Development of Power Exchange & Models -

PJM, Nordpool Exchange

Cross Border Trading of Power

Dr YP Chawla -Ex. Advisor JERC Ministry of Power, Sr. Research Fellow Isq IT, and a Visiting Faculty- Busine
Schools ; ypchawla@gmail.com; +91-98107-08707 (Only WhatsApp Calls and Messages)
Time Difference: IST + 4:30 Hrs
 Resilient Power Sector creates Resilient Economy

Power Sector Transience to a Powerful, Resilient & Sustainable Future

A Journey
Robust and Future-Ready Power Sector- Changing Landscape
आज लिखेगें कि
Open House Knowledge sharing - An Interactive Session

2
Actions in India
Financials of Power Sector
 http://praapti.in/#

Source: Payment Ratification And Analysis in Power

procurement for bringing Transparency in Invoicing of
generators (PRAAPTI) PORTAL
Source: Payment Ratification And Analysis in Power procurement for bringing
Transparency in Invoicing of generators (PRAAPTI) PORTAL
 PRAAPTI Payment Ratification And Analysis In Power Procurement For Bringing
Transparency In Invoicing Of Generators 5th May 2021 …….Measuring and
Facilitating ease of making Payments by DISCOMs

Central Generating Stations = 22

http://praapti.in/
Central Trans Utility All REs= 296
=1
IPPs
=41
Real Time Market
 IEX Pioneered Cross Border Electricity Trade
(CBET) with commencement of trade with
Nepal in its Day ahead electricity market on
April 17, 2021. The Cross border in electricity is an
endeavour to expand the Indian power market
towards building an integrated South Asian Power
Market.

An integrated south as power market has many

benefits including:
•Enhanced energy access and security
•Integrated Power Market
•Competitive power prices
•Transparent and efficient power procurement
•Resource optimisation
The operationsin the Cross Border Electricity Trade are
carried out in accordance with the Central Electricity
Regulatory Commission’s Cross Border Trade of
Electricity Regulations, 2019.
•Energy Efficiency ऊर्जा दक्षतज

... shifting towards supercritical technologies for coal based power plants.
On the other side, efforts are being made to efficiently
use the ... excess savings.
The ESCerts could be traded on the Power Exchanges and bought by
other units under PAT who can use them to meet their ...
Power of the Power Market
Why is Electricity a commodity and Why it is Special ?
Why it is so special
• There must be a balance between Power Generated and Consumed
• Transportation , Delivery and Distribution are on Power Gridswith
specific physical rules
• Storage is uneconomical but it catching up
https://onlinelibrary.wiley.com/doi/epdf/10.1002/2050-7038.12360
There is a wide range of starting points and motivations for market development; therefore, the evolution of market
design will follow myriad pathways. Common objectives, present in all systems, include:
1. Promoting efficient operation of power systems,
2. Creating clear and effective incentives for investment, and
3. Improving reliability and cost-effectiveness of electricity service.

Above Objectives have driven power market design for decades. And accordingly Power Exchanges ( Power Market
Exchange Mechanism)

But recently, emerged-objectives impact power market design,

4.Covering the health and environmental impacts of electricity service,

5.Rapidly expanding energy access to underserved or unserved customers, and
6. Encouraging power-system innovation.
7. Distributed Energy Sources (DERs)
Promoting the entry of new sources of distributed generation could be perceived as a challenge to existing market
participants ;
• Rapidly expanding energy access might increase costs for other customers (Ranjit and Sullivan 2002; Brew-Hammond
2010); and
• Reducing health and environmental impacts by encouraging energy efficiency and greater deployment of variable
renewable energy sources could challenge existing investment frameworks.

https://www.nrel.gov/docs/fy14osti/57477.pdf
 Challenges to 21st Century Power Market Design

Minimizing Complexity: Around the world, most power markets have evolved into complex designs that integrate efficient
economic principles with the engineering and physics of the electric power system. New designs, such as for flexibility, are
being introduced, but at the cost of amplifying existing market complexity. Too much complexity could necessitate market
revisions too frequently, fail to achieve extensive market participation, and create unintended conflicts between markets,
such as energy market rules that create a disincentive to provide reliability services.

Encouraging Investment: Wholesale markets, energy prices are based on the marginal cost of providing energy, and
therefore do not include any of the capital costs of the resources. Investors calculate the risk adjusted returns of potential
projects

Harmonizing across timescales: A reliable and secure electricity supply requires sensitivity to multiple timescales. Electricity
markets provide short-term price signals (seconds to days), which are effective at allocating available capacity

Ensuring Market Depth: In many power markets, a significant amount of energy is sold through bilateral contracts, which
addresses the absence of long-term market signals, but which reduces market participation. The implications for systems with
high variable renewables but significant bilateral contracts are threefold. First, most energy delivery is purchased months to
years in advance, locking in generation that could be inflexible, and leaving a small day-ahead and real-time market for new,
innovative, and flexible supply. Second, spot-market prices might be inconsistent with marginal costs due to the limited
supply of flexibility. Third, limited participation in the day-ahead and real-time markets can decrease market efficiency by
reducing the potential for market software to optimize supply resources based on their bid costs.
Power system reform processes are sensitive to contextual factors
technical, financial, political, and institutional that constrain options and pathways for the design of electricity markets.

Power system reform efforts globally fall into three categories.

1. Mature, Restructured markets with significant generation capacity already existing, and where economic, social, and
technological forces are precipitating a reassessment of market design.
European Union (EU), Australia, and the United States fall into this category,
With a reassessment driven by slow demand growth, rapid growth in energy efficiency and variable renewable energy, and
increased interest in deploying smart-grid technologies.

2. “hybrid markets” in which earlier restructuring efforts have stalled out, leaving a mix of competitive and state-owned
actors. Many emerging economies fall into this category, including Tanzania, Argentina, Bolivia, Jamaica, and various states
within China and India.
In many of these settings, the impetus for continued market reform stems from rapid demand growth, lagging investment in
new capacity by independent power producers, and poor financial conditions of state-owned entities.

In contrast with earlier rounds of restructuring, many of these countries also show growing interest in adding variable
renewable energy to the generation portfolio and investing in smarter distribution grids—new objectives that significantly
change the market reform conversation.

3. Monopoly power sectors, with little or no restructuring. Mexico and South Africa Similar to the second category.
The impetus for power system reform typically is driven by a need for accelerated private investment to meet rapidly
growing demand or the need to change the current inefficient set-up of pricing and dispatching.
1. Regulatory capacity pertaining to the ability of regulators to implement and enforce policy.
2. Level of Accountability to which regulatory institutions are held.
3. Commitment with diminished ability to rely upon contracts
4. Fiscal efficiency & the difficulties in financing infrastructure investment.
The prevalence of four challenges varies significantly by jurisdiction, but all are important considerations in the development
of electricity markets.
PJM began in 1927 when three utilities, realizing the benefits and efficiencies possible by interconnecting
to share their generating resources, formed the world’s first continuing power pool. [1]

In 1962, PJM installed its first online computer to control generation. PJM completed its first energy
management system (EMS) in 1968.

PJM began the transition to an independent, neutral organization in 1993 when the PJM Interconnection
Association was formed to administer the power pool. In 1997, PJM became a fully independent
organization. On April 1, 1997, PJM opened its first bid-based energy market. At that time, membership
was opened to non-utilities, and an independent Board of Managers was elected.

In 1997 Federal Energy Regulatory Commission (FERC) approved PJM as the nation’s first fully
functioning independent system operator (ISO) not owning, any transmission systems in order to provide
open access to the grid for non-utility users.

From 2002 through 2005, PJM integrated a number of utility transmission systems into its operations and
continued expansion by adding more states Duke in 2012, East Kentucki in 2013.

1. https://pjm.com/about-pjm/who-we-are/pjm-
history#:~:text=PJM%20began%20the%20transition%20to,Board%20of%20Managers%20was%20elected.
PJM Evolution- Global Energy Market
 PJM = Pennsylvania, New Jersey, and Maryland

All or parts of
Delaware, Illinois,
Indiana, Kentucky,
Maryland,
Michigan, New
Jersey, North
Carolina, Ohio,
Pennsylvania,
Tennessee,
Virginia, West
Virginia and the
District of
Columbia.
PJM Interconnection coordinates the movement of electricity
through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio,
Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
Start of the Power Markets
 System Operator

Market Supliers
Traders Retailers
Exchange
Transactions:

Forward Spot
Real Time

System Direct
Generators Consumers
Operator
Electricity ( Power ) - a Special Commodity Why So Special ?

A balance between Power Generation and consumption

Special physical rules for its transportation and distribution- Power network
Storage of large quantity for tomorrow’s use – Uneconomical ( Pumped Hydro, Battery
Storage , Tomorrow’s green H2

Large part of demand- a must serve ( domestic, Health services/ Hospitals, Agriculture,
Industry, Transportation and today’s business operations ……………………)

Attributes of Power as not generally distinguishable by the end user in regard to its origin,
source, quality ( Unless the operations require controlled voltage and frequency,
harmonics ………)

- [ Green Power is on sale in the market}

https://youtu.be/oE6FMAezv24
 Features that make Electricity
– a special commodity
Strong
variations-
Supply /
Demand
Demand- Partially-
Inelastics Storable
Features Demand~
of Supply / In all
Electricity network
Generation / Power nodes
Technologies
- multiplicity Physical
and Constraints
compete – Delivery
System
Market Differentiation

Energy Capacity

Market

Ancillary
Services
Energy Market and its application

Intraday Futures

Day
Ahead or
even spot

Balancing
• PJM capacity market rules from the introduction of formal capacity markets
on 1 January 1999 through the current market structure and concludes with a
review of the Reliability Pricing Model (RPM) design that became effective on
I June 2007.

• Reliability Pricing Model -RPM is based on an integrated resource

planning model that looks to4 years into the future to determine generation
resource needs in terms of location and fuel mix. Under the originally
proposed scheme, the needed generation capacity to maintain adequate
reliability is procured through a central auction on a 4 year forward basis,
which enables participation by existing generator and new investors
 Renewable energy in power markets
• The electricity sector restructuring and generators compete to sell electricity in
wholesale power markets.
• Complexity of Power markets ; to protect reliability, these markets must reflect
numerous constraints regarding the operation of generating and transmission assets.
• Transmission congestion
• Locational marginal pricing is used in some systems to price transmission congestion
and losses. Different electricity prices at many different locations on the grid.
• In some other systems, zonal pricing mechanisms are used.
• Capacity and ancillary services markets also exist in many markets and have their own
varied and complex rules.
• Special rules often govern the operation of renewable resources such as wind and solar
in these markets.
NordPool – Size of Market

963 TWh* Power Traded (buy volume of 462 TWh + sell volume of 501 TWh) CY 2021

Day-ahead market traded 722.5 TWh Nordic and Baltic

Day-ahead market 147.3 TWh – UK

Day-ahead market 68.2 TWh- Nord Pool’s central European (CE) (covering Austria, Belgium, France, Germany,
Luxembourg, The Netherlands and Poland)

Total intraday trading, across all markets, for the year stood at 25.18 TWh.
Indian Energy Exchange's trade volume jumps 38% in FY22 at 1,02,035 million units in financial year 2021-22

Central Electricity Regulatory Commission (CERC), exchanges are permitted to commence trade in the longer-duration contracts
on their platforms contracts up to 3 months now an attempt to move away from Bilateral Contracts. Between January 2020 and
April 2022, 396 tenders / out of 660 (60%) were for monthly procurement of power.
Nord Pool, Europe’s power market – 25+ years of power market experience

Majority owned by Euronext, offers day-ahead and intraday trading, clearing and settlement, and
additional services, to customers regardless of size or location.

360 companies from 20 countries trade on Nord Pool’s markets.

The Nordic countries (also known as the Nordics or Norden; lit. 'the North') are a geographical and cultural
region in Northern Europe and the North Atlantic.

It includes the sovereign states of Denmark, Finland, Iceland, Norway and Sweden; the autonomous territories of
the Faroe Islands and Greenland; and the autonomous region of Ål and

Baltic states, north-eastern region of Europe containing the countries of Estonia, Latvia, and Lithuania, on the
eastern shores of the Baltic Sea.

Nord Pool operates markets in the Nordic and Baltic regions, Germany, Poland, France, The Netherlands, Belgium,
Austria, Luxembourg and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European
countries, while also servicing power markets in Bulgaria, Croatia and Georgia.
European Energy Exchanges: Are They All The Same?
•EEX – European Energy Exchange.
•ICE – Intercontinental Exchange.
•GME – Gestore Mercati Energetici.
•NASDAQ OMX.
•OPCOM – Romanian Gas and Electricity Market Operator.
•PXE – Power Exchange Central Europe.

https://www.europex.org/consultation-responses/europex-response-to-commission-consultation-on-red-
ii-draft-delegated-acts-on-rfnbos-ghg-savings-methodology%ef%bf%bc/

Europex is the Association of European Energy Exchanges, the business association for energy
exchanges, market operators and delegated operators in Europe. As energy market infrastructure
providers, the core activities of Europex members include, among other tasks, the operation of
wholesale electricity, gas and emissions markets in long-term and short-term timeframes. In addition,
they act as Organised Market Places (OMPs), Registered Reporting Mechanisms (RRMs) and Inside
Information Platforms (IIPs) in the framework of the EU Regulation on Wholesale Energy Market
Integrity and Transparency (REMIT) and operate registries for Guarantees of Origin for renewable
energy.
Trading
Nord Pool delivers day-ahead and intraday trading, clearing and settlement to customers.

We provide efficient, simple and secure day-ahead trading within the Nordic, Baltic, Central Western European and
UK markets.

We provide day-ahead and intraday trading in the Nordic, Baltic, UK, German, Polish, French, Dutch, Belgian and
Austrian markets.

Nord Pool also services power markets in Croatia and Bulgaria.

Working closely with 360 individual companies across the continent, Nord Pool is uniquely placed to deliver the
benefits of pan-European power trading.

Our markets are available to all levels of participants in a cost-effective way.

Our focus has always been to develop markets by working to establish structures which enable the resolution of real
challenges, whether they come from our customers or the TSOs.
https://www.researchgate.net/publication/348400789_Dimensionality_reduction_in_forecasting_with_temporal_hierarchies
/figures?lo=1

http://www.asean-aemi.org/wp-content/uploads/2015/11/AEMI-Connectivity-Singapore_Hans-ArildBredesen.pdf
https://www.iitk.ac.in/npsc/Papers/NPSC2008/oral/p288.pdf
 Exploring wind power prognosis data on Nord Pool: the case of Sweden and Denmark

Nord Pool is Owned 66% by Euronext

and 34% by the Transmission System
Operators Statnett SF, Svenska Kraftnät,
Fingrid Oyj, Energinet.dk and Litgrid.

IET Renewable Power Gen, Volume: 13, Issue: 5, Pages: 690-702, First published: 14 February 2019, DOI:
(10.1049/iet-rpg.2018.5086)
Is ASEAN ready to move
to multilateral cross‐border
electricity trade?

Asia Pacific Viewpoint,

First published: 09 May
2022, DOI:
(10.1111/apv.12343)
https://onlinelibrary.wiley.com/doi/full/10.1111/apv.12343
Nord Pool offers to the clients these important deliverables for each project of Energy trading and risk management
(ETRM) systems involve commercial decision making and market execution using an integrated system that enables data
exchanges among trade floor, operations, credit, contract and accounting functions, requiring business analysis:

1.Documentation of the “As Is” functionality and processes in contrast to the “To Be” functionality and processes
taking into account the business and IT corporate strategies and policies.

2.Cost vs. Benefits analysis of the desired business requirement.

3.Developing prototypes, system configurations and demonstrations as part of an agile business requirement
gathering methodology.

4.Recommendations and risk mitigation proposals based on best practices and prior experiences.

Nordpool manages the stakeholders’ expectations by communicating effectively the project scope and by benchmarking
milestones and issues in the project to the high level business objectives.

Nordpool’s rich portfolio of implementation experiences gives a the ability to develop robust risk assessment and risk
mitigation plans before and during the project.

Nordpool qualify thoroughly the test planning along with test cases and test scenarios by fully engaging business
owners, vendors, integrators and business analysts in the process.

Nordpool are continuously involved in the project deliverables status to measure progress in relation to milestones.
https://www.youtube.com/watch?v=dNU8p71p020
By Ssolbergj - Own work, CC BY-SA 4.0,
https://commons.wikimedia.org/w/index.php?curid=81808311

European Nord Pool markets: Current markets (blue),

expansion market (green), serviced market (orange).
https://www.youtube.com/wa
tch?v=TRnBvId8M8Y
Understanding Market Power with respect to Power Market

Market power can be understood as the level of influence that a company or group of companies in specific mode of
Power Generation has on determining market price

The ideal marketplace condition is what is referred to as a state of perfect competition, in which there are numerous
companies producing competing products, and no company has any significant level of market power. In markets with
perfect or near-perfect competition, producers have little pricing power and so must be price-takers
Historically we have built the Nordic and Baltic market.
The Nordic countries deregulated their power markets in the early 1990s and brought their individual markets
together into a common Nordic market. Estonia, Latvia and Lithuania deregulated their power markets, and joined
the Nord Pool market in 2010-2013.
Nord Pool is Europe's leading power market and offers trading, clearing, settlement and associated services in
both day-ahead and intraday markets across 16 European countries.
370 companies from 20 countries trade on our markets in the Nordic and Baltic regions, the UK, Central Western
Europe (covering Austria, Belgium, France, Germany, Luxembourg and The Netherlands) and Poland.
Nord Pool is owned by Euronext (66%), and the Nordic Transmission System Operators and Litgrid (Lithuanian TSO)
retain 34% ownership through a joint holding company.
There are around 500 distribution companies in the Nordic and Baltic countries.

Loss functionality is currently implemented on the Baltic cable between Sweden and Germany (SE4 and DE), the
NorNed cable between the Netherlands and Norway and the NordLink cable between Germany and Norway. Loss
factor on the Baltic Cable is set to 2.4%, on the NorNed cable 3.2% while the loss factor on the NordLink cable is
set to 3.1%.
 Capacity Allocation and
Congestion Management
(CACM).

In Norway almost all power is generated by hydro power while Sweden and Finland have a mixture of hydro, nuclear
and thermal power (steam driven). Denmark uses predominantly thermal power, but wind power is becoming
increasingly important. In Estonia and Lithuania there is mostly thermal driven power. In dry years, Nordic countries
become more dependent on the import of power from other countries: Russia, Estonia, Netherlands, Poland and
Germany.

There is high competition between energy suppliers within each country. Each end-user chooses their preferred
supplier and makes a choice between different power contracts. Different types of contracts might be: fixed price
contract, market price contract, etc. At present end-users cannot choose a supplier from another country.
Main project features: Project management for the consulting and delivery project regarding setting up the
Independent Bulgarian Power Exchange (IBEX) that went live in 2016 as a serviced PX operated by Nord Pool. The
consulting part includes assistance in developing market rules, operational guidelines, training and support in setting
up the organisation. The project contains all the required setup of the market and settlement systems for IBEX.
Setting up the Serviced power exchange for Croatia.
The customer is CROPEX.
Main project features: Project management for the consulting project regarding setting up the Croatian Power
Exchange (CROPEX) as a serviced PX operated by Nord Pool. The consulting part includes assistance in developing
market rules, operational guidelines, training and support in setting up the organisation.
Feasibility study for an Electricity Derivatives Market
Main project features: The general objective is to assess the feasibility covering legal and technical aspects of
implementing an Electricity Derivatives Market, and strategise the phased-in market development providing for
incremental implementation milestones in the potential establishment of a fully-functional Electricity Derivatives Market
that is appropriate to the Philippine context.
Georgia Market Reform support
The objective of the assignment is to support the Georgian authorities in designing a new electricity market concept,
and in preparing an action plan for its implementation, in line with EU competitive market principles, ensuring
competitive, efficient, and transparent trading of electricity. Two workstreams of this project focused both on the
design, establishment, and implementation of organised electricity markets and Power Exchange organization, and for
design, establishment, and implementation of Balancing Market, including needed software.
Albania Market Reform support
High Level Design and Implementation of the Albanian power exchange. Implementation of an Albanian power
exchange in a project sponsored by Statkraft and the Norwegian MFA and under guidance of the Energy Community
Secretariat in Vienna. The beneficiary is the Prime Minister Office of Albania and the Ministry of Industry and Energy.
The project is based on close interaction with Albanian stakeholders and a series of workshops on various topics are
Nord Pool offers continuous intraday trading within 16 countries. Poland joined our markets in August, and new 30
and 15 minute products are available on several borders.

From December, 30 and 15 minute products are available on several borders; with 30 minute products introduced on the
French-Belgian border, 15 minute products on the Austrian-Hungarian border, and 15 as well as 30 minute products on the
Belgian-German, Belgian-Dutch and Dutch-German borders.
Australia's energy market

The national electricity market (NEM) operates as a market where generators are paid for the electricity they
produce and retailers pay for the electricity their customers consume.

The electricity market works as a 'spot' market, where power supply and demand is matched instantaneously.

https://aemo.com.au/-/media/files/electricity/nem/system-operations/summer-operations/2020-21/summer-2020-21-
readiness-plan.pdf
The India Power Market is growing at a CAGR of 3% over
the next 5 years.

When we will get affordable Power for all

 CERC ‘s Guidelines for Inter-State Transmission Charges for Solar and Wind- MAY , 2020
• Calculation of inter-state transmission charges and losses for solar and wind
• Designated ISTS customers (DICs), interstate transmission licensees, national regional, and SLDCs, RPCs.
• STS =generators, STU, Discoms, SEBs, EDs, entity directly connected to the ISTS
• Yearly transmission charges sharing monthly by the DICs per these regulations. Based on the
commercial information provided by the customers to the implementing agency.
• Components : National Component (NC), sum of RE and HVDC components
• Regional component (RC)
• Transformer component (TC)
• AC system component (ACC)
• Txn charges for STOA payable by genecos and entities located in the state, -last published open
access regulations, 2008.
• No Txn charges and losses for ISTS for solar projects commissioned July 01, 2011, to June 30,
Feb 2018. Wind projects commissioned during September 30, 2016, and February 12, 2018,
exempted.
https://www.slideserve.com/jorn/point-of-connection-
methodology-for-sharing-of-transmission-charges-powerpoint-
ppt-presentation
https://eur-lex.europa.eu/legal-
content/EN/TXT/DOC/?uri=CELEX:52020SC0953&from=EN

Nordic
https://www.iaee.org/en/webinars/webinar_siddiqui.aspx

Power Market https://slideplayer.com/slide/7564090/

https://www.iitk.ac.in/npsc/Papers/NPSC2016/1570290916.pdf

Least cost Method https://www.nrel.gov/docs/fy20osti/76153.pdf

https://powerexindia.in/code/frontend/Market.html/

https://www.researchgate.net/publication/313219068_Role_a
nd_Responsibilities_of_Power_Exchange_in_Electricity_Market
s
Oct 2008 Sept 2009 Sept 2009 Mar 2011 Nov 2012 Nov 2012 Jan 2020 Jun 2020 Mar 2021

https://powerexindia.in/code/frontend/Discover.html/
• https://aemo.com.au/learn/market-participants/electricity-market-
participants
https://powermin.gov.in/en/content/power-sector-glance-all-
india

https://aemo.com.au/en/energy-systems/electricity/national-
electricity-market-nem/data-nem/data-dashboard-nem
• The Nordic power sector is typically held up as an exemplar of a
deregulated yet integrated and competitive market. It is also thought to be
favourably positioned to tackle the climate challenge with its flexible hydro
assets that facilitate the penetration of variable renewable energy, such as
wind and solar power. The Nordic countries want to lead by example to
achieve carbon neutrality. Sweden has, for example, a target of net-zero
CO2 emissions by 2045, and Denmark has committed to 100% renewable
energy use by 2050. Nevertheless, the Nordic region is not immune from
the difficulties plaguing other electricity markets, in particular the missing-
money problem, market-design flaws, and market power. In fact, some of
the Nordic region's very advantages could expose it to market failures
during the sustainable-energy transition. We have to peel back the façade
and probe these thorny issues in order to distil insights to guide future
energy policy in the Nordic region and elsewhere.
•Abstract: In the Nordic market, producers are strictly required to bid their true marginal costs in the day-ahead
market. For the increasing amount of wind power in the region, this implies a near-0 bid. In normal times, wind
power will not be the marginal generation source, and therefore wind power will be able to cover its substantial
fixed cost. But in periods of suppressed demand, such as the current pandemic, wind power will more often
become the marginal generation source in some areas and drive prices towards 0 or even negative. The effect
is strengthened by the tendency of wind power to be more highly correlated in the upper quantiles of wind power
production and the pattern of congestion in these higher quantiles. The unforeseen high frequency of 0 prices
can lead to heavy losses for producers and can reduce the incentive to further invest in carbon-free generation.
At the same time, it may present opportunities to invest in storage assets given the right market mechanisms
and regulations.
Her research investigates topics related to antitrust policy, industrial organisation, and experimental economics,
with a particular focus on energy markets and their regulation. Her recent work includes empirical studies on
forward markets, energy security issues, and experimental studies of electricity auctions.
•Title: Market Transparency Through a Common Data Platform: Evidence from Nord Pool (joint work with Ewa
Lazarczyk)
•Presentation: View
•Abstract: Information structures are particularly dense in electricity markets. As electricity storage is limited,
demand and supply must match at all times; up-to-date information about available capacities as well as
forecasted and actual grid conditions are therefore essential to market participants. Against this background the
European Union has implemented the Transparency Platform which stores data provided by each member state
on physical grid conditions and generation capacities. We estimate the platform's effect on the zonal prices in the
Nordic market. Increasing information about import capacities do not necessarily lead to more competitive
outcomes: at times of congestion, the competitive effects of transparency appear to be zone specific.
• Title: Market Power with Combined Heat and Power Production in the Nordic Energy
System (joint work with Vilma Virasjoki, Behnam Zakeri, and Ahti Salo)
• Presentation: View
• Abstract: The trend towards increasing energy efficiency and variable renewable energy
(VRE) production has implications for combined heat and power (CHP) plants, which
operate in both the price-driven power market and the district-heating (DH) sector.
Since CHP will be important in VRE integration, we develop a complementarity model to
analyse CHP producers' roles in integrated markets. We use a Nordic case study to gain
insights into, first, the effect of the link between CHP and DH on market power and,
second, market power's impact on operations in the DH sector. The results indicate
that, first, the link of CHP to DH supply can increase market power and, second, market
power can induce shifts in DH production from heat only to CHP.
• Pricing Mechanisms

• MW-mile , and
Postage-stamp
Methods are traditionally used by electric utilities to determine a fixed
transmission cost among users of firm transmission service.
• MW-Mile method is charging the users by determining the actual paths the
power follows through the network.
113
PXIL
TSO India
https://posoco.in/wp-content/uploads/2021/01/POSOCO-Institution-Building-as-Independent-System-Operator-in-
India-1.pdf
 India : 5th April 2020 9: 00 PM 9 Minutes Domestic Switch off

India’s Power Sector Maturity and Resilience

122
123
124
Power Sector
An Overview

125
……Power Sector
An Overview
126
127
Creation of a competitive wholesale power market
• Market-based reforms, privatization and elimination of cross subsidization might promote positive
competition and improve quality of electricity supply

• India’s energy future rests on four pillars – Energy Access, Energy Efficiency, Energy Sustainability
and Energy Security.
• An integrated National Market would help in solving the price differences, give opportunities of
economies of scale and help in revising the power sector subsidies.

• This requires combined efforts of legislative reforms and promotion of R&D for technological
improvement in power supply.

• Investigate the role of Artificial Intelligence (AI) in detecting the transmission and distribution
losses.

• Promoting transparent inter-state and intra-state trading of electricity at viable market prices,
• Smart grids and meters are some of the measures which would help in improving both physical
and digital infrastructure.
• India’s continued efforts in bringing reformative measures for the upgrading of its electricity
network and incorporation of RE capacity in the power infrastructure.
As the grid gets smarter, increased demand for AI solutions to manage the complexity of operations, Enabling
greener operations in implementing predictive maintenance of solar and wind arrays.
UK Met Office recorded the country’s first-ever temperature above 40 degrees
Celsius (104 degrees Fahrenheit) at London’s Heathrow Airport just before 1
p.m., as temperatures were still rising. High demand sent power prices in the UK
up 5% in one day 21 Jul 2022 Nathaniel Bullard
AI has the Answer

130
 Zone 1 Zone 2
Zone 3

Communities Communities
Poly Centrism Establishing Identities of Interests

Zone 2
Zone 3

Distributed Generation Local Energy

Environment
Communities
Concerns-
Highlighted after Zone 4
COVID -19 and
Civic Culture-
importance of
Peer Pressure
SDG Goals / Paris
Agreement, AR6 Entrepreneurial
Report Culture
Autonomy, Freedom, Electraprenuer
Zone 2
Independence
Smaller Systems –
Zone 3
Towards Resilience
Contrasts and Linkages
 Power Sector Professional are Putting Energy to Create Clean Energy/ Cleaner
Environment- Energy Transitions –to a Resilient and Sustainable Future

• Power Generation from H2 Gas ; Power and Gas (PNG/CNG) distribution are getting interlinked
• Taking Hydrogen to Next Level
• Developing Pathway to Zero Emissions
• Generation of Green, Clean and Lean Power
• Concern for Saving Water as hand wash has increased-Thermal Plants- Shortages of Water- Draught
• Remote Working ; Cyber Threats on open systems/ remote working Centre releases guidelines for Cyber Security in Power Sector for first
time The guidelines lay down a cyber assurance framework, strengthens the regulatory framework, puts in place mechanisms for security
threat early warning, vulnerability management and response to security threats. October 08, 2021, 08:44 IST
https://government.economictimes.indiatimes.com/videos/cyber-security-in-the-age-of-pandemic/85516919
• https://cea.nic.in/notification/cea-cyber-security-in-power-sector-guidelines-2021/?lang=en
• Cleaning Up – Renewable Energy ( Managing Solar Waste) https://www.youtube.com/watch?v=PaUlSZ2biI8&t=61s;
https://www.cbsnews.com/video/california-solar-power-plants-ignite-birds-mid-flight/#x;;
https://www.youtube.com/watch?v=ZR_oGbx8O8E
• Energy Users embracing Clean Energy- Steel and Cement are taking up H2 as input heat source.
Changing Landscape of Energy Sector

BSES Discom Signs Power Agreement Of 510-MW Solar

& Hybrid With SECI. pooled mix of solar and wind power co-
located at the same site. 510 MW,=300 MW Solar power
@ Rs 2.44 /kwh and 210 MW Wind, Hybrid 2.48 for 25 Years.

Royal Dutch Company ordered by Court to reduce EnergyAustralia - updating its retail services launching a
emissions by 45% by 2030 at 1990 Level. new product, Stack On, bundling utility, data and
61% Stockholders voted for it. insurance services, enabling centralised management of
the services. Stack On customers can choose from
Exxon Mobil – Activists of Clean Energy Entered the Board electricity, NBN ( National Broad Way Network) internet,
Australia Coal Mining expansion stopped mobile plans, home, contents and car insurance services.
Resilience Vs Reliability
Probability & Impact of Disaster
Distribution grids will require 375-425 €bn of investments during 2020-2030 in EU27+UK
Europe’s Plan for making a Resilient Distribution Network
Power , Utility and Renewable Sector- Has a degree of Resiliency

1 2

3 4
India’s finding Least Cost Pathways for India’s Pathways- The Power Mix that needs Transmission
• New Scenarios studied not previously considered
Energy Saving by
Microsoft

The Server in a Shell

placed under Sea

Video

Story Labs 360 – A VR Video Series From Microsoft Story Labs 143
PEER
Whereas LEED (Leadership in Energy and Environmental Design)refers to the building sector, PEER refers to the
Power sector. PEER stands for Performance Excellence in Electricity Renewal. It’s a rating system that
evaluates a power system’s performance for sustainability , Resilience, Reliability, Safety, Efficiency, Grid Service,
Innovation, and Regional Priority.

TRUE -Total Resource Use and Efficiency

Wireless Electricity Transmission- Pilot Tested in NZ

Non Ionising Band of Radio
Spectrum frequencing Transmission of Power

With a low Power Safety Curtain to

protect Flying Birds and Drones
In the line of sight
Passive Relays
Antenna for Rectifying Receiving Antenna (Rectenna)-
Series of Relays
Transmission of Electricity Microwave DC Power Conversion to AC
If two antennas are in the line of sight
Video of Wireless Transmission in NZ

145
Wireless Power Transmission Towers in NZ
Wave Power Video
Roof Top Wind
Power Video

Wave Power Video

Roof Top Wind

Power Video
Soft
Wind
Powe
r
Video

Tidal Power
Video
 Transmission Tower
Installation Video

Community Battery Video

Kite Power Systems

Video

Floating
Wind
Power
Video
Flames and smoke pour from the Tesla
Megapack at the Victorian Big Battery
site
10 GW
4480 Kms distance
Generation and
Consumption
Meets 20% Energy
Demand of Singapore
Likely to be ready
2027
Total about 10 Bn USD
5.6 Bn towards Solar +
4.4 towards Cable and
associated works
12000 Hactares of
Land
https://new
atlas.com/e
nergy/sun-
cable-
australia-
singapore-
solar-
undersea-
powerlink/
First Solar
Intercontinental Project
for 24x7
Battery Storage – 7 Bn
USD
Video of Sun Pipe
from Australia to
Singapore
Managing the Power in the Power Markets
Thanks for your patience even at the end of the day
• https://www.dfat.gov.au/publications/trade-and-investment/india-
economic-strategy/ies/opportunities.html
What is OA?
The definition of Open Access in the Electricity Act, 2003, is “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”.

According to sub-section 2, of section 42 of the Electricity Act 2003, electricity consumers now have
the right to procure power from the supplier of their choice other than the distribution company
that they were buying from. They can use the existing transmission and distribution infrastructure
after paying appropriate charges determined by their respective State Electricity Regulatory
Commissions (SERCs) For e.g., a consumer in Assam/ Gujarat / Tamil Nadu/ Goa or any State or
Union Territory ( except Island Territories- not on the National Grid) has the right to select any
generator for supplying electricity to his desired destination by using the existing transmission and
distribution network.
This generator chosen may be generating power in any other State in India. From using these
networks, the consumer has to pay transmission, wheeling and other OA charges to Local Electricity
Grid Corporation Limited and Local Power Distribution Company Limited.
Open Access consumers also have to pay operation and scheduling charges to the State Load
Dispatch Center (SLDC).
 Different technical and financial requirements
for availing OA
1. Minimum volume of power should be 1 MW i.e. any consumer having connected load of 1 MW
and above can avail open access.
2. Thus, industrial and commercial consumers like office complexes, hotels, hospitals, shopping malls
and other large establishments can avail Open Access.
3. Availability of Transmission and Distribution corridor
4. Installation of special Energy Meters (SEM) and Remote Terminal Units (RTU) having provision to
communicate with SLDC in real time
5. Payment security mechanism Clearance of outstanding dues
6. No Objection Certificate from SLDCs
Dedicated line to avail OA
“Consumers who are connected by dedicated feeders irrespective of their voltage of supply ,
and where there is no operational constraint, shall be allowed Open Access”.
What is intrastate OA and Inter State OA

Buyer and Seller of Electricity- located in the same state, - an Intra-state transaction. I
1. Open access charges comprising transmission losses and charges wheeling losses and charges (if applicable) and cross-
subsidy of that particular State are applicable.
2. Buyer and Seller are located in different states -an Inter-state transaction.
Apart from the open access charges applicable in intra-state transactions, Point-of-Connection (POC) charges and losses of the
regional grids based on the location of buyer and seller are also applicable additionally

MTOA & LTOA? STOA or Short Term Open Access (STOA )means open access for a period upto one month at a time.
Medium Term Open Access(MTOA) means the right to use the inter-state transmission system or distribution system for a
period exceeding three months but not exceeding five years
Long Term open Access (LTOA )means the right to use the intra-state transmission system or distribution system for a period
exceeding 7 years.
Nodal agency for OA
For STOA -- State Load Dispatch Center (SLDC)
For MTOA and LTOA -- State Transmission Utility (STU)

Application procedure for Intra State OA

Procedure for STOA First time applicant shall have to submit application to SLDC with payment of Rs 5000.00 and also submit
a copy of this application to STU and Discom. STU and Discom shall submit report on corridor availability to SLDC. If OA
feasible, the applicant will be informed by SLDC and he will have to install the SEM and Communication system. SLDC will
allow the applicant to participate in STOA
Acknowledging the references

• https://youtu.be/oE6FMAezv24 Energy Market

• https://www.youtube.com/watch?v=L9kx7wzsR_c Module 2
• https://www.youtube.com/watch?v=FYfbM56L-mE Module 2
• https://www.youtube.com/watch?v=TNfBS7Hvxtw Module 1 RE
• https://www.youtube.com/watch?v=7B5uW0ERoho USA EU Comparison
• https://www.youtube.com/watch?v=7wAvBzMc7QI Day ahead Makt
• https://www.youtube.com/watch?v=IdFPKz3fb5w French and Germany Connection
•
• https://www.youtube.com/watch?v=uD8j1Mmc3Ws USA and EU comparison