Project presentation on power exchange

1. ELECTRUM
WE BRIDGE THE POWER GAP
AN INNOVATIVE SERVICE SECTOR PROJECT
Ranajit Bhattacharya 28/05
Debashish Sarkar 28/47
Arnab Nandi 28/38
Prof. Shovan Nandi
Institute of Business Management
Jadavpur University

2. ELECTRUM
WE BRIDGE THE POWER GAP

3. ELECTRUM
WE BRIDGE THE POWER GAP
Power Scenario in India
•India is the world's fifth largest power generator.
•India has an installed capacity of 225.133 GW as of May2013.
•Over 300 million Indian citizens had no access to electricity (Dec 2012)
•Over one third of India's rural population have no access to electricity
•6% of India's urban population have no access to electricity
•blackouts and power shedding are common in all parts of India hampering irrigation
and manufacturing
Per Capita Average Annual Domestic Electricity Consumption
2009 Data Rural Urban
India 96 kWh 288 kWh
European Union 2600 kWh 6200 kWh

4. ELECTRUM
WE BRIDGE THE POWER GAP
Where lies the opportunity:
• As we see that in India there is a non uniformity in
power distribution. Whereas some states are power
surplus and some other states are power deficient.
• Before 2003 Electricity Act power was unregulated and
no definite laws and regulations were there to cater
this non uniformity of power distribution.
• Elec. Act 2003 has opened the door for advent of
Power Traders.

5. ELECTRUM
WE BRIDGE THE POWER GAP
Who are the Power Traders
•Power Traders play one of the vital roles in power market.
•Generators generate power in isolation and don’t know what
to do with their surplus power.
•Power Traders utilizing their knowledge of power market
and various regulations help the generators to distribute the
power in intra and inter state transactions there by helping
the power starved consumers/states meet up their deficiency
of power.

6. ELECTRUM
WE BRIDGE THE POWER GAP
ABOUT US
Mission:
Establish and maintain a pool of power system operation experts along with
state of the art online computerized control room for online bidding. A
highly professional work force to facilitate transfer of power from a surplus
area to a deficit area at market competitive price through Power Exchange
Platform.
Objective:
India is a power deficit country. Our objective is to fulfil the Short term as
well as Long term energy requirements of its customers and facilitate
transmission of power from surplus utilities, CPP92s and others non
conventional energy sources to the deficit region or load centres at market
competitive price .

7. ELECTRUM
WE BRIDGE THE POWER GAP
Services We Offer:
•Power Trading :- Providing electronic Platform for trading of Power on
the IEX.
•Bilateral Trading :- Trading of Power between generators and
consumers.
•REC :- Support in Accreditation, Registration, Issuance and Trading of
Renewable Energy Certificates.
RPO :- Support in Registration and Compliance of Renewable Purchase
Obligations.

8. ELECTRUM
WE BRIDGE THE POWER GAP
PRODUCT
Our product is Electricity.
SERVICE
Power Trading :- Providing electronic Platform for trading of Power on the IEX.
Bilateral Trading :- Trading of Power between generators and consumers.
REC :- Support in Accreditation, Registration, Issuance and Trading of Renewable
Energy Certificates.
RPO :- Support in Registration and Compliance of Renewable Purchase Obligations.

9. ELECTRUM
WE BRIDGE THE POWER GAP
POSITIONING:
•We have positioned ourselves as one of the distinct Power Traders in
Power Market.
•As a bilateral Power Trader we are transacting power between IPP,
CPP, Discoms to various discoms, large and small scale industries
through Open Access.
•We are also Trader Member of Indian Energy Exchange(IEX)
transacting in Day ahead Market (DAM), Term Ahead Market(TAM),
• Renewable Energy Certificate(REC)

10. ELECTRUM
WE BRIDGE THE POWER GAP
PRICE / Our Profitability:
• For Bilateral transaction we charge <= 7 paisa pu of electricity
• For IEX we charge <= 4 paisa pu of electricity
• For ex. if a consumer transacts 10lakhs units of electricity/month, our trading margin=
1000000x.04 =Rs.40,000.
• If we can transact 30 transactions, total trading margin = Rs.12 lakhs pm. Yearly= 144 lakhs
• Licensee fee for CERC bilateral trading licensee=15lakhs,
• For IEX=5lakhs
• So a net income=10.33lakhs/month
• For a total strength of 20employess having average salary=Rs.30000, the running expenses
=6lakhs.
• profit on the lower side=4.3lakhs/month
• Initial capital expenditure for 20 laptops(Rs.30000) and other infrastructure=10lakhs.
• Running expenses for infrastructure= Rs.1 lakhs
• Running profitability= 3.3lakhs

11. ELECTRUM
WE BRIDGE THE POWER GAP
DISTRIBUTION MODEL:
pPower Trading
Bilateral Power Exchange
Interstate i.e. in all States
Intra state
State discoms
Open Access Consumers/Industries

12. Business Model And Process
Long TermLong Term
Power Purchase AgreementsPower Purchase Agreements
Upto 25 YearsUpto 25 Years
Medium TermMedium Term
3 months- 3years3 months- 3years
OTC
Licensed traders (42)
OTC
Licensed traders (42)
Short-TermShort-Term OTC Intraday- 3 monthsOTC Intraday- 3 months
ExchangesExchanges
Balancing MarketBalancing Market
Intraday - 3 monthsIntraday - 3 months
Unscheduled InterchangeUnscheduled Interchange
1. Intra-day
2. DAM
3. DAC
4. Daily
5. Weekly
1. Intra-day
2. DAM
3. DAC
4. Daily
5. Weekly
Real TimeReal Time

13. ELECTRUM
WE BRIDGE THE POWER GAP

14. ELECTRUM
WE BRIDGE THE POWER GAP
CURRENT PROMOTIONS
Apart from Power Trading we are diversifying in the related field of open access by
providing the total solution of Open Access right from procurement of ABT meters,
CT-PT set, liaising up to commissioning to consumers without which they are not
allowed to purchase/sale power thru’ inter/intra/power exchange.
We charge our consultancy fee which may be in the tune of 3-4 lakhs per metering
point for Open Access.
This helps in promotion of our core business of Power Trading as open access for
consumers are inevitable to procure power from outside.
Publishing of trading reports in CERC site, Giving interviews in business newspapers
and magazines,

15. ELECTRUM
WE BRIDGE THE POWER GAP
External Marketing:
•Publishing of trading reports in CERC site
•Giving interviews in business newspapers and magazines
•Broadcasting interviews in TV channels
•Sponsoring seminars and workshops on power generation and trading
•Close interaction with international bodies e.g. IEEE and national institutes
like CPRI

16. ELECTRUM
WE BRIDGE THE POWER GAP
Interactive Marketing:
•Regular interaction with prospective clients over telephone
•Video conferencing with prospective clients
•Visiting premises by marketing people
•guiding prospective clients about the modalities of the best combinations of power procurement
through bilateral and power exchange
•Organizing seminars and workshops on Power Trading in all the big cities
•Inviting the officials of big industries in our offices and make them aware of the recent developments of
power market and regulations, useful clauses and detrimental clauses of regulations
•Helping clients for making petition against problem clauses, dispute mitigation
•More and more interaction with clients , listening to their problems and try to find effective solutions
definitely make a power trader very close to industries
The goodwill of a trader in power market spread like wild fire and indirect marketing is done by the
industries on behalf of the Trader, then we do not need to search clients but clients search us.

17. ELECTRUM
WE BRIDGE THE POWER GAP
Electrum has
a dedicated
service team
and delivery
team to cater
to the
customer
base

18. ELECTRUM
WE BRIDGE THE POWER GAP
Indentifying Competition:
As a Power Trader we face lot of competitors. Firstly there are some emerging
Power Traders backed by big groups, secondly there is power exchange which is
eating away our bilateral trading market to power exchange market, direct bilateral
trading bypassing the Power Traders and Fourthly parallel UI market by which
states over draw power at higher frequencies and don’t approach the traders.
Combating With Competition:
Continuous networking with the consumers, reaching and identifying the remotest
consumers before the other competitors could reach. Immediate PPAs with them
for at least 2-3 years by which our clients can be insulated from others.

19. ELECTRUM
WE BRIDGE THE POWER GAP
PEOPLE POLICY:
•As Power Trading involves interaction with high end ,sophisticated, technical,
commercial and finance people of various industries we recruit engineers
preferably electrical with MBA in marketing or finance.
•To make them conversant with regulations along with technical requirements we
recruit experienced people from power industries.
•This combination of young enthusiasts and experienced middle age people give us
the required mobility and dynamism throughout the market.

20. ELECTRUM
WE BRIDGE THE POWER GAP
Projected H R Growth

21. ELECTRUM
WE BRIDGE THE POWER GAP
Summary
• A high growth Company
• Focused on technology and marketing
• Company relentlessly working towards customer benefit and services
• Diversifying for a better tomorrow
• Aims for high brand value and brand recall
• Projected growth over next 5

22. ELECTRUM
WE BRIDGE THE POWER GAP
Thank you