Full Module

Power System
Power System Overview
A power system is a network of interconnected electrical equipment operating
across different locations to supply electrical energy to consumers in an efficient
and economical manner.
Main Components of the Power System
1. Generation
The generation process involves converting primary energy sources such
as coal, natural gas, or wind into electrical power.
o Types of Generation:
 Conventional Generation:
Also referred to as non-renewable energy, it includes sources
such as fossil fuels (coal, oil, and natural gas) and nuclear
energy. These are finite resources that cannot be replenished
quickly and are widely used for electricity generation.
 Non-Conventional Generation:
Also known as renewable energy sources, these include
solar, wind, geothermal, and hydropower. They are naturally
replenished and offer a sustainable and environmentally
friendly alternative to fossil fuels.
2. Transmission
In this stage, electricity is transmitted at high voltage directly from
generating stations to substations. Transmission ensures efficient long-
distance transport of electricity with minimal losses.
3. Distribution
After transmission, the high voltage electricity is reduced or "stepped
down" through transformers. It is then delivered through distribution lines
to homes and businesses.
The primary difference between transmission and distribution lies in the
voltage level—transmission uses high voltage, while distribution operates
at lower voltage levels.

How Electricity is Generated

Electricity is produced by creating a continuous flow of electrons. This occurs
when a magnet is moved near a wire, inducing an electric current.
  Generator Shaft:
The shaft is a rotating mechanical component that transfers mechanical
energy to generate electricity. For instance, in wind turbines, wind rotates
the blades, turning the shaft of a generator. This rotation moves a magnet
inside coils of wire, producing electrical energy.
 Coal-Based Generation:
Coal is burned in a furnace to produce heat. This heat converts water into
steam inside a boiler. The steam spins a turbine, which in turn drives a
generator to produce electricity. Natural gas and other fossil fuels follow
a similar process.
 Nuclear Power:
Nuclear fission—splitting of uranium atoms—generates heat. This heat
produces steam that rotates a turbine connected to a generator.
 Hydroelectric, Wind, and Solar Energy:
o Hydropower uses flowing water to spin turbines.
o Wind turbines convert wind energy into mechanical rotation of
the generator shaft.
o Solar panels use photovoltaic cells to convert sunlight directly into
electricity.
Types of Generating Stations
 ISGS (Inter-State Generating Stations):
Owned and operated by the Central Government, these stations are
connected to the interstate network. Their scheduling is coordinated by
the Regional Load Dispatch Centre (RLDC).
Examples: NTPC, NHPC, NPCIL.
 IaSGS (Intra-State Generating Stations):
These are connected to the intra-state transmission system (IaSTS), and
their scheduling is managed by the State Load Dispatch Centre (SLDC).
 Independent Power Producers (IPPs):
Also known as non-utility generators (NUGs), these entities generate
electricity for sale to utilities or end-users. They are not owned or
controlled by the central or state government.
 Merchant Power Plants:
These plants sell electricity directly into competitive wholesale markets at
negotiated prices. They may operate regularly or support the grid during
high demand.
  Captive Power Plants:
Set up by organizations to meet their own electricity needs. To qualify as
a captive plant, at least 51% of the electricity generated must be
consumed by the owner annually.
Electricity Markets and Access
 Power Exchange Market:
A platform where buyers, sellers, electricity traders, and exchange
members transact using standardized contracts.
 Access Types:
o Long-Term Access: Rights to use the transmission network for
more than 7 years, up to 25 years.
o Medium-Term Access: Access granted for periods between 3
months and 5 years.
o Short-Term Open Access: Access for up to 1 month.
 Power Exchanges in India:
o IEX (Indian Energy Exchange): India’s first nationwide,
automated, online platform for electricity trading.
o PXIL (Power Exchange India Ltd): India’s second power
exchange and the first with a certified Quality Management
System.
 Schedule:
Refers to day-ahead planning for every 15-minute time block. It is based
on forecasting and real-time adjustments.
Regulatory Bodies
 CERC (Central Electricity Regulatory Commission):
Regulates tariffs of central government-owned power generating
companies and those involved in interstate transmission.
 SERC (State Electricity Regulatory Commission):
Determines tariffs for generation, supply, transmission, and wheeling
within individual states.
 NLDC (National Load Dispatch Centre):
Supervises RLDCs, coordinates inter-regional electricity scheduling, and
ensures grid discipline in line with grid codes.
  RLDC (Regional Load Dispatch Centre):
Optimizes scheduling and dispatch of electricity within a region.
Monitors grid operation and ensures contractual compliance.
 SLDC (State Load Dispatch Centre):
Manages electricity scheduling and dispatch within a state to maintain
efficiency and reliability.

Transmission Authorities
 CTU (Central Transmission Utility):
Responsible for planning, implementation, operation, and maintenance of
the Inter-State Transmission System (ISTS).
 STU (State Transmission Utility):
Handles similar responsibilities within state boundaries for the Intra-State
Transmission System (IaSTS).

Key Terminologies
 Contract Demand:
The amount of power a consumer agrees to demand from the utility over
a specified period.
 Sanctioned Demand:
The maximum power limit approved for a consumer by the utility, based
on past or anticipated usage. Exceeding it may result in penalties.
 Maximum Demand:
The highest level of power consumption recorded over a billing cycle.
 Connected Load:
Total installed capacity of electrical equipment and appliances connected
at a consumer’s premises.
 Plant Load Factor (PLF):
A metric that indicates how efficiently a power plant is being used.
Formula:
PLF = (Actual generation) / (Installed capacity × Time duration)
 Load Factor:
Measures how effectively electrical power is utilized over time.
Formula:
Load Factor = (Average Demand) / (Maximum Demand)
Understanding Power and Energy
 Power:
Represents the rate at which work is done or energy is
consumed/generated.
Unit: Watt (W)
Formula: Power = Voltage × Current
 Energy:
Indicates the total power consumed over a period.
Unit: kilowatt-hour (kWh)
Formula: Energy = Power × Time

Classification of Power Plants Based on Resources

1. Thermal Power Plants:
Use fossil fuels to produce steam that drives turbines.
o Types: Coal, Natural Gas, Diesel
2. Nuclear Power Plants:
Generate electricity using the heat from nuclear fission.
3. Hydroelectric Power Plants:
Utilize flowing or falling water to spin turbines connected to generators.
4. Renewable Energy Power Plants:
Use naturally replenished sources.
o Types: Solar, Wind, Biomass

Classification Based on Ownership

a) Publicly Owned / Government-Owned Power Plants
These power plants are owned and operated by government bodies, including
state-owned corporations or municipal utilities. Their primary objective is to
ensure reliable and affordable electricity supply to the public, rather than
focusing on profit generation.
Examples: Many large hydroelectric projects, nuclear plants, and thermal
power plants across different countries fall under this category. In India,
examples include NTPC (National Thermal Power Corporation), NHPC
(National Hydroelectric Power Corporation), and State Electricity Boards.
b) Independent Power Producers (IPPs)
These power plants are owned and managed by private corporations or
companies. Their electricity generation is aimed at commercial sale, either to
utility companies or directly to large industrial consumers, typically in a
competitive wholesale market. Their central goal is profit maximization.
Examples: Many recent solar farms, wind farms, and thermal power stations
are developed and operated by IPPs.
c) Captive Power Plants
These are generation facilities owned by industrial or commercial entities to
fulfill their own power requirements. They may operate in isolation (off-grid) or
be connected to the grid to exchange surplus electricity or draw power when
their own generation falls short.
Examples: A large manufacturing facility with its own coal or gas-fired power
plant, or a commercial building using rooftop solar panels.
d) Cooperative Power Plants
These are owned and operated by consumer cooperatives. In this model, the
members are also the consumers of electricity. The goal is to deliver power at
cost, focusing particularly on rural electrification.
Example: Rural electric cooperatives functioning in various countries.

Classification Based on Connectivity

a) Grid-Connected Power Plants
Most large and medium-scale power plants are linked to the national or regional
grid. They feed generated power into the grid, which is then transmitted and
distributed to consumers.
Examples: Thermal, nuclear, hydro, utility-scale solar, and wind power plants.
b) Off-Grid Power Plants
These are standalone power generation units not connected to the main
electricity grid. They serve local or isolated loads and communities.
Examples: Diesel generators in remote villages, small solar home systems,
micro-hydro units in mountainous regions, or generators powering remote
industrial operations.

Classification Based on Operating Voltage (India)

a) Extra High Voltage (EHV) and Ultra High Voltage (UHV) Networks
 Voltage Level: Above 33 kV (such as 765 kV, 400 kV, 220 kV)
  Purpose: Used for efficient long-distance bulk power transmission from
large generation stations to major cities and industrial zones. These
networks reduce energy losses and optimize conductor usage, enhancing
grid interconnection and reliability.
b) High Voltage (HV) Networks
 Voltage Level: Typically above 650 V and up to 33 kV (e.g., 132 kV, 66
kV, 33 kV)
 Purpose: Acts as secondary transmission lines. These networks supply
power from EHV substations to regional substations and deliver
electricity to large industrial users or step down for medium voltage use.
c) Medium Voltage (MV) Networks
 Voltage Level: Ranges between 1 kV and 33 kV (e.g., 11 kV, 6.6 kV)
 Purpose: These networks form the primary distribution layer, distributing
power within neighborhoods and to medium-sized industries through
local substations. They are flexible and accessible for localized delivery.
d) Low Voltage (LV) Networks
 Voltage Level: Up to 250 V (single-phase) or 440 V (three-phase) (e.g.,
230 V, 400 V/415 V)
 Purpose: The final delivery stage of electricity to end users like homes
and small businesses. This voltage level ensures safety and compatibility
with common appliances.

Commercial Terms and Charges

• Power Purchase Agreement (PPA):
A legal contract between a power generator and a buyer outlining the purchase
of electricity at a predetermined rate over a fixed term.
• Two-Part Tariff:
This pricing model includes:
1. Fixed Charge: Billed in Rs/kVA or Rs/kW, representing infrastructure
and capacity costs.
2. Energy Charge: Billed in Rs/kWh or Rs/kVAh, representing charges for
electricity consumed.
• Fuel Adjustment Charge (FAC):
This is an additional charge added to the bill to account for fluctuations in fuel
costs used for power generation, as per prevailing market conditions.
• Electricity Duty (ED):
A tax levied by the state government on electricity consumption. It may be
applied either on the fixed charge or per unit (Rs/kWh) consumed.
• Energy Charge:
The amount paid for the actual units of electricity consumed during the billing
cycle.
Formula:
Energy Charge = (Current Reading - Previous Reading) × Multiplying Factor
• Power Factor Rebate:
A rebate offered when the consumer maintains a high power factor (close to 1 or
100%), indicating efficient use of electricity by reducing reactive power
consumption and maximizing active power use.
• Extra High Voltage (EHV) Rebate:
A discount given to consumers receiving power at EHV levels due to the greater
efficiency and lower transmission losses for the power utility.

Electricity Bill Components

 Energy Charges
 Fuel Adjustment Charges (FAC)
 Time of Day (ToD) Charges – Higher rates during peak hours and lower
during off-peak hours
 Power Factor Rebate
 Extra High Voltage (EHV) Rebate

Consumer Classification by DISCOMs

1. Low Tension (LT) Consumers – Includes agriculture, domestic
households, and BPL (Below Poverty Line) citizens.
Voltage Range: 220 V, 440 V
2. High Tension (HT) Consumers – Includes industrial and commercial
establishments.
Voltage Range: 11 kV, 22 kV, 33 kV
3. Extra High Voltage (EHV) Consumers – Typically large industrial and
commercial users.
Voltage Range: 66 kV, 110 kV, 132 kV, 220 kV
Scheduling and Revisions
Scheduling
Scheduling refers to the advance planning of how much electricity a generator
will produce and how much a consumer will consume during each time block of
the next day. It is done on a day-ahead basis, with each day divided into 96
time blocks of 15 minutes each.
 Central Transmission Utility (CTU) coordinates with Regional Load
Dispatch Centres (RLDCs)
 State Transmission Utility (STU) coordinates with State Load
Dispatch Centres (SLDCs)
Revision
A revision of the schedule can be performed in case of errors or unforeseen
changes. The process and allowances for schedule revision differ between
Renewable Energy (RE) and Non-Renewable Energy sources.

Open Access
Open Access is a provision under the Electricity Act, 2003 that enables
consumers to purchase electricity directly from any supplier, rather than being
restricted to their local distribution company (Discom).
Types of Open Access:
 Inter-State Open Access: Involves the transfer of electricity across state
boundaries.
 Intra-State Open Access: Involves transfer within the same state.
Types of Network Access for Open Access:
 GNA (General Network Access):
Required when accessing the grid for a duration exceeding 11 months and
up to 25 years. It allows long-term usage of the grid.
 T-GNA (Temporary General Network Access):
Allows short-term access ranging from one time block up to 11 months.

Availability Based Tariff (ABT) Meter

ABT meters, also known as Special Energy Meters (SEMs), are used to
measure electricity consumption and monitor grid discipline under the ABT
mechanism. These meters help in accurate accounting of scheduled and actual
power usage.
Types of ABT Meters:
 Main Meter
 Check Meter
 Standby Meter

Feeder
A feeder is an electric line that carries power from a substation to various end
users.
Types of Feeders:
 Mixed Feeders: Serve both domestic and non-domestic consumers.
 Dedicated Feeders: Exclusively serve a specific consumer or group.

Brown Power vs. Green Power in Open Access

 Brown Power: Power generated from non-renewable energy sources.
Eligibility for Open Access: Contract demand must be at least 1 MW.
 Green Power: Power generated from renewable sources (solar, wind,
etc.).
Eligibility for Open Access: Contract demand must be at least 100 kW.

State Electricity Board (SEB)

SEB was a government entity responsible for power generation, transmission,
and distribution. After the Electricity Act, 2003, SEBs were unbundled into:
 GENCO: Generation Company
 TRANSCO: Transmission Company
 DISCOM: Distribution Company

CTUIL (Central Transmission Utility of India Ltd.)

CTUIL is the central agency where GNA applications are submitted.
Entities Eligible to Apply for GNA:
  Discoms and Bulk Consumers with a demand exceeding 50 MW
 ISTS-Connected Generators, who are granted deemed GNA
Once GNA is allotted, the consumer must pay transmission charges, usually
measured in Rs/MW.

Temporary General Network Access (T-GNA)

T-GNA provides temporary permission to use the ISTS grid for a short period
ranging from 1 time block to 11 months.
T-GNA Application Fee: Rs. 5000
Who Can Apply for T-GNA?
1. Discoms connected to ISTS
2. Bulk consumers connected to ISTS
3. Intrastate commercial and industrial entities
4. Intrastate injecting entities
5. Generators (for auxiliary consumption)
6. Traders (like MPL) on behalf of eligible entities
7. Exchanges (on behalf of their bidding participants)
Where to Apply:
 T-GNA applications must be submitted on the National Open Access
Registry (NOAR) portal.
 A No Objection Certificate (NOC) is required:
o From SLDC if connected to STU
o From RLDC if connected to CTU
 NOC Processing Time:
o For new users: within 7 days
o For existing users: within 3 days
 NOC Fee: Rs. 5000 + 18% GST
If trading through an exchange, the exchange will obtain T-GNA on behalf of
the participant.
Nodal Agency:
  NLDC for exchange transactions
 RLDC for bilateral transactions

Types of Bilateral T-GNA Transactions

1. Advance Application:
 Both buyer and seller apply in advance.
 Approval is provided in D+3 days.
 Power can be wheeled in the same month or next.
 Mandatory details: Injecting point, drawl point, power quantum, and
duration
2. Exigency Application:
 Used for immediate power needs.
 Applicable for same day, D+1, or D+2 power supply.
 Supply duration is 24 hours.
 Application deadline: before 1 PM, clearance by 2 PM
 If applied after 2 PM, scheduling occurs after 7 time blocks
 RLDC does the default scheduling post 7 time blocks.
 Required details: Injecting point, drawl point, power quantum, and
duration

Transmission Charges for T-GNA

 T-GNA transmission charges are calculated in Rs/MW/Time Block by
NLDC (Grid India).
 These charges are updated monthly.
 State Transmission Charges vary by state.
 Charges must be paid one month in advance.
 Only the drawl-side consumer is liable to pay the transmission charge.

GNA Regulation Amendment – 2022

GNAre and T-GNAre (Renewable Energy Access)
These categories are specific to renewable energy generators.
 If the generator's COD (Commercial Operation Date) is on or before
June 2025, there is a 100% waiver on ISTS charges on the buyer side.
 Drawing brown power under GNAre or T-GNAre attracts a penalty of
1.15x the transmission charge.
 If T-GNA has been taken, it cannot be reapplied as T-GNAre, but it can
be converted into T-GNAre.
GOAR (Green Open Access Registry):
A sister platform of NOAR, used to apply for GNAre and T-GNAre.

Power Market Overview

The Power Market is a structured platform where buyers and sellers trade
electricity. Multiple platforms are available in India for conducting these
exchanges:
Electricity Exchange Platforms
 IEX – Indian Electricity Exchange
 PXIL – Power Exchange India Limited
 HPL – Hindustan Power Limited

Pre-Bidding Documentation for Exchange Registration

Before a client can participate in the power exchange bidding process, the
following forms and documentation must be completed:
 MCA (Member Client Agreement): Contains the details of the trading
member and the client.
 MOU (Memorandum of Understanding): A formal yet non-binding
agreement between involved parties.
 RDD (Risk Disclosure Document): Informs clients of the potential risks
in power trading.
 CR (Client Registration): Holds complete client information and
requirements.
 Subscription Fee: Rs. 1,00,000 per year to register with the power
exchange.
Upon completion, the client is assigned a Portfolio ID.

OBMS (Online Business Management System)

OBMS is a proprietary software developed by MPL that allows clients to
submit their power procurement requirements efficiently.

Steps to Onboard a Client

Step 1: Introduce MPL and its product offerings.
Step 2: Understand the client’s requirement – whether for Renewable Energy
(RE) or Non-Renewable Energy (Non-RE).
Step 3: Request their last 3 months’ electricity bills to assess actual
consumption on monthly, yearly, and daily bases.
Step 4: Analyze the bill to determine their current rate from DISCOM and
compare with what MPL can offer.
Step 5: Educate the client about power exchange mechanisms and MPL’s
product portfolio.
Step 6: Prepare and share the proposal with the client.
Step 7: Explain the process of starting trading on the exchange.
Step 8: Check if the client has an ABT (Availability Based Tariff) meter. If
not, inform them about the requirement and related installation charges.
Step 9: Explain the process of obtaining NOC (No Objection Certificate):
 Submit 3 months’ electricity bill.
 Submit SEM transmission charges and NOC fee of Rs. 5000 + 18% GST
= Rs. 5900 to local SLDC.
 After NOC approval, register the client on NOAR (National Open
Access Registry).
 Once the client gets a User ID, upload the NOC application on NOAR.
 NOC is issued within 3 to 7 days via the NOAR portal.
Step 10: Complete registration on the power exchange with Rs. 1 lakh
subscription fee and submit all forms (MCA, MOU, RDD, CR).

Types of Power Trading Transactions

A) Collective Transactions
These occur when multiple buyers and sellers trade electricity through a power
exchange.
Types:
 DAM (Day Ahead Market)
 GDAM (Green Day Ahead Market)
 HP DAM (High Price Day Ahead Market)
 RTM (Real Time Market)
B) Bilateral Transactions
Energy is traded directly between a specific buyer and seller, either directly or
via a trading licensee.
Types:
 Intraday Contract
 Day Ahead Contingency
 TAM (Term Ahead Market)
o Daily Contracts
o Weekly Contracts
o Monthly Contracts
o ADSS (Any Day Single Sided)

Green Energy Trading

 GTAM (Green Term Ahead Market): For trading renewable energy in
advance.
 GDAM (Green Day Ahead Market): Segment for next-day renewable
energy trading.

Order Types in Power Exchange

1. Single Bid:
 Minimum quantum: 0.1 MW
 Pricing unit: Rs/MWh
 Thermal generators: Max bid quantum: 400 MW
  Non-thermal generators and buyers: Max quantum: 100 MW
2. Block Bid:
 A bundled set of multiple single bids with pre-defined time slots and
fixed prices.

Trading Work Station (TWS)

TWS software to place bids on IEX.

Day Ahead Market (DAM)

In DAM, buyers and sellers submit their bids one day prior to power delivery.
 Minimum price tick size: Rs. 1/MWh
 Minimum volume: 0.1 MW
 Bidding window: 10:00 AM – 11:00 AM

Bidding Types in DAM

 Single Bid: Time-block specific bids with flexibility in quantum and
price.
 Block Bid: Combination of multiple time blocks with fixed conditions.

Market Price Terms

 MCP (Market Clearing Price): The final price at which power is traded.
o Buyers bidding ≥ MCP and sellers bidding ≤ MCP are matched.
 Partial Clearance: When only part of a bid gets cleared.
 Paradox Rejection: Occurs when a block bid is rejected due to large
price deviation from the Average Clearing Price (ACP).

Transmission & Grid Management

 ATC (Available Transmission Capacity): Indicates how much power
can be transferred safely across the transmission network.
Post-Bidding Process
 Provisional Obligation Report: Generated at 11:45 AM, outlining trade
obligations.
 NLDC receives this report from the exchange for further processing.
 Congestion: When demand for transmission exceeds available capacity.
 Market Splitting: Occurs in congestion scenarios, separating the market
into zones (bid areas) as defined by NLDC.
 Final Scheduling: Issued post 1:00 PM to:
o SLDC for intrastate entities
o NLDC for regional entities

Transaction Charges
 Exchange Transaction Fee: Rs. 20/MWh + 18% GST
 RPO (Renewable Purchase Obligation): Mandated % of power to be
purchased from renewable sources; varies state-wise.
Priority of Scheduling and MCP Clearance
1. GDAM
2. DAM
3. HP DAM

Obligation Report
Generated post 1:30 PM, it includes:
 Charges (transmission, exchange, etc.)
 Pay-in amount (to be paid by buyer on the same day)
 Pay-out amount (received by seller on D+1 day)

Difference DAM G-DAM RTM

Framework The buyer and The framework of It provides the
seller have to GDAM is as opportunity for
submit their bids same as DAM but Discoms and
one day before only green energy generators to sell
 the actual can be traded. power on real
delivery. time.
Bidding Time 10AM to 11AM 10AM to 11AM 10:45PM to
10:30PM of next
day.
No. of blocks 96 Blocks, 15 Also 96 blocks, 48 blocks, 30
minutes each. 15 minutes each. minutes each.
Power Types All sources. Only green All sources.
power.
Use Procurement by For meeting For handling
Discoms and Renewable sudden demand
large users. Purchase or supply match,
Obligations. bidding on
UnRequisition
Surplus
Power Delivery The power is Same as Day Power is
delivered on the Ahead Market delivered in 1
next day of hour with blocks
bidding. of 30 mins each.
Buyers All open access Buyers with RPO All kinds of
thermal energy obligation. buyers.
buyers.
Advantages and disadvantages of DAM, GDAM and RTM
1. DAM – Day-Ahead Market
Definition: Electricity is traded a day in advance, with buyers and sellers
placing bids for each 15-minute time block for the following day.
Benefits:
 Transparent Price Discovery: Competitive bidding ensures fair and
visible pricing.
 Advance Scheduling: Enables utilities to schedule power dispatch and
manage grid operations beforehand.
 High Market Liquidity: Daily trading volumes are substantial,
enhancing market depth and efficiency.
 Risk Mitigation: Minimizes exposure to unpredictable real-time price
shifts.
 Better Operational Planning: Assists DISCOMs and generators in
preparing accurate resource plans.
2. GDAM – Green Day-Ahead Market
Definition: A specialized segment of the DAM dedicated exclusively to trading
renewable energy sources like solar and wind.
Benefits:
 Boosts Renewable Integration: Facilitates the inclusion of green energy
into the mainstream power system.
 Supports RPO Compliance: Assists DISCOMs in fulfilling Renewable
Purchase Obligations.
 Distinct Pricing Mechanism: Enables clear valuation differences
between renewable and conventional power.
 Enhanced Market Access: Offers competitive selling opportunities to
both large and small renewable energy producers.
 Promotion of Green Energy: Encourages trading in environmentally
sustainable power.

3. RTM – Real-Time Market

Definition: Power trading occurs just one hour before delivery, with 48 sessions
conducted each day.
Benefits:
 Real-Time Grid Stability: Aids in balancing supply and demand
dynamically.
 Operational Flexibility: Allows market participants to transact
electricity closer to delivery.
 Forecast Error Correction: Helps adjust for inaccuracies in renewable
energy predictions.
 Reduces Transmission Congestion: Efficiently addresses short-term
grid imbalances.
 Cost Efficiency: Enables economical last-minute energy procurement.

Real Time Market- Real time market provides opportunity for discoms and
generators to sell power on real time. If the generator has the unrequisition
surplus then they sell the power in real time market. If discom faces sudden
high rise in demand then they can buy the power from real time market.
The bidding session starts at 10:45PM. After one hour, power is received for
half hour.
Bid Start Bid End Power Delivery
10:45PM 11:00PM
12:00 to :30AM
11:15PM 11:30PM
00:30 to 1:00AM
11:45PM 00:00AM
1:00 to 1:30AM
There are total 48 bids and the last bid starts from-
10:15PM 10:30PM
11:00PM to 12:00AM

DAM power trading for Industrial consumer-

We need to prepare a landing cost sheet for our client to show them that if they
go through exchange or bilateral open access then how much money they will
save rather than taking power from discom.

Open Access Charges-

 Energy Charge
 Transaction fees
 Membership fees (for traders)
 Subscription fees (for consumer)
Power Exchange Open Access Charges-
 Energy charge
 ISTS transmission charge
 STU transmission charge
 Wheeling charge
 SLDC scheduling and operating charge
 NLDC Scheduling and operating charges
 NLDC application fees
 Additional Subsidy Surcharge- When big consumers leave the
DISCOM and buy power directly (through open access), the DISCOM
still has to pay for the power it had already arranged for them.
 To recover that loss, the DISCOM charges an additional surcharge from
those who switch to open access.

 Cross Subsidy Charges- Discom provides subsidy to weaker section

according to government policies, which they cover by recovering them
from big consumers as cross subsidy charges.
Power delivery is on regional periphery.

Break Even Price- It is a price point calculated after preparing exchange

landing cost sheet and the discom landing tariff. Breakeven price is exactly the
price at which the discom landing cost sheet is equal to power exchange landing
cost sheet. The formula for calculating BEP-
BEP= ((DT-OA) x DV/SV)x1000
Where, DT= Discom Tariff
SV= Scheduled Volume
DV= Drawl Volume
OA= Open access charges
BEP is the maximum amount that we can bid for, if we bid more than BEP, we
will go above the discom tariff, then open access would be costlier than discom.

Bilateral Contracts
I) Intraday
II) Day Ahead Contingency
III) Term Ahead Market- This market includes these contracts-
i) Daily Contracts
ii) Weekly Contracts
iii) Monthly Contracts
iv) Any day single sided

IV) Green Term Ahead Market- This market includes-

i) Intraday
ii) Weekly
iii) Monthly
iv) Any day single sided
Daily, weekly, monthly and Any day single sided contracts are also called as
Long Duration Contracts (LDC).

Intraday: - It is a contract that allows clients to match their same day

requirements. The trading hours are 00:15 to 20:30. The total hours of delivery
of power is 21 hours and the prices are matched continuously.
Day Ahead Contingency: - This contract allows clients to trade a day before
the delivery of power. The power is delivered for 24 hours of the next. Trading
time is 13:00 to 23:30. The order is cleared through continuous price matching
process.