Sharing of Inter State Transmission Charges National Load Despatch Centre Implementing Agency.
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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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Open Ac cess in Inter-state Transmission
Regulations, 2008 (Contd.)
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
Open Ac cess in Inter-state Transmission
Regulations, 2008 (Contd.)
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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Open Ac cess in Inter-state Transmission
Regulations, 2008 (Contd.)
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
Open Acc ess Duration
Bilateral
-Up to 3 m onths
- separate app lication for eac hmonth
- Collective:
- Only Day ahea d
RLDC Cha rges :
Bilateral:
a. Applic ation fee Rs. 5000/ -
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
Open Acc ess Duration
- Up to One year maximum
- single app lication possible
4.
RLDC Charges
a. Applic ation fee Rs. 5000/ -
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
Congestion Management
Bilateral:- E-Bid without p rice cap
Collective:
- NLDC in coo rdination with
Px
Congestion Management
- 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
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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
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Larger t he footprint Larger the com plexities involved.
Thank you