exchange

2008

Evolution o f Power Market in Ind ia

Capacity

Market

Financial

Derivatives


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Market Design

IMBALANCES

CONGESTION

MANAGEMENT

ANCILLARY

SERVICES

SCHEDULING

&DISPATCH

ELECTRICITY MARKET

Making Competition Work in Electricity ,

Sally Hunt

Four Pillars of Market Design


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UI mechanism

Maximizes soc ial we lfare Transparent, neutra l & rigging proof

Diffuses ma rket pow er

Ult imate open ac cess

Fac ilita tes reforms in the sec tor

Encourag es trad e and bilateral exchanges

Fac ilitates exc hanges (arbitrage ) between reg iona lpower pools

Power market in India

Physica l, Financ ialPhysica lTrad ing8

Long-term: po sta ge sta mp

Short-term b ilate ral: Contrac t p ath

Collective: Point of co nnec tion

Weekly

15- minute time bloc k

Frequenc y-linked UI

Soc ialized ,

Paid in kind

Energy only

Coordinated planning

India

Zonal / NodalTransmission

charge

7

Settleme nt c ycle6

Hourly / half hourlySettlem ent p eriod5

Explicit mktBalancing4

SO p rocu resLosses3

Cap ac ity, Energy

Ancillary

Market2.

Ma rket o rientedTran s. Infra struc tu re1.

InternationalDimensionS No


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Definition of Control Area (IEGC)

an elec trica l system bounded byinterconnections (tie lines), metering and

telemetry which controls its generation and / orload to maintain its interchange schedule with

other control areas whenever required to do soand c ontributes to frequenc y regulation of thesync hronously operating system

Control Area

Source: NERC Control Area Concepts and Obligation, July 1992


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Open Access in Other Areas

Resea rc h p ub lic a tions, pa pers, books,journals

Area s of Na tura l Monop oly e.g .

Gas Pipeline

Oil Pipeline, Sto rage

Communication network

DEFINITION OF OPEN ACCESS INTHE ELECTRICITY ACT, 2003

The non-disc rimina tory p rovision fo r the use of

transmission lines or distribution system orassoc ia ted fac ilities with suc h lines or system byany licensee or consumer or a personengaged in generation in accordance withthe regulations specified by the AppropriateCommission


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Func tions of CTU

38(2)(d) to provide non -d isc riminatory openaccess to its transmission system for use by-(i) any licensee or generating c ompany on

payment of the transmission cha rges; or

(ii) any consumer as and when such op en a c c ess isprovided by the Sta te Comm ission under sub-sec tion (2) of sec tion 42, on p ayment of thetransmission cha rges and a surcha rge thereo n,

as ma y be spec ified by the Central Com mission:Similar provisions in Sec . 39(2)(d ) for STU and

Sec .40(c )fo r transmission licensee

Duties of Distribution Licensee andOpen Access

42 (2) The Sta te Commission sha ll introd uc e o pen ac c essin suc h phases and sub jec t to suc h c ond itions,(inc lud ing the c ross subsid ies, and other op erationa lc onstra ints) as ma y be spec ified within one year of theapp ointed da te by it and in spe c ifying the extent ofop en ac c ess in suc c essive phases and in d ete rminingthe c harge s for wheeling, it sha ll have d ue rega rd to a llreleva nt fa c tors inc luding suc h c ross sub sidies, andother op erationa l co nstra ints:

Provided that such op en a c c ess sha ll be a llow ed onpa yment o f a surc harge in add ition to the c harge s forwhee ling as ma y be determined by the StateCommission:


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Open Access

in Inter-Sta te Transmission

Short-term open access granted dep endingupon Inherent d esign m argin Ma rg ins ava ilab le due to va ria tions in power flow s

Ma rgins ava ilab le d ue to in-built spa re transmissionc apa c ity c rea ted to c ate r to future loa d g rowth

Total Transfer Capability

Voltage Limit

Thermal Limit

Stability Limit

Total Transfer Capability

Total Transfer Capability is the minimum of the

Thermal Limit, Voltage Limit and the Stability Limit

Time

Power

Flow


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Intra-day STOA

Day-ahead STOA

Collective (PX) STOA

First Come First Served STOA

Advance Short Term Open Access (STOA)

Medium Term Open Access (MTOA)

Long Term Open Access (LTOA)

Reliability Margin (RM)

TTC ATC

RM

Total & Available Transfer Capability

Transmission Capac ity vs Transfer Cap ability

Transmission Capac ity Transfer Capab ility

1 Is a physica l p roperty in iso la tion Is a co llec tive behaviouro f a system

2 Depends on design only Depends on design, topology, systemcond itions, ac c urac y of assump tions

3 Deterministic Probab ilistic

4 Consta nt und er a set of c ond itions Alw ays va rying

5 Time independent Time dependent

6 Non-d irec tiona l Direc tiona l

7 De term ine d d irec tly b y d esig n Estim ate d ind ire ctly using sim ula tio nmodels

8 Dec lared by designer/ manufac turer Dec lared by the Grid Opera tor

9 Understood by a ll Frequently misunderstood

10 Considered unambiguous & sacrosanct Subject to close scrutiny by allstakeholders


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Total Transfer Capability a s defined in the

Congestion c harge regulations

Tota l Transfer Ca pability (TTC) means theamount of elec tric power that can be

transferred reliab ly over the inte r-control areatransmission system under a g iven set o f

op erating cond itions considering the e ffec t ofoc currenc e o f the worst c red ib le c ontingency.

Ava ilable Transfer Capability as defined in theCongestion charge regulations

Availab le Transfer Ca pab ility (ATC) meansthe transfer capability of the inter-control areatransmission system ava ilab le for schedulingcommercia l transac tions (through long termaccess, med ium term op en access and shortterm open a ccess) in a spec ific d irec tion,taking into ac count the network sec urity.Ma thematica lly ATC is the Tota l TransferCapability less Transmission Reliab ility Marg in.


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Reliability margin as defined inCongestion charge regulations

Transmission Reliab ility Margin (TRM) mea nsthe a mount of margin kep t in the tota l transfer

capability nec essary to ensure that theinterconnec ted transmission network is secure

under a rea sonable range of uncerta inties insystem cond itions;

Open Accessin Inter-State Transmission

Imp lemented w.e.f. 6-Ma y-2004 Revised Regulations w.e.f 1st April 2008 Further amend ment w.e.f. 15th June 2009 Products

Monthly bilateral Ad va nc e First Co me First Serve

Day ahead bilateral

Co llec tive Transac tions throug h Pow er Exc hange

Intra d ay bilateral

Permits usage of spa re transmission c apac ity throug ha transparent p roc ess

Offers c hoic e and freed om to b uy & sell power


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CERC Open Access Regulations, 2008

Effec tive 01.04.2008

Reg ulations cover Short- term Open Ac cess

Transac tions categorized as Bilateral and Collec tive

(throug h Power Exc hange)

Earlier Produc ts of Short-Term reta ined under Bilatera l

Transac tions

Noda l Agenc y

Bila teral : RLDCs

Collec tive : NLDC

Transmission Cha rges moved from Contrac t Path to Point of Connec tion for Collec tive Transac tion

CERC Open Access Regulations, 2008

Both Buyers and Sellers of Co llec tive transac tions tobea r transmission charges and absorb transmissionlosses

Inter-Reg iona l links -No Separate treatment.

Emphasis on Sc heduling rather than Reservation SLDC consent manda ted a long with application In case o f Congestion e-Bidd ing without Price Cap Exit Option provided with pa yment of up to 5 da ys

open ac cess charges. Transmission Charges collec ted shall be disbursed to

CTU(25%) a nd long term custom ers(75%)

Moving towards empowerment of SLDCs


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Thrust on Empowerment o f SLDCs

SLDC Concurrenc e [Clause 8(2)] NOC/ Stand ing Clearanc e to be ob tained by State

Utilities/ Intra-Sta te Ent ities from the SLDC for trad ingthrough PX

SLDC to respond within 3 da ys

SLDCsmay cha rge approp ria te fee for such

NOC/ Sta nd ing Clea ranc e (as per SERC or Rs. 5000 ifno t notified by SERC)

Provision o f deemed c onsent

Open Access Regulations, 2008:Provisions For Collec tive Transac tions

Open Ac c ess ChargesBila tera l Transact ions Collect ive

Transac tions

Nodal Agency Rec ip ient RLDC NLDC

App lica tion Fee nonrefundable

Rs.5000/ - Rs.5000/ -

Scheduling Charges Rs. 2000/- each RLDCs

involved

Rs. 5000/- for each

Reg iona l Entity to NLDC(inclusive of

RLDC charges)

Transmission Charges* Rs.80/- per MWh in case ofintra-region

Rs. 160/- pe r MWh in c ase o fad jacent regions

Rs.240/- in ca se o f wheelingthrough other region

*25% - to b e retained b y CTU

Balanc e 75% to be disbursed

to Long Term Custome rs

Rs.100/ - per MWh

bo th Buyer and Seller

*25% - to b e retained b yCTU

Balanc e 75% to bedisbursed to Long TermCustomers


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Open Access in Inter-stateTransmission Regulations, 2008

Short Title, Commencement and Application

Definitions

Scope

Detailed Procedure

Noda l Agency

Submission of Short Term Open AccessApplication

Open Ac cess in Inter-state Transmission

Regulations, 2008 (Contd.)

Application Fee

Conc urrenc e of State Load Despatch Centrefor bilateral and c ollec tive transac tions

Proc edure for Advance Scheduling forbilateral transac tions

Congestion management

Proc edure for scheduling of bilateraltransac tions on first-come- first-served basis


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Proc edure for scheduling for day-aheadtransactions

Proc ed ure for scheduling of transac tions in

a c ontingency

Revision of Schedule

Curtailment in c ase of transmission

constraints Transmission Charges

Operating Charges



Payment of transmission c harges andoperating charges

Default in payment of open ac cess charges

Unscheduled Inter-c hange (UI) Charges

Rea c tive Energy Charges

Spec ial Energy Meters

Transmission losses

Comp lianc e of Grid Code


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Collection and Disbursement of transmissioncharges and operating c harges

Redressal Mec hanism

Information System

Savings and Rep ea l

Compa rison o f CERC Reg ulations on Short-Term Op en Ac c ess(Reg ulation 2004, Amendm ent 2005 and Reg ulations 2008))

Retention by CTU

a. Intra Regio nal - 25% of

Charges Collec ted

b. Inter Regio nal - 12.5% of

Charges collected

c. Balanc e d isbursed to States

Transmission Charg es

a. Intra Regio nal 25% of LongTerm Cha rges

b. Inter-Regio nal - 50% of

Long Term Cha rges

Amende d Regulations

(w.e.f. 01.04.2005)

Rete ntion by CTU

- 25% by CTU

- Balanc e 75% to b e d isbursed toStates

Transmission Cha rges: Bilate ral:

- Rs.80/ MWh intra- regiona l

- Rs.160/ MWh Betwe en a dja ce nt

regions

- Rs240/MWh Wheeling th rough

one or more region

Collec tive Transactions (Px):

-Rs. 100/MWh for eac h po int ofinjection and drawa l

Reg ulatio ns, 2008

(w.e.f. 01.04.2008, am ende d in2009)

Retention b y CTU

a. Intra Regiona l 25% of

Charges collected

b. Inter Regiona l 25% of

Charges collected

c. Balanc e d isbursed to States

2.

Transmission Charges

a. Intra Regio nal 25% of

Long Term Cha rges

b. Inter Regio nal 25% of

Long Term C harge s

1.

Old Reg ulation s

(06.05.2004 to 31.03.2005)

S. No.


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Open Acc ess Duration

- Up to Three Months m ax.

- single applic ation possible

RLDC Cha rges

a. Applic ation fee Rs. 5000/ -

b. Sche duling Charges

Rs. 3000/ da y for e ac h RLDCinvolved

c. Handling & Service Cha rges

Nil


Bilateral

-Up to 3 m onths

- separate app lication for eac hmonth

- Collective:

- Only Day ahea d

RLDC Cha rges :

Bilateral:


b. Sche duling Charges Rs. 2000/d ay for ea ch RLDC

involved

c. Handling & Service Cha rges

Nil

Collec tive Transactions:

a. Ap plic ation fee Rs. 5000/ -

b. Sche duling Charges

Rs. 5000/ da y to NLDC for ea chState invo lved

-NLDC to Share with RLDCs


- Up to One year maximum

- single app lication possible

4.

RLDC Charges


b. Sched uling Charges

Rs. 3000/da y for ea c h RLDCinvolved

c. Handling &Service Cha rges

- 2% of total charges

3.

Rate

-in Rs/ MWh

- Based on Scheduled

Energy

ST Rate

- in Rs./MW/ Day

-Charge s as per c ontinuous

bloc k of upto 6 hours, 12

hours and more than 12 hours

ST Rate

- in Rs/MW/Day

- Min. Charges for one

da y

5.

Congestion Management

- E-Bid with price c ap


Bilateral:- E-Bid without p rice cap

Collective:

- NLDC in coo rdination with

Px


- E-Bid without price cap

6.


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Time Line For Open AccessM 1 M 2 M 3 M 4

DL

DL

-5DL

-10 DL

+5 DOP

DOP

-1

DOP

-4

AdvApplication

for M2

Ad vApplication for

M3,

Approvals for

M2

Ad v

Application forM4,

Approvals for

M3

Approvals for

M4

FCFS

Day Ahead /

PX LEGEND:

DOP : Day of OperationDL : Last day of M1

New Op en Ac c ess Reg ulations w.e.f.01-April-2008

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

MAY'04

JULY'04

SEP

NOV'04

JAN'05

MARCH

MAY'05

JULY

SEP

NOV'05

JAN'06

MARCH

MAY'06

JULY

SEP

NOV'06

JAN'07

MARCH

MAY'07

JULY

SEP

NOV'07

JAN'08

MARCH'08

MAY,08

JULY'08

SEP'08

Nov'08

Jan'09

Mrch'09

May'09

July'09

Sep'09

Nov'09

Jan'10

Mar'10

May'10

July'10

ApprovedEnergy(MUs)--->

Increasing trend of STOA - Approved Energy (MUs)


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0

200

400

600

800

1000

1200

1400

1600

1800

2000

MAY'04

JULY

SEPT

NOV'04

JAN'05

MAR

MAY'05

JULY

SEP

NOV'05

JAN

MAR

MAY'06

JULY

SEP

NOV'06

JAN

MAR

MAY'07

JULY

SEP

NOV'07

JAN'08

MAR

MAY,08

JULY'

SEP'08

Nov'08

JAN'09

MAR'09

MAY'09

JULY

SEP

Nov'09

Jan'10

Mar'10

Ma

'10

July'10

NO.OFTRANSACTIONS

Open Access-TOTAL TRANSACTIONS ( 2004-10)

Month -------->

2010 - 11

2006-07

2005-06

ENERGY APPROVED(MU) - (Nodal RLDC-NRLDC)

2008-09

2009-10

2007-08


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0

200

400

600

800

1000

1200

1400

1600

ApprovedEnergy(MUs)------>

Month -------------- >

2008

2007

2006

SOUTHERN REGION ENERGY APPROVED(MU)-Bilateral

2009

2010


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Types of Transactions- STOA (Bilateral)

Trade under Short-Term Open Ac c ess

17

23 24

3031

40

778

3938

5933

9560

11781

18128

0

5000

10000

15000

20000

0

5

10

15

20

25

30

35

40

2004-05 2005-06 2006-07 2007-08 2008-09* 2009-10*

NumberofTransa

ctions---->

Energy(BUs)----->

Volume of trade (BUs) No. of transactions

*Includes Bilateral + Collective transactions


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1 Licence has been surrendered in 2006-07,1 Licence has been cancelled in 2008-09

and 4 Licences have been cancelled in 2008-09


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OA Portfolio Of Punjab on 02.09.08

0

20

40

60

80

100

120

140

1 9 17 25 33 41 4 9 57 65 73 81 89Time Blocks

MW

0

10 0

2 0 0

3 0 0

4 0 0

500

6 0 0

700

8 0 0

9 0 0

1000

MW(Total)

UTTRL

H.P

H.P

H.P

J& k

CESC

CESC

ICPL

DSCLS

TPRA

TPRA

KEB

MPTCL

MPTCL

MPTCL

MPTCLSIKIM

TNEB

JPL

JPL

JPL

NGLND

TOTAL

Total MW

A typical day OA (Bilateral) schedule for

Punjab (02.09.2008) Tota l No. of Ap plic ations : 19

Direc t 1

Trad ers 18

RETL, PTC &LANCO -3ea c h, NVVL4,

TPTCL, Adani, JSW, Venergy 1 eac h

Availed Opportunities under Advanc e/ FCFS and Day ahea d product

All five reg ions NR (Uttaranchal, HP, J&K)

WR ( MP, JPL-Chhattishga rh)

SR ( Tam ilnad u, Kerala)

ER ( CESC-West Beng al)

NER(Tripura)

Time diversity gainfully utilised


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Illustration of a typ ical

Bilateral Transac tion

Injec ting Utility : SAIL Durgapur Steel Plant (DVC),ER

Drawee Utility : SAIL Bhilai Steel Plant (CSEB),WR

Quantum : 20 MW

DSP/ASP

CPP(2*60 MW)

DVC

ER ISTS

WR ISTS

CSEB

Seller

Co-ordination for Scheduling,

Settlement & System Operation by

Seam

Changes

SLDC-DVC

ERLDC

WRLDC

SLDC-Chattisgarh

BSP Buyer

NETWORK INVOLVED


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BSP2.466 Rs/kwh

WR ISTS

TSC+SOC=0.034 Rs

CSEB

TSC+SOC=0.034 Rs

DSP2.33 Rs/kwh

DVC

TSC +SOC =0.034 Rs

ER ISTS

TSC+SOC= 0.034 Rs

2.364Rs/kwh

2.398Rs/kwh

2.432Rs/kwh

Transmission & System Operation Charges

DSP

20MW

BSP

17.03MW

DVC

2.82% Loss

ER ISTS

3.5% Loss

WR ISTS

5.5% Loss

CSEB

3.93% Loss

19.44MW

18.76MW

17.73MW

Transmission Losses


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Scheduling of Collec tiveTransac tions Through Power

Exc hange

Salient Features of PX Implementation

Voluntary pa rt ic ipa tion

Da y a hea d

Energy only

Physic a l delivery only

Double sided bidding Hourly b ids

Uniform pric ing

Mult ip le exchanges

Congestion Ma nag ement using Market Splitting


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Background

CERC Reg ula tions on Open Ac c ess in inter-Sta teTransmissions, 2008 CTU to issue Deta iled Proc ed ure (Para 4)

Prior Approva l of Com mission

To c over relevant and residua l ma tters

CTU submitted d ra ft Proc ed ure on 12.02.2008

CERC Lette r (May 08) CTU to review and subm it revised Proc ed ure

CTU submitted revised Proc ed ure on 06.06.2008

CERC Ap proved the Proc ed ure on 13.06.2008

General

NODAL Agenc y (at Regional Level) - NLDC

All buyers within a State shall be c lubb ed to gether and a llsellers within a Sta te sha ll be c lubbed tog ethe r

Eac h group c onside red as a single entity for the p urpo se o fsc hed uling a nd o pe rat ing c harge s at Reg iona l Leve l

SLDC shall c ount ea c h po int of drawal / injec tion sep arately for

the p urpo se of Sc hed uling a nd o pe rating c harges In format ion Exchange

Dedica ted Communica tion Channel between NLDC and PX,NLDC and RLDCs

PX to ensure

Nec essa ry infrastruc ture for information exc hang e w ithNLDC/ RLDCs/ SLDCs

PX to indemnify all SLDCs/ RLDCs/ NLDC at all times


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Eligibility Conditions

Entities sc heduled by RLDCs Deemed Regional Entity

Entities whose me tering a nd e nergy a cc ounting d one b yRLDCs/ RPCs

New Entities

To Satisfy c ond itions

as laid d ow n in CERC Order 58/2008 da ted07.05.2008

Ob ta in Prior Approva l from RLDCs/ RPCs

Entities sc heduled by SLDCs SLDCs to assess TTC/ ATC for the ir Sta te system

Prior Consent from respec tive SLDCs

Standing Clearanc e / NOC

As pe r format in de tailed p roc edure

Scheduling Process - StepsInvolved

NLDC to ind ic a te list of interfac es/ c ontrol a rea s/reg ions likely to fac e c ong estion, if any

Pow er Exc hange to submit flow s on interfac es,c ontrol a rea s, reg ions based on unc onstra ined

solution. NLDC sha ll c hec k provisiona l solution for c ong estionat any of the interfac e/ c ontrol area / reg ions.

In c ase o f cong estion, NLDC sha ll intima te to Pow erExchange Dura tion (Time bloc ks) d uring which c ong estion is there

Ava ilab le Ma rgins on d ifferent t ransmission system duringthe pe riod of c ong estion


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Scheduling Process - StepsInvolved

Pow er Exc hange to honour a ll the constra ints andsend Request for Sc heduling of Collec tiveTransac tion

NLDC will onc e a ga in chec k if the c onstra inedsolution is within the marg in intima ted

NLDC w ill send the file to RLDCsfor sc hed uling .

NLDC shall inform Power Exc hang e ab outac c ep tanc e of the Sc heduling Req uest.

Pow er Exc hange to send files d irec tly to the SLDCs

for sc heduling (intra-sta te entities/ sta te utilities) withde tailed brea k up o f eac h po int of injec tion a nddrawal.

N L D C

Power Exchange

NRLDCSRLDC WRLDC ERLDC NERLDC

Information

exchanged over

leased line between

NLDC and PX

Constituents ConstituentsConstituentsConstituentsConstituents

SLDCs

Final Trade Results for

State Utilities & Intra State

Entities to be sent by PX

directly to SLDCs

Information Exchange

ProvisionalSolution

Requestfor

Scheduling


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Time Line for scheduling of Collec tive Transac tion

10:00 14:0018:00

12:00

Market

Participants toplace their Bid

PX to send Scheduling

Request to NLDC basedon margin specified by

NLDC/SLDCs

RLDCs/SLDCs to

incorporateCollective

Transactions in

the Daily

Schedule

PX to sendprovisional

unconstrainedsolution to

NLDC and flow

on TS as

informed byNLDC

13:00 17:30

NLDC to check

for congestion.In case of

congestion shall

intimate PX

regarding to the

period forcongestion and

available

margins

15:00

NLDC to

confirmacceptance.

PX to send files

to SLDCs for

scheduling

16:0017:00

NLDC tosend detailsto RLDCs for

scheduling

RLDC toconfirm

to NLDC

SUBMISSION/ PROCESSING OFAPPLICATION

App lication for sc heduling : Format-PX-II Summ ary o f Collec tive Transac tion

Declarations

Scheduling Request : Forma t- PX-III Each Region

IR c orrido r At Regional entity Periphery

Other Bid Area , Sub-Bid Area if required .


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FOR COLLECTIVE TRANSACTION

Both Buyers and Sellers to absorb losses Buyer

draw less than Contrac ted Power(Co ntrac ted Pow er losses)

Seller

injec t more than Contrac ted Powe r(Co ntrac ted Pow er + Losses)

Average Transmission Losses of the Reg ionwhe re the Entity is geographic a lly loca ted

Ad d itiona l Losses for Wheeling , if nec essary To b e notified in ad vanc e b y NLDC Only for Injec tion

Real Time CongestionManagement

During Transmission Constra int Curtailment to relieve the transmission co nstraint

Curtailment by - NLDCs/ RLDCs At Reg ional Entity Periphery

Within State bo undary SLDCs to d ec ide

Refund in Case of Curtailment Pro-ra ta ( only Transmission Cha rge)

Sett lement Direc tly betw een PX and Partic ipa nts

No Role o f NLDC/ RLDCs


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COMMERCIAL CONDITIONS

All Open Acc ess Charges known upfront

Applica tion Fee Rs. 5000/ - per Applic ation Payab le along with the ap plica tion

Transmission Charge For ISTS Rs.30/MWh to NLDC

For State Network - direc tly to Sta te

Opera ting Cha rge Rs. 5000/ per transac tion to NLDC ( for All RLDCs) Buyers & Sellers in a Sta te to be c lubbed sep arately

Eac h Group to b e c ounted as One Transac tion b y NLDC Eac h point of injection and d rawal to be c ounted sepa rately by

SLDCs Payment by PX to NLDC By next working da y

To NLDC for use of ISTS Elec tron ic Transfer


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Congestion Management in PX

Skewed Load-Generation Balance

SR

ER+NER

WR

NR

Scenarios:

1. 4S

2. 3S + 1D

3. 2S + 2D

4. 1S + 3D

5. 4D

SKEWED LOAD GENERATION BALANCE


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FLOWGATES

Types of congestion in Indiancontext

3 / 2 / 1 month (s) ahead advance

First c om e first served

Day ahead PX

Day ahead b ila tera l

Contingenc y transac tion

Rea l time


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Reasons for congestion in India

Fuel / resources related c onstra intsLong haulage of power

Physica l network limitations

Fast growing network, transition, mismatc h

Inad equate c omp liance to reliab ility standards

Inadeq uacy in Safety net

Market Design/ Interp lay and behavior ofplayers

Causes of congestion

Inadeq uate transmission including outages

Inadequate react ive support

Weather diversity, seasonal dema nd va riation

Skewed g eneration availab ility monsoon, planned / force d outage s

Uneven p urc hasing p ow er of utilities in a shortage sc ena rio

Com pulsion to me et load at a ll c osts (ag ric ulture, festival, elec tionetc .) Aggressive buying

Eco nomy (chea per generation to replace c ostlier generation)

Inflated sale / purcha se requirement Pseudo co ngestion

Inter play with UI mec hanism Bids ba sed o n anticipa ted UI pric e


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Congestion visible to the market

Congestion does not nec essarily me an tha t Load is not being met

Generation is not being evac uated

Congestion imp lies tha t an ent ity willing to p ay isnot a ble to a c c ess c heapest sourc e o f power

Existing transmission system was no t p lanned withshort -te rm open a c c ess in mind

Congestion Sign of g rowth a nd vibrant market

Natural corollary to Op en Acc ess

Congestion Management: BidArea

North-East

North-East

East

East

South

South

West

West

North

North

Region

AS, AP, NAGAA2

TRIP, MEGH, MA NI,

MIZO

A1

ORISSAE2

WB, SIK, BIH, JHARE1

TN, KER, PONDYS2

AP, KAR, GO AS1

MAH,GUJ, GOA,

DD,DNH

W 2

MP, CHTGW 1

RAJ,DEL, UP, UTTN2

JK, HP, CHD, PUN,HAR

N1

StatesArea


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Discovery of Multip le Prices &Interplay

Prices d isc overed in Pow er Exc hange Reflec tion o f a ntic ipa ted de ma nd-supp ly po sition for the next

day

Mult iple Pric es

Co llec tive Transac tions:

Two price s one for eac h exchange

Two Grids two UI Pric es

In ca se of c ong estion, ma rket split

Area prices Mult iple exchanges

Congestion Management in

Multi Exchange Scenario


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Multiple Power Exc hangeOperation

First Pow er Exc hange : 27th June 2008 Indian Energy Exc hang e

Promo te rs Financ ial Tec hnolog ies (Ind ia) Ltd ., MCX, PTC.

Sec ond Power Exc hange : 22nd Oc tober 2008 Pow er Exc hange of Ind ia (PXI):

Promoters NSE, NCDEX

Third Pow er Exc hange in the offing Promoted by NTPC, NHPC, TCS

Congestion Management in MultiExc hanges Scenario (1)

ISSUE: Sha ring of ava ilab le margins

Methods:

Priority Based Rules

Lowest MCP

Highest MCV

Highest MCP X MCV

Ma ximiza tion of Soc ial Welfare, co nsume r surplus, etc .

May not lead to an overall economy


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Congestion Management in Multi

Exc hanges Scenario (2) Exp lic it Auc tioning amongst Exchanges

Inter-dep end enc ies in the Indian sc ena rio

Diffic ult to imp lement

Merging of bids ob tained b y each PowerExchange

Equiva lent to system op erato r interfac ing w ith onlyone Exc hange

Confidentiality issues

Congestion Management in MultiExc hanges Scenario (3)

Pro ra ta ra tioning o f ava ilab le margins

Simp le to imp leme nt

Sub-op tima l method

Possib ility of over-estima tion of c apac ity

Further c omplic a tions Arising out of inter-de pe nde nc ies in the Indian sc ena rio


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Implementation in India

Worldwide, one Power Exchange dea ling w ithphysica l delivery in one market

Pro-ra ta sharing of a vailab le ma rgins

App lied on c lea red trad e volumes on ea c h areaand each co rrido r

Interim arrangement

Debate on for a m ore op tima l method

Case Study

No c ongestion till onset o f severe w inter Oc c asional c ongestion after 12th Dec 08

Fog gy cond itions in Talcher area

Case of 12th Dec 2008 Period of Co nge stion: 0500 0600 Hrs

Conge sted Co rrido r: Tota l imp ort to SR TTC to SR red uc ed from 4000 MW to 3600 MW

Tota l provisiona l req uisition : 1430 MW

Tota l trad es c lea red : 1091 MW

Ma rket sp lit into NEW Grid and SR Grid

MCP [IEX web site ]: NEW Grid: Rs. 4.80 pe r kWh SR Grid: Rs. 6.00 per kWh

Co st of Transmission d isc overed Rs. 1.20 pe r kWh


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Transparency - Information Sharing

Informa tion d issemination throug h web sites Ava ilab le Transfer Ca pability (ATC) -3 months

ahead

Past & Current Transac tions

Injec tion & Drawa l Schedules

Un-requisitioned Surp lus

Freq uency Trend

Urgent market informa tion unit tripp ing, loa dc rash, contingenc ies

52 week ISTS pooled losses

Proc ed ures for capac ity reservation

STOA Encouraging fac ts

Transac tions between extreme c orners of thecountry Kerala to Punjab

Naga land , Arunac hal, Tripura to Ma harashtra, UP

Most of the States pa rtic ipa ted.

Ma rket Players Simultaneous Buy & Sell on sameday Delhi Buy in Pea k, sell in off-pea k

Transac tions from few MW to hundred s of MW 2 MW (JP Cem ent Rewa ,MP JP Ceme nt, Ayodhya,UP)

800 MW (BSES Ra jdha ni to UP)

Surp lus during Weekend / Holidays utilised Bud ge-Budge o f CESC : Nat iona l Awa rd for PLF of 99.6% in

2005-06

Imp roved performa nce of Generating Plants Diversity be ing g a infully utilized


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STOA Success Story

Developed in consultation with a ll stakeholders Applications Processed (Since Beg inning) > 25,000 No.

Volume (Approved Energy) (Since Beg inning)> 100BUs

App lications Approved > 95 %

Refusal/ Non-consent by SLDCs > 3 - 4 %

Refusal due to system c onstraints < 0.5 %

Curtailment in real time < 1%

Near Dispute free implementation

Log istics/ infrastructure - In-house

Confidenc e Building & Dissemination of knowledge

Open Ac cess: Key Suc cess Fac tors

Control area dema rc ation & b ounda ry metering

Robust transmission system

Assessment o f Transfer Ca pab ility

Balancing mechanism

Methodology for transmission c harge sharing

Trea tment of transmission losses

Streamlined scheduling and settlement mec hanism

Transpa renc y and non -d isc riminatory imp lementa tion

Comp liance

Dispute red ressa l mec hanism

Congest ion management


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Typ ical Rea sons for Denial Of Open Ac c ess

Ba lancing Mechanism

Consent by STU/ SLDC

Teleme try

Metering

Sc heduling

Func tiona l Autonomy of SLDC

PPAs

Connec tivity, Long Term Ac cess

and Medium Term Open Access


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Connec tivity to ISTS

Generating stations/ CPPs of exportab lecapac ity > 250 MW

For Bulk consumer > 100 MW

CTU to p lan lines for connec ting TPS > 500

MW and HPS > 250 MW

Tripartite a greement for c onnec tivity withother ISTS licensee

Comp liance w ith CEA (Tec hnica l Standardsfor Connec tivity to Grid ) Regula tions

Provisions relating to LTA For 12-25 yea rs

Flexibility of app lying be fore c ontac t is firmed up

Bank guarantee to a void frivolous ap plic ations

Grant of LTA identif ic ation of augm entation,

estima ted transmission c ha rges Flexib ility to extend term or to relinquish ac c ess

subjec t to payment of compe nsa tion

Compensa tion to be used for red uc ing transmissioncharges


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Provisions relating to MTOA

No system augmentation App lica tions for longer term have higher

priority

Informa tion to RLDC and SLDCs on g rant of

MTOA

Dedicated line may be constructed by

applicant a t its own cost & risk

No overrid ing p reference for renewal Exit option by giving advanc e notice

Challenges ahead.

Designing Ma rket tha t c omp lements Reliability Foc us on Reliab ility o f physica l system

Adeq uac y, Sec urity, Depend ab ility

System Op eration A fac ilitator for an Efficient Elec tric ityMarket

Empowering SLDCs Market Mec hanism System

Deployment of technology

Automa tion, Information excha nge

Rap id g rowth Harmonization

Jurisdiction

Capac ity bu ild ing Inc lusive, susta inab le, b roa d based

Huma n Resourc e

Anc illary, Capa c ity, Derivatives


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Expec tations

Focus on reliab ility of the p hysica l system

Designing markets tha t complement reliab ility

System Operation an imp ortant function Alloc a tion of resourc es

Automation

Cap ac ity building

Grid sec urity comes before Economics No ec onomic theory, no leg isla tion, no reg ula tion

c an rep ea l the Laws of Physic s

Learning's from the experience

Revision o f Sched ules Contrac t Options

Evils of Pro-rata

No Show Use it or loose it

Beha vior of Ma rket Partic ipants changes withMa rket Rules

Sing le part Vs Multi-part sett lement

Separa tion of Content and Carriag e


48/49

Market Development

Spot/Auction Mkt

OTC Markets

IndividualB & S

Exchanges

Time

Market

Maturity

Derivatives

Issues .

Transmission Pric ing

Transmission Losses

New Actors in the ma rket Aggrega tors

Professiona l Members

Changing Role o f Traders

Energy to Capa city

Capac ity Market

Issues

Right time


49/49

Larger t he footprint Larger the com plexities involved.

Thank you

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13 - S S Barpanda - Open Access in Inter-State Transmission

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