IEX Bulletin_DEC_2023
IEX India
DECEMBER 2023, ISSUE 47
REGULATORY NEWS
IN THIS ISSUE...
REGULATORY NEWS
Ministry of Coal Issues Order for Amendment in SHAKTI
01 (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy
Maharashtra Electricity Regulatory Commission Issues
01 Second Amendment to Distribution Open Access Regulations, 2023
02
Telangana State Electricity Regulatory Commission Issues
Draft (Multi Year Tariff) Regulations, 2023
Central Electricity Authority Issues Methodology to Provide
03 for ‘Compensation for Operating a Thermal (Coal) Generating Unit Below 55% Minimum Power Level’
Kerala Electricity Regulatory Centre Issues Interim Order on
03 Schedule of Tariff and Terms and Conditions for Retail Supply of Electricity with Effect from 01.11.2023 to 30.06.2024
POWER INSIGHTS: NOVEMBER 2023 08 POWER INSIGHTS: NOVEMBER 2023 MARKET NEWS
Market News
TRADE INSIGHTS
Day-Ahead Power Market 08 Term-Ahead Power Market 09 Real-Time Electricity Market
10 Green Market
Ministry of Coal Issues Order for Amendment in SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy
On 8th November 2023, the Ministry of Coal issued an order for amendment in the SHAKTI Policy. The amendment specifically outlines:
Amendment in Para B (viii) (a) of SHAKTI Policy:
“A11 such power plants including private generators, which do not have PPAs, shall be allowed coal linkage under SHAKTI Policy for a period of minimum 3 months and up to a maximum of 1 year, provided further that the power generated through that linkage is sold through any product in power exchanges or in the short term, through a transparent bidding process through Discovery of Efficient Energy Price (DEEP) portal. A methodology in this regard shall be formulated by Ministry of Power, in consultation with Ministry of Coal.”
Maharashtra Electricity Regulatory Commission Issues Second Amendment to Distribution Open Access Regulations, 2023
On 10th November 2023, the Maharashtra Electricity Regulatory Commission (MERC) issued the Second amendment to Distribution Open Access Regulations 2023. The key points under these amendments are:
Defined “Entity” as any consumer with CD or sanctioned load of 100 kW or more either through multiple connections aggregating 100 kW or more located in same electricity circle of a Distribution Licensee.
The “Entity” shall be eligible to take power from Green Energy through Open Access.
GEOA consumers not to change the quantum of power consumed through open access for at least twelve-time blocks.
Formats and timelines devised by Central Nodal Agency as per provisions of Rules shall be followed for seeking GEOA.
CSS is not applicable in cases where power produced from a non-fossil fuel-based waste-to-energy plant is supplied to OA consumer and if green energy is utilised for production of green hydrogen and green ammonia.
Additional surcharge not applicable if:
Power from a non-fossil fuel-based waste-to-energy plant is supplied to OA consumers:
Green energy is utilised for production of green hydrogen & green ammonia.
Electricity produced from offshore wind projects, which are commissioned up to December, 2032 and supplied to OA consumers.
If fixed charges are being paid by such consumers.
Banking charges to be adjusted in kind @ 8% of the energy banked.
Un-utilised surplus banked energy shall be considered as lapsed at the end of each banking cycle.
Renewable Energy generating station shall be entitled to get Renewable Energy Certificates to the extent of the
lapsed banked energy.
Telangana State Electricity Regulatory Commission Issues Draft (Multi-Year Tariff) Regulations, 2023
On 16th November 2023, the Telangana State Electricity Regulatory Commission Issued draft Multi Year Tariff
Regulations 2023. According to the draft:
Regulation applicable to generation companies, transmission licensees, distribution licensees, deemed distribution licensees, distribution/retail supply utilities exempted from licensee, SLDC for determination of ARR, Tariff, and SLDC charges for control period.
Control Period shall be of 5 financial years, from 1st April 2024 to 31st March 2029.
Power procurement plan shall include long-term, medium-term and short-term power procurement, approved by the Commission.
All future procurement of short-term or medium-term or long-term power shall be undertaken only through tariff based competitive bidding in accordance with Guidelines notified by the Government of India under Section 63 of the Act.
Additional power procurement allowed where there has been unanticipated increase in electricity demand or a shortfall or failure in electricity supply from any approved source of supply or when sourcing of power from existing tied-up sources becomes costlier than other available alternative sources, the distribution licensee may enter into additional agreement or arrangement for procurement of power.
Prior approval of Commission not required:
When Distribution has procured short term power at a tariff that reduces approved total power procurement cost.
When faced with emergency conditions that threaten the stability of the distribution system, or when directed to do so by the SLDC to prevent grid failure.
Central Electricity Authority Issues Methodology to Provide for ‘Compensation for Operating a Thermal (Coal) Generating Unit Below 55% Minimum Power Level’
On 28th November 2023, the Central Electricity Authority (CEA) issued the methodology for compensation for operating a thermal generating unit below 55% minimum power level. According to the methodology:
CEA notified a regulation regarding ‘Flexible operation of coal based Thermal Power Generating Units’ on 30th January 2023. A phasing plan for implementation of 40% tech. min. was issued on 1st May 2023. Subsequently, a methodology has been issued on 28th November 2023.
Proposed Compensation: The power plant to be compensated for both fixed cost due to infusion of capital investment, increased O & M cost and variable charges due to efficiency loss at part load operation & additional oil consumption due to increased Equivalent Forced Outage Rate (EFOR).
Kerala Electricity Regulatory Centre Issues Interim Order on Schedule of Tariff and Terms and Conditions for Retail Supply of Electricity with Effect from 1st November 2023 to 30th June 2024
On 31st October 2023, the Kerala Electricity Regulatory Commission (KERC) issued the interim order on schedule of tariff and terms and conditions for retail supply of electricity with effect from 1st November 2023 to 30th June 2024. According to the order:
KERC determined tariff for year 2023-24 for bridging revenue gap of nearly Rs. 734.58 crore. Tariff approved applicable from 1st November 2023 to 30th June 2024.
Change in tariff:
Existing |
Approved |
|
HT-1(A) Industry |
||
Demand Charge (Rs/KVA/month) |
390 |
405 |
Energy Charge (Rs/unit) |
6.10 |
6.15 |
HT-1V(A) Commercial |
||
Demand Charge (Rs/KVA/month) |
490 |
500 |
Energy Charge (Rs/unit) up to 30000 units |
6.75 |
6.80 |
Energy Charge (Rs/unit) above 30000 units |
7.75 |
7.80 |
EHT Industry (66 kV) |
||
Demand Charge (Rs/KVA/month) |
400 |
400 |
Energy Charge (Rs/unit) |
6.00 |
6.15 |
EHT Industry (110 kV) |
||
Demand Charge (Rs/KVA/month) |
390 |
400 |
Energy Charge (Rs/unit) |
5.90 |
6.00 |
EHT Industry (220 kV) |
||
Demand Charge (Rs/KVA/month) |
360 |
380 |
Energy Charge (Rs/unit) |
5.30 |
5.40 |
POWER INSIGHTS: NOVEMBER 2023
Capacity
In November 2023, all India installed capacity stood at 4,26,132 MW with capacity addition of 596 MW during the
month with break-up as below:
Thermal: - No Change • Renewable: 566 MW (Increase) • Hydro: 30 MW (Increase) • Nuclear: No Change
All India peak demand was printed at 2,39,931 MW during April ’23–November ’23 registering a 15.8% YoY increase from 2,07,231 MW during April ’22–November ’22.
All India energy met was higher by 8.9% at 1,100 BUs during April ’23-November ’23 compared with 1,010 BUs during April ’22–November ’22.
All India Installed Capacity (in MW) Demand and Supply Position
Peak Demand Met Comparison of Key States
The comparison of the peak demand met in the key states during April–November 2022 and April–November 2023 is as hereunder:
State |
Apr-Nov'22 |
Apr-Nov'23 |
YoY (%) |
Maharashtra 28,846 27,996 -2.9%
Gujarat 21,382 24,544 14.8%
Pradesh
Haryana |
12,768 |
12,844 |
0.6% |
Madhya Pradesh |
56,224 |
64,192 |
14.2% |
Tamil Nadu |
17,248 |
19,045 |
10.4% |
Andhra Pradesh |
47,297 |
54,561 |
15.4% |
Karnataka |
14,725 |
16,950 |
15.1% |
Tamil Nadu |
77,049 |
84,221 |
9.3% |
Telangana |
13,079 |
15,370 |
17.5% |
Karnataka |
45,968 |
59,382 |
29.2% |
All India |
2,07,231 |
2,39,931 |
15.8% |
All India |
10,10,203 |
10,99,907 |
8.9% |
Madhya 16,085 17,097 6.3%
Uttar Pradesh |
26,589 |
28,284 |
6.4% |
Punjab |
14,311 |
15,293 |
6.9% |
Andhra Pradesh |
12,293 |
13,028 |
6.0% |
(Source: www.cea.nic.in)
Energy Met Comparison of Key States
The comparison of the energy met in the key states April–November 2022 and April–November 2023 is as hereunder:
State |
Apr-Nov'22 |
Apr-Nov'23 |
YoY (%) |
Rajasthan 65,565 69,352 5.8%
Uttar Pradesh |
1,03,898 |
1,06,875 |
2.9% |
Gujarat |
91,359 |
98,509 |
7.8% |
Haryana 44,546 45,605 2.4%
Punjab |
51,947 |
51,453 |
-1.0% |
Maharashtra |
1,20,594 |
1,37,891 |
14.3% |
Telangana |
47,208 |
54,089 |
14.6% |
ELECTRICITY MARKET
Indian Energy Exchange, India’s premier energy exchange, achieved 9,136 MU is overall volume, including 7.55 lac Renewable Energy Certificates (RECs) (equivalent to 755 MU), marking a 17.5% increase on a YoY basis. IEX achieved 8,371 MU total electricity volume in November 2023, registering an increase of 13% on a YoY basis.
According to government data published in November ‘23, the country’s energy consumption reached 120 billion units, representing an 8.5% increase on a year-on-year basis. The Market Clearing Price in Day Ahead Market during November ‘23 was Rs. 3.98/unit, down 13% year-on-year, due to a combination of factors including lower demand due to festive season, temperature drop and much improved sell side liquidity on the Exchange platform.
Price on the Exchange has been experiencing a downward trend and average monthly price is currently at its lowest levels this financial year, offering an opportunity for Discoms and industrial consumers to optimize their power procurement costs.
DAY- AHEAD, TERM- AHEAD & REAL- TIME ELECTRICITY MARKET
The Day-Ahead Market (DAM) volume was at 5,144 MU in November ’23, as compared to 5,087 MU in November ‘22.
The Real-Time Electricity Market (RTM) volume increase to 2,359 MU in November ‘23, from 1,407 MU in November ’22, registering an increase of 68% YoY.
The RTM segment enables distribution utilities and industries with greater flexibility and efficient optimisation of
portfolios by balancing their power demand-supply on a real-time basis.
Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily and weekly and monthly contracts up to 3 months, traded 679 MU during November ’23, higher by 24 % on YoY basis.
GREEN MARKET: DAY-AHEAD & TERM-AHEAD
IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 189 MU volume during November ’23.
The Green Day-Ahead Market (G-DAM) achieved 182 MU volume during the month, with a weighted average price
of Rs. 5.05 per unit. The segment saw participation from 182 market participants during the month.
The Green Term-Ahead Market (G-TAM) achieved 7 MU volume in November ‘23, with and average monthly price
of Non-Solar-Rs. 6.22/unit.
RENEWABLE ENERGY CERTIFICATE MARKET
A total of 7.55 lac RECs (equivalent to 755 MU) were traded in the trading sessions held on 08th November ’23 and 29th November’23, at a clearing price of Rs. 375/REC for both the sessions. REC cleared volume in November’23 increased by 103% on YoY basis.
The next REC trading sessions at the Exchange are scheduled on 13th December ’23 and 27th December’23.
ENERGY SAVING CERTIFICATES (ESCerts)
Trading of ESCerts for PAT Cycle-ll officially concluded on 30th October 2023, with a total coverage of 544 DCs and
40 successful trading sessions. A total of 13.2 lakhs ESCerts were traded on IEX in PAT Cycle-ll.
CONVENTIONAL POWER MARKET DAY-AHEAD MARKET
Price Snapshot (`/kWh)
AREA PRICES |
|||
Area |
Average |
Minimum |
Maximum |
All India |
3.95 |
2.00 |
10.00 |
1 MU= 1 Million kWh= 1 GWh
VOLUME |
||||
Volume |
Sell Bids |
Buy Bids |
Unconstrained Volume |
Cleared Volume |
Total Volume (MU) |
9,539.32 |
7,865.67 |
5,144.31 |
5,144.31 |
Average Daily (MU) |
317.98 |
262.19 |
171.48 |
171.48 |
PARTICIPATION |
||
Total Registered Participants |
Open Access Consumers |
Private Generators |
7,500+ |
4,600+ |
600+ |
TERM-AHEAD POWER MARKET
Contracts |
Total Volume (MU) |
Max. Price (`/kWh) |
Min. Price (`/kWh) |
Intraday |
0.10 |
10.00 |
10.00 |
Day-Ahead Contingency |
36.07 |
10.00 |
2.06 |
Daily |
290.58 |
8.00 |
5.15 |
Weekly |
45.860 |
5.75 |
5.75 |
Monthly |
306.52 |
9.97 |
4.97 |
Total TAM Volume |
679.13 |
||
Scheduled Volume in the month based on Delivery Date
TERM-AHEAD POWER MARKET
REAL-TIME MARKET
Price Snapshot (`/kWh)
AREA PRICES |
|||
Area |
Average |
Minimum |
Maximum |
All India |
3.99 |
0.70 |
10.00 |
1 MU= 1 Million kWh= 1 GWh
VOLUME |
|||
Volume |
Sell Bids |
Buy Bids |
Unconstrained Volume |
Total Volume (MU) |
5,738.33 |
3,557.28 |
2359.07 |
GREEN DAY-AHEAD MARKET
Price Snapshot (`/ kWh)
AREA PRICES |
|||
Area |
Average |
Minimum |
Maximum |
All India |
5.01 |
3.25 |
10.00 |
1 MU= 1 Million kWh= 1 GWh
VOLUME |
||||
Volume |
Sell Bids |
Buy Bids |
Unconstrained Volume |
Cleared Volume |
Total Volume (MU) |
245.95 |
1,444.62 |
182.20 |
182.20 |
Average Daily (MU) |
8.20 |
48.15 |
6.07 |
6.07 |
GREEN TERM-AHEAD MARKET
Intra-day (Solar) |
Intraday (Non Solar) |
Intraday (Hydro) |
Day-Ahead Contingency (Solar) |
Day-Ahead Contingency (Non-So-lar) |
Day-Ahead Contingency (Hydro) |
Weekly (Solar) |
Weekly (Non-Solar) |
Daily (Solar) |
Daily (Non-Solar) |
|
Volume (MU) |
- |
- |
- |
- |
0.37 |
- |
- |
- |
- |
9.94 |
Price (Rs/kWh) |
- |
- |
- |
- |
6.26 |
- |
- |
- |
- |
6.17 |
Total Volume (MU)* |
10.31 |
|||||||||
* Does not include Green LDCs
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