This paper deal with the Short term power market in India

1. Project Guide : By:
Shri. P. Pentayya Chandan Kumar
GM,WRLDC Emp.No: 02616
ET,WRLDC
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2. India : World Fifth Largest Energy Consumer.
4% of Global Energy Consumption by 17% of the World Population.
Installed Generation Capacity 201637.04 MW.
Consist of two Grid connected asynchronously : NEW Grid and
Southern Grid.
Power System Constitutes of three entities :
Generation.
Transmission.
Distribution.
Apart from them Grid Management is required for the Real Time operation.
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3. Indian Power Market can be categorized on the basis of duration
of trade between the buyer/seller and Generator/Drawee:
Long Term Access : It is for a period of 12 years up to 25 years
Medium term Open Access: It is for a period of 3 months up to 3
years
Short term Open Access :It is for a period of up to 1 months
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5. Short Term Market Constitutes of :
Bilateral Market
Power Exchange Traded Market
UI
Ancillary Services
REC/Emission Market
Short Term open Access Constitutes of :
Bilateral Transactions
Collective Transactions
Sometime STOA is used in literature for Short Term Market .
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6. Indian Power Market
Jan 2011 - Feb 2012
11%
Short Term market
LTOA and MTOA
89%
Short Term Market Contribution
9% : 2009-10
10% :2010-11
10.75 % 2011-12 (As Projected)
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7. ST Market
Jan 2011-Feb 2012
Total electricity Total electricity
transacted through transacted through
UI, 30% Traders and
PXs(MUs), 39%
Day Ahead market 'Total electricity
of IEX, 15% transacted Through
Direct Trading
(MUs), 15%
Day Ahead
market of
PXIL, 1%
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8. Decreasing trend of UI
PX contribution has shown the increasing trend
over the years.
PXIL contribution is less compared to IEX
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9. 1600
1400
1200
1000 UNCONSTRAINED CLEAR
Energy (MWs)
VOLUME IEX
800 ACTUAL CLEARED VOLUME
AND HENCE SCHEDULED IEX
600 UNCONSTRAINED CLEAR
VOLUME PXIL
ACTUAL CLEARED VOLUME
400 AND HENCE SCHEDULED PXIL
200
0
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10. System constraints are more in Nov-April
leading to less cleared volume of power
9.8 % of the day ahead transaction through
power exchange was not approved
The electricity demand through day-ahead
contracts from PXs is more in winter and
reduces in summer season
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11. 6
5
4
'Weighted Average Price of electricity
Price (Rs/kWh)
transacted through Traders (Rs/kWh)
3
Weighed Average Price of electricity
transacted Through IEX (Rs/kWh)
2
Weighed Average Price of electricity
transacted Through PXIL (Rs/kWh)
1
0
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12. Price of electricity through traders is more
compared to through PXs
Month October the PXs price is more compared
to price through traders
While in Feb-march 2011 the PXIL price is more
compared to traders pricing of electricity
Tough completion between the traders and PXs
can be observed here as the price difference is
varying continuously
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13. 14
12
Directly Through Power Exchange (Rs/kWh)
10
Through Term Ahead Market through Power Exchange
(Rs/kWh) WEEKLY CONTRACTS
8
Through Term Ahead Market through Power Exchange
(Rs/kWh) DAY AHEAD CONTIGENCY CONTRACTS
6
Through Term Ahead Market through Power Exchange
(Rs/kWh) DAILY CONTRACTS
4
Through Term Ahead Market through Power Exchange
(Rs/kWh) INTRA DAY CONTRACTS
2
0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
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14. 14
12
Directly Through Power Exchange (Rs/kWh)
10
Through Term Ahead Market through Power Exchange
(Rs/kWh) WEEKLY CONTRACTS
8
Through Term Ahead Market through Power Exchange
(Rs/kWh) DAY AHEAD CONTIGENCY CONTRACTS
6
Through Term Ahead Market through Power Exchange
(Rs/kWh) DAILY CONTRACTS
4
Through Term Ahead Market through Power Exchange
(Rs/kWh) INTRA DAY CONTRACTS
2
0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
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15. Power through direct trading from power
exchange is lowest.
Cost of power increases as we proceed from
weekly, day-ahead, daily to intraday in PXs
trading.
The cost is more when there is higher system
contingency and vice-versa.
Cost of power through PXIL is more compared
to IEX.
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17. Direct trading through IEX is cheaper.
Price of weekly contracts for electricity trading is
low for PXIL compared to IEX in winter (oct-feb).
For summer season it has a varied trend.
Non uniformity of market in other types of
contracts
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18. Weighted Average Price of electricity transacted
Through UI (Rs/kWh)
8
7
6
NEW
5 Grid
Rs/kWh
4 SR Grid
3
2
1
0
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19. The Price of electricity traded through UI is lower
in NEW grid and higher in SW grid in Jan-June
Period.
Lower cost in .SR grid in the rest of the month.
The price of UI in SR Grid is more as it is a
power deficit region.
The synchronization of SR to NEW grid will
reduce the overall price vector of UI in NEWS
grid.
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20. Evacuation Problem
Intra State open access issues
Contingency Problem
Existence of Two Grids
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21. Strengthening the upstream and down stream
transmission networks to better utilize the
existing Inter-regional transmission capacity.
Increased Number of Power exchanges.
Reduction in T/D Losses by Strengthening of old
Lines.
Increasing the ATC/TTC margin of the available
lines using Reactors, FSC, TCSC and optimal
placement of phase shift transformer
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22. Real time dynamic loadility with the introduction
of PMU technology.
market rules should be such as to encourage
broad participation and ensure fairness
Introduction of Ancillary Services.
Renewable Integration with the Grid.
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23. 1. www.cercind.gov.in
2. www.cea.nic.in
3. “Consultation Paper on Modifications in Power Market Design: Evening Market, 15
minute Bidding time block and Ancillary market on Power Exchange” by CERC
4. “The India Electricity market outlook” by KPMG
5. “Ancillary Services in Indian Context: An Approach Paper” by POSOCO.
6. “High capacity power Transmission corridor - Project inception report” by PGCIL
7. “The Indian Electricity Market: Country Study and Investment Context” by Peter M
Lamb
8. “Electricity Market Reform: Lessons for developing countries” by Erkan Erdogdu
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24. Questions
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