IEX[1] - r Exchange : Electricity Marketplace In this...

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er Exchange : Electricity Marketplace
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In this presentation … Scope of Power Trading What is Px ? What IEX will offer? How IEX will operate ? How IEX benefits ? International Scenario Revised OA Regulations… favours markets Story so far. . Market splitting and transmission pricing About IEX & its Promoters.
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Growth in Short-term Power Trades Source: POWERGRID UI Billed Amount 892 2846 4627 5170 6856 800 1800 2800 3800 4800 5800 6800 2002-03 2003-04 2004-05 2005-06 2006-07 Rs. in Crores 17 23 24 30 778 3938 5933 9560 0 5 10 15 20 25 30 35 2004-05 2005-06 2006-07 2007-08 Financial Year Volume of Trade in Billion Units 0 2000 4000 6000 8000 10000 12000 Number of Transactions Volume No. of Transactions ENERGY TRANSACTED 622 605 286 310 644 542 852 486 613 448 491 470 1520 2068 2135 2691 2383 2021 1922 1647 2032 1861 1510 1675 0 500 1000 1500 2000 2500 3000 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 MONTHS MU SAME DAY+DAY AHEAD FCFS+ADVANCE Growth in number of participating utilities in STOA (CAGR 25%) 45 64 71 89 0 10 20 30 40 50 60 70 80 90 100 2004-05 2005-06 2006-07 2007-08 Financial Year Number Number
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What is Power Exchange ? On-line National Automated Electronic Standardised  Contracts Central  Counterparty Delivery… Exchange as Organised Marketplace Power-specific •Spot •Intra-Day •Day-ahead •Forward •Weeks •Months •Futures Voluntary
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Electricity Act, 2003 allows development of power market (Section 66 : Appropriate Commission shall endeavour to promote development of market (including trading) in power in such a manner as may be specified and shall be guided by the National Electricity Policy… ) National Electricity Policy(2006) allows Appropriate Commission to make necessary regulations for Px Our initiatives for Electricity Market Application filed with FMC for futures trading in electricity - 19 March 2005 Gazette Notification issued for Futures trading in Electricity – 9 January 2006 CERC guidelines for setting up and operation of Px – 6 February 2007 FTIL filed application for grant of permission for Px – 15 March 2007 Received CERC’s approval for Px - 31 August,2007 CERC Accorded approval to commence operations- 9 June 2008 Background…
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Main functions of an Exchange Self Regulatory Organisation. Price discovery. A contract for Purchase and/or sale of electricity as prescribed by the Exchange and permitted by CERC. All transactions in Contracts shall be cleared, registered and settled by the Exchange. Exchange to prescribe trading days & trading session. Exchange to act as a legal central counter party.
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Power as Commodity & its effect on exchange design Needs to be consumed instantly Number of suppliers and consumers at bulk level are limited. Packaging not possible. Ownership cannot be identified No quality issue of delivered commodity Transportability issue Day-Ahead Market For inducing competition : Closed double-sided auction ’ in place of continuous trading.
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IEX[1] - r Exchange : Electricity Marketplace In this...

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