TIMELINE OF SOME IMPORTANT RULES AND REGULATIONS

 1910 – IEA regulate the generation, transmission, distribution, and use of electricity in
India.
 1948 – The electricity (Supply) Establishment of State Electricity Boards (SEBs)’
 1991 - Establishment of Central Electricity and State Electricity Regulatory
Commissions to regulate the electricity sector in India.
 1998 - Establishment of CERC is a regulatory body responsible for issuing
regulations and guidelines.
Electricity Regulatory Commissions (ERCs) State level in several state.
 Electricity Act 2003- Encourage competition by open access for inter-state
transactions, de-licensing generation, and recognizing trading as a distinct licensed
activity.
 Electricity Rule 2005- To set up Power Exchanges in India.
 The CERC in 2007 Guidelines for setting up and operating power exchanges.
 1st Power setup in June 2008, Second one in October 2008.
 2009 Power System Operation Corporation (POSOCO).
 Scheduling and dispatching power from generating stations.
 National and regional NLDC, RLDC Power Grid Management.
 Inter-state transmission of electricity in real time.
 It also coordinates with Regional Load Dispatch Centre’s (RLDCs) for
monitoring the demand and supply of respective regions.
 Ensure stability and reliability of the power system mutually
connected through central and state governments, regulators,
transmission licenses, DISCOM’s and generating companies to ensure
the smooth operation of the power system.
 2010- CERC introduced the unscheduled interchange (UI) mechanism to balance
deviations in the supply and demand.
 2014- The National Tariff Policy – forecasting and scheduling the Renewable Energy
Generation.
 2018- CERC issued regulation for real time market for electricity trading, half hourly
basis trading.

INTRODUCTION
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Introduction to Power Markets in India

The power market refers to the system of buying and selling electricity among generators,
distributors, and consumers. In India, this market has evolved significantly with the
liberalization of the electricity sector, promoting competition and efficiency. Key reforms,
such as the Electricity Act of 2003, have enabled private sector participation and the
development of power exchanges for transparent trading. As India focuses on renewable
energy and grid modernization, the power market continues to play a crucial role in meeting
the country’s growing energy demands.

The Indian Power Landscape: -

1. Diverse Generation Sources: India’s power sector boasts a rich tapestry of energy
sources, from conventional coal and hydro to cutting-edge solar and wind.
2. Our installed capacity of 429.96 GW (as of January 2024) places us as the third-
largest producer and consumer of electricity globally .
3. Renewable Revolution: With 42.3% of our capacity coming from renewables
(including hydro), India is a trailblazer. Solar energy leads the charge with 82.63 GW,
followed closely by wind power at 46.16 GW .
4. Demand Surge: Our insatiable appetite for electricity continues to grow. In FY23,
power generation witnessed its highest growth rate in over 30 years, reaching
1,452.43 billion kilowatt-hours (kWh) . The peak power demand surged to 243.27
GW in January 2024 .

Why Power Markets Matter

 Flexibility: Power markets offer a nimble alternative to long-term Power Purchase

Agreements (PPAs). Generators can swiftly respond to demand fluctuations and sell
surplus power at market-determined prices.
 Transparent Transactions: Through power exchanges, electricity flows seamlessly,
ensuring fair pricing and efficient allocation.

POWER SYSTEM CHALLENGES PRIOR TO ELECTRICITY ACT 2003

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Before the enactment of the Electricity Act After the enactment of the Electricity Act
in 2003 in 2003
Cross-Subsidies: The cross-subsidies provided by Consumer Protection: It protected consumer
State Electricity Boards (SEBs) reached interests and ensured transparent policies.
unsustainable levels due to politico-economic
factors. These subsidies distorted tariff structures
and hindered efficient pricing.

State Monopoly: SEBs were responsible Establishing Regulatory Bodies: The Central
for generation, distribution, and Electricity Regulatory Commission (CERC) was
transmission in various states. However, established under the act to regulate the power
their performance was often inefficient, sector.
leading to power shortages and poor
service quality.

Lack of Competition: The absence of private sector Promoting Competition: The act allowed private
participation limited competition and innovation. investment and introduced competition.
The sector needed reforms to attract private
investment and improve efficiency.

Tariff Determination: State government directly Rationalising tariff: The act aimed to rationalise
influenced tariff determination, which affected the tariff structure.
financial viability of utilities

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 ROLE OF SYSTEM OPERATORS IN INDIA
POLICY MAKING:

At the national level, policy making is undertaken by ministry of power and Ministry of New
and renewable energy with State level policies being driven by power and energy
departments of the state and union territories.

REGULATORS:

 regulators like Central electricity Regulatory Commission (CERC)and State

Electricity Regulatory Commission (SERC) regulate the tariff of generating
companies owned and controlled by the central and state government.
 To regulate the inter-state transmission of electricity.
 To issue the licences to person to function as transmission licensee and electricity
trader with respect to their Inter-state operation.
 Improve access to information to all stakeholders.
 Formation of National Electricity Policy and Tariff Policy.
 Promotion of competition, efficiency, and economy in the activities of the electricity
industry.

SYETEM OPERATORS:

 System Operators like National Load Dispatch Centre (NLDC), Regional Load
Dispatch Centre (RLDC) and State Load Dispatch Centre (SLDC) plays a “vital link”
between the administrators, planners and regulators on one end and physical system
and market players on the other hand.
 In Interconnected power systems, all the power plants are linked through a grid. The
LDC manages the plants to ensure efficient operation. It coordinates, plans, control
and monitors electricity generation and demand, connecting power generation,
transmission and distribution to meet consumer’s demand.
 With the restructuring and deregulation of electricity market, various producers and
distributors generate and sell electricity. LDC coordinates electricity generation,
transmission and distribution to ensure a stable and efficient power supply.

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 GENERATION:

The power generation companies are responsible for generating electricity from different
sources such as coal, gas, hydro, and renewable energy. The central government owns
several large power generation companies such as NTPC, while state governments own
smaller generating stations.

TRANSMISSION:

The state transmission utilities (STUs) are responsible for transmitting electricity from
power generation companies to the distribution companies. The Power Grid Corporation
of India Limited (PGCIL) is the central transmission utility responsible for the inter-state
transmission of electricity.

DISTRIBUTION:

The distribution companies (DISCOMs) are responsible for distributing electricity to

consumers in their respective areas. In addition to state-owned DISCOMs, there are also
private DISCOMs that operate in some states.

Fig-1- Role of System Operators in Indian Power System

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 SOME IMPORTANT TERMS IN THE ACT AND ITS DEFINITION

OPEN ACCESS:

 Section 2(47) of the Act defines Open Access to mean “non-discriminatory provision
for the use of transmission lines or distribution system or associated facilities with
such lines or system by any licensee or consumer or a person engaged in generation in
accordance with the regulations specified by the Appropriate Commission”.
 Section 42 of the Act is central to open access and reads as follows: "(2)The State
Commission shall introduce open access in such phases and subject to such
conditions,(including the cross subsidies, and other operational constraints) as may be
specified within one year of the appointed date by it and in specifying the extent of
open access in successive phases and in determining the charges for wheeling, it shall
have due regard to all relevant factors including such cross subsidies, and other
operational constraints…………”.

PPA’s (Power Purchase Agreement):

 A power purchase agreement (PPA) is a legally enforceable contract signed between a

buyer and seller of electricity. Contract terms are changeable in three ways: through
contractual terms; through negotiations by the parties; or as per law. Recent actions by
both the Union and state governments have departed from contract law principles and
set precedents for such interferences in the future. These precedents can have a ripple
effect on the renewable energy sector and could potentially dampen investor
confidence. Investors prefer supporting bankable project contracts (i.e., lenders will
be willing to finance the project basis the primary project contract), and the PPA is the
central project contract in the electricity sector.

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TRADING LICENSE: -

In India, a trading license in the power market is a license granted under Section 14 of the
Electricity Act, 2003, that allows an individual to trade electricity across states. The license is
issued by the Central Electricity Regulatory Commission (CERC). The CERC also has the
authority to set fees and margins, if necessary.

Individuals who have a trading license and are members of a power exchange are called
Trader Members. They must also have a legally valid agreement to buy or sell
electricity. Distribution licensees are also considered trading licensees, which may help
expand the intra-state electricity trading market.

POWER MARKET IN INDIA

 Electricity is a commodity, capable of being bought, sold and traded.

 Electricity by its nature difficult to store and must be available on demand.
 Electricity is traded for both
Power (MW)
Energy (MU)
 An electricity market is a system enabling
 Purchase through bids to buy.
 Sales through offers to sell.
 Bids and offers use Supply and Demand principles to set the price.
 Entity of Power System- 1. Carrier- Generating Unit and Distribution
Unit.
2. Content- Electricity.

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  Depending on the period of delivery for which a contract is entered into
Different contracts have been introduced in power market.

Nature of contract Duration of Contract Transmission Open

Access availability

Long Term >7 years and up to Long term open access is

25years available for a period of 12
years to 25 years.
Medium term >1 year and up to 7 Medium term open access
years is available for a period of
3 months to 3 years.

Short Up to 1 year For a period up to 3 months

Term – Bilateral
Short term power Day Ahead Market (1 1 day (corridor left after
Exchange Day) short term bilateral)
Term Ahead Market (up Up to 10 days in advance.
to 10 days)

Fig-2- Types of contracts present in Indian Power Market

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 CLASSIFICATION OF SHORT-TERM MARKET IN INDIA

SHORT TERM
POWER
MARKET

POWER
BILATERAL
EXCHANGE

COLLECTIVE POWER
BILATERAL POWER
TRANSACTION SALE/PURCHAS
TRANSACTION BANKING
S E

TAM OTC
I DAM RTM

GTAM
DAM
HPTAM
G DAM

Fig-3- Classification of Short-Term Market in Indian Power Market

 SHORT TERM BILATERAL CONTRACTS: -

1. POWER SALE/PURCHASE
A Short-Term Bilateral contract is one that lasts up to a period of one year. Nodal
agency for inter-state bilateral transactions is RLDC of the region where point of
drawl of electricity is situated and SLDC is the nodal agency for intra-state
transactions. These contracts can be executed through bilateral negotiations between
the parties/through a trading licensee or through competitive bidding route.

2. POWER BANKING

Power banking, also known as a power swap arrangement, is a cash-less transaction where
two parties exchange electricity without monetary transactions. The electricity is "banked" or

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"swapped" between the parties, and each banking contract has a set supply and return
period. These periods usually close within the same financial year. Power banking
arrangements are often used to match seasonal variations in surplus and deficit situations.

 SHORT TERM POWER EXCHANGE: -

 Power exchange is a spot market mainly day ahead, like any other market matches
demand and supply for each time block, providing a public price index.
 A power exchange facilitates equitable, transparent and efficient trading of power.
 Bridges the demand supply mismatch by bringing larger players together for buying
and selling in an auction-based system.
 While maintaining complete anonymity, resolves the constraint in the earlier formats
Viz. search costs, transaction costs and counter party risks.

PX Clearing House: -PX clearing house is a subordinate to Power Exchange and acts as
intermediatory for transactions. It tracks all transactions under Power Exchange. The
primary role of PX clearing house is to guarantee financial reliability to the participants.

MARKET DEVELOPMENT: -

Pre 2003
Vertically Integrated State Electricity Boards
Single Buyer Model
Only long term contracts (no market)

2003-2008
Unbunding of SEBs- Development of a multi-buyer seller market
Electricity Act 2003 enacted

Post 2003
Competitive markets
Evolution of power Exchanges
Different products at PXs to Manage power portfolios

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 Fig-4- Market Development in Indian Power Market

Indian Energy Exchange (IEX): -

 27th June 2008

 Promoted by Financial Technologies-Multi Commodity Exchange of India Ltd.
(MCX).

Power Exchange India Ltd. (PXI): -

 22nd October 2008

 Promoted by NSE & National Commodities & Derivatives Exchange Ltd.
(NCDEX).

Hindustan Power Exchange Ltd. (HPX): -

 6th July 2022

 HPX is promoted by PTC India, BSE, and ICICI Bank.

FEATURES OF PX: -

 Nationwide, Online and Electronic platforms

 Neutral, Unbiased and Transparent.
 Offer Day-Ahead Market (DAM)and Real Time Market (RTM).
 Exchange time-line consistent with timeline of Load Dispatch Centres.
 Activities of the exchange will be carried out in accordance with the
 “CERC (Open access in inter-State Transmission) Regulations,2008”
 Procedure for scheduling of collective transactions issued by the Central
Transmission Utility (PGCIL).

BENEFITS OF PX: -

 Transparency: PX offers a transparent, national level platform for trading electricity

in India leading to a vibrant power market.
 Access a diversified portfolio: PX offers a broader choice to generators and
distribution licenses at the national level so that they can trade in smaller quantities
and smaller number of hours without additional overhead.
 Payment Security: PX stand in as the counter party for all traders so participants may
not be concerned about the risk-profile of the other party.

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  Efficient Portfolio Management: PX enables participants to precisely adjust their
portfolio as a function of consumption or generation. Participants especially
distribution licensees are enabled to precisely manage their consumption and
generation pattern.
 Hedging UI risks: PX provides a tool to hedge against adverse movements in
electricity prices. Thus, price risks are minimized.
 Market Development: PX has plans to launch a range of products to facilitate
development of power markets in India in such a way that investment in capacity
enhancement is encouraged.

TYPES OF TRANSACTIONS: -

Fig-5- Classification of transactions in Indian Power Market

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 1. BILATERAL TRANSACTIONS: -

“Bilateral transactions” means a transaction for exchange of energy (MWh) between a

specified buyer and a specifies seller directly or through a trading license or discovered at
power exchange through anonymous bidding from a specified point of injection to a specified
point of drawl for a fixed or varying quantum of power for any time during a month.

 TAM (Term Ahead Market): - Term-Ahead-Market (TAM) provides a range of

products allowing participants to buy/sell electricity on a term basis for a duration of
up to 90 days.
 The operations are carried out in accordance with below notification issue by
Hon’ble CERC: -
Scheduling and Dispatch of electricity with effect from 01.10.2023
based on quantum of GNA, GNARE, T-GNA and T-GNARE of each of the
Designated ISTS Customers (DICs) and other users of the grid in accordance
with the provisions of the Central Electricity Regulatory Commission (Indian
Electricity Grid Code) Regulations, 2023.
Central Electricity Regulatory Commission (Indian Electricity Grid
Code) Regulations, 2023.
Central Electricity Regulatory Commission (Sharing of Inter-State
Transmission Charges and Losses) (First Amendment) Regulations,2023 with
effect from 01.10.2023.
 GTAM (Green Term Ahead Market): - The Green-Term Ahead Market (G-TAM)
is a new market segment for trading in renewable energy following the
CERC approval. The new market segment features contracts such as
Green-Intraday, Green-Day-ahead Contingency (DAC), Green-Daily and
Green-Weekly. The matching mechanism is continuous/spot trading for
Green-Intraday, Green-DAC and double-sided open auction process to be
implemented for Green-Daily contracts and Green-Weekly.
 Market Features
A market mechanism to facilitate accomplishment of national renewable
energy capacity addition and effective integration of green energy in the country
Trading of 15-minute time block in G-Intraday and G-DAC; whereas trading
of certain time of blocks in G-Daily and G-Weekly
All contracts under G-TAM are at national level.

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 Continuous trading in G-Intraday, G-DAC whereas double sided open auction
bidding process for G-Daily and G-Weekly
Exchange to manage risk management leveraging bank balance, requisite
margin, including any additional margin as specified for the respective trading
segment or the type of contracts There will be several products available for trading
under G-TAM segment.

GTAM

Non-
Solar
solar

Intraday DAC Daily Weekly

Fig-6- Classification of GTAMs in Indian Power Market

 G-TAM: Intraday Contracts

1. There are 15-min block wise 80 contracts of Intraday
2. These contracts are available in both Solar and Non-Solar attribute
3. These contracts are standardized and nationalized and a total number of 160
contracts in Intraday for G-TAM
4. Matching mechanism is to be continuous/spot based
5. Trading and CNS timelines will be the same as in existing TAM market
 G-TAM: DAC Contracts
1. These are 15-min block wise 96 contracts of DAC
2. These contracts to be available in both Solar and Non-Solar attribute
3. These contracts will be standardized and nationalized and a total number of
192 contracts in DAC for G-TAM
4. Matching mechanism to be continuous/Spot based
5. Trading and CNS timelines to be the same as in existing TAM market
 G-TAM: Daily Contracts
1. These contracts to be nationalized
2. Trading timelines to be in parallel with existing TAM market
3. There are separate contracts for Solar and Non-Solar attribute

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 4. Matching mechanism in Daily of G-TAM to be double side open auction
 G-TAM: Weekly Contracts
1. These contracts will be nationalized
2. Trading timelines will be in parallel with existing TAM market
3. There will be separate contracts for Solar and Non-Solar attribute
4. Matching mechanism in Weekly of G-TAM will be double side open auction
 HPTAM (High Price Term Ahead Market): - High Price Term Ahead Market (HP-
TAM) is a segment in the Indian Energy Exchange (IEX) Term-Ahead-Market (TAM)
that allows participants to buy and sell electricity for up to 90 days. The Central
Electricity Regulatory Commission (CERC) approved HP-TAM contracts in
September 2023, with delivery durations that vary depending on the type of contract:

a. Daily contracts: T+2 to T+90 days

b. Weekly contracts: TW+1 to TW+12

c. Monthly contracts: TM+1 to TM+3 months

d. Any-day single-sided contracts: T+2 to T+90 days for user-defined days and
time blocks
e. HP-TAM contracts are physical delivery-based forward contracts and/or
NTSD contracts. The contracts are like the existing Intra Day and Day Ahead
Contingency and TAM contracts.
f. HP-TAM can help generators plan their power sales to buyers, which can give
them more clarity when planning fuel procurement and logistics. It can also
promote competition and give consumers more choices.

2. COLLECTIVE TRANSACTIONS: -

It means that a set of transactions discovered in power exchange through anonymous,

simultaneous competitive bidding by buyers and sellers.

 DAM (Day Ahead Market): -

Day-Ahead-Market (DAM) is a physical electricity trading market for deliveries for

any/some/all 15-minute time blocks in 24 hours of next day starting from midnight. The
prices and quantum of electricity to be traded are determined through a double sided closed
auction bidding process.

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The operations are carried out in accordance with the ‘Procedure for scheduling of collective
transactions’ issued by the Central Transmission Utility (PGCIL), ‘CERC (Open Access in
Inter-State Transmission) Regulations, 2008, as amended from time to time and the Bye-
Laws, Rules and Business Rules of the Exchange.

Features: -

1. Trading of 15 minute contracts.

2. Double-sided anonymous auction bidding process.
3. Clearance obtained from SLDC by buyers and sellers based on availability of network
and ABT meters
4. Congestion Management through market splitting and determining Area Clearing
Price (ACP) specific to an area
5. Risk management through the requisite Margin, including any additional Margin as
specified for the respective trading segment or the type of contracts.

DAM trading process is divided into six sessions: -

1. Bidding: -

2. Participants enter bids for sale or purchase of power for delivery on the following day.
(T+1 day)

3. Bids for a total of 96 blocks of 15 minute each can be entered.

4. Bidding session: 1000 hrs. - 1100 hrs.

5. Bids can be single and/or block including linked bids:

o Single bids: 15-Minute bids for different price and quantity pairs can be
entered through this type of order. Partial execution of the bids entered is
possible.

o Block bids: Relational Block Bid for any 15-min block or series of 15-min
blocks during the same day can be entered. Although no partial execution is
possible i.e. either the entire order will be selected or rejected.

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 6. The bids so entered are stored in the central order book. The bids entered during this
phase can be revised or cancelled till end of bid call period (i.e.1100 hrs. of trading
day)

 Matching: -

1. At the end of the bidding session, bids for each 15-minute time block are matched
using the price calculation algorithm. (available in IEX byelaws)

2. All purchase bids and sale offers are aggregated in the unconstrained scenario. The
aggregate supply and demand curves are drawn on Price-Quantity axes. The
intersection point of the two curves gives the market clearing price (MCP) and market
clearing volume (MCV) corresponding to price and quantity of the intersection point.

3. MCP and MCV are determined for each block of 15 minutes as a function of demand
and supply which is common for the selected buyers and sellers.

4. Selected members are intimated about their partially or fully executed bids and other
trade related information.

5. By 1145 hrs, transmission corridor required to fulfil successful transactions are sent to
NLDC.

The example below illustrates price calculation. Assume the price tick as below:

For the sake of simplicity, we assume only 3 portfolios are entered. The quantity entered
by each portfolio A, B and C for the specific price tick is as shown below:

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 The algorithm will then add the entire purchase quantum and sell quantum after the
bidding session and look for a solution where the net transaction is zero i.e. the buy
quantum is equal to the sell quantum.

The demand-supply graph in such scenario is shown below:

 Transmission Corridor and funds availability: -

1. Preliminary MCP and MCV are used to calculate the provisional obligation of the
selected participants and the provisional power flow.

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 2. Required corridor capacity and provisional power flow is sent to NLDC for scrutiny
and corridor allocation is requisitioned based on availability.

3. By 1215 Hrs, NLDC reverts with actual transmission corridor availability during all
15-minute time blocks across congestion prone bid areas.

 Results: -

1. Based on the reserved transmission capacity intimated by NLDC, IEX recalculates

MCP and MCV as well as area clearing price (ACP) and area clearing volume (ACV).
See Market splitting for more info.

2. ACP is used for the settlement of the contracts. On receipt of final results, obligations
are sent to the Clearing Banks for Pay In from buying Members at 13.30 hrs and the
bank is asked to confirm the same.

 Confirmation: -

1. Final results for confirmation and application for scheduling of collective transactions
are sent to NLDC.

2. NLDC sends the details of the schedule to respective SLDCs.

 Scheduling: -

1. RLDCs /SLDCs incorporate Collective Transactions in the Daily schedule.

2. A scheduled transaction is considered deemed delivery.

3. Deviations from schedules are dealt under UI or Deviation Settlement or Imbalance

Settlement regulations. The Regional Entities (those connected at ISTS networks) are
governed by CERC Regulations and Embedded Entities (those connected to state
transmission or distribution network) are governed by respective State Commission’s
regulations.

 RTM (Real Time Market): -

The Real-Time-Market (RTM) is a new market segment with trading commencing on
1st of June’20. The market features a new auction session every half an hour with
power to be delivered after 4-time blocks or an hour after gate closure of the auction.
The price and quantum of electricity trading is determined through a double-sided
closed auction bidding process. The operations are carried out in accordance with the

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 Procedure for Scheduling Collective Transactions in the Real Time Market as issued
by Power System Operation Corporation Ltd; CERC Power Market Regulations,
2010; CERC Open Access in inter-State Transmission Regulations, 2008; CERC
Indian Electricity Grid Code Regulations, 2010 as amended from time to time and the
Bye-Laws, Rules and Business Rules of the Exchange.
 Market Features: -
1. Trading of 15-minute contracts
2. Double-sided anonymous auction bidding process
3. Buyers and sellers to obtain Clearance from SLDC by based on availability of
network and ABT meters
4. Exchange to publish Area Clearing Price (ACP) and Area Clearing Volume (ACV)
5. Exchange to manage risk management leveraging bank balance, requisite margin,
including any additional margin as specified for the respective trading segment or the
type of contracts

The trading process is divided into four key sessions:

Fig-7- RTM Mechanism in Indian Power Market

 Bid Session

Key features:

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 o 48 bid sessions during the day

o Each bid session for a duration of 15 minutes

o First bid session to start at 2245 hrs

o 15-minute gap between two consecutive bid sessions

Single and/or block including linked bids:

o Single bids: 15-Minute bids for different price and quantity pairs can be entered
through this type of order. Partial execution of the bids entered is possible.

o Block bids: Block Bid for any 15-min block or series of 15-min blocks during the
same day can be entered. Although no partial execution is possible i.e. either the
entire order will be selected or rejected.

The bids so entered are stored in the central order book. The bids entered can be revised
or cancelled till gate closure

 Matching Session

o At the end of the bid session, bids for each 15-minute time block are aggregated and
matched using double sided closed auction methodology as also pursued in day-ahead
market.

o The Area Clearing Price (ACP) and Area Clearing Volume (ACV) are determined for
each block of 15 minutes as a function of demand and supply which is common for
the selected buyers and sellers.

o Selected participants are intimated about their partially or fully executed bids and
other trade related information within 1 time block after closure of auction period.

o Funds availability

 Exchange uses ACP and ACV used to calculate the obligation of the selected
participants and their power flow.

o Bid limit shall be in accordance with the funds available in the settlement
accounts of the participants.

 Financial Settlement

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 o Pay In / Pay Out (PI/PO) will be done on T/ T+1 date respectively subjected to
banking hours and holidays

 Result Session

o IEX to intimate Area Clearing Price (ACP) and Area Clearing volume (ACV).

o Exchange to send final results for confirmation and application for scheduling of
Collective transactions-RTM to NLDC.

o NLDC sends the details of the schedule to respective RLDCs.

o RLDCs /SLDCs incorporate Collective Transactions-RTM in the Daily schedule.

o A scheduled transaction is considered deemed delivered.

o Deviations from schedules are dealt under UI or Deviation Settlement Regulations or

Imbalance Settlement Regulations. The Regional Entities connected at ISTS networks
are governed by CERC Regulations and Embedded Entities and entities connected to
state transmission or distribution network are governed by respective State Electricity
Regulatory Commission’s Regulations.

CONCLUSION

The power market in India has undergone significant transformation over the past few
decades, driven by reforms aimed at improving efficiency, ensuring reliable power supply,
and promoting competition. The liberalization of the electricity sector, starting with the
Electricity Act of 2003, paved the way for private participation and encouraged investments
in generation, transmission, and distribution. The introduction of power exchanges like the
Indian Energy Exchange (IEX) and the Power Exchange India Limited (PXIL) has enhanced
transparency and facilitated competitive trading of electricity.

India has also made strides in renewable energy, with ambitious targets for solar, wind, and
other clean energy sources, positioning itself as a global leader in renewable energy capacity.
The push towards green energy is supported by various government initiatives, including the
National Solar Mission and the development of solar parks across the country. Despite these
advancements, challenges persist, such as grid integration of intermittent renewable sources,

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financial stress on distribution companies (DISCOMs), and the need for infrastructure
upgrades.

The recent focus on smart grids, digitalization, and demand-side management offers hope for
more efficient and resilient power systems. With continuous policy support, technological
advancements, and investments in grid modernization.

REFERENCE

1. https://www.iexindia.com/

2. A Perspective of Power Market Development in India-Market design and

Operation [P. Pentayya, P. Mukhopadhyay; G. Chakraborty; N. Ahmad]

3. CERC Real Time Market for Electricity Explanatory Memorandum.

4. Application of Point of Connection methodology for sharing of Inter-State

Transmission charges and losses on the Short-term Open Access transactions [P.
Pentayya, P. Mukhopadhyay, P.S. Das, S. Banerjee]

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