N E W S A N D I N F O R M A T I O NIEX Bulletin

JANUARY'18 ISSUE 01 | VOlUME 5

ISO 9001:2008, 27001:2013, 14001:2004

www.iexindia.com | 01

In thIs Issue...

PAGE REGUlATORY NEWS

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01 AP Discoms file ARR, CSS & AS for FY 2018-19

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01KERC issues Discussion Paper on Wheeling and Banking Charges for RE Projects

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02 KERC reduces banking period for RE projects

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02 Madhya Pradesh Discoms filed Tariff Petitions for FY19

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03 Bihar Discoms filed Tariff Petitions for FY19

PAGE MARkET NEWS

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04 Power Market Update: January’18

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05 REC Market Update: January’18

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05 ESCert Market Update

PAGE TRADE DATA

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06 Trade Data: January’18

REGUlATORY NEWSAP Discoms file ARR, CSS & AS for FY 2018-19

The distribution companies in Andhra Pradesh have filed ARR proposals, Cross Subsidy Surcharge & Additional Surcharge for FY 2018-19 with APERC. The brief of the tariff and charges proposals are as under:

� Licensees have not proposed any increase in tariff in FY19.

� Average Revenue Realization (ARR) for FY 19 is proposed to be ` 5.20 per kWh and ` 4.21 per kWh in case of APEPDCL and APSPDCL respectively.

� Average Cost of Supply (ACoS) for FY 2018-19 for ` 6.09 per kWh and ` 6.16 per kWh in case of APEPDCL and APSPDCL respectively.

� The estimated revenue gap for the licensees for FY 19 is ` 7,984 Crores.

� Power purchase cost:

`/Unit FY 2017-18 FY 2018-19 (proposed) Change

APEPDCL 3.73 4.18 0.45

APSPDCL 3.84 4.19 0.35

� Open Access Charges:

yy Cross Subsidy Surcharge (CSS):

HT I (A): General

Discom `/Unit

APEPDCL APSPDCL

FY 2017-18

FY 2018-19 (proposed) Change FY

2017-18FY 2018-19 (proposed) Change

11 kV 1.72 1.65 -0.1 1.65 1.76 0.11

33 kV 1.57 1.47 -0.1 1.43 1.44 0.01

132 kV 1.38 1.44 0.1 1.35 1.38 0.03

yy Additional Surcharge (AS):

The Licensees has proposed Additional Surcharge @ 0.95 `/kWh to be levied from Open Access consumers.

More information: www.aperc.gov.in

kERC issues Discussion Paper on Wheeling and Banking Charges for RE Projects

The Karnataka Electricity Regulatory Commission (KERC) has come up with discussion paper on Wheeling & Banking transaction proposing the wheeling and banking charges that should be applicable for both solar and non-solar power projects under non-REC route from 01.04.2018 onwards. Following are the major changes proposed in the said discussion paper:

02 | www.iexindia.com

� Wheeling charges:

yy KERC has proposed to levy 25% of the normal transmission charges and/or wheeling charges payable in cash, as determined by the Commission in its Tariff Orders issued from time to time, for all the RE sources transmitting/wheeling electricity using the network of transmission licensee/distribution licensee, as the case maybe.

yy In addition to the above, applicable losses, as approved by the Commission from time to time, shall be deducted from the net energy injected to arrive at the quantum of wheeled energy.

� Banking Charges: The Commission proposes to continue banking charges at 2% in kind of the injected energy.

More information: www.karnataka.gov.in

kERC reduces banking period for RE projects

The KERC vide its order dated 09/01/2018 revised the applicable banking policy for renewable energy under non-REC mode in the state reducing the banking period for renewable energy project from existing one year to six months. The following are the major highlights of the order:

� The banking period for the Non-REC route based RE Projects, opting for wheeling, is reduced from the existing one year to six months.

� The said six months shall be reckoned from January to June and July to December, in respect of Wind and Mini-Hydel Power Projects and from April to September and October to March, in respect of the Solar Power Projects.

� This new norm of the banking facility to Wind and Mini-Hydel Power Projects shall be applicable from 1st July, 2018, onwards and any energy, banked under the existing banking facility from April to June, 2018, shall be carried forward to the July to December, 2018 period.

� The new norm of banking facility to the Solar Power Projects shall be applicable from 1st April, 2018.

� The energy banked by the Non-REC route based RE projects, during the peak Time of Day (ToD) hours (as specified by the Commission in its Tarff Orders), alone can be drawn during the peak ToD hours, and not otherwise.

� Any un-utilised banked energy, remaining at the end of six months, shall be deemed to have been purchased by the ESCOM (Distribution Licensee) of the area where the project is located and shall be paid at 85% (Eighty Five percent) of the applicable generic RE tariff, as determined by the Commission from time to time.

More information: www.karnataka.gov.in

Madhya Pradesh Discoms filed Tariff Petitions for FY19

The distribution companies in Madhya Pradesh have filed Tariff petitions for FY 2018-19 in MPERC. A brief of the tariff proposals is as hereunder:

� An average hike of 1.85% is proposed for Industrial Consumers & for power intensive industries a hike of 6% is being sought.

� Average Increase of 10 paisa per unit for Industrial Consumers & 29 Paisa per unit for power intensive industry.

� The average cost of supply (excluding true-up) for FY 19 : 6.33 ` per Unit.

� Total Revenue Gap (Including True-Up) for FY 19 : 1,306 ` Cr.

� Average Cost of Supply (Including True-up) for FY 19: 6.31 ` Per Unit.

� Power Purchase at Discom Boundary : 4.16 ` Per Unit.

� Solar RPO of 1.75% and Non Solar RPO of 7.50% has been proposed.

www.iexindia.com | 03

More information: www.mperc.nic.in

Bihar Discoms filed Tariff Petitions for FY19

The distribution companies in Bihar - NBPDCL & SBPDCL have filed tariff petitions for FY 2018-19 before Honorable BERC. The brief proposals of the Discoms are as hereunder:

� Tariff Proposals

The Discoms have propose to increase fixed charges by ` 200 Per kVA per Month, however, energy charges have been proposed to be reduced by 75 paisa to 120 paisa:

� Open Access Charges and Losses:

yy Increase in Transmission charges from 0.32 `/kWh to 0.43 `/Unit.

yy No changes proposed in T&D losses.

yy Wheeling and Cross Subsidy Surcharge:

� Renewable Purchase Obligation:

More information: www.berc.co.in

CategoryFixed Charge (`/kVA/Month) Energy Charge (`/kVAh)

FY 2017-18 Proposed for FY 2018-19 Change FY 2017-18 Proposed for

FY 2018-19 Change

HTS - I (11 kV) 300 500 200 6.20 5.00 -1.20HTS - II (33 kV) 300 500 200 6.15 5.20 -0.95HTS - III (132 kV) 300 500 200 6.10 5.30 -0.80HTS - IV (220 kV) 300 500 200 6.05 5.30 -0.75

Open Access Charges (HTS)(`/kWh)

Voltage LevelWheeling Charge Cross Subsidy Surcharge

FY 2017-18 Proposed for FY 2018-19 Change FY 2017-18 Proposed for

FY 2018-19 Change

11 kV 0.55 0.55 0 1.79 1.70 -0.0933 kV 0.49 0.50 0.01 1.74 1.71 -0.03132 kV - - - 1.60 1.69 0.09

Renewable Energy Purchase Obligation for FY 2018-19Particulars SBPDCL NBPDCL

Solar (MU) 405.21 290.62

Non-Solar (MU) 748.07 536.53

CategoryMonthly Fixed Charge (`/kVA/month) Energy Charge (Paisa per unit) for consumption (LF>50%)

FY 17-18 FY 18-19* Change FY 17-18 FY 18-19* ChangeIndustrial11 kV supply 330 350 20 600 610 1033 kV supply 510 525 15 550 560 10132 kV supply 610 610 0 525 535 10220/400 kV 620 630 10 500 510 10Power Intensive Industry33 kV supply 530 560 30 500 530 30132 kV supply 620 660 40 480 495 15220 kV supply 670 680 10 450 490 40*Proposed

04 | www.iexindia.com

MARkET NEWS Power Market Update: January’18The Day-Ahead market at IEX traded 3,375 MU in January’18, which is about 9% higher than the 3,108 MU traded last month and almost 4% more than 3,231 MU traded in January’17. On a daily average basis about 109 MU were traded. Average daily sell and buy bids were 214 MU and 144 MU respectively. The total sell bids during the month were 6,642 MU and the total buy bids were 4,450 MU.

The average Market Clearing Price (MCP) discovered in the day-ahead market was at ` 3.20 per unit, about 9% higher than the price in December’17 which was ` 3.00 per unit and 28% above ` 2.50 per unit same month last year. The average MCP during different time-periods of the day was:

� Morning (07:00 to 10:00 Hrs) : ` 4.09 per unit � Day (11:00 to 17:00 Hrs) : ` 3.52 per unit � Evening peak (18:00 to 23:00 Hrs) : ` 3.61 per unit � Night (01-06 Hrs and 24 Hrs) : ` 2.02 per unit

The increase in price in January was due to increase in demand, increase in coal prices and railway freight.

One Nation, One Price was realized for 23 days in the month while it was realized for 30 days in previous month. The market experienced transmission congestion mainly on account of import by Southern and Northern states, which was 3.4% and 1% respectively. Consequently, the average daily Area Clearing Price (ACP), the price at which settlement takes place, varied from ` 2.87 per unit to ` 3.59 per unit across the bid areas. The ACP across the regions was as below:

� North: ` 3.20 per unit � South: ` 3.22 per unit � Rest of India: ` 3.19 per unit

On daily average basis 878 participants traded in the day-ahead power market in January’18.

Market Volume: Key Highlights � Total Sell bids 6,642 MUs � Total buy bids 4,450 MUs � Total Cleared Volume 3,375 MUs � North Eastern, Eastern, Western

and Southern States Net Sellers � Northern States Net Buyer

Term-Ahead Market (TAM)The Term-Ahead Market traded 52 MU in January’18, mainly in the Intra-day and Day Ahead Contingency market segments. The TAM traded 78 MU in December’17 and 19 MU in January’17.

REGIONAVERAGE DAILY BUY (MW) AVERAGE DAILY SELL (MW)

NETJan'18 Dec'17 Change (%) Jan'18 Dec'17 Change (%)

North East 112.74 95.19 18% 233.85 317.19 -26% SELL

East 731.63 710.42 3% 835.86 885.41 -6% SELL

North 1,032.28 752.88 37% 698.48 824.01 -15% BUY

West 1,693.26 1,123.54 51% 1,723.26 1,287.74 34% SELL

South 970.15 1,495.06 -35% 1,048.61 862.73 22% SELL

The price variation on a day to day basis in January’17 vis-à-vis January’18 as shown below:

Area Clearing Price (ACP) in January'18

(`/k

Wh)

Pric

e

Rest of India (Avg) - ` 3.19/unit South (Avg) - ` 3.22/unit North (Avg) - ` 3.20/unit

RoI (West, East and North East) South North

0.000.501.001.502.002.503.003.504.00

01-0

1-20

18

02-0

1-20

18

03-0

1-20

18

04-0

1-20

18

05-0

1-20

18

06-0

1-20

18

07-0

1-20

18

08-0

1-20

18

09-0

1-20

18

10-0

1-20

18

11-0

1-20

18

12-0

1-20

18

13-0

1-20

18

14-0

1-20

18

15-0

1-20

18

16-0

1-20

18

17-0

1-20

18

18-0

1-20

18

19-0

1-20

18

20-0

1-20

18

21-0

1-20

18

22-0

1-20

18

23-0

1-20

18

24-0

1-20

18

25-0

1-20

18

26-0

1-20

18

27-0

1-20

18

28-0

1-20

18

29-0

1-20

18

30-0

1-20

18

31-0

1-20

18

3.4% 3.4%

0.0%

1.0% 1%

0% 0%0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%% of time congestion

E�S W�S W�NS1�S2 E�N N3 Import W3 Export

www.iexindia.com | 05

Total number of registered participants 3,518

Obligated Entity 2,711

DISCOMs 34

Open Access consumers 2,482

Captive Consumer 195

Voluntary 21

Eligible Entity (Private Generators) 786

Highest participation in a session (March’15) 1,265

REC MARkET UPDATE: JANUARY’18

99,804 (55%)

80,465 (44%)1,985 (1%)

Captive UserDistribution LicenseeOpen Access Consumer

Non-Solar Buyer Mix

Highlights of the trading session held on 31st January’18

A total of 1,82,254 Non-Solar RECs were traded in the REC trading session held on 31st January, 2018 at IEX.

The open access consumers were the major buyers in this trading session.

In December’17, 32.39 lac Non-Solar RECs were traded at IEX however in this session the cleared volume reduced significantly.

In fiscal 2017-18 (year to date), IEX has traded 67.70 lac Non-Solar RECs, which is almost 140% higher than the trade of 28.26 lac during the same period in the previous fiscal.

Participants

A total of 646 participants traded in non-solar segment. Overall, a total of 4,083 participants are registered in the REC segment at IEX. Of this, 3,272 are Eligible Entities, 790 are Obligated Entities (DISCOMs, Open Access Consumers & Captive Generators) and 21 are registered as Voluntary Entities.

ESCert MARkET UPDATE: JANUARY, 2018

HIGHlIGHTS OF THE TRADING SESSIONS HElD DURING JANUARY, 2018PAT CYCLE 1

Date Sell Bid (ESCerts)

Purchase Bid (ESCerts)

Trade Volume (ESCerts)

Price Discovered (`/ESCert)

No. of Participants

02/01/2018 7,77,567 1,45,150 28,983 500 78

09/01/2018 8,24,707 1,52,195 74,895 501 79

16/01/2018 8,94,445 1,10,511 1,09,161 450 81

06 | www.iexindia.com

TRADE DATA: JANUARY’18 – DAY AHEAD MARkET

MONTHlY PRICE

Minimum MCP Maximum MCP Average MCP

` 3.20/kWh` 5.49/kWh` 1.72/kWh

VOlUME 1 MU = 1 Million kWh = 1 GWh

Average Daily

Volume

109 MUs

Unconstrained Volume

3,389

4,555

Cleared Volume

3,375

4,537

PurchaseBids

4,450

5,982

Sell Bids

6,642

8,928

VOLUME

Average Daily (MW)

TotalVolume (MUs)

PARTICIPATION

Total Registered Participants

Open Access Consumers

Private Generators

Highest Participation

6,100+ 3,900+ 400+1,410

22nd June'13

www.iexindia.com | 07

Average Hourly Market Clearing Volume and Price for Jan'18

Volu

me

(MW

h)

HoursHourly MCV (MWh) Hourly MCP (`/kWh)

Pric

e (`

/kW

h)

0.001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

0.000.501.001.502.002.503.003.504.004.505.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

Pric

e `/

kWh

Volu

me

MW

h

IEX Price and Volume Trend in Jan'18

Cleared Volume (MWh) MCP N1 S1 W3

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

01-0

1-20

18

02-0

1-20

18

03-0

1-20

18

04-0

1-20

18

05-0

1-20

18

07-0

1-20

18

08-0

1-20

18

09-0

1-20

18

10-0

1-20

18

11-0

1-20

18

12-0

1-20

18

13-0

1-20

18

14-0

1-20

18

15-0

1-20

18

16-0

1-20

18

17-0

1-20

18

18-0

1-20

18

20-0

1-20

18

21-0

1-20

18

22-0

1-20

18

23-0

1-20

18

24-0

1-20

18

25-0

1-20

18

26-0

1-20

18

27-0

1-20

18

28-0

1-20

18

29-0

1-20

18

30-0

1-20

18

31-0

1-20

18

06-0

1-20

18

19-0

1-20

18

Price for the Month

Pric

e (`

/kW

h)

East North Punjab South (AP & KN) S2 (TN) S3 (KR) West Chhattisgarh MCP

January, 2017 January, 2018

North-East

2.37 2.37

2.77 2.77 2.85 2.85 2.712.37 2.37 2.50

3.19 3.19 3.20 3.20 3.22 3.22 3.22 3.19 3.19 3.20

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

MCP

MCP for Jan'17 & Jan'18

2017 2018

0.000.501.001.502.002.503.003.504.00

01-0

1-20

18

02-0

1-20

18

03-0

1-20

18

04-0

1-20

18

05-0

1-20

18

07-0

1-20

18

08-0

1-20

18

09-0

1-20

18

10-0

1-20

18

11-0

1-20

18

12-0

1-20

18

13-0

1-20

18

14-0

1-20

18

15-0

1-20

18

16-0

1-20

18

17-0

1-20

18

18-0

1-20

18

20-0

1-20

18

21-0

1-20

18

22-0

1-20

18

23-0

1-20

18

24-0

1-20

18

25-0

1-20

18

26-0

1-20

18

27-0

1-20

18

28-0

1-20

18

29-0

1-20

18

30-0

1-20

18

31-0

1-20

18

06-0

1-20

18

19-0

1-20

18

08 | www.iexindia.com

RP: Registered Projects

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

1177

1003

347383

127

641

261

2526

99 232

168

RP: 4,489 MW

Registered Projects

2445

507

544

257

734

2

RP: 4,489 MW

Registered Projects

TERM AHEAD MARkET

Total Volume (MWh)

Max Price (`/kWh)

Min Price (`/kWh)Contracts

18,147 5.10 2.25Day-Ahead Contingency

– – –Weekly

33,438 6.40 2.60Intraday

– – –Daily

RECPurchase

Bids Sell Bids Cleared (REC) Price (`/REC)

Participants

23,27,874

–

1,500

–

1,82,254

–

646

–

Non-Solar

Solar

1,82,254

–

REC MARkET

After two month pause in REC trading (May and June’17), on 20 July 2017, the Honourable Central Electricity Regulatory Commission (CERC) advised IEX to resume trading in only Non-Solar REC Market.

Trade Session on 31st January, 2018

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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

Phone: +91-11-43004000 | Fax: +91-11-43004015 | Email: iex-bd@iexindia.com | www.iexindia.com

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GlIMPSES OF EVENTS

Mr R K Mediratta, Director-Business Development, IEX (2nd from right, sitting) along with other participants at the 5th meeting of the Task Force related to promotion of regional energy integration and to enhance cross border electricity trade in South Asian Region held on 16th January'18 at Colombo, Sri Lanka

Participants at 5th meeting of the Task Force held on 16th January'18 at Colombo, Sri Lanka releasing the Task Force 3 Study Report

Session in progress at the International Workshop on “Current Practices in Wind and Solar forecasting and 99+ Grid availability for RE Integration” held on 22-23 January, 2018 in Chennai, Tamil Nadu

Cross-functional audience at the International Workshop held on 22-23 January, 2018 in Chennai, Tamil Nadu

Mr R K Mediratta, Director-Business Development, delivering a presentation at the International Workshop held on 22-23 January, 2018 in Chennai, Tamil Nadu