power trading in india

8/6/2019 power trading in india

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SADDAM HUSSAIN QAZI2NDYEAR M.B.A

JKSHIM, NITTE

Providing power for the millions


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Overview

Indian Power market

Demand and supply scenario

Market RegulatorPower Exchanges

Dominant players in Power Trading

Pricing Model

Settlement of Contracts

Key Issues

Conclusion


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Worlds 6th Largest Energy Consumer

Relying on Coal and Thermal power plants

3rd largest producer of Coal in the world.

Long Experienced Capacity shortfalls, Voltage

Fluctuations

As a Major Impediment to Economic Growth.

Captive customers versus monopoly suppliers.


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Electricity act 2003, Trading is defined as PURCHASE OF ELECTRICITY FOR SALE THERE OF

Power trading was started in year 1996 in New York.

Power trading has 2 main components

Physical Trading

Financial Trading


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SOURCE ; DATA MONITOR


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Electricity cannot be stored.

Irrational tariff policy

A widening gap between the cost of generation and

average realizations.

Countrys economic growth depends on a viable power

sector.

Power cuts and additional power requirement


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Sixth largest consumer of electricity.

The Indian electricity market grew by 21.5% in 2009 to reach a

value of $104.9 billion and a forecast to have a value of $281.2

billion, an increase of 168.1% in 2014.

Industry is the largest segment of the electricity market in India,

accounting for 60.3% of the market's total value and 16.2% of the

Asia-Pacific electricity market value.

National Thermal Power Corporation is the leading player in the

Indian electricity market, generating a 26.6% share of the market's

volume.


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Year $ billion Rs. billion % Growth2005 48.7 2,376.62006 57.9 2,830.2 19.1%

2007 71.5 3,495.2 23.5%2008 86.3 4,217.7 20.7%2009 104.9 5,123.9 21.5%

CAGR: 200509 21.2%

Source: Datamonitor


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Primary commercial energy demand grew by 6% between

1981 to 2001.

India ranks 5th in terms of Primary commercial energy

consumption amounting to 3.5% of world commercial energydemand.

Despite increasing dependency on commercial fuels a huge

quantity (40% of total energy requirement)is met by non

commercial energy resources in rural areas but this trend is

changing steadily. The supply side has not been able to meet the demand side.

Use of solar can meet demand to some extent.


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MMC Set up in 2008.

Objectives

To observe trends in volume and price

To analyze competition

to disclose all relevant information

First institutional promoter power

exchange

Promoted by: NSEIL, NCDEX


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Bid Accumulation Period( Bidding phase)(10.00am to 12 noon

Auction Period

Price Determination Process : MCV, MCP

Price Determination Process (final): (2.00pm)NLDC

Settlement: (3.00 pm)


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Pioneers of electricity generation in India

Power generating capacity of 2365 MW,

Countrys largest private sector power utility

Generation units in Maharashtra, Jharkhand, Delhi and

Karnataka

Pursuing opportunities to trade with Bangladesh,

Nepal, Sri-lank etc


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India's largest player generating a 26.6% share of the

market's volume,

Set up in 1975 to accelerate power development in India.

Current installed capacity of 34,854 MW,

NTPC plans to invest 1lakh Crs. in hydro power project


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Indias largest integrated private sector power

utility company,

Generating a 4.3% share of the market's volume.

Reliance Energy is into generation, Transmission,

Distribution, and Trading of power.

Also an investor in infrastructure projects


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Traded through

Bids to buy; sales,

Through offers to sell, and

Short term trades generally in the form of financial or

obligation swaps.


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Power: Metered net electrical transfer rate at any given

moment of time. Measured in megawatts(MW)

Energy: Electricity that flows through metered point for a

given period. Measured in megawatts hour(MWh)


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Chapter 1 General Provisions

Chapter 2 Commercial Parties and Registration

Chapter 3 Contracts

Chapter 4 Metering

Chapter 5 Balancing Mechanism


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SEBs are on the brink of bankruptcy.

Tariffs havent hiked for close to half a decade

Shortage of coal to fuel the increasing no.

of power projects

Lack of infrastructural development required

to attract FDI


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THANK

YOU

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power trading in india