NEWS AND INFORMATION IEX Bulletin OCTOBER'17 ISSUE 10 | VOLUME 4 ISO 9001:2008, 27001:2013, 14001:2004 www.iexindia.com | 01 IN THIS ISSUE... PAGE REGULATORY NEWS BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 01 DERC proposes amendments in Open Access Regulations, 2017 BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 01 DERC issues Tariff Order for FY 17-18 BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 03 KERC proposes amendment in OA Regulation, 2004 and Tariff Regulation BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 03 Discoms file petition in KERC for Additional Surcharge determination BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 04 Schemes for renewable Energy in France PAGE MARKET NEWS - SEPT'17 BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 05 Electricity Market Update BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 06 REC Market Update BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 06 ESCert Market Update PAGE TRADE INFO BULLETIN LLET IEX IEX LETIN IEX IEX IEX IEX IEX IEX IEX IEX BULLETIN BULLETIN BULLETIN IEX BULL BULLETIN LL BULL BULL 07 Trade Data: September’17 REGULATORY NEWS DERC proposes amendments in Open Access Regulations, 2017 DERC has proposed the Draft DERC (Terms and Conditions for Open Access (First Amendment) of Regulations, 2017 and amendment in the Order for Determination of Open Access Charges and related matters. A brief of the proposed amendments is as follows: The Medium Term Open Access (MTOA) has been introduced. The Regulations define MTOA from 1-3 years. Inter-State Open Access has also been recognized by inclusion of suitable provisions in the amendment. In case of Inter-State OA, condition of prior consent has to be taken from concerned SLDCs and distribution licensees, as applicable. The DERC has also proposed amendments in OA charges in its Order dated 01.06.2017. The key amendments proposed are as below: The OA consumer shall also be liable to pay any other surcharge as applicable to embedded consumers of the distribution licensee at the rate specified in the applicable Tariff Order. For the purpose of computation of Surcharge, the distribution licensee shall treat the total power consumption of the OA consumer as if taken from the distribution licensee. As per Tariff Schedule applicable w.e.f. 01.09.2017, surcharge of 8% towards recovery of past accumulated deficit and 3.70% towards recovery of pension trust charges of erstwhile DVB employees/pensioners shall also be payable by OA consumers. More information: www.derc.gov.in DERC issues Tariff Order for FY 17-18 DERC has issued Tariff Orders for FY 17-18 for BRPL, BYPL, TPDDL Discoms. The Order shall be effective from 01.09.2017. The brief highlight of the orders is as follows: Tariff Consumer Category Fixed Charges ( `/kVA/Month) Energy Charges ( `/kVAh) FY 16-17 FY 17-18 Increase/ Decrease FY 16-17 FY 17-18 Increase/ Decrease Non-Domestic High Tension (NDHT ) 11kV and above 125 130 5 8.4 8.4 0 Industrial Power on 11 kV Single Point Delivery Group of SIP Consumers 90 110 20 7.1 7.1 0 Large Industrial Power (LIP) 11 kV and above 125 130 5 7.4 7.4 0 There are no changes in Energy Charges. A separate Tariff category has been created for Charging Stations for E-Rickshaw/E-Vehicle with Tariff at flat rate of ` 5.50/kWh @ LT.
Transcript
N E W S A N D I N F O R M A T I O NIEX Bulletin
OcTObER'17 ISSUE 10 | VOlUME 4
ISO 9001:2008, 27001:2013, 14001:2004
www.iexindia.com | 01
In thIs Issue...
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01 DERC proposes amendments in Open Access Regulations, 2017
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03KERC proposes amendment in OA Regulation, 2004 and Tariff Regulation
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04 Schemes for renewable Energy in France
PAGE MARkET NEWS - SEPT'17
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06 REC Market Update
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06 ESCert Market Update
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REGUlATORY NEWSDERc proposes amendments in Open Access Regulations, 2017DERC has proposed the Draft DERC (Terms and Conditions for Open Access (First Amendment) of Regulations, 2017 and amendment in the Order for Determination of Open Access Charges and related matters. A brief of the proposed amendments is as follows:
� The Medium Term Open Access (MTOA) has been introduced. The Regulations define MTOA from 1-3 years.
� Inter-State Open Access has also been recognized by inclusion of suitable provisions in the amendment.
� In case of Inter-State OA, condition of prior consent has to be taken from concerned SLDCs and distribution licensees, as applicable.
The DERC has also proposed amendments in OA charges in its Order dated 01.06.2017. The key amendments proposed are as below:
� The OA consumer shall also be liable to pay any other surcharge as applicable to embedded consumers of the distribution licensee at the rate specified in the applicable Tariff Order. For the purpose of computation of Surcharge, the distribution licensee shall treat the total power consumption of the OA consumer as if taken from the distribution licensee.
� As per Tariff Schedule applicable w.e.f. 01.09.2017, surcharge of 8% towards recovery of past accumulated deficit and 3.70% towards recovery of pension trust charges of erstwhile DVB employees/pensioners shall also be payable by OA consumers.
More information: www.derc.gov.in
DERc issues Tariff Order for FY 17-18DERC has issued Tariff Orders for FY 17-18 for BRPL, BYPL, TPDDL Discoms. The Order shall be effective from 01.09.2017. The brief highlight of the orders is as follows:
Tariff
Consumer Category
Fixed Charges (`/kVA/Month)
Energy Charges (`/kVAh)
FY 16-17
FY 17-18
Increase/Decrease
FY 16-17
FY 17-18
Increase/Decrease
Non-Domestic High Tension (NDHT) 11kV and above
125 130 5 8.4 8.4 0
Industrial Power on 11 kV Single Point Delivery Group of SIP Consumers
90 110 20 7.1 7.1 0
Large Industrial Power (LIP) 11 kV and above 125 130 5 7.4 7.4 0
� There are no changes in Energy Charges.
� A separate Tariff category has been created for Charging Stations for E-Rickshaw/E-Vehicle with Tariff at flat rate of ` 5.50/kWh @ LT.
The Commission has imposed penalty for past unmet RPO of Discoms at 10% of the total cost of unmet RPO.
Average Cost of Supply (`/kWh)
Average Cost of Supply (`/kWh)
BRPL BYPL TPDDL
7.35 7.24 7.63
Average Power Purchase Cost (`/kWh)
Average Power Purchase Cost (`/kWh)
BRPL BYPL TPDDL
4.02 3.40 4.23
Surplus Power: The commission has approved the total sale of surplus power at `3.00/kWh
Net Surplus Power (MU)BRPL BYPL TPDDL
481.91 433.97 825.03
More information: www.derc.gov.in
www.iexindia.com | 03
kERc proposes amendment in OA Regulation, 2004 and Tariff Regulation
On 15.09.2017, KERC has proposed 4th amendment to Open Access Regulations, 2004 and 3rd amendment to Tariff Regulations. Both the regulations have been amended to adopt formula of determination of Cross Subsidy Surcharge (CSS) as provided in National Tariff Policy 2016.
The amendment primarily proposes that, the OA consumer shall be liable to pay CSS from time to time as determined by the Commission. The consumer who is permitted open access through the transmission/distribution network of shall pay to the Distribution Licensee in whose area the consumer is located, a CSS as per the following formula.
S = T - [C/ (1-L/ 100) + D+ R]
Where;
S is the surcharge;
T is the tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation
C is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation
D is the aggregate of transmission, distribution and wheeling charge applicable to the relevant voltage level
L is the aggregate of transmission, distribution and commercial losses, expressed as a percentage applicable to the relevant voltage level
R is per unit cost of carrying regulatory assets.
The surcharge shall not exceed 20% of the tariff applicable to the category of the consumers seeking open access.
More information: www.karnataka.gov.in
Discoms file petition in kERc for Additional Surcharge determination
The distribution companies in Karnataka i.e. BESCOM, MESCOM, HESCOM and CESC have filed petitions in KERC for determination of Additional Surcharge (AS) to be levied on OA Consumers.
The petition states, based on the projected growth, the distribution companies are tied up with considerable quantum of power after approval of the Commission whereas on the other hand the OA users who are now buying considerable quantum under OA are not availing power from the distribution companies. As a result, the generation capacity tied up with distribution companies remains idle. The distribution companies needs to back down the generation and also pay the fixed charges to the generators as per the terms and conditions irrespective of utilization.
Therefore to mitigate this burden, an appropriate AS shall be levied on the OA consumers. The supply companies have proposed a methodology for computation of AS, following is the brief of it:
� Computation of the power availability based on the contracted capacity, and the power requirement based on the demand projection approved for consumers of distribution company.
� Estimation of back down capacity and volume based on the MOD principle to be made applicable for optimum utilization of the resources.
� Estimation of OA capacity (in MW) and volume (MU).
� Estimation of the fixed charges obligation due to the backed down capacity on the distribution companies.
� Calculation of the Fixed Charges obligation due to OA capacity resulting in the assets being stranded, on pro-rata basis.
Based on it BESCOM & HESCOM has proposed AS @ 1.00 `/Unit and CESC and MESCOM, have proposed AS @ 0.63 `/Unit. The Commission has solicited comments from stakeholders and is in the process on hearing the matter.
More information: www.karnataka.gov.in
04 | www.iexindia.com
Schemes for Renewable Energy in France
For France to achieve the target of producing 23% of its energy from renewable source by 2020, the European Commission has approved four schemes to support electricity production from onshore wind and solar on buildings and on the ground in France under EU state aid rules. This will allow France to develop over 7 GW of addition energy through renewable sources.
The support schemes for medium and large-scale solar and for onshore wind power will help France in its transition to a low carbon, environmentally sustainable energy supply and will help the EU reach its environmental objectives. Brief of the schemes are as below:
� An onshore wind support scheme which will grant support to 3 GW of additional capacity over the next three years, taking the form of a premium on top of the market to the operators.
� A solar support scheme for large-scale photovoltaic installations on buildings.
� A solar support scheme for large-scale photovoltaic installations on the ground. The tender will grant support for up to 3 GW of additional capacity.
� A support scheme for 200 megawatts of additional capacity, available to both onshore wind and solar installations not exceeding 18 megawatts.
Each scheme provides for a bonus to local projects or local participation in projects. The four schemes are accompanied by a detailed evaluation plan to assess their impact.
Source: www.europa.eu
Tips for Energy conversation for Industries
THERMAl UTIlITIES Boilers
� Preheat combustion air with waste heat (22 0C reduction in flue gas temperature increases boiler efficiency by 1%)
� Use variable speed drives on large boiler combustion air fans with variable flows
� Burn wastes, if permitted
Steam System � Fix steam leaks and condensate leaks (A 3 mm diameter hole on a pipe line carrying 7 kg/cm2 steam would
waste 33 kilo liters of fuel oil per year)
� Use back pressure steam turbines to produce lower steam pressures
� Use more-efficient steam DE superheating methods
Furnaces
� Check against infiltration of air: Use doors or air curtains
� Monitor O2 /CO2/CO and control excess air to the optimum level
� Improve burner design, combustion control and instrumentation
� Ensure that the furnace combustion chamber is under slight positive pressure Source: Bureau of Energy Efficiency
www.iexindia.com | 05
MARkET NEWS - SEPT'17
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E�S W�S W�NS1�S2 E�N N3 Import W3 Export
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Area Clearing Price (ACP) in September'1731
-09-
2017
(`/k
Wh)
0.00
2.00
3.00
6.00
4.00
5.00
Pric
e
1.00
Rest of India (Avg) - ` 4.08/unit South (Avg) - ` 4.08/unit North (Avg) - ` 4.09/unit
RoI (West, East and North East) South North
Electricity Market Update
The Day-Ahead power market at IEX witnessed the highest ever trade of about 183 MU on 13 September’17.
Market prices converged all over India for all hours in a day on 29 days in the month. The inter-state transmission congestion was insignificant, overall 0.07 MU were lost due to congestion.
A total volume of 4087 MU was traded and cleared. Average daily sell bids of 170 MU were received against buy bids of 191 MU per day.
The Market Clearing Price (MCP) was `4.08 per unit. The average MCP during morning (07:00 to 10:00 Hrs) was `3.31 per unit, during day (11:00 to 17:00 Hrs) was 3.98, during the night (01-06 Hrs and 24 Hrs) was `3.63 per unit while during the evening peak (18:00 to 23:00 Hrs) was `5.25 per unit.
Market Prices (ACP)
The average daily Area Clearing Price (ACP), the price at which settlement takes place, varied from `2.62 per unit to `5.53 per unit across the bid areas.
Market Volume: Key Highlights � Total Sell bids 5,101 MUs
� Total buy bids 5,738 MUs � Total Cleared Volume 4,087 MUs � North Eastern, Eastern and Net Buyers
Southern States � Northern and Western States Net Sellers
Participation
760 participants traded in the spot market on an average daily basis.
The highest participation was on 4 September, 2017 when 892 participants traded on the Exchange.
Term-Ahead Market
About 153 MU were scheduled during the month, mainly in the Intra-day and Day Ahead Contingency market segments while in August’17 Term Ahead saw trade of 116 MU.
REGIONAVERAGE DAILY BUY (MW) AVERAGE DAILY SELL (MW)
Highlights of the trading session held on 27th September, 2017
A total of 2,92,482 Non-Solar RECs were traded in the REC trading session held on 27th September, 2017 at IEX.
In FY 2017-18, April to September, IEX traded 11.17 lac Non-Solar RECs and saw an increase of 7% in comparison to same period, previous fiscal where a total of 10.44 lac Non-Solar RECs were traded even though the trading did not take place in the month of May’17 and June’17. The trading resumed only in July’ 17, after the Hon’ble Supreme Court vacated the stay order and Hon’ble CERC directed IEX to commence trading only in Non-Solar REC segment.
Highlights of the trading session held on 26th September, 2017:
In the first ever Energy Saving Certificate (ESCerts) trading session held on 26 Sept’ 17 at IEX, a total of 10,904 ESCerts were traded at INR 1200 per ESCert.
The total buy bids were 50,904 ESCerts whereas the total sell bids were 2,39,644.
39 participants traded in this session. On a overall basis, a total of 67 eligible entities are registered in the ESCert segment at IEX. Of this, 52 Eligible Entities are registered as sellers and 15 Eligible Entities are registered as buyers.
ESCerts is an instrument issued by Bureau of Energy Efficiency (BEE) for every million tonnes of oil equivalent energy (Mtoe) saving achieved by the Designated Consumers (DC). The BEE assigns specific energy consumption target to every DC. The consumers
Participants
A total of 701 participants traded in non-solar segment. Overall, a total of 3,557 participants are registered in the REC segment at IEX. Of this, 855 are Eligible Entities (RE Generators) 2,682 are Obligated Entities (DISCOMs, Open Access Consumers & Captive Generators) and 20 are registered as Voluntary Entities.
An overview of participation in the REC Market at IEX as on 27th September, 2017
exceeding their targets are issued ESCerts where as those who are not able to meet their targets have to purchase ESCerts.
Each certificate is a unique tradable entity tradable entity traded exclusively on the exchange platform.
The Central Electricity Regulatory Commission (CERC) is the Market Regulator, BEE is the Administrator and POSOCO is the Registry for registering DCs as eligible entities, trading and book-keeping, for the ESCerts Market.
Trade Volume (ESCerts) 10,904
Sell Bid (ESCerts) 2,39,644
Purchase Bid (ESCerts) 50,904
Price Discovered (`/ESCert) 1200
No. of Participants 39
EScert MARkET UPDATE: SEPTEMbER’17
www.iexindia.com | 07
TRADE INFO: DAY-AHEAD MARkET - SEPTEMbER 2017
MONTHlY PRIcE SNAPSHOT
AREA PRICE SNAPSHOT (`/kWh)
PARTICIPATION SNAPSHOT (AS ON 30TH SEPTEMBER 2017)
Minimum MCP Maximum MCP Average MCP
` 4.09/kWh` 5.53/kWh` 2.62/kWh
MONTHlY VOlUME SNAPSHOT 1 MU = 1 Million kWh = 1 GWh
Average Daily
Volume
136 MUs
Unconstrained Volume
4,087
5,676
Cleared Volume
4,087
5,676
PurchaseBids
5,738
7,969
Sell Bids
5,101
7,085
VOLUME
Average Daily (MW)
TotalVolume (MUs)
Region Average Minimum Maximum
East, North East, West 4.08 1.20 9.91
North 4.09 1.20 9.91
South 4.08 1.20 9.91
Total Registered Participants
Open Access Consumers
Private Generators
Highest Participation
4,400+ 3,900+ 400+1,410
22nd June'13
08 | www.iexindia.com
Average Hourly Market Clearing Volume and Price for Sept'17
After two month pause in REC trading (May and June’17), on 20 July 2017, the Honourable CERC advised IEX to resume trading only in Non-Solar REC Market.
State-wise RE capacity (MW)
Tamil Nadu
Karnataka
Chhattisgarh
Maharashtra
Rajasthan
Punjab
Uttar Pradesh
Andhra Pradesh
Himachal Pradesh
Gujarat
Madhya Pradesh
Others
Source-wise RE capacity (MW)
Wind
Bio-fuel cogeneration
Biomass
Small Hydro
Solar
Others
RP: 4,482 MW RP: 4,486 MW2421
507
558
260
7342
Registered Projects
1189
1000
347
352
132
635
162
2484826113
234
Registered Projects
10 | www.iexindia.com
GlIMPSES OF EVENTS
Mr. Rajesh K. Mediratta , Director-BD, IEX speaking at Workshop on Power Markets organized on 19th & 20th September 2017 in Patna
Sh. Sandeep Kumar R. Pudakalkatti, Managing Director, North Bihar PDC Speaking at Workshop on Power Markets organized on 19th & 20th September 2017 in Patna
Mr. Rajesh K. Mediratta, Director-BD, IEX (seated, second from left) and Mr. Nitin Sabikhi, AVP-BD, IEX (seated, far left) at Workshop on Open Access in Tamil Nadu on 23 August, 2017 at Dindigul
012 | www.iexindia.com
Disclaimer
Indian Energy Exchange Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed the Red Herring Prospectus dated September 26, 2017 with the Registrar of Companies, National Capital Territory of Delhi and Haryana, at New Delhi (the “RoC”) as supplemented by the “Addendum- Notice to Investors” dated October 6, 2017 and October 9, 2017 respectively (the “RHP”). The RHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Managers at www.axiscapital.co.in, www.investmentbank.kotak.com and www.iiflcap.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on Page 18 of the RHP.
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Indian Energy Exchange LimitedUnit No. 3,4,5 and 6, Fourth Floor, TDI Center, Plot No. 7, District Center, Jasola, New Delhi-110025 | CIN: U74999DL2007PLC277039
