open access ( power trading ) presentation

8/13/2019 Open Access ( Power Trading ) Presentation

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Open Access Solution for

Ester Industries , Khatima , UA

Mittals Group

Trusted Partners Creating Lasting Value

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Introduction

Electricity Act,2003 gives newer concepts like Open Access &

Power Trading.

Definition: Open Access means open for all.

Any generator is free to sell its power anywhere in the country.

Similarly, any consumer is free to purchase power from any part of

the country.

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Evolution of Power Market

Power Market, popularly known as Power Exchanges provides a

platform for both sellers & buyers to sell/buy power.

Currently there are two Power Exchanges operating in India:

a) Indian Energy Exchange

Head Quartered at New Delhi

b) Power Exchange of India Limited

Head Quartered at Mumbai

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Major Sellers in Power Exchanges

The major sellers in Power Exchange includes:

Private Generators

Captive Power Plants

Hydro Power Plants

Grid connected renewable energy sources

State utilities having surplus power

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Why Power Market


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Major Buyers in Power Exchange

The major buyers in Power Exchange includes:

Industrial Consumers

Housing Societies (in some states)

Hotels, Hospitals, Commercial Buildings etc

State Discoms

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Basic Condition for Short Term Open

Access

Sanctioned Load >= 1 MW

Connection Voltage Level >= 11 KV

Independent Feeder

ABT Meter along with appropriate CTs and PTs of accuracy class0.2s installed in series with the existing customer meter

Customer is not a defaulter or disputed consumer of concernedDISCOM

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Nodal Agencies

For monitoring/facilitating, there are two Nodal Agencies for every state:

Central Electricity Regulatory Commission (CERC) at the National

level for issuing of Trading license, policy making and

guiding/controlling the state Nodal Agencies

Concerned State Load Dispatch Centre (SLDC)

In case of Uttarakhand , it is Uttarakhand Power CorporationLimited (UPCL) , Dehradhun which issues NOC for Open Access &

ensures availability of power as per power purchased from power

exchanges/market by the consumers.

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Trading on the Power Exchange

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Procedure for Bidding for purchase of power throughOpen Access/Exchange

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MPPL is running a bidding centre/terminal from 8 AM to 8 PM atIndirapuram office & RTC control room at Panipat office.

Bidding is done for next day. For example if you want to purchase power

for 9th February then bid is to be done on 8th February Between 10-12

AM. It is called Day Ahead Market.

Bidding Time is 10 AM-12 Noon to be intimated to our bidding terminal.

The bid requires Quantum of Power to be consume per hour in MW/KW &

Price per unit on daily basis, separately from 00:00 hours to 24:00 hours

of 8th February indicating the rates of power for each hour. For example

Contd


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Contd

S. No. Time Block Quantum of

Power (MW)

Rate (Rs/unit)

1 00:0000:05 1.5 MW 2.00

2 05:0008:00 1.5 MW 2.00

3 08:0010:00 2 MW 2.20

4 10:0011:00 1.5 MW 2.30

5 11:0012:00 1.5 MW 2.30

6 12:0016:00 2 MW 2.50

7 16:0017:00 2 MW 3.50

8 17:0022:00 2.2 MW 4.50

9 22:0024:00 2 MW 2.00

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Contd


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Contd

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If power is cleared at lower than the bid rates (i.e. Market Clearing Price

(MCP)) then you will get at the lower rates. For example against bidding

for 10:00 to 11:00 at Rs.2.10 and if MCP is Rs.1.90 Then you will get

power at Rs.1.90 /Unit.

But, if power is cleared at higher than bid rates (i.e. Market Clearing Price(MCP)) then you will not get the power from exchange on that hour(s).

However, power from UPCL will continue (subject to availability).

At 5 PM if Bid is cleared the Obligation report showing the details of

power cleared & amount for the same shall be intimated to you throughmail by our staff.

Our bidding team/staff shall be guiding you for bidding on the minimum

viable rates as per Power Market conditions on day to day basis.


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Power Flow from IEX to Ester

IEX

Injecting Pointin NR at400 KV

substation ofPower Grid

CentralTransmission

Network

StateTransmission

Network

StateDistribution Network

Ester

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10AM-12PM

11.00 AM

1.00 PM

2.00 PM

3.00 PM

4.00 PM

5.00 PM

5.30 PM

Bidding period

NLDC to inform PX interfaces on which unconstrained flows are

to be advised by Power Exchange (PX)

PX to furnish the unconstrained flow information to NLDC

NLDC to inform PX about congestion, if any

PX to submit application for scheduling to NLDC

NLDC to send details of collective transactions to RLDCs

RLDCs to confirm acceptance to NLDC

NLDC to convey Acceptance for Scheduling PX

Day-Ahead Market Timeline for ActualDelivery of Power on Next Day


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Benefits From Power Exchanges

Trading is done in efficient, transparent and equitable manner

Exchange is the central counter-party for all transactions

Risk management for all entities

Overcomes issues of credit-worthiness of State Utilities

Increasing the depth of participants

Helping Captive Generation Capacities to bring their surplus on board

Providing a platform to Independent Power Producers for their merchant sales

Providing large load consumers access to on-demand electricity


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OA Charges Payable by Customer in UA

Charges(Approx) Applicable On Open Access Costumer Over & Above The Market Clearing Price (MCP) for Open

Access Consumer in Haryana at 33 KV Feeder

S. No. Charges Rate

1 Central Transmission Utility (CTU) Charges 11 Paise/Unit

2 State Transmission Utility (STU) Charges 12Paise/Unit

3 Wheeling Charges 0 Paise/Unit

4 Cross - Subsidy Charges 40 Paise/Unit

5 Mittal Charges 2 Paise/Unit

6 IEX Charges 2 Paise / Unit

7 RPO Impact 10 paise / unit

Total 77 Paise/Unit

8Fixed Charges (NLDC Application Fees, NLDC Scheduling & Operating

Charges & SLDC Scheduling & Operating Charges)Rs 2500 (Approx.) per Day

9 Transmission & Distribution Losses (18.25 % )

STU : 1.85 % & DistributionLosses : 14.75%

CTU : 1.65 % (Changes Weekly)

# Cons ider ing exchange p r ice as Rs 2.00 /Unit , net open access

charges abo ve IEX pric e wil l be Rs 1.20 / Unit- Rs 1.35 / Unit


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Example for OA Charges

Case 1 : For 3 MW bidding Ester will get 54,000 units at Ester meter

IEX Charges Rs 1.89 / Units (on 30thJuly 2013)

OA Charges will be Rs 1.35 / Unit (Including all charges & losses)

Total Landed cost : Rs 3.24 / Unit for 24 hrs

Comparing this avg with UPCL price of Rs 4.08 (only energy charges)

there is saving of 0.84 paise / unit

Total savings will be Rs 45,360 per day.


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Case 2 : For 6 MW bidding Ester will get 1,08,597 units at Ester

meter

IEX Charges Rs 1.89 / Units (on 30thJuly 2013)

OA Charges will be Rs 1.33 / Unit (Including all charges & losses)

Total Landed cost : Rs 3.22 / Unit for 24 hrs

Comparing this avg with UPCL price of Rs 4.08 (only energy charges)

there is saving of 0.86 paise / unit

Total savings will be Rs 93,393 per day.


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D t il P d t B O A


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Agreement With Mittal Processors Pvt. Ltd. (MPPL) on Rs.100 Non

Judicial Stamp Paper.

Following Documents are to be sent to State Load Dispatch centre

(SLDC) , Dehradhun (Nodal agency for open-access) for registration :

Registration Form Covering letter to SLDC

Copy of latest 2 months electricity bills along with payment receipts

Copy of IEX agreement with Mittal (mentioned above)

Copy of CERC approved trading license (MPPL)

Copy of IEX/ PXIL membership (MPPL)

Copy of T& C duly signed by authorized signatory (Ester)

Expected time frame for getting registration number is 7 days

On Getting registration number from SLDC for open access

customer have to apply for NOC at UPCL , Dehradhun

Contd.

Detail Procedure to Become Open Access

Consumer


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Contd.

Following Documents are to be sent to Uttarakhand Power Corporation

Litmited (UPCL) , Dehradhun :

Format -1 Application form

Covering Letter to ED-Commercial at UPCL / SESLDC

Rs 5,000 DD in favour of DGM SLDC payable at Dehradhun

2 months electricity bill copy with payment receipts

After getting final NOC you are eligible for purchasing Power through Power

Exchange.

Rs. 1,00,000/- plus service taxes Non refundable annual fee of exchange forIEX & PXIL respectively is to be deposited through MPPL.


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After depositing the registration fee in exchange through MPPL, we

will generate your portfolio code & you will be eligible for purchasing

power through Power Exchange via MPPL.

Note:- You have to maintain sufficient balance in your A/C withexchange through MPPL for bidding in exchange.


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Open Access Investment

Annual Fees

IEX / PXIL membershipRs 1,00,000 plus services taxes (12.36%)

Registration Fees at SLDCRs 5000

Monthly Fees

NOC feesRs 5,000 to SLDC , Dehradhun

Liaisoning FeesRs 5000 ( for getting NOC , co-ordinating from UPCL/ SLDC , preparing energy accounting statement & assistance in billingsettlement at your billing circle )

One time liaisoning charges for registration at SLDC and approvingsingle line diagram from your local circle - Rs 10,000

Mittal Trading Margin2 Paise / Unit (only on successful unitsbidding units / cleared on Exchange)


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Our Esteem Clients

All major state electricity boardsUA , MP , AP , HP , RJ , PB etc

All Industrial Clients :

JK Paper Song argh , Gujarat

JK Tyres - Banmore , MP

Arvind Mills

Pratibha Syntex

GM Motors

Claris Life sciences Lovely Professional University

Oswal Denims

Wearit Group

Jindal Steel

Nirma

DCM

HNG

Ashai India Glass

SRF , Malanpur, MP and manymore


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Our Major Clients for UA

Existing Clients (IEX / PXIL

both):

Indian Glycols18 MW

HNG8 MW

ASAHI INDIA GLASS- 10.5

MW

ALPS INDUSTRIES- 12.5 MW

AIR LIQUIDE8 MW

In pipeline :

Polyplex

Surya Roshni

BOC India Ltd

Sterlite Ltd

Divya Pharmacy

Action Tesa

Amber Industries

Fortis Group Hospitals


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IEX Prices from January to July 2013

Year | Mon th N2

2013

Jan 3243.08

Feb 2330.25

Mar 2622.29

Apr 2674.71

May 2355.28

Jun 1960.31

Jul 2015.8

Summary N2

Average (RTC) 2460.52

Peak 2663.1

Non Peak 2392.99

Day 2819.26

Night 2019.53

Morning 2300.57

All prices are in Rs / Mwh for N2 region

# Source : http://www.iexindia.com/Reports/AreaPrice.aspx
http://www.iexindia.com/Reports/AreaPrice.aspxhttp://www.iexindia.com/Reports/AreaPrice.aspx


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Why Mittal Processors Pvt. Ltd

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Mittal Processors Pvt. Ltd.

Traded more than 9000 MUs since 2009

Ranked no. 3rd in terms of total quantum of energy traded in the

country by CERC

Out of 2114 MUs traded in June 2013 on IEX , 179 MUs were

through Mittal i.e. 8.48 % market share

Manned & supervised by qualified & experienced personnel of the

field

Forayed into Commodity Trading , Solar EPC , Hydro Generation

Consultancy Services Provided by MPPL for applying the Open

Access


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Risk Assessment

Under drawl from consumer side as per load requirement

Power supply interruption due to line break down from UPCL

Units consumed through open access will be settled in next month

billing month by UPCL under concurrence from concerned circle.

Risk Mitigation

Planned bidding as per load required.

MPPL will assist in billing settlement , energy accounting and co-ordinating with local circle monthly basis.


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Conclusion

To support the projected GDP growth rate of 8 to 10% the

Indian power sector not only needs to grow & harness all

available renewable resources expeditiously but also the Indian

Power Market needs to evolve newer value added production

service like power trading to match demand supply gap across

nation.

Let us pledge and move forward to achieve this Cherished

Dream

Demer i ts of others may no t be cons trued as mer i t of yours


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Thank YouManoj Vyas (+91-8588865479)

[email protected]
mailto:[email protected]:[email protected]