Experiences and learnings from Power Market Development in South Asia

60 Pages·2017·9.06 MB·English

Experiences and Learnings from Power Market

Development in South Asia:
Power Trading and Power Exchanges

Rajiv Ratna Panda
SARI/EI/IRADe

HAPUA-ASEAN-UNESCAP Workshop on ASEAN Electricity Exchange (AEE): An International Perspective
17-19 April, 2017Hotel JS Luwansa, Jakarta, Indonesia
1
Confidential©2017
Contents
 South Asia: A Snapshot
Power Market Structure in South Asian Countries (SACs)
 Indian Power Sector
 Power Sector Evolution and Power Trading Development in India
 Indian Power Market
 Power Exchange Evolution in India- Key features
 Power Exchange Products in India
 Regulation of Power Exchange in India
 Contribution of power exchanges
 Key Lessons :Power Market and Exchange Development in India
 Development of South Asia Regional Regional Power exchange
 Way forward

2

Confidential©2017
South Asia Remains World's Fastest Growing Region.
Economic Growth (EG) expected to accelerate to 7.3 percent
in 2017 from 7.1 percent in 2016.

Home to 1/5 th of world’s population. India is the largest
economy in the region and geographically centrally located.

Most of the countries are facing power shortages. Demand
growth to remain robust due to high EG.

Total electricity demand in the region projected to grow at an
average rate of *5.2% annually from 2013-2040 period

South Asia Economic Focus Spring 2016 -Fading Tailwinds-World Bank
Current Installed capacity is around 363 GW; (India 315 GW)
Required installed capacity by 2040 is *1067 GW
Afghanistan

Pakistan
Cross Border Electricity Trade (CBET) : India, Bhutan is the net India Nepal Bhutan Bhutan-India-1410MW
Bangladesh
exporter and Bangladesh, Nepal net importer of electricity Bangladesh-India-600MW

Total CBET Nepal-India-350 MW
Per capita energy consumption (517 KWh/Capita) is one of
in SA
India-Myanmar-3 MW
the lowest in the world ( World average 2803)
2363 MW
Huge Hydro Potential of SA region:350 GW (54 GW)

Complementarities in SA countries:,
Huge untapped hydro potential ,
Demand and resource complementarities
The Maldives Sri Lanka 3
•http://documents.worldbank.org/curated/en/846141468001468272/pdf/WPS7341.pdf
•http://www.worldbank.org/en/news/press -release/2016/04/09/south-asia-fastest-growing-region-world-vigilant-fading-tailwinds South Asia, only 15% of Hydro resources has been developed. Nepal and Bhutan have developed 1% and 5% of their potential. Ind ia 29% of their p o t e n Ctiaol.n f idential©2017
Power Market Structure in South Asian

Coun tries

4
Confidential©2017
Power Market Structure in South Asian Countries
System Power Trading/Market
Country Policy Regulation Generation Transmission
Operation Structure
Ministry of Energy Electricity Regulatory
Afghanistan DABS DABS DABS Single Buyer (SB), DABS
and Water (MEW) Authority 363 GW
Ministry of Power, Bangladesh Energy BPDB, EGCB, APSCL,
Bangladesh Single Buyer, BPDB, Multiple
Energy and Mineral Regulatory NWPGC, IPPs, SIPPs, PGCB PGCB
15 GW
Resources Commission Rental Plants Seller (MS)
Ministry of
Bhutan Bhutan Electricity Druk Green Power Bhutan Power
Economic Affairs BPC (NLDC) Export Licensee , SB Model
1.6 GW Authority (BEA) Corporation (DGPC) Corporation (BPC)
(MEA)
Vertically Partially
Multiple Buyer and MS Un-
Central: Ministry of Central: Central: Model Central: Inter-state Integrate un- bundled
Power under GoI, Central: NTPC, POWERGRID POSOCO d bundled
Licensees; State: Discoms
State: Central: CERC,State: NHPC, NPCIL, UMPPs, (CTU), Private/JV
India (NLDC & 5
Power/Energy SERCs/ IPPs, MPPs Licensees / Trade Cos (Include State
315 GW
Department under JERCs State: State-owned State: STUs, RLDCs)
Holding Cos) / Intra-state Afghanistan
the State GenCos, IPPs, CPPs Private/JV State: (DABS) Bangladesh
Government Licensees
SLDCs Licensees, Power Maldives (Separate India
Exchange Platform (FENAKA) Trans.Utility) (Separate
Nepal Ministry of Energy Electricity Tariff Nepal Electricity SB Model –NEA, Multiple Nepal (NEA) Bhutan G,T,D
.8 GW (MoE) Fixation
( ECToFmC)m ission Authority (NEA),IPPs NEA NEA Seller (MS) Sri Lanka (Separate utilities)
State-owned generating (CEB) Gen.utility) Pakistan
National
Pakistan Ministry of Water National Electric companies formed after Transmission & SB Model , CPPA, Multiple (Separate
and Power Power Regulatory restructuring of WAPDA NTDC
24 GW
(MOWP) Authority (NEPRA) (CPGCL, JPCL, LPGCL, Despatch Seller (MS) G,T,D
Company (NTDC) utilities))
NPGCL) & other IPPs
Public Utilities CEB
Sri Lanka Ministry of Power Ceylon Electricity Board CEB Transmission SB Model, Multiple Seller
Commission of Sri Transmission
4 GW and Energy (MOPE)
Lanka (PUCSL) (CEB), IPPs Licensees Licensees (MS)
5
Except India most of SA countries have SB Model. Power Trading/Power exchange Platform Exist in India only
Confidential©2017
Indian Power Sector

6
Power Sector in India – Profile Snapshot
 Installed capacity in India- 319 GW (March 2017), 3rd largest
Installed Capacity (GW)
producer* & 4th largest consumer of electricity in the world 3.5 0 298 319
300 244 272
250 200 223
 Installed Capacity profile (Feb-2017):
200 159 174
150
• Coal: 59.9% , Gas: 8.0%, Diesel: 0.3%, 1
050 84 94 112 130 145 165 185 189
-
• Nuclear: 1.8% Hydro: 14.1%, RE: 15.9%
2010 2011 2012 2013 2014 2015 2016 2017
(Feb-17)
 The Per capita energy consumption-1,074 kWh (2015-16) C o a l G a s D i e s e l N u c le a r H y d r o Renewable 4333
still less than half of the world average
Renewable Energy capacity growth in India 7856
9012

• The share of Renewable Energy in India’s generation 3252
capacity portfolio has progressively increased reaching 50 3408510 28700
GW as on march, 2017 17197
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Wind Solar Bio- Mass WtE SHP
• RE capacity has grown at CAGR of 21% over last five years
700000 Village Electrified -92% 12000000
600000 10000000
500000 8000000
• Wind energy accounts for about 57 % of installed RE 400000
6000000
300000
capacity, followed by solar with 18% share in the RE mix
200000 4000000
100000 2000000

0 0
• The overall potential for renewable energy in the country is
Installed Capacity No.of villages electrified Length of T&D Lines (Ckt. km7 s.)(#)
estimated to be about 1095 GW (as on March 2016)
*https://www.ibef.org/download/Power-March-2017.pdf( MW) Source: CEA Report Note : 92 % based on Total village in India is 64086 7 Confidential©2017
Capacity (MW)
India-Demand-Supply Scenario
The demand-supply deficit has progressively reduced over the last five years. For the First time
India is expected to be power surplus in 2017
Demand-Supply Peak Deficit Energy Deficit (Million
(MW) Units)
13,252
2.6%
4,250 1.10%
FY11 FY12 FY13 FY14 FY15 FY16 FY 17
-4.5% -4.7% -3.2%
-4.23% -3.57% -2.10%
FY11 FY12 FY13 FY14 FY15 FY16 FY 17
-8.50% (23,557)
-9.8% -9.0% -8.46% -8.71%
-10.6% (4,903) (38,143)
(6,103) (42,428)
(7,006)
(12,031) (12,159)
(13,815) (73,236)
(79,313)
(86,905)
Source: CEA Report Peak Deficit [MW] Deficit [%] Deficit [MU] Deficit [%] 8
Confidential©2017
MW
MU
Decades back, story was very different
Installed Capacity and Per Capita Energy and Peak Deficits -India 140
Installed Capacity : State, Center and
25
350 Consumption 1075 1200 120
Private Sector 124
300
957 1010 10002 0 100 104
250 884 914
800
15 80 85
200 672
69
600
559 60
150
465 10 54
400
100 329 40 35
50 172 200 5 20 21 23 29
74 10 11 11 12 14 14 17
0 0 0 0
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Installed Capacity-State Installed Capacity-Center
Installed Capacity (GW)
Installed Capacity-Private Data Source: CEA-Report on Growth of Electricity, other database of CEA
Per Capita Consumption (kWh/Capita) Energy Deficit-% Peak Deficit--%
Low Per Capita: In 1990 per capita was only around 172 Share of Private Sector -2001 Share of Private Sector -2016
KWH/Capita , by 2016 -1075 KWH/Capita . IC 64 GW in 1990 to 350 GW in 2016
Installed 10 %
Capacity
34%
-State
High Deficits: In 1997 Energy and peak deficits were 11.51% 43%
Installed
and 17.97% respectively, by 2016 reduced to 2.1% & 3.2 % only 27%
Capacity
-Center
63%
Installed
Limited Private Sector (PS) : Share of PS -10% in 2001 to 41 %
Capacity
25%
2016 -Private
9
Data Source: CEA-Report on Growth of Electricity, other database of CEA
GW
Percentage Deficits
GW
How all this wa s achieved ?

10
Confidential©2017