| www.iexindia.
com | April '11 | vol 39, issue 001 |
INDIAN ENERGY EXCHANGE
Regulations issued in March 2011:
• KERC (Power Procurement from
Renewable Sources by Distribution
Licensee and Renewable Energy
Certificate Framework) Regulations,
2011 on March 16, 2011
o Renewable Purchase Obligation
(RPO) applicable from April 1, 2011
onwards is 10 % to BESCOM,
MESCOM & CESC and 7 % to
HESCOM, GESCOM & Hukkeri Co-
operative Society.
o RPO for grid Connected Captive
consumer and industrial consumer is 5%
o Karnataka Electricity Regulatory
Commission has designated the State
Load Dispatch Center [SLDC] as the
State Agency.
• Jammu and Kashmir State Electricity
Regulatory Commission has issued
J&KSERC (Renewable Power Purchase
obligation, its compliance and REC frame
work implementation) Regulations, 2011
on March 11, 2011.
o RPO in FY11 is 1% [Solar: 0.02%; Non
Solar: 0.98%], FY12 is 3% [Solar:
0.10%; Non Solar: 2.90%], and FY13 is
5% [Solar: 0.25%; Non Solar: 4.75%].
o State Agencies identified are
1. Jammu & Kashmir State Power
Development Corporation: Small
Hydro Electric Projects of above
2MW station capacity in the State of
Jammu & Kashmir
2. Jammu & Kashmir Energy
Development Agency (JAKEDA):
All renewable energy projects
other than Small Hydro Electric
Projects of above 2MW station
capacity in the State of Jammu &
Kashmir excluding the Districts of
Leh and Kargil.
3. Ladakh Renewable Energy
Development Agency
(LREDA) All renewable
energy projects other than
Small Hydro Electric Projects
of above 2MW station
capacity in the District of
For private circulation only Leh.
4. Kargil Renewable Energy Development Agency
(KREDA): All renewable energy projects other
than Small Hydro Electric Projects of above 2MW
station capacity in the District of Kargil.
Budget 2011: Power sector highlights
• The extension of the tax holiday under Section
80-IA by one more year will benefit projects
expected to take off in the last leg of the 11th Five
Year Plan (2007-12)
• The reduction in surcharge of 7.5% on domestic
companies to 5% should aid power companies’
profitability, while the increased limit of $40
billion available for FIIs investing in corporate
bonds issued by infrastructure companies and
creation of tax-incentivised infrastructure debt
funds will improve availability of funds.
• Basic customs duty (BCD) and countervailing
duty has been reduced to 5% on specified goods
used in high-voltage power transmission
projects
• Excise duty exemption to all machinery,
equipment, and components and raw material
used for manufacturing such machinery and
equipment supplied to UMPPs/mega power
projects.
• Extended the 100% exemption from customs
duty to toughened glass and silver paste
imported to manufacture solar cells or solar
modules on actual user basis.
• The basic customs duty has been reduced from
5% to 2.5% on petroleum coke. Coal included
under the excise duty - 1% without availing
Cenvat credit or 5% in case eligible for Cenvat.
• Government further allocated Rs 58,000 crore to
Bharat Nirman, which among other things
includes the Rajiv Gandhi Grameen
Vidyutikaran Yojna.
Projects below 200 MW not to get coal supply
from XII Plan onwards
The Ministry of Power will not recommend coal
linkages to power projects with unit size below 200
MW in the Twelfth Plan beginning March 2012. The
Ministry is making amendments to the existing
policy in order to enable a shift to energy-efficient
technology by encouraging higher unit ratings that
consume less fuel. However, the amendments will
not be applicable to captive plants to be set up by
industrial units.
HP awarded 17 hydroprojects of total capacity
1,325 MW
The Himachal Pradesh government has awarded
IEX Bulletin, April '11
17 hydro projects aggregating 1,325.5 MW to private
companies through international competitive bidding.
Reliance Power Limited (RPower) has bagged five projects
aggregating 672 MW. Tata-SN Power has bagged the 236-
MW Dugar project. Other project developers include Capital
Consortium Limited (18 MW), BMD Private Limited (42
MW), ABG Shipyard (130 MW), AMR Mitra (81 MW), Bell
Spun Energy (13 MW), Puri Oil Mills (7.5 MW), Green
Infrastructure (12 MW) and BLA Industries (10 MW).
Lanco and US-based Massey Energy Company has
emerged as successful bidder for a mine and 1980 MW
TPP in Chattisgarh
Lanco Infratech Limited (LITL) and US-based Massey
Energy Company has emerged as successful bidder for
Maha Tamil Collieries Limited’s project to develop Gare
Palma Sector II coal block and a 1,980-MW thermal power
plant in Chhattisgarh. Maha Tamil Collieries is a joint venture
company of the Tamil Nadu Electricity Board and the
Maharashtra State Mining Corporation.
BHEL and ABB won order to develop 800 KV UHVDC
A consortium of Bharat Heavy Electricals Limited and ABB
has won a Rs 1,590 crs order from POWERGRID for
execution of a 800 kV, 6,000 MW ultra high voltage direct
current (UHVDC) multi-terminal system associated with the
NE/ER-N/WR Interconnector-I project. This will be world’s
first UHVDC link with three converter stations and a power
transmission system with a built-in capacity of up to 8,000
MW. This will transfer up to 6,000 MW of hydroelectric power
from the north-east to Agra across a distance of 1,728 km.
The project’s first phase is scheduled to be operational in
2014 and the second in 2015.
UHBVNL to allow independent feeders having load
equal to 1 MW or above
Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) has
decided to allow independent feeders for single or group of
industrial consumers having load equal to 1 MW or above.
Earlier the facility of independent feeders was available to
consumer with load of 2 MW or above.
Plants Commissioned in March 2011
• Lanco Infratech Limited (LITL) has synchronised the first
600-MW unit of its 1,200-MW Anpara coal-based power
project in Uttar Pradesh.
REC Trading at IEX
The second trading session of REC trading on Indian
Energy Exchange (IEX), on March 30, 2011, saw
overwhelming participation from buyers. Total purchase
Bids of 70,377 Non Solar REC were received. Solar REC
bids received were 30,001. Sale bids of only 150 Non-Solar
RECs were received. The price discovered on the exchange
was Rs 3,900/REC equivalent to Rs 3.90 per kWh energy
injected. There was also demand for solar RECs but since
no solar RECs have yet been issued by NLDC, no trade
could take place. The Members who facilitated trading were
Reliance Energy Trading Limited (RETL), Manikaran Power
Ltd and REConnect Energy Solutions.
GPCL finalises site for 50 MW tidal power project
Gujarat Power Corporation (GPCL) finalised a suitable site
in Mandvi near Gulf of Kutch for the commissioning of 50
MW tidal power project. Presently only a demonstration
project for setting up 3.75 MW capacity tidal energy power
plant is being executed by National Hydro Power
Corporation in Sunderban region of West Bengal.
GPCL had inked a MoU with the UK based Atlantis
Resource Corporation in 2009 for commissioning of tidal
power projects in the state.
The tidal power project requires huge area along the
coastline which has to be free from defence clearances and
at the same time does not falls within any port limits.
Tata Power, Sunengy to launch floating solar power
plant
Tata Power has entered into a partnership agreement with
Australian solar power company, Sunengy for building
India’s first floating solar power plant. Construction of the
pilot plant will begin by August 2011.
The project would use the low-cost technology of floating
solar cells on water, which will track sun light throughout the
day, thereby supplementing electricity generation of large
hydro-electric dams.
Liquid Solar Arrays uses traditional concentrated
photovoltaic technology - a lens and a small area of solar
cells that tracks the sun throughout the day. Floating the
liquid solar array on water reduces the need for supporting
structures and offers protection from high winds. In bad
weather, the lenses submerge in water and also cools the
cells increasing their life span and efficiency.
Energy Conservation Building Code to become
mandatory in Tamil Nadu
TNEI, state designated agency for the Bureau Of Energy
Efficiency ( BEE), is planning to include the ECBC in the
municipal bylaw and making it mandatory.
The Energy Conservation Building Code (ECBC), launched
on 28 June 2007, lists out the energy performance
requirements for all commercial buildings constructed in
India. Buildings with an electrical load of 500 KW or more
are covered by the ECBC.
Energy audit conducted in many buildings, having more
than 1,000 square metre, have shown that the energy
saving potential in lighting, cooling and ventilation is
between 20% and 50%. Around 5 MW can be saved by
implementing it in some 300 buildings.
Kenersys India Private Limited sets up wind turbine
manufacturing facility near Pune
Kenersys India Private Limited, 75:25 joint venture between
the Kalyani group and the US-based First Reserve
Corporation, has set up wind turbine manufacturing facility at
Baramati near Pune in Maharashtra, over an area of 35 acre
with an investment of Rs 500 million. The new plant will
manufacture about 250 turbines per year of 2-MW capacity
each.
Polish Power Exchange to add biomass, gas, coal trading
Polish Power Exchange (PolPX) is set to launch Europe's first
biomass trading platform in April and would also expand into
natural gas and coal trading. PolPX expects to trade at least
 IEX Bulletin, April '11

15 percent of overall biomass sales for energy needs in
Poland.
Biomass at the moment is the biggest source of green energy
in Poland, contributing some 56 percent of all renewable
power produced in the biggest ex-communist European Union
member.
IEX participated in India Clean Revolution Report Launch
IEX participated in India Clean Revolution Report Launch,
organized by The Climate Group on March 17, 2011 at Indian
Habitat Centre, Mumbai. Mr. Jayant Deo, MD & CEO
participated in the event. The event saw overwhelming
participation from people from various spheres of the industry.
IEX participated in RuDiCON
IEX participated in RuDiCON-Rural Energy Security through
Distributed Clean Power Generation held on March 18 & 19,
2011.
IEX participated in “PARIVARTAN-2011”
IEX participated in “Parivartan-2011” forum on sustainability
through energy interventions held on March 24, 2011 at
Shangri-La in New Delhi. Mr Jayant Deo, MD & CEO delivered
presentation on “Silent Revolution in Indian Power Market”. Mr
Nitin Sabikhi delivered presentation on “Renewable Energy
Certificates”
IEX participated in Grid Connect, Safe & Wise
IEX participated in National Seminar on Grid Connect, Safe
and Wise, jointly organized by NPTI-Eastern Region and
POSOCO on March 25, 2011 at Kolkata. Mr. Bikram Singh,
AVP-Business Development delivered presentation on
“Emerging Power Markets”.
IEX participated in Management program at MDI,
Gurgaon
IEX participated in 1st Senior Management Program for
NRPC Executives held on March 29, 2011 at MDI, Gurgaon.
Mr. Jayant Deo delivered presentation on “ IEX: Building
Power Markets for India”.
Articles & Interviews
• Interview of Mr. Jayant Deo, MD & CEO published in
Energy Handbook, Power Summit 2011 on page no.26.
• Interview of Mr. Rajesh Kumar Mediratta, VP (BD) on
Renewable Energy Certificates: Current Status,
Prospects and Hindrances is Published . The interview
can be viewed online through the following link:
http://www.renewablemarketsindia.com/index.php?optio
n=com_content&view=article&id=3229:long-term-goal-
of-rec-is-to-encourage-merchant-re-
power&catid=191:carbon

IEX TRADING TIME-LINE

Day Ahead Market Closed Auction

(DAM) Every day 1000 hrs – 1200 hrs for each hour of next day.

Term Ahead Market • Weekly(Open Auction):

o Every Wednesday 1200 hrs-1600 hrs for next week (Monday-Sunday).
(TAM)
o Every Thursday 1200 hrs – 1600 hrs for next 2 weeks (Monday-Sunday).
• Daily(Continuous Trade):
o Every day 1200 hrs-1500 hrs on daily basis for next 7 days, starting 4th day.
• Day Ahead Contingency (DAC) (Continuous Trade):
o Everyday 1500 hrs – 1700 hrs for all hours of next day.
• Intraday (Continuous Trade):
o Every day 1200 hrs – 1700 hrs for each hour 1800 hrs – 2400 hrs of the same day.

Renewable Energy Certificate Closed Auction

(REC) Market Last Wednesday of every month from1300 hrs – 1500 hrs.
Next Session on April 27, 2011.

for the Month of March, 2011

Total Purchase Bids received (MUs) 1,997
Total Sell Bids received (MUs) 2,105
Total Unconstrained Market Cleared Volume (MUs) 1,385
Total Constrained Market Cleared Volume (MUs) 1,254
Maximum Price (Rs/kWh) 9.35
Minimum Price (Rs/kWh) 1.19
Maximum Unconstrained Volume in a day (MUs) 54.64
Cumulative Market Clearing Volume (MUs) 11,807
(April’10 onwards)
Daily Constrained Average Volume (MUs) 40.44
IEX Bulletin, April '11

Hourly Price & Volume detail for the month of March ’ 2011
Volume (MUs) Price ( /kWh)
ACP-North ACP-
Hour MCV ACV MCP ACP-North ACP East ACP-West
East South
1 1.97 1.75 2.69 2.43 2.66 2.66 2.66 3.08
2 1.95 1.74 2.51 2.54 2.54 2.54 2.54 2.99
3 1.96 1.73 2.41 2.53 2.53 2.53 2.53 3.07
4 2.02 1.72 2.43 2.53 2.53 2.53 2.53 3.36
5 2.02 1.67 2.55 2.58 2.58 2.58 2.58 3.50
6 2.16 1.92 2.72 3.56 3.56 3.56 3.56 5.03
7 2.13 1.93 2.94 4.59 4.59 4.59 4.59 5.77
8 1.96 1.79 3.14 5.52 5.52 5.52 5.52 6.13
9 1.76 1.62 3.30 5.69 5.69 5.69 5.69 6.13
10 1.69 1.55 3.73 5.78 5.78 5.78 5.78 6.18
11 1.66 1.56 3.95 5.82 5.82 5.82 5.82 6.20
12 1.78 1.66 4.06 5.78 5.78 5.78 5.78 5.99
13 1.93 1.79 3.93 5.71 5.71 5.71 5.71 6.06
14 1.97 1.82 3.53 5.23 5.23 5.23 5.23 5.86
15 1.94 1.80 3.64 5.14 5.14 5.14 5.14 5.76
16 1.89 1.74 3.60 5.09 5.09 5.09 5.09 5.35
17 1.75 1.59 3.54 5.18 5.18 5.18 5.18 5.41
18 1.50 1.40 3.60 4.61 4.61 4.61 4.61 5.11
19 1.55 1.43 3.89 4.73 4.73 4.73 4.73 9.42
20 1.62 1.49 4.20 5.04 5.04 5.04 5.04 9.60
21 1.81 1.71 4.64 4.84 4.84 4.84 4.84 10.00
22 1.90 1.72 4.37 3.77 3.77 3.77 3.77 7.66
23 1.81 1.60 3.39 3.70 3.70 3.70 3.70 5.90
24 1.91 1.74 3.05 3.16 3.16 3.16 3.16 3.27

North, East, West, North-West South (S1) South (S2)

12.00

10.50

9.00

7.50
Price (Rs/kWh)

6.00

4.50

3.00

1.50

0.00
RTC (0-24hr) Peak (18-23 hr) Non Peak (1-17 Day (11-17 hr) Night (1-6 & 24 hr) Morningt (7-11hr)
&24 hr)

IEX indices for the months of March, 2011

IEX Indices MCP Volume
(R/kWh) (in MWh)
RTC (00 - 24 hrs) 3.41 1,861
Peak hr Avg (18 - 23 hrs) 4.01 1,699
Non-Peak hr Avg(1-17& 24 hrs) 3.13 1,913
Day Off Peak Avg(11 - 17 hrs) 3.75 1,848
Night Off Peak Avg(00 – 06,24 hrs) 2.80 1,962
Morning Peak( 7 - 11 hrs) 3.41 1,842
** All figures are simple average for the month.
 IEX Bulletin, April '11

IEX Day-ahead Market daily Price & Volume Trend for March’2011
MCV Avg Price MIN Price MAX Price

10.00 100.00
9.00 90.00
8.00 80.00
Price in Rs/kWh

7.00 70.00

Volume (Mus)
6.00 60.00
5.00 50.00
4.00 40.00
3.00 30.00
2.00 20.00
1.00 10.00
week 1 week 2 week 3 week 4
0.00 0.00
1-Mar-11 8-Mar-11 15-Mar-11 22-Mar-11 29-Mar-11

Days/Week

IEX Market snapshot for the Month of March' 2011

DayAhead Market Term-Ahead market
Average Daily
Total Volume( MUs) 1,212 40,390 Contracts Weekly Intraday Day-ahead Daily
Volume (MWh)
Contingency
Average * Prices North, South South
in ( /kWh) East, (S1) (S2) Total
West, 1,096,718 2,585 10,034 20,736
Volume( MWh)
North-
East Avg Price
6.10 6.63 9.81 11.14
RTC (0-24 hr) 3.13 9.39 9.39 (Rs/kWh)
Max price
12.20 11.30 10.80 11.70
Peak (18-23 hr) 3.61 10.54 10.54 (RS/kWh)
Min price
3.52 2.40 4.00 10.80
Non Peak (1-17 & 24 hr) 2.98 9.01 9.01 (Rs/kWh)
Renewable Energy Certificate Market
Day (11-17 hr) 3.52 9.47 9.47 Purchase Sell Bids Cleared Price
Bids (REC) (REC) (REC) (Rs./REC)
Night (1-6 & 24 hr) 2.38 8.68 8.68
Non-Solar 70377 150 150 3900
Solar 30001 - - -
Morning (7-11 hr) 3.20 8.85 8.85
1 REC=1MWh

* Simple Average of Area Clearing Prices for specified block of hours.

IEX Bulletin, April '11

IEX Average Hourly MCV & MCP for March 2011

2400.00
2200.00
2000.00
1800.00
1600.00
1400.00
1200.00
1000.00
800.00
600.00
400.00
200.00
0.00

Now you can Trade

Renewable Energy Certificates
For detail email : iex-bd@iexindia.com
Next REC trading session on April, 27 2011 (Wednesday)

Dear IEX team,

“This is excellent job done by IEX team in updating with new developments in the power sector both in domestic and international
power markets. The bulletin is short and comprehensive enough to browse through all the contents. This is the best way of
refreshing oneself before the start of work. Kudos to the team.
Thank You.
Jagannath Rao
Chief Manager (Corporate Planning),
POWERGRID, GURGAON
“IEX bulletin is very much useful to the people who are connected with power field. It quickly updates our knowledge in power related
matter. I am very much thankful to the IEX team for liberally extending the facility of getting IEX bulletin through e-mail. Keep it up. “
Thanks & regards,
Ashok Deshmukh
Vice President-Power division
PHADNIS POWER PROJECTS Ltd.
Dear Readers,
Thank you for the response, you are requested to drop in with your valuable feedback to help us in our effort to make this bulletin as
informative as possible and to meet your expectations. Just mail the editor at vineeta.kaushik@iexindia.com or send it to IEX
corporate office.
04/11

This bulletin has been compiled by Indian Energy Exchange Limited for circulation among direct stakeholders in the energy market of India.
Though the contents of this bulletin are correct to the best of our knowledge
at the time of printing, IEX does not vouch for their accuracy.

Indian Energy Exchange Limited

100A/1 Ground Floor, Capital Court, Olof Palme Marg, Munirka, New Delhi-110067. India
Tel No. 011-4300 4000 Fax No. 011 - 4300 4015, E-mail: info@iexindia.com, Website: www.iexindia.com