Present and Future of Indian Power Sector.

1. SUBMITTED BY,
ARYADIPTA JENA
MBA (POWER
MANAGEMENT)
NPTI, CAMPS, FARIDABA
D

2. Objective of Project








To study and analyze region wise demand and availability of
Electricity to determine peak shortage and total energy deficit.
To study and analyze the power market size and structure.
To identify the need and importance of an efficient short term
power market.
To analyse Volume and Price of short term Power market
Benchmarking of Trading Licensee
To understand the development process of various developed
power market and identify various successful market tools
that can be implemented in India.
To identify states for investment opportunities through
analysis of different market parameters influencing the power
market.
To understand the various risk associated with Short term
power market for various stakeholders.

3. ABOUT THE ORGANISATION

4. In this presentation…..
Indian Power Market Scenario
Power Trading Market
Indian Energy Exchange
Open Access Power Sales
Market
Unschedule Interchange
Corridor Research

5. Indian Power Market scenario

6. Trend of Power Requirement
1200000
1000000
800000
Requirement(2013-14) MU
600000
Requirement(2012-13) MU
Requirement(2010-11) MU
400000
200000
0
Northern
Western
Southern
Eastern
North-Eastern
All India

7. Trend of Power Availability
1200000
1000000
800000
600000
Availability(2013-14) MU
400000
Availability(2012-13) MU
Availability(2010-11) MU
200000
0
•Availability of electricity is increasing consistently.
•The total installed capacity In may 2012 was 2,01, 637 MW
and in may 2013 it increased to 2,25,133 MW having an growth
of 11.65%.

8. Trend of Power Deficit region wise20000
0
NR
WR
SR
ER
NER
All India
-20000
Surplus(+)/Deficit(-) (2013-14) MU
-40000
Surplus(+)/Deficit(-) (2012-13) MU
Surplus(+)/Deficit(-) (2010-11) MU
-60000
-80000
-100000
 All India Power deficit has reduced as compared to previous year but it
still having 6.7%.
 Southern region having highest power deficit 19.1%.
 Northern ,Western and North Eastern region having deficit 5.8%, 1.2%
and 11.3% respectfully.
 Only Eastern region having surplus power 10.2%

9. Growth in term of resources
Fuel
Installed as
may-2012
Installed as
may-2013
Growth in %
Coal
1,13,782.38
1,31,628.39
15.68
Gas
18381.05
20359.85
10.77
Total Thermal
1,33,363.18
153187.99
14.87
RES
24503.45
27541.72
12.40
Total
2,01,637.03
225133.11
11.65

10. 250,000.00
200,000.00
150,000.00
100,000.00
INSTALLED AS ON MAY-12 IN MW
INSTALLED AS ON MAY-13 IN MW
50,000.00
0.00

11. Power Trading Market





There were 42 trading licensees as on 30.04.2013.
But only 21 have engaged in trading during April 2013.
Top 5 trading licensees had a share of 68.91% in the total
volume traded by all the licensees.
Sterlite energy Ltd has sold highest electricity 13.67%
through bilateral in April 2013 .
PTC is having 22.83% of total electricity traded.

12. Price Analysis of Top 4 Trading
Companies for jan-13 to may-13
Weighted avg.Purchase price at trading licencees
6
5.43
5.43
5
4.89
4.3
4.2
4.38
4.37
3.73
4
4.2
4.1
3.73
4.53
3.7
4.15
4.28
4.15
3.76
3.48
3.1
3
Tata trading
NVVNL
PTC
NETS
2
1
0
Jan-13
Feb-13
0
Mar-13
Apr-13
May-13
Lanco trading has higher price rate then other trading licensees.

13. Price of electricity transacted through
traders as on april-13
Sale Price of Traders (Rs/kWh),April 2013
9
8.04
8
7
6
5
4.55
4
3
Sale Price of Traders
(Rs/kWh),April 2013
2.9
2
1
0
Minimum
Maximum
Weighted Average

14. Price of electricity transacted through
traders(time wise) as on april-13
Sale Price of Traders (Rs/kWh),April 2013
4.7
4.6
4.63
4.6
4.5
4.4
4.3
4.2
4.12
4.1
4
3.9
3.8
RTC
Peak
Off-peak
Sale Price of Traders (Rs/kWh),April
2013

15. Price of electricity transacted through
power exchange , April 2013
25
Price of electricity transacted through power exchange , April 2013
19.6
20
15
Price of IEX (Rs/kWh),April 2013
Price of PXIL(Rs/kwh),Aprill 2013
10
5
5
3.74
2.71
1.31
1.31
0
Minimum
Maximum
Weighted Average

16. Trend of Indian Energy Exchange Price
Analysis region wise 6.72
6.52
7
6
5.12
5
4
3.47
3.11 3.04
3.4
3.02
3.09
3.39
3.15 3.22
2010
3.6
3.32
3.16 3.18
2011
2012
3
2.3
2.49
2.27
2.43
2013
2
1
0
north east
eastern
northern
southern
Western
The price of electricity in Energy Exchange is decreasing in all region
accept southern region.
Due to highly shortage of electricity in southern region price of
electricity in Energy Exchange is increasing.

17. Open Access Power Sales
Mechanism
Long Term Open Access
Medium Term Open
Access
Short Term Open Access

18. Long Term Open Access
Bidding Mechanism
Case 1
•
Location/technology/fuelnot specified
• Bidder responsible for
clearances/approvals
• Relevant for state with
limited fuel supply
• higher risk for
developer
• Lower risk for state
Case 2
•Land/fuel provided by
procurer
•Procurer will take
clearances/approvals
•Relevant for states with
fuel source/having
coastal area
•Higher risk for state
•Lower risk for
developer

19. Medium Term Open Access
Power transfer in MW
3000
2846.2
2500
2000
1500
1000
626
710
408.5
500
200
150
175
0
Total
Total
Western to Western to
southern
Western
Total
Eastern to
southern
Total
Eastern to
Eastern
Total
Total
Total
Northern to Northern to southern to
southern
Eastern
southern
Highest power sales from western to southern
Power is not able to sell southern region due to transmission
constraint.

20. Short Term Market
1) 90% of electricity is
transacted through long
term basis.
2) Remaining 9.81% is
transacted through the
short term basis.
3) In short term market
electricity is transacted
through bilateral, power
exchange or UI .
4) Bilateral covers 45.35% of
total short term power
market with constitute
35.46% - traders and term
ahead contract in PX and
9.81% - directly between
distribution company.

21. UNSCHEDULED INTERCHANGE
• Comparison of top 5 exporter through UI
2500
2221.02
2028.4
2000
1500
1225.15
1000
500
601.74
594.1
373.19
310.86
527.8
495.29
673.67
total vol (MU) export in 2011-12
total vol (MU) export In 2012-13
0
 Gujrat is all time higher exporter through UI.

22. UI cont…….
4000
3500
3000
total vol (MU) import in 2011-12
total vol(MU) import In 2012-13
2500
2000
1500
1000
500
0
 Uttar Pradesh is the highest importer due to
the high demand.

23. CRRIDOR ANALYSIS
Eastern
To
 TTC = 830 MW
ATC =830 MW
 RTC = 0 MW
For LTOA & MTOA = 612 MW
 For STOA =218 MW
Southern

24. Northern
to
 TTC = 2500 MW
 RTC = 500 MW
 ATC = 2000 MW
For LTOA & MTOA = 286 MW
 For STOA = 1714 MW
Western

25. western

to
southern
TTC & ATC = 1000MW for only LTOA and MTOA.
 There is no power transfer capability available for short term
open access (STOA).
 The reliability margin between western region to southern region
is zero.

26. Eastern
To
 In this region TTC = 4000 MW
 RTC = 300 MW
 for LTOA and MTOA = 2189 MW
 FOR STOA = 1511 MW
Northern

27. Northern
To
 TTC = 1100 MW
 ATC = 900 MW
 RTC = 200 MW
 For LTOA and MTOA allowed = 0 MW
 For STOA allowed = 900 MW
Eastern

28. RECOMENDATION

Sterlite Energy Ltd supply 600MW of power to Grid
Corporation of Orissa through Bilateral agreement and other
600MW through short term open access (STOA). It can sell
it’s power in power trading market to different open access
consumers in different region of India to get maximum per
unit price. The trading price in southern region is highest
compare to other region in the country, so they should try to
sell more volume of power to southern region for high gain for
per unit power sold.

29. RECOMENDATION CONT…..

The Sterlite Energy Ltd can put it’s power sell bid
on the Indian Energy Exchange (IEX) by analysing
different transmission corridor, availability transfer
capability (ATC) and peak demand of different
region . They can sell maximum volume of power in
IEX which will generate revenue for operation of
plant and also for the organisation.

30. RECOMENDATION CONT……

The Sterlite Energy Ltd can supply power to bulk
power consumer through Open Access. With
permission from concern SLDC, transmission
utility, state electricity board it can supply to
intrastate and interstate Open access consumer by
paying transmission charges, wheeling
charges, transmission loss charges and other
surcharges as per agreement. This power sell
through Open access to bulk consumer will
generate revenue and also will help to increase the
Plant Load Factor (PLF).

31. RECOMENDATION CONT……

Vedanta Aluminium Ltd can sign a long term
Power Purchasing Agreement (PPA) with Sterlite
Energy Ltd to purchase power for it’s new
aluminium smelter plant. This will benefit Vedanta
Aluminium Ltd by purchasing power in low price by
without paying cross subsidy charges, transmission
charges and other surcharges to the distribution
company.