Competive Power

7/27/2019 Competive Power

1/47

COMPARATIVE OVERVIEW OF ENERGY COST IN SHORT

TERM OPEN ACCESS MARKET AMONG ADVANCE, FIRST-CUM-FIRST-SERVE, DAY AHEAD AND CONTINGENCIES

TRANSACTIONS AND COLLECTIVE TRANSACTION


2/47

ORGANIZATION

Power System Operation Corporation Limited

Eastern Regional Load Despatch Centre

Kolkata


3/47

Presentation Outline

Open Access Concept

Power Trading Concepts

Short Term Open Access

Bilateral Transaction

Collective Transaction

Project
http://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppthttp://localhost/var/www/apps/conversion/tmp/scratch_6/STOA_SIP.ppt


4/47

DEFINITION OF OPEN ACCESS IN THEELECTRICITY ACT, 2003

. Open Access means the non-discriminatoryprovision for the use of transmission lines ordistribution system or associated facilities withsuch lines or system by any licensee, orconsumer, or a person engaged in generation in

accordance with the regulations specified by theAppropriate Commission.

Section 2(47) of Electricity Act 2003


5/47

INTRODUCTION

Open Access is necessary for utilization of short timesurpluses.

Efficient Market Mechanism to address supply / demandmismatches

Encourage investment in Transmission


6/47

Agencies involved in Short-Term Open Access

Transaction

RLDC (s)

SLDC (s)

CTU STU (s)

Buyer

Seller

Trader


7/47

Categorization of

Open Access customers The transmission customers divided into three categories:

(a) Long-term Access customers (LTA)- Thecustomers availing or intending to avail access to theinter-state transmission system for a period of 12 years to25 years shall be the long-term customers.

(b) Medium-term Open Access customers (MTOA)-The persons availing or intending to avail open access tothe inter-state transmission system for a period of 3months to 3 years shall be the medium-term customers.

(c) Short-term Open Access customers (STOA) -The persons availing or intending to avail open access tothe inter-state transmission system upto a period of 3months but 1 month at a time.

STOA are categorized into two different ways: Bilateral Transaction



8/47

Criteria for - Transmission Access

Long Term Open access: In accordance with the Transmission Planning criteria as per

IEGC

Short Term Open access

Inherent design margins Margins available due to variation in power flow schedule

Margins available due to in-built spare transmission capacitycreated to cater future load growth


9/47

NODAL AGENCY

For Long-Term and Medium Term Customers Central Transmission Utility (CTU), if its system is used

For Short-Term Customers RLDC of the Region in which the drawal point is located.


10/47

SHORT TERM OPEN ACCESS

CERC REGULATIONS, 2008

Regulation, 2008 w.e.f 01.04.08


11/47

CERC/Regulations on Open Access

Final Order issued : 30.01.2004

Final Regulations issued : 30.01.2004

Gazette Notification : 06.02.2004

CERCs Order effective from 06.02.2004

Amendments on 21-02-2005

Revised Regulations for Open Access in ISTS issued on 25.1.2008.

These revisions effective from 1.4.2008.

Amendments on 20.05.2009

Amendments on 28.10.2009


12/47

Highlights of CERC Regulations 2008 on Short-Term Open Accessand Amendment thereof

S. No. Regulations, 2009 and Amendments thereof

1. Transmission Charges: Bilateral:

- Injection POC charges- Drawal POC charges

Collective Transactions():

- Injection POC charges

- Drawal POC charges

2. Retention by CTU- 25% to be retained by CTU

- Balance adjusted with long term payment.


13/47

3. RLDC Charges :

Bilateral:

a. Application feeRs. 5000/-

b. Scheduling Charges

Rs. 2000/day for each RLDC involved

c. Regional/State Transmission Charges

Collective Transactions:

a. Application feeRs. 5000/-

b. Scheduling ChargesRs. 5000/day to NLDC for each State involved

- NLDC retains Rs. 2000 and to Share Rs. 500 with each RLDCs.

c. Regional/State Transmission Charges

4. Open Access Duration

Bilateral

Advance (upto 3 months separate application for each month)

FCFS

Day Ahead

Contingency

Collective:

Only Day ahead


14/47


15/47

Case Study

Short-Term Open Access transaction

by Captive Power Plants

A typical example:

From : SAIL Durgapur Steel Plant (DVC),To : SAIL Bhilai Steel Plant (CSEB)

Quantum : 20 MW

Source : SAIL


16/47

Network Involved


17/47

Transmission Losses

Injection POC

Loss 3.2 %

Withdrawal POC

Loss 5.5 %


18/47

PROCEDURE FOR SCHEDULING OF

OPEN ACCESS (BILATERAL

TRANSACTION)

Advance, FCFS, Day-Ahead & Contingency


19/47

ADVANCE SCHEDULING

Advance Scheduling 3 months in advance Separate Application

Month wise - each transaction

Time Line for submission Last date for submission ( -10 / -5 / 0 days prior to end of current

month MO for transaction in M1, M2, M3) Cut-off time of application: 17:30 Hrs. of last day (Day 0)

Request for concurrence (RLDC) by 12:00 Hr. next day (Day 1)

Concurrence - by 20:00 Hrs (Day 1)

Congestion Information to Applicant next day 12:00 Hrs (Day 2)

Revised Request next day 11:00 HRs. (Day3)

E-bidding in case of Congestion (next day) (Day 4)

Acceptance/Refusal of Scheduling Request (Day 5)


20/47

Time Line for Advance Scheduling

M0 M1 M2 M3

510 5

Last Day for

submission of

Applications for

transactions in

M1, M2, M3

Processing timefor RLDCs


21/47

e-Bidding Procedure Invitation of Bids from the concerned applicant

period of congestion

RTS/IR corridor expected to get over stressed

Only Registered Users User ID & Password

Electronic submission website of CTU

Bid Closing time as specified

Single Price Bid No Modification/withdrawal once submitted

Bid Price - in addition to Open Access Transmission Charges

Multiples of Rs. 10/ MWh . ( Min. Rs. 10/MWh)

Mandatory - Non-participation Rejection of Application

Acceptance - Decreasing order of Price Quoted

Equal Price Bids Pro-rata

Applicants getting less quantum than applied shall pay the charges quoted byhim.

Applicant getting equal quantum of what sought by him shall pay the chargesquoted by the last Applicant getting approval of its full scheduling request.


22/47

e-Bidding ProcedureCase Study:

Margin available in a corridor = 200 MW

Bid Submitted by the applicants are as followed:

Sl.

No.

Applicant

NameBid Amount (MW)

Bid Amount

(Rs.)

1 A 100 200

2 B 50 1503 C 100 100

4 D 50 100

Sl.

No.

Applicant

Name Bid cleared (MW)

Bid cleared price

(Rs.)

1 A 100 150

2 B 50 150

3 C 33.33 100

4 D 16.67 100


23/47

FIRST-COME-FIRST-SERVED BASIS Scope

FCFS shall be considered only when transactions arecommencing & terminating in the same calendar month.

Separate Application for each month To be submitted 4 days prior to date ofScheduling

Processing time 3 days Processed on FCFS basisApplication Received upto 17:30 Hrs in a day tobe processed together same priority

Application Received after 17:30 Hrs. - consideras received on next day Congestion Management pro-rata (proportional)


24/47

DAY-AHEAD BILATERAL TRANSACTION

Applications received within 3 days prior to the day ofScheduling and up to 15:00 Hrs. of the day immediatelypreceding the day of scheduling shall be treated as samepriority.

Processing will be done only after processing of theCollective Transactions of the Power Exchange (s).

Congestion Management Pro-rata (proportional)


25/47

SCHEDULING OF BILATERAL

TRANSACTION IN A CONTINGENCY

Applications received within 15:00 Hrs. to 18:00

Hrs. of the immediately preceding the day of

scheduling shall be treated as same priority.

Congestion ManagementPro-rata (proportional)

Applications received after 18:00 Hrs. of the

immediately preceding the day of scheduling to 6th

time block prior to scheduling shall be considered.

Congestion ManagementFirst Cum First Serve basis


26/47

DOWNWARD REVISON OF SCHEDULE In case of Advance Scheduling or First-Cum-First Served

basis

Minimum two (2) clear days notice.

Transmission Charges and Operating Charges for 2 days.

In case of all the accepted bilateral subject to the following

condition as per I.E.G.C. clause 6.5.19 The injecting utility is a generator of unit capacity of 100 MW and

above.

At the time of applying for STOA the said unit of the generating

station was mentioned in the application.

The expected time of synchronization is mentioned in the

application of revision.

Margin Available could be utilized for scheduling of other

Open Access Transactions


27/47

Example: For example: Say an Applicant has been scheduled for 10 days from

21st day of a month to 30th day of a month for 100 MW on round theclock basis (i.e. for 2400 MWh per day). If this Applicant, on or before

18th day of that month, submits request for revision of schedule to

50MW on round the clock basis (i.e. 1200 MWh per day), the revised

schedule will get implemented from the beginning of the transactions

(i.e. 21st day of the month). The Applicant shall pay the TransmissionCharges for 2400 MWh per day for the period from 21st to 22nd day

of the month. Whereas for the period from 23rd day to 30th day of

the month, Transmission Charges shall be payable for 1200MWh per

day.

However, if the Applicant requests for such revision on 20th day ofthe month, his request will be implemented from 23rd day of the

month. He shall pay Transmission charges for 2400 MWh per day for

2 days i.e. from 23rd to 24th day of the month and for the

remaining period he shall pay the Transmission Charges based

on 1200MWh per day.


28/47

CURTAILMENT IN CASE OF

TRANSMISSION CONSTRAINTS

Transmission constraint or to maintain gridsecurity

Curtailed in the manner, which in the opinion ofRLDC, would relieve transmission constraints/enhance grid security

Open Access Bilateral Transactions wouldgenerally be curtailed first followed by the

Collective Transactions Pro-rata refund of Transmission Charges


29/47

DEFAULT IN PAYMENT OF OPEN ACCESS

CHARGES

Nodal RLDC, at its discretion May not schedule the transaction

or

May cancel the scheduling of already scheduled

transaction or

May not entertain any Application of such Applicantin future until such time the default is cured.

Simple interest at the rate of 0.04 % for each day ofdefault from the Due Date of Payment

If cheque has been dishonored No cheque payment - next three (3) months


30/47

DISBURSAL OF PAYMENT

Reconcile the Open Access Charges Nodal RLDC will reconcile the Open Access Charges collected during the previous

month and disburse the Transmission Charges and Operating Charges by 7 working

days from the issuance of monthly Regional Energy Accounting by the respective

Regional Power Committees.

Transmission Charges and Operating Charges for StateSystem Concerned STUs/SLDCs

For ISTS To be disbursed to CTU

Refund due to curtailment Within 15th day of the next month


31/47

PROCEDURE FOR SCHEDULING OFOPEN ACCESS (COLLECTIVETRANSACTION)


32/47

Agencies involved in Short-Term Open Access


Power Exchanges (IEXL & PXIL)

NLDC

RLDC (s) SLDC (s)

CTU

STU (s)

Buyer

Seller

Trader


33/47

Collective Transactions (through PX) Nodal Agency

National Load Despatch Center

Both Buyers and Sellers of Collective transactions to beartransmission charges.


34/47

Outline STOA- Collective

CERC Regulations on Open Access in inter-State

Transmission, 2008 and amendments thereof

Applicable for Scheduling of Open Access (Collective

Transactions) w.e.f. 01.07.2011


35/47

Bidding procedure Time Line for submission of bid

10 a.m. to 12 a.m. of preceding day NLDC communicates the margin to PX at 11:00 hrs. During the bid hours the bid can be revised or cancelled. Volume and price of the bid submitted by market players are stored

in central order book. Matching of bids for each 15 minute time block in carried out.

Price Determination Process (Provisional)The aggregate supply and demand curves will be drawn on Price-Quantity axes. The intersection point of the two curves will give Market ClearingPrice (MCP) and Market Clearing Volume (MCV).

Successful members will be provided with clearing price and volume. After working out of provisional obligation funds available in the

settlement account of the Members shall be checked with the

Clearing Banks. In case sufficient funds are not available in the settlement account ofthe Member then his bid (s) will be deleted from further evaluationprocedure.

Requisition for capacity allocation will be sent to NLDC at 13:00 hrs.


36/47

Bidding procedure

NLDC at 14:00 hrs. send the available margin to the PXs. Power Exchange at 14:30 hrs. will run the fresh iteration

for final MCP and MCV.

Obligations will be sent to the bank of buying members at

14:30 hrs. for settlement.At 15:00 hrs. cleared volume will be send to NLDC for

incorporation in schedules.

At 16:00 hrs. NLDC sends the cleared volume to respective

RLDCs.

At 17:30 hrs. NLDC shall confirm the accepted schedule to PX.

At 18:00 hrs. RLDC issues schedule Rev-0.


37/47

Time Line for PX transaction

1210 14

Bid submission

by applicants

13 15 1611

NLDC

sends

the

margin

to PX

PX sends the cleared

volume of different

control area to NLDC

NLDC informs

about thecongestion in

any link

PX submits

applicationto NLDC

NLDC communicates

to all RLDC about the

cleared volume

17:30

RLDCs communicates toNLDC and NLDC

confirms the schedule to

PX

18

RLDC

issuesschedu

le Rev

0


38/47


39/47

Congestion Management- Market Splitting

In deficit area the already cleared (provisionally) buyersbid get rejected on following criteria:

Lower price

Less volume

Time priority

Surplus

partDeficit part

ATC < Margin Cleared

Congest

ed link


40/47

area 1

price

MWh

area 2

price

MWh

(exchange volume)area surplus

atMCP

(exchange volume)area deficit

atMCP

neededcapacity

neededcapacity

availablecapacity

availablecapacity

availablecapacity

availablecapacity

price forarea 1

price forarea 2

Systemprice

Congestion Management : Market Splitting

SCHEDULE OF PARTICULAR ENTITY (BUYER/SELLER)


41/47

SCHEDULE OF PARTICULAR ENTITY (BUYER/SELLER)


42/47

Project

COMPARATIVE OVERVIEW OF ENERGY COST IN

SHORT TERM OPEN ACCESS MARKET AMONG

ADVANCE, FIRST-CUM-FIRST-SERVE, DAY

AHEAD AND CONTINGENCIES TRANSACTIONS

AND COLLECTIVE TRANSACTION FOR BUYER


43/47

What have we done ??

Select all the major power purchase utility across the

country (25 states).

Take the power transaction of the power purchase utility in

Open Access for both bilateral and collective transaction.

Categorize the power purchase cost for both bilateral and

collective transaction across all the states taken.

Evaluate and analyse the data and plot the graph

accordingly.

Analyse the graph.


44/47

Purchase Price of various STOA Bilateral

and Collective transaction for the state of

Assam


45/47

Weighted Average Purchase Price of

Various STOA Bilateral Transaction for the

state ofAssam


46/47

Inferences

From the above two charts it is clear that, state Assam

should reduce power purchase from FCFS and Advance as

the price is maximum in that category and should go for

either DAM market or power exchange. So that their

average cost of purchase reduces.


47/47

Competive Power

Documents

Transcript of Competive Power