Cement Energy and Environment

Load Curve and Managem ent of Dema nd Bue Load - Managed lhrough Long Term PPA·s See~at Vanatlons- Managed tiYougt\ Short Term trades. by 1) Tredel-s. 2) Bllat•al Corira«* or 3) Banklng Amtngements Deily Variations - Managed throt~gh 1) Day ahead Power Exchange ot 2} U Balandng:c_________ ~ corporations and exchange Future Power Market of India members Contracts: Delivery-based, Derivatives, contracts based on renewable energy certificates, real-time balancing contracts, capacity contracts and ancillary contracts Four pillars of market design Scheduling & Dispatch Congestion Management Ancillary Services Imbalances Structure of the power market Policy Making: Central Government & 28 State Governments Regulations: C.E.R.C & S.E.R.Cs System Operators: National Load Dispatch Center 5 Regional Load Dispatch Centers 28 State Load Dispatch Centers Generation: Central Generating Stations State Generating Stations Private Sector Players Transmission: Central Transmi– ssion Utility State Transmission Utilities Private Sector Players Energy market development • India 's energy appetite is increasing at a rapid pace • As per planning commission estimates, to maintain a GOP growth of • 8-9 per cent over the next two decades, India has to triple it primary energy supply and increase electricity generation four times • Energy sector is capital intensive and power sector is no exception • Capital sourced largely through debt and partly through equity. • Large amount capital being involved makes energy sector and financial sector closely coupled to one another. New generation capacity addition in India • • Government announced capacity addition is 78,000 MWh for the XI plan Interest is exhibited to the extent of 60000 MWh to 70000 MWh of capacity addition by various developers (Unofficial reports) i.e., Overall large capacity addition expected. Major challenge in power sector shifted from capital raising to getting clearance on Environmental, Land and water Fuel linkage, Trained manpower Power evacuation from generation facilities. Recent regulation by the Commission on medium term open access, grid connectivity is a forward looking one to boost capacity addition and flow of electricity. Energy markets and financial markets • Convergence of power market and financial markets will happen • Power exchanges will grow as transaction volumes increase and other derivative contracts may be offered subjected to regulatory controls • Liquidity to improve in day ahead and short term markets • • • Creation of benchmark electricity price and electricity indices Banks will·transform its role from acting solely as lending institutions to the power companies to also trading in electricity themselves Energy Trading companies will increase footprint • Development Management of Risk Physical and financial power markets • • Advent ofmatured traders Complexity and variety of instruments traded will increase manifold. 18 )