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Open Access

Open Access. Pune Power Development Pvt. Ltd. Contents:. Terminology Open Access Requirements for Open Access Provisions made in Electricity Act 2003 for Open Access Types of Open Access Role of different governing bodies Procedures for Open Access Financial Settlements

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Open Access

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  1. Open Access Pune Power Development Pvt. Ltd.

  2. Contents: • Terminology • Open Access • Requirements for Open Access • Provisions made in Electricity Act 2003 for Open Access • Types of Open Access • Role of different governing bodies • Procedures for Open Access • Financial Settlements • Regulations related to Open Access

  3. Background • Power is a commodity which cannot be stored. It has to be utilised as and when it is produced. • Power is generated by the generating stations, transported through the transmission lines, and supplied to the end user by the distribution system. • As power cannot be stored, efforts have to be made for the efficient utilisation of the power system and bridge the surplus-deficit gap. • Thus, the concept of sale and purchase of power through various modes came into existence.

  4. Terminology • Power is measured in Watt. • One Unit of power constitutes 1000 Watts supplied for One Hour. This constitutes to 1 kWH (One Kilo Watt Hour). • One Mega Watt (MW) = 1000 kW • It is also often referred in terms of Million Units (MUs) = 10,00,000 units.

  5. What is Open Access? The Electricity Act 2003 defines open access as follows: "Open access means the 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.''

  6. Open Access can be granted in case of- • Surplus power of State Generating Companies. • Surplus power of State Power Utilities of the State and other Distribution Licensees. • Sale of Unallocated / Surrendered Power of Central Sector Generating Companies. • Un-requisitioned power of CSGS. • Merchandise Power Plants. • Captive Power Plants for their own use. • Surplus power of CPPs (Captive or Co-gen)/ IPPs. • Collective transactions through exchange. • Purchase of power by a consumer. • Renewable power with limitation on scheduling.

  7. Salient Features of Open Access • Commercial mechanism for transmission pricing for long , medium and short term open access including UI and transactions through exchange. • Approval of open access for the desired quantum and period of supply. • Non-discriminatory open access. • Freedom for scheduling of power. • Freedom to revise the open access or cancellation thereof. • Policies could be different for ‘Advance Scheduling’, ‘Day-ahead Scheduling’ or ‘Booking of Open access’, as the case may be. • Freedom to market that could boost the growth. • Appropriate settlement mechanism.

  8. Electricity Act - 2003 It was framed in the wake of: • Growing Power needs • Continuous Surplus-Shortage conditions faced in various parts of the country.

  9. Types of Open Access • Long Term Open Access. (LTOA) [3 to 12 years] • Medium Term Open Access. (MTOA) [3 months to 3 years] • Short Term Open Access. (STOA) [up to 3 months]

  10. Present Market at a Glance Short Term Open Access Medium TermMarket Long TermMarket Bilateral Transaction Contingency Transaction Collective Transaction Day Ahead Transaction 3 month ahead Day Ahead ahead After Clearance of PX Above 3 years 3months -3Years On the day of operation Schedules Balancing Market ( UI ) ( Real Time Operation )

  11. Governing Bodies • State Load Dispatch Centers (SLDC) • Regional Load Dispatch Centers (RLDC) • National Load Dispatch Center (NLDC) • State Electricity Regulatory Commissions (SERC) • Central Electricity Regulatory Commission (CERC) • Regional Power Committee (RPC) • Regional Energy Authority (REA) • Central Energy Authority (CEA) • Power Ministry, Govt. of India

  12. Regulatory Commissions The Regulatory Commission remains the most important organization in the electricity sector after the enactment of the Electricity Act,2003.The new law distances Government from regulation and transfers all regulatory responsibilities to independent Regulatory Commissions. The Regulatory Commissions are omnipresent across the wide range of activities envisaged for the sector. They have the powers to fix tariff, grant license, regulate the performance of the licensees, adjudicate upon disputes, regulate the phasing out of Open Access in distribution and determine Open access surcharge etc.

  13. The “Electrical Regions” 6/4/2014 13 PPDPL

  14. Procedure for Bilateral Transactions There are two types of procedures of bilateral transactions viz. : • Procedure for Individual bilateral transactions (Other than Power Exchanges) • Procedure for Collective Bilateral transactions (for Power Exchanges)

  15. OPEN ACCESS CHARGES Charges in case of complete or partial approval • Transmission Charges (as determined by CERC) • Wheeling Charges (as determined by CERC) • Imbalance (UI) Charges • Reactive Energy Charges • Surcharge • Interconnection Charges • Connectivity Charges • Operating Charges (SLDC charges) Charges irrespective of whether approval is granted or not • Application Process fees of respective RLDCs and SLDCs (if any)

  16. Commercial Conditions for Bilateral Transaction The Transmission charges for the use of the inter-State network shall be in Rs./MWh depending upon the type of transaction and shall be payable by the short-term customer for the energy approved at the point or points of injection. The rate for transmission charges shall be as follows:

  17. Commercial Conditions for Bilateral Transaction The followingcommercial conditions shall apply for the Bilateral Transaction: TERMS OF PAYMENT All payments associated with Bilateral Transaction shall be made by the applicant to the Nodal RLDC. The applicant shall make following payment to the Nodal RLDC within three working days from the date of acceptance of Bilateral Transactions. The charges for scheduling of Bilateral Transactions will be worked out on the basis of total MWh approved at the point of injection. a) Application Fees (as per revised Regulation) An application made for each bilateral transaction or the collective transaction shall be accompanied by a non-refundable fee of Rupees five thousand (Rs.5000/-)only: Provide that the fee for bilateral transaction on the day of the application or on the day immediately following the day of the application may be deposited within three working days of submission of the application.

  18. Price Calculation Mechanism • The price calculation is done for every hour of the day i.e. the trade matching is done for 24 events. • The trade matching indicates the market price at a particular hour, total quantum traded, eligible sellers and the buyers.

  19. Financial Settlements (Transmission Charges) • Payments of Transmission charges and Operating Charges shall be made by the Power Exchanges to the NLDC, by next working day falling after the day on which the Application was processed at NLDC. • The Transmission charges for the use of intra-State transmission system and Operating Charges for the SLDCs shall be directly settled by the Power Exchange (s) with the respective SLDC.

  20. Submission of Open Access Application • An open access customer or the power exchange (on behalf of buyers and sellers) intending to avail of open access for use of the transmission lines or associated facilities for such lines on the inter-State transmission system, shall make an application to the nodal agency in accordance with these regulations. • The application for a bilateral transaction shall contain the details, such as names and location of supplier and buyer, contracted power (MW) to be scheduled and interface at which it is referred to, point of injection, point of drawl, starting time block and date, ending time block and date, and such other information that may be required in the detailed procedure. • The application for a collective transaction shall contain the requisite details in accordance with the detailed procedure.

  21. Types of Scheduling on bilateral route • Advance Booking: An application for advanced scheduling for a bilateral transaction may be submitted to the nodal RLDC up to the 4th month, considering the month in which the application is made being the first month. • First Come First Served (FCFS): An application can be considered under FCFS only if an application is made at-least 4 days prior to the commencement of Bilateral transaction and all such applications shall be processed within 3 days of their receipt. • Day-Ahead: Applications received 3 days prior to the date of scheduling and up to 15:00 Hrs of day immediately preceding the date of scheduling. • Contingency: Applications made after 15:00 hrs of the day immediately preceding the day of scheduling.

  22. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION ON “FIRST-COME-FIRST-SERVED”BASIS. An Application shall be submitted to the nodal RLDC in a cover marked “Application for scheduling on-First-come-first-served basis”. Application received under the following categories shall be treated as “First-Come-first-Served” application:- • Application received under “First Come First Served” category for Short-Term Open Access shall be considered only when transactions are commencing and terminating in the same calendar month. • Application for scheduling a Bilateral Transaction which Application is made, provided that such Application is received at least four(4) days in advance from the date of commencement of the Bilateral Transaction. All such Application shall be processed and decided within three days of their receipt. • Application received during the last ten (10) days of the first month, for scheduling of transactions in the second month. These Applications would be considered after completing the process for Advance scheduling of Bilateral Transaction in the second month. Accordingly ,Applications received up to five (5) days prior to the end of the month shall be processed only after completing the process for Advance Scheduling of Bilateral Transactions for the second month.

  23. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION ON “FIRST-COME-FIRST-SERVED”BASIS. • All Applications received by the Nodal RLDC in a day up to 17:30 hrs shall be considered together for processing and shall have same priority. Applications received by the nodal RLDC after 17:30 hrs of a day shall be treated as having been received on the next day. • Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available.

  24. PROCEDURE FOR SCHEDULING OF DAY-AHEAD BILATERAL TRANSACTION • Applications received within three days prior to the date of scheduling and up to 15:00 Hrs. of the day immediately preceding the day of scheduling shall be treated as having been received together for processing and shall have same priority. • Applications for day Ahead transactions shall be processed only after processing of the Collective Transactions of the Power Exchange (s). • Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available.

  25. PROCEDURE FOR SCHEDULING OF BILATERAL TRANSACTION IN A CONTINGENCY. • In the event of a contingency, the buyer or in its behalf, a trader may locate, and the power exchange may offer its platform to locate, a source of power to meet short-term contingency requirement and make an Application to the Nodal RLDC. • Nodal RLDC shall accept such Application only after 1500 hrs of the day immediately preceding the day of scheduling. • Nodal RLDC shall take steps to incorporate such Bilateral Transactions in Day Ahead schedules/Same-Day scheduled from the 6th time block, counting the block in which acceptance is accorded as the first time block. • Pro-rata scheduling acceptance shall be given in case scheduling requests of the Applicants is for more than the margins available.

  26. Thank You

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