Open Access Solution for Ester Industries , Khatima , UA

Mittals Group Trusted Partners Creating Lasting Value

Introduction
Electricity Act,2003 gives newer concepts like Open Access & Power Trading. Definition: Open Access means open for all. Any generator is free to sell its power anywhere in the country. Similarly, any consumer is free to purchase power from any part of the country.

Evolution of Power Market

Power Market, popularly known as Power Exchanges provides a platform for both sellers & buyers to sell/buy power. Currently there are two Power Exchanges operating in India:

a)

Indian Energy Exchange Head Quartered at New Delhi

b)

Power Exchange of India Limited Head Quartered at Mumbai

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Major Sellers in Power Exchanges

The major sellers in Power Exchange includes:

Private Generators

Captive Power Plants

Hydro Power Plants

Grid connected renewable energy sources

State utilities having surplus power

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Why Power Market

Major Buyers in Power Exchange

The major buyers in Power Exchange includes: Industrial Consumers

Housing Societies (in some states)

Hotels, Hospitals, Commercial Buildings etc State Discoms

Basic Condition for Short Term Open Access

Sanctioned Load Connection Voltage Level Independent Feeder ABT Meter along with appropriate CTs and PTs of accuracy class 0.2s installed in series with the existing customer meter Customer is not a defaulter or disputed consumer of concerned DISCOM
7

>= >=

1 MW 11 KV

Nodal Agencies

For monitoring/facilitating, there are two Nodal Agencies for every state: Central Electricity Regulatory Commission (CERC) at the National level for issuing of Trading license, policy making and guiding/controlling the state Nodal Agencies Concerned State Load Dispatch Centre (SLDC) In case of Uttarakhand , it is Uttarakhand Power Corporation Limited (UPCL) , Dehradhun which issues NOC for Open Access & ensures availability of power as per power purchased from power exchanges/market by the consumers.

Trading on the Power Exchange

Procedure for Bidding for purchase of power through Open Access/Exchange

MPPL is running a bidding centre/terminal from 8 AM to 8 PM at Indirapuram office & RTC control room at Panipat office. Bidding is done for next day. For example if you want to purchase power for 9th February then bid is to be done on 8th February Between 10-12 AM. It is called Day Ahead Market.

Bidding Time is 10 AM-12 Noon to be intimated to our bidding terminal.

The bid requires Quantum of Power to be consume per hour in MW/KW & Price per unit on daily basis, separately from 00:00 hours to 24:00 hours of 8th February indicating the rates of power for each hour. For example Contd

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Contd
S. No. 1 Time Block 00:00 00:05 Quantum of Power (MW) 1.5 MW Rate (Rs/unit) 2.00

2 3
4 5 6 7 8 9

05:00 08:00 08:00 10:00

10:00 11:00 11:00 12:00 12:00 16:00 16:00 17:00 17:00 22:00 22:00 24:00

1.5 MW 2 MW
1.5 MW 1.5 MW 2 MW 2 MW 2.2 MW 2 MW

2.00 2.20
2.30 2.30 2.50 3.50 4.50 2.00 Contd 11

Contd
If power is cleared at lower than the bid rates (i.e. Market Clearing Price (MCP)) then you will get at the lower rates. For example against bidding for 10:00 to 11:00 at Rs.2.10 and if MCP is Rs.1.90 Then you will get power at Rs.1.90 /Unit. But, if power is cleared at higher than bid rates (i.e. Market Clearing Price (MCP)) then you will not get the power from exchange on that hour(s). However, power from UPCL will continue (subject to availability). At 5 PM if Bid is cleared the Obligation report showing the details of power cleared & amount for the same shall be intimated to you through mail by our staff. Our bidding team/staff shall be guiding you for bidding on the minimum viable rates as per Power Market conditions on day to day basis.
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Bidding Matrix
Mittal Processors (Power Trading Licensee)

S1
S2 S3

Trader from buyers

Central Electricity Regulatory Commission (Indian Power Market Regulator)

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Trader from sellers

B1 B2

IEX

B3

Power Flow from IEX to Ester

IEX

Injecting Point in NR at 400 KV substation of Power Grid

Central Transmission Network

State Transmission Network

State Distributio n Network

Ester

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Day-Ahead Market Timeline for Actual Delivery of Power on Next Day

10AM-12PM 11.00 AM Bidding period NLDC to inform PX interfaces on which unconstrained flows are to be advised by Power Exchange (PX) PX to furnish the unconstrained flow information to NLDC NLDC to inform PX about congestion, if any PX to submit application for scheduling to NLDC NLDC to send details of collective transactions to RLDCs RLDCs to confirm acceptance to NLDC NLDC to convey Acceptance for Scheduling PX

1.00 PM 2.00 PM 3.00 PM 4.00 PM 5.00 PM 5.30 PM

Benefits of Power Trading

Uninterrupted & reliable supply of power Cheaper power as compared to Discoms most of the time

Continuous supply even during power cut

Provides flexibility to purchase power from either of power exchanges & discom simultaneously depending upon the price and requirement of power

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Benefits From Power Exchanges

Trading is done in efficient, transparent and equitable manner

Exchange is the central counter-party for all transactions

Risk management for all entities

Overcomes issues of credit-worthiness of State Utilities

Increasing the depth of participants

Helping Captive Generation Capacities to bring their surplus on board Providing a platform to Independent Power Producers for their merchant sales Providing large load consumers access to on-demand electricity

OA Charges Payable by Customer in UA

Charges(Approx) Applicable On Open Access Costumer Over & Above The Market Clearing Price (MCP) for Open Access Consumer in Haryana at 33 KV Feeder

S. No.
1 2 3 4 5 6 7

Charges
Central Transmission Utility (CTU) Charges State Transmission Utility (STU) Charges Wheeling Charges Cross - Subsidy Charges Mittal Charges IEX Charges RPO Impact

Rate
11 Paise/Unit 12Paise/Unit 0 Paise/Unit 40 Paise/Unit 2 Paise/Unit 2 Paise / Unit 10 paise / unit

Total
8 Fixed Charges (NLDC Application Fees, NLDC Scheduling & Operating Charges & SLDC Scheduling & Operating Charges)

77 Paise/Unit
Rs 2500 (Approx.) per Day STU : 1.85 % & Distribution Losses : 14.75% CTU : 1.65 % (Changes Weekly)

Transmission & Distribution Losses (18.25 % )

# Considering exchange price as Rs 2.00 /Unit , net open access charges above IEX price will be Rs 1.20 / Unit- Rs 1.35 / Unit 21

Example for OA Charges

Case 1 : For 3 MW bidding Ester will get 54,000 units at Ester meter
IEX Charges Rs 1.89 / Units (on 30th July 2013)
OA Charges will be Rs 1.35 / Unit (Including all charges & losses) Total Landed cost : Rs 3.24 / Unit for 24 hrs Comparing this avg with UPCL price of Rs 4.08 (only energy charges) there is saving of 0.84 paise / unit Total savings will be Rs 45,360 per day.

 Case 2 : For 6 MW bidding Ester will get 1,08,597 units at Ester meter
IEX Charges Rs 1.89 / Units (on 30th July 2013) OA Charges will be Rs 1.33 / Unit (Including all charges & losses) Total Landed cost : Rs 3.22 / Unit for 24 hrs Comparing this avg with UPCL price of Rs 4.08 (only energy charges) there is saving of 0.86 paise / unit Total savings will be Rs 93,393 per day.

 Case 3 : For 9 MW bidding Ester will get 1,62,896 units at Ester meter
IEX Charges Rs 1.89 / Units (on 30th July 2013) OA Charges will be Rs 1.32 / Unit (Including all charges & losses) Total Landed cost : Rs 3.21 / Unit for 24 hrs Comparing this avg with UPCL price of Rs 4.08 (only energy charges) there is saving of 0.87 paise / unit Total savings will be Rs 1,40,090 per day.

Detail Procedure to Become Open Access Consumer

Agreement With Mittal Processors Pvt. Ltd. (MPPL) on Rs.100 Non Judicial Stamp Paper. Following Documents are to be sent to State Load Dispatch centre (SLDC) , Dehradhun (Nodal agency for open-access) for registration :
Registration Form Covering letter to SLDC Copy of latest 2 months electricity bills along with payment receipts Copy of IEX agreement with Mittal (mentioned above) Copy of CERC approved trading license (MPPL) Copy of IEX/ PXIL membership (MPPL) Copy of T& C duly signed by authorized signatory (Ester) Expected time frame for getting registration number is 7 days

On Getting registration number from SLDC for open access customer have to apply for NOC at UPCL , Dehradhun 25 Contd.

Contd.
Following Documents are to be sent to Uttarakhand Power Corporation Litmited (UPCL) , Dehradhun : Format -1 Application form Covering Letter to ED-Commercial at UPCL / SE SLDC Rs 5,000 DD in favour of DGM SLDC payable at Dehradhun 2 months electricity bill copy with payment receipts After getting final NOC you are eligible for purchasing Power through Power Exchange. Rs. 1,00,000/- plus service taxes Non refundable annual fee of exchange for IEX & PXIL respectively is to be deposited through MPPL.

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 After depositing the registration fee in exchange through MPPL, we will generate your portfolio code & you will be eligible for purchasing power through Power Exchange via MPPL. Note:- You have to maintain sufficient balance in your A/C with exchange through MPPL for bidding in exchange.

Open Access Investment

Annual Fees
IEX / PXIL membership Rs 1,00,000 plus services taxes (12.36%)
Registration Fees at SLDC Rs 5000

Monthly Fees
NOC fees Rs 5,000 to SLDC , Dehradhun Liaisoning Fees Rs 5000 ( for getting NOC , co-ordinating from UPCL / SLDC , preparing energy accounting statement & assistance in billing settlement at your billing circle )

One time liaisoning charges for registration at SLDC and approving single line diagram from your local circle - Rs 10,000 Mittal Trading Margin 2 Paise / Unit (only on successful units bidding units / cleared on Exchange)

Our Esteem Clients

All major state electricity boards UA , MP , AP , HP , RJ , PB etc All Industrial Clients :
JK Paper Songargh , Gujarat JK Tyres - Banmore , MP Oswal Denims Wearit Group

Arvind Mills
Pratibha Syntex GM Motors Claris Life sciences

Jindal Steel
Nirma DCM HNG Ashai India Glass SRF , Malanpur, MP and many more

Lovely Professional University

Our Major Clients for UA

Existing Clients (IEX / PXIL both):
Indian Glycols 18 MW HNG 8 MW ASAHI INDIA GLASS- 10.5 MW ALPS INDUSTRIES- 12.5 MW AIR LIQUIDE 8 MW

In pipeline :
Polyplex
Surya Roshni BOC India Ltd Sterlite Ltd Divya Pharmacy Action Tesa Amber Industries Fortis Group Hospitals

IEX Prices from January to July 2013

Year | Month Jan Feb Mar 2013 Apr May Jun Jul

N2 3243.08 2330.25 2622.29 2674.71 2355.28 1960.31 2015.8

Summary Average (RTC) Peak

N2 2460.52 2663.1

Non Peak
Day Night Morning

2392.99
2819.26 2019.53 2300.57

All prices are in Rs / Mwh for N2 region # Source : http://www.iexindia.com/Reports/AreaPrice.aspx

Why Mittal Processors Pvt. Ltd

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Mittal Processors Pvt. Ltd.

Traded more than 9000 MUs since 2009 Ranked no. 3rd in terms of total quantum of energy traded in the country by CERC Out of 2114 MUs traded in June 2013 on IEX , 179 MUs were through Mittal i.e. 8.48 % market share Manned & supervised by qualified & experienced personnel of the field Forayed into Commodity Trading , Solar EPC , Hydro Generation Consultancy Services Provided by MPPL for applying the Open Access

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 Mittal Processors Pvt. Ltd is member of both the Power Exchanges Provides arrangements for client members to trade on Power Exchange Complete information on new developments in exchange Apart from Exchange we also manages bilateral power for State Utilities like UPCL , UPPCL , Tata Power , HP , Punjab , MP , Sikkim etc We have managed to amplify savings of our existing by bid optimization strategy upto Rs 2500 / day during FY 2013-14.
It can be increase more depending on quantum purchased. By understanding the need of the industry on the basis of power required and bidding price. Getting monthly NOC from UPCL/ SLDC on time by maintaining standards of services.

Risk Assessment
Under drawl from consumer side as per load requirement

Power supply interruption due to line break down from UPCL

Units consumed through open access will be settled in next month billing month by UPCL under concurrence from concerned circle. Risk Mitigation
Planned bidding as per load required. MPPL will assist in billing settlement , energy accounting and coordinating with local circle monthly basis.

Abbreviation Used
NLDC- National Load Dispatch Centre

SLDC- State Load Dispatch Centre

CERC Central Electricity Regulatory Commission RLDC- Regional Load Dispatch Centre

MUs- Million Units (10 Lakhs Units)

IEX- Indian Energy Exchange PXIL- Power Exchange India Limited UPCL- Uttaranchal Power Corporation Ltd UPPCL- Uttar Pradesh Power Corporation Ltd

Conclusion
To support the projected GDP growth rate of 8 to 10% the Indian power sector not only needs to grow & harness all available renewable resources expeditiously but also the Indian Power Market needs to evolve newer value added production service like power trading to match demand supply gap across nation.

Let us pledge and move forward to achieve this Cherished Dream

Demerits of others may not be construed as merit of yours

Thank You
Manoj Vyas (+91-8588865479)

manojvyas@mittalsgroup.com