Presentation Title ( Arial, Font size 28 )

Transcription

1 Power Procurement: Planning, Regulations and Practices Presentation Title ( Arial, Font size 28 ) Date, Venue, etc..( Arial, Font size 18 ) Tata Power Trading Company Ltd 26/04/2017

2 AGENDA Introduction of Tata Power & Tata Power Trading Company Limited Power Market Structure and Developments Power Procurement Planning Power Procurement Regulations Power Procurement Practices 02

3 03

4 THE TATA POWER COMPANY LIMITED BUSINESS OVERVIEW Established in 1910, Tata Power is India's largest integrated power company with a significant international presence The Company has gross power generation capacity of MW out of which 7436 MW from Thermal. Tata Power has an installed generation capacity of 3133 MW through green resources One of the largest renewable energy players in India It has developed India s first 4000 MW Ultra Mega Power Project Tata Power International Presence South Africa - Amakhala Emoyeni Wind Farm (134.4 MW) and Tsitsikamma Community Wind farm ( MW) Georgia - Development of two separate Hydro Power Projects of 185 MW and 150 MW Indonesia Coal Assets Zambia MW Itezhi Tezhi Hydro Power Project (2 * 60 MW) Bhutan 126 MW Dagachhu Hydro Project (2 * 63 MW) 04

5 TATA POWER TRADING COMPANY LIMITED (TPTCL) - OVERVIEW A wholly owned subsidiary of The Tata Power Company Limited First company to be awarded a power trading license by CERC - On 9 th June 2004 Cross Border Trading Experience Importing power from Dagachhu Hydro Power(126MW), in Bhutan, to India TPTCL is the UI Pool Member of Eastern region for import from DHPC Bhutan TPTCL serves DISCOMs across all the states in India Consistently among the top three power traders in India Trading volume has increased from 2996 MU in FY 2009 to MU in FY 2016 Revenue of Rs Crore(s) in FY 2016 State of art, highly automated control room being operated 24 X 7, by highly skilled professionals Timely payment and payment security to power suppliers 05

6 TATA POWER TRADING COMPANY LIMITED (TPTCL) SERVICE PORTFOLIO TPTCL SERVICE PORTFOLIO Bilateral Power Contracts Power Exchanges Renewable Energy Certificate (REC) Advisory Services Short Term Contracts Medium/ Long Term Contracts Banking Group Captive Qualified Coordinating Agency Captive Wheeling of Power 06

7 07

8 SALIENT FEATURES OF INDIAN ELECTRICITY ACT 2003 De-licensing of generation Development of a Multi-Buyer Multi-Seller framework in power Introduced Tariff based Competitive Bidding for procurement of Power Provision of Non-discriminatory Open Access Setting up State Electricity Regulatory Commission (SERC) made mandatory Development of National Electricity Policy (NEP-2005) and National Tariff Policy (NTP-2016) 8

9 Installed Generation Capacity As on Coal (MW) Thermal (MW) Gas (MW) Diesel (MW) Total (MW) Nuclear (MW) Hydro (MW) RES (MW) Grand Total (MW) Central State Private Total Hydro 14% GENERATION MIX RES 16% Private 42% SECTOR WISE GENERATION Central 25% Nuclear 2% Thermal 68% State 33% Source: Central Electricity Authority 09

10 POWER SUPPLY POSITION IN INDIA Year The power supply position in the country during to : Energy Peak Peak Requirement Availability Surplus/Deficits(-) Peak Met Surplus/Deficits(-) Demand (MU) (MU) (MU) (%) (MW) (MW) (MW) (%) , ,355-73, , ,256-12, , ,886-79, , ,191-13, , ,209-86, , ,294-12, ,002, ,614-42, , ,815-6, ,067,085 1,028,955-38, , ,160-7, ,14,235 10,90,713-23, , ,463-4, ,42,092 11,34, , ,934-2, Deficit Energy - (MU)/(%) Deficit in Peak - (MW)/(%) 100, , ,000 60,000 40, ,000 5, , Deficit (MUs) Deficit (%) Deficit (MW) Deficit (%) Source: CEA 10

11 STRUCTURE OF INDIAN POWER MARKET Concurrent Policy Making Central Government 29 State Governments Regulations Central Electricity Regulatory Commission State Electricity Regulatory Commissions System Operators National Load Dispatch Center Regional Load Dispatch Centers State Load Dispatch Centers Generation Central Generating Stations State Generating Stations IPPs Transmission Central Transmission Utility State Transmission Utilities IPTC Distribution Markets State Distribution Companies Power Exchanges Private Distribution Companies Bilateral Markets Renewable Energy Renewable Energy Certificates Renewable Purchase Obligation 11

12 INDIAN POWER MARKET STRUCTURE Types of Power Procurement Contracts Nature of Contract Duration of Contract Transmission Open access availability Long Term >7 years & Upto 25 Years Long term open access is available for a period more than 7 years Medium Term >1 Year & Upto 5 years Medium term open access is available for a period of 4 months to 3 years Short Term Short Term Bilateral Up to 1 year For a period of up to 3 months Short Term Power Exchange Day Ahead Market (1 day) Term Ahead Market ( Week Ahead) 1 day (corridor left after short term bilateral) Weekly basis (FCFS/Day Ahead) Deviation Settlement Mechanism Real time balancing mechanism for settling deviation from schedule 12

13

14 MUs SHORT TERM POWER MARKET TRENDS (1/5) Short Term Trade Details % % 10.90% 10.87% 11.00% % 10.46% 10.50% 10.43% 10.00% % 9.50% 9.00% 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Till Dec'16 Financial Year 8.50% Bilateral PX UI % of total generation 14

15 Billion Units (BUs) Percentage Share SHORT TERM POWER MARKET TRENDS (2/5) 1200 Short Term Transaction Of Electricity 11.50% % 10.90% 10.87% 11.00% % 10.44% 10.50% % 10.00% % 9.50% % FY17 Till Dec'16 Total Generation (BU) Short term transaction of Electricity (BU) Total Volume of short term transaction as % of total Generation 8.50% Source: CERC Market Monitoring Report 15

16 Volume(BUs) SHORT TERM POWER MARKET TRENDS (3/5) Volume of Electricity Transacted through Trading Licensees and Power Exchanges FY17 Till Dec'16 Financial Year Electricity Transacted Through Traders + TAM (BU) Electricity Transacted through PX (BU) Total BU Source: CERC Market Monitoring Report 16

17 Volume (BUs) Percentage SHORT TERM POWER MARKET TRENDS (4/5) Volume of Electricity transacted through UI % % % % % % % 20% % % 35% 30% 25% 20% 15% 10% 5% FY17 Till Dec'16 Volume of UI (BU) Total Volume of Short term (BU) Volume of UI as % of ST Volume 0% Source: CERC Market Monitoring Report 17

18 Rs./Unit SHORT TERM POWER MARKET TRENDS (5/5) Price of Electricity Transacted through Traders & Power Exchanges FY17 Till Dec'16 Price of Electricity Transacted through Trader (Rs./kWh) Price of Electricity Transacted through PX (Rs./kWh) Source: CERC Market Monitoring Report 18

19

20 NEED FOR PLANNING Inefficient power procurement planning adversely impacts the finances of the Discoms in several ways: Indirect consequences of shortage of power are as follows:- Due to operational constraints paying consumers confront load shedding. The shortage situation leads to load shedding even to HT/Industrial/Commercial consumers Consequences of ensuring minimum supply to domestic/agricultural categories: Higher distribution losses due to reduced sales to HT categories Migration of customers from subsidizing categories (HT industrial/commercial) to other sources of power procurement under Open Access or Captive routes. 20

21 NEED FOR PLANNING Inefficient power procurement planning adversely impacts the finances and operations of the Discoms in several ways: Mismatch in load and supply which may lead to unplanned load shedding Non optimal power purchase Issues in optimal load dispatch due to less available options for power dispatch Planning for augmentation of distribution network infrastructure is hampered Improper planning leads to requirement during peak hrs. and surplus during off-peak hrs Issues in handling load variation specially arising due to seasonal load variations Issues in handling variation in load flow due to increasing presence of distributed generation, energy efficiency and energy storage equipment Similarly, we have following indirect consequences of being power surplus Higher Fixed Cost to be payable by Discom Plants are required to run at technical minimum, which reduces the overall efficiency Discoms/Gencos find it hard to adhere with FSA related commitments Revenue loss due to failure of Discom to sell the surplus power 21

22 ISSUES FACED BY DISCOMS IN PLANNING In the past, Discoms failed to procure power as per the plan due to reasons such as: Baring a few, the discoms generally do not have proper data for past demand and supply and thus are not able to carry out effective sensitivity analysis to carry out demand projection Data for actual unconstrained demand is not available Data for Theft, Actual AT&C losses is not easily available Fuel shortages (Gas and Coal) Transmission congestion at different levels: Inter regional (e.g. WR to NR, ER to NR, Rest of India to SR) Intra regional (e.g. N3 Import) Intra state (e.g. Gurgaon Import in Haryana, NPCL Import in UP, etc.) Delay in commissioning of power projects Lower level of hydro generation Competitive bidding for power procurement is not conducted in a timely manner. 22

23 TRANSMISSION CORRIDOR PRIORITY Discoms must keep in mind the priority for transmission corridor related to various options available for power procurement. Long Term Medium Term Short Term (Advanced Reservation /First Come First Serve) Short Term PX(DAM) Short Term Day Ahead/Contin gency/same day 23

24 POWER PROCUREMENT ROUTES Power Procurement MoU route Competitive route PPA Banking Competitive bidding guidelines (DBFOO and DBFOT) Markets OTC & PXs DBFOO- Design Build Finance Own and Operate DBFOT- Design Build Finance Operate Transfer 24

25 POWER PROCUREMENT- CONSUMERS (OA) Competitive rates is the main reason for consumers to opt for open access route for procurement of power The Electricity Act 2003 has created this option for sourcing of power to create a market driven regime opposed to supply of electricity through state monopolies. The Act provides that industries with connected load of more than or equal to 1 MW can procure power from electricity exchanges or directly from generators and distribution companies or traders of power. Though, it has been observed that many state governments and utilities have started imposing restrictions on movement of power from sellers to users through open access. 25

26 POWER PROCUREMENT- CONSUMERS (Group Captive) Captive Power Plant A power project is considered captive if its related entity or entities consume at least 51% of the power generated and owns at least 26% of the equity Due to high capital cost involved in setting up Captive power plant, the generators and service providers (Traders) have developed a new avenue of power procurement for consumers known as Group Captive. Also, it leads to avoidance of Cross Subsidy Charges A wide range of Share Capital per MW, depending on the equity structure proposed by Generator Contract Period ranges from 2 years to 5 years The per unit power prices for a participating entity are generally sensitive to the quantum purchased. Monthly Billing These involve Lock In period RPO to be separately met by participating entities 100 % scheduling for allotted capacity This option has Fuel Uncertainty Risk attached with it 26

27 INDIAN POWER MARKET PERCENTAGE ENERGY SHARE Percentage Energy Share Contract Wise 3.5% 4.7%1.9% Largely tied-up through Long term PPAs Short term bilateral market dominated by few players accounting for over 85% volume of short term market Coal India Limited (CIL) giving coal only for long term PPAs Volume settled through DSM is progressively declining because of Long Term Short Term - OTC 89.9% Short Term - PX Short Term - DSM tightening of frequency band by Central Electricity Regulatory Commission) CERC and emergence of Power Exchange (PX) 27

28 POWER PROCUREMENT OPTIONS AVAILAIBLE FOR A DISCOM Base Load Coal Nuclear Peak Load Hydro Gas Renewable Solar Wind Others Procurement of Power Exchanges/Traders Procurer can select a capacity from multiple resources for varying capacities and for varying contracts. 28

29 APPROACH TO POWER PROCUREMENT Procurers of complex portfolios would ideally need to update the contracting strategy for procurement of power on an annual basis Market conditions in terms of demand-supply gap, electricity prices and regulatory conditions would determine the risks and costs The risks and costs would determine the selection of the combination of contracts Short term/medium term/long term Bilateral/Power Exchanges Incidental procurement Implementation of environment norms and standards such as ESP( Electrostatic precipitator) and FGD (Flue Gas Desulphurization) During the initial phase of the study, Southern Regional Power Committee has identified MW of capacity for refurbishing. 29

30 LONG TERM / MEDIUM TERM POWER PROCUREMENT Demand Projection As per 18 th Electric Power Survey (EPS) by CEA CAGR GDP growth of various states Estimated availability for Long Term Supply Latest Information Available from Various Sources like CEA, Meetings, Seminars, Site Visits etc. Estimation of Demand Supply Gap Planning for Shortfall / Surplus Arrangements Types of Arrangements Allocated Contracted (Competitive Bidding) 30

31 SHORT TERM POWER PROCUREMENT Estimated Demand Projection One year Ahead (Reviewed Monthly or Earlier As required Max./ Avg. Probability) Scenario Building on Parameters such as weather, festivals, public elections etc.,. Estimated supply from Long Term Supply based on Load Generation Balance Report (LGBR), planned plant outages, contingency, fuel availability etc., Estimated Demand Supply Gap. Planning for Shortfall / Surplus Arrangements Types of Arrangements Bilateral Banking Power Exchanges 31

32 DECISION MATRIX FOR SHORT TERM SALE / PURCHASE START Identification of Shortage / Surplus (Monthly/Fortnightly/Hourly) Surplus Surplus / Shortage Shortage Banking / Sale Banking / Purchase Banking Sale Banking Purchase Banking Tender/Bilateral Sale Tender/Bilateral/ PXs Banking Tender/Bilateral Purchase Tender/Bilateral/ PXs 32

33 SCHEMATIC APPROACH TO POWER PROCUREMENT OPTIMIZATION Due to the combination of long term, medium and short term supplies, differing fuels, base and peaking contracts and power procurements, optimization has to be done for (a) long term planning and (b) short term procurement and sale 33

34

35 REGULATORY PROVISIONS Section 62 of the Electricity Act 2003 states that The Appropriate Commission shall determine the tariff in accordance with provisions of this Act for (a) supply of electricity by a generating company to a distribution licensee: Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity; Section 63. (Determination of tariff by bidding process): Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government 35

36 POWER PROCUREMENT REGULATIONS The Electricity Act 2003 Dated 2 nd June 2003 National Electricity Policy Dated 12 th February 2005 National Tariff policy 28 th January 2016 Guidelines for short term procurement of power by distribution licensees through tariff based bidding process dated 15 th May 2012 last amended on 30 th December 16 Guidelines for procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Operate and Transfer (DBFOT) basis dated 21 st September, 2013 Guidelines for procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis Dated 9th November, 2013 Guidelines for procurement of electricity for medium term from power stations set up on Finance, Own & Operate (FOO) basis dated 10 th February 2014 and amendment dated 20 th August Guidelines for procurement of peaking power for medium term dated 24 th February 2014 Guidelines for procurement of electricity on Short Term through DEEP portal introduced by MoP, India (2016) Guidelines & MBD for procurement of electricity on Medium Term through DEEP portal introduced by MoP, India (Jan 2017) Guidelines for Cross Border Trade of Electricity issued by MoP, on 5 th Dec

37 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (1/7) Ministry of Power issued a revised Guidelines on Short Term Procurement of Power during 2016, wherein Procurement of power by Distribution Licensee or its Authorized Representative (AR) shall be done through e-bidding portal E-bidding shall be followed by Reverse Auction MSTC appointed as the agency to develop the portal, launched on 1 st April 16 The user needs to do registration on the portal. Each login will have a Digital Signature Certificate (DSC) linked to it. One time non-refundable registration fee of Rs. 20,000/- The bidder who is willing to participate in e-bidding shall have to pay requisite fees of Rs. 500 per MW per requisition for total capacity sought by Utility for that particular requisition, to PFCCL. The PFCCL shall keep this fees for successful bidder as per the cleared bid and shall refund the balance to the bidder. 37

38 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (2/7) Tariff Structure Procurer to invite bids based on their requirement, subject to minimum quantity. Bidder to offer constant quantum throughout the contract period Bidder to quote single tariff upto 3 decimal point at the delivery point Delivery point shall be State / Regional Periphery of Procurer (Interstate) and shall be interconnection point of seller with STU (intrastate) If power is supplied from alternate source, additional charges & losses shall be to the account of bidders. 38

39 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (3/7) Bid Submission Requirement and Commercial Terms & Conditions EMD (Bank Guarantee): Bidder to submit EMD, in the form of Bank Rs. 30,000/MW/month. The same shall be reduced on pro-rata basis in case bids invited on hourly basis CPG (Contract Performance Guarantee): CPG to be submitted by successful Rs. 2 lakh/mw/month. The same shall be reduced on pro-rata basis in case of LOI on hourly basis Force Majeure Clause standardized; Change in Law also included Billing Cycle to be on weekly basis Compensation Clause is 20% of tariff, applicable on either party Payment Security Mechanism: PSM for an amount equivalent to 100% of weekly energy corresponding to contracted quantity shall be provided by Buyer. LC to be provided before commencement of supply of power 39

40 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (4/7) Bid Evaluation An event shall comprise of two parts i.e. e-bidding and reverse auction. An event can have multiple requisitions. Bidder can participate in any of the available multiple requisitions A bidder can submit only one bid against each requisition Bidder has option to submit multiple bids against each requisition with separate login(s) which requires separate DSC. The multiple bids can be from same sources of different sources Bidder to inform the minimum threshold quantum which bidder is willing to supply to the Procurer which would be considered for allocation of power After opening of Price Bid, if total quantity is greater than twice the requisitioned quantity, the highest bidder will be eliminated provided total quoted quantity after elimination is not less than or equal to twice the requisitioned quantity. 40

41 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (5/7) Bid Evaluation In case two or more bidders quote same tariff during Reverse Auction (RA), the time of submission of bid will be deciding factor for their ranking RA to start within 120 mins of opening of Price Bid and shall continue for next 120 mins, i.e., RA will be of 120 minutes and shall be followed by auto extension of 10 mins. Auto extension will continue till there is a period of 10 mins during which no price bid is received which is lower than prevailing lowest price bid. Bidder can reduce the tariff by a minimum of 1 paisa/kwh Bidder can increase the quantum by 1 MW, subject to its Bank Guarantee limits After RA, the bidder would be issued LOI based on their ranking of RA, up to their requisitioned quantum In case selected bidder is allocated quantity less than its minimum threshold quantity, bidder shall have option to exit without forfeiting the EMD 41

42 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (6/7) Deviation from Guidelines Procurer has option to take deviation from these guidelines with prior approval of Appropriate Commission Timelines Sr. No. Event Elapsed time from Zero Date 1 Publication of RFP Zero Date 2 Submission of RFP 4 days 3 Opening of technical bids 5 days 4 Clarification from Bidders 6 days 5 Opening of Financial Bid & start of RA 8 days 6 Issuance of LOI 9 days 7 Signing of PPA 10 day 8 Opening of LC Prior to supply of Power 42

43 MOP GUIDELINES FOR PROCUREMENT OF ST POWER (7/7) Issues arising due to Revised Guidelines Right to regulate Clause and Late Payment Surcharge Clause not incorporated Quantum reduction or bid deletion is not allowed during Reverse Auction PSM amount is low as compared to the exposure of weekly billing No provision for Prompt Payment Rebate Compensation clause is not competent to address contemporary challenges of market 43

44 MOP GUIDELINES FOR PROCUREMENT OF LONG TERM & MEDIUM TERM POWER Ministry of Power first issued guidelines for competitive bidding process, to be followed by DISCOMs for long/medium term power procurement, on 19th January Power Procurement on Long Term basis - Fresh guidelines were issued on 21 st September 2013 for Case-2 bidding process, on 9 th Nov 2013 for Case-1 bidding process Power Procurement on Medium Term basis - Fresh guidelines were issued on 10 th February 2014 and 24 th February 2014 and amendment dated 20 th August 2015 The guidelines have been framed under the provisions of Section 63 of the Act. 44

45 LONG TERM - CERC TARIFF FRAMEWORK Tariff for supply of electricity from a thermal generating station shall comprise two parts: i. capacity charge (for recovery of annual fixed cost) ii. energy charge (for recovery of primary and secondary fuel cost ) The tariff for supply of electricity from a hydro generating station shall comprise capacity charge and energy charge for recovery of annual fixed cost through the two charges 45

46 CERC TARIFF FRAMEWORK Capacity Charges shall be derived on the basis of Annual Fixed Cost and shall consist of the following components: i. Return on equity ii. Interest on loan capital iii. Depreciation iv. Interest on working capital v. Operation and maintenance expenses Energy charges shall be derived on the basis of the landed fuel cost (LFC) of a generating station (excluding hydro) and shall consist of the following : i. Landed Fuel Cost of primary fuel ii. Cost of secondary fuel oil consumption 46

47 LONG TERM POWER PROCUREMENT - OPTIONS Long Term Power Procurement DBFOO ( Case-1) DBFOT ( Case -2) Location & Fuel not specified Location & Fuel are specified 47

48 KEY FEATURES FOR PROCUREMENT OF POWER FROM THERMAL POWER STATIONS SET UP ON DBFOT BASIS MOP published the guidelines on 21 st September 2013 for procurement of electricity from thermal power stations set up on Design, Build, Finance, Operate and Transfer (DBFOT) basis Two stage competitive bidding process: Request for Qualification (RFQ) stage Request for Proposal (RFP) stage Term of contract shall be 20 years or more Utility shall pay a fixed charge determined through competitive bidding for availability of the power station and shall be revised annually to reflect 30% of the variation(annual change) in WPI and CPI. Further annual reduction of 2% so that the benefit of a depreciated asset is passed on to the consumers. Fuel charge is pass through subject to certain ceiling Normative availability shall be 90% of the Installed Capacity Tariff to be quoted for first year only (no levelized tariff) At the end of concession period, the power plant will be transferred to the utility 48

49 KEY FEATURES FOR PROCUREMENT OF POWER FROM THERMAL STATIONS UNDER DBFOO BASIS MOP published the guidelines on 9th November 2013 for procurement of electricity from thermal power stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis Two stage competitive bidding process: Request for Qualification (RFQ) stage Request for Proposal (RFP) stage Term of contract is above 7 years and up to 25 years and extendable by 5 years Utility shall pay a fixed charge determined through competitive bidding for availability of the power station and shall be revised annually to reflect 30% of the variation in WPI. Further annual reduction of 2% so that the benefit of a depreciated asset is passed on to the consumers. Fuel charge is pass through subject to certain ceiling Normative availability shall be 90% of the contracted capacity Tariff to be quoted for first year only (no levelized tariff) 49

50 KEY FEATURES FOR PROCUREMENT OF ELECTRICITY FOR MEDIUM TERM FROM POWER STATIONS SET UP ON FOO BASIS MOP published the guidelines on 10 th February 2014 for procurement of electricity from power stations set up on Finance, Own and Operate (FOO) basis and amendment dated 20 th August 2015 Two stage competitive bidding process: Request for Qualification (RFQ) stage Request for Proposal (RFP) stage Term of contract shall be one to five years, with a provision for extension of this period for the lower of 25% of the initial contract period and one year, with mutual consent Utility shall pay a fixed charge determined through competitive bidding for availability of the power station and shall be revised annually to reflect 20% of the variation in WPI. Fuel charge is pass through subject to certain ceiling Linkage coal from CIL is not permitted to be used Normative availability shall be 85% of the contracted capacity Traders are allowed to participate in bidding process 50

51 Standard Bidding Document for Invitation for e-tender and e-reverse Auction for Medium Term Procurement of Power on DEEP Portal(1/2) Model Bidding Documents published by MoP on 16 th January 2017 which consists of following:- Model Request for Qualification (MRFQ) Model Request for Proposals (MRFP) Model Agreement for Procurement of Power (MAPP) The distribution licensee to use the electronic platform (DEEP e- Bidding Portal) The power plants which can bid their power by this mechanism are segregated as below:- Coal from domestic market other than Coal Mine/Blocks Coal from Coal Mine/Blocks allocated through auction by Governmental Instrumentality Gas from domestic market Gas from ONGC/GAIL Supply from Hydro-electric Power Station Coal imported from international market Gas imported from international market Coal from captive mines abroad Fuel imported under fixed-price Gas Contract Lumpsum Tariff 51

52 Standard Bidding Document for Invitation for e-tender and e-reverse Auction for Medium Term Procurement of Power on DEEP Portal(2/2) Timelines for the E bidding 52

53 COMPETITIVE WHOLESALE MARKET Merchant Power Plant Regulated Generators Captives Power Exchanges Traders Distribution Companies Consumer Consumer Consumer Arrow represents Contracts possible for Sale/Purchase of Power, 53

54

55 Available Generation from Installed Capacity as on Type of Generation Installed Capacity (MW) Generation (BUs) PLF Achievable PLF Generation as per Achievable PLF (Bus) Coal 185, % 75% 1215 Gas 24, % 25% 52 Diesel % 0% 0 Hydro 42, % 35% 128 Nuclear 5, % 80% 40 RE 38, % 18% 60 Total 298,060 1,

56 BUs Available Generation Vs. Demand Growth Scenario(Energy) Year Available Generation(BUs) Demand Growth (5%) Demand Growth (8%) Demand Growth (10%) 56

57 Available Generation from Installed Capacity as on Type of Generation Installed Capacity (MW) Normative Availability Capacity as per Availability (MW) Coal 185,173 80% Gas 24,509 25% 6127 Diesel 994 0% 0 Hydro 42,783 50% Nuclear 5,780 80% 4624 RE 38,822 0% 0 Total 298,

58 Peak Demand (GW) Peak Availability Vs Peak Growth Demand Scenario Peak Load Met (GW) Peak Load Growth (5%) Peak Load Growth (8%) Peak Load Growth (10%) 58

59