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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