DAY AHEAD MARKET (TRADING PROCESS FLOW)

Trading Process

Bidding

  • Participants enter bid for sale and purchase of power on the following day (T+1 day)
  • Bid for total of 96 blocks can be added 15 minutes each can be entered.
  • The timeline for the bidding session is 10.00AM to 12.00PM.
  • Bid can be single and/or block including linked bid.
  • The bids entered are stored in central book. The bid so entered can be revised or cancelled till the end of bidding period (12.00PM)

Matching

  • At the end of the bidding session, the bids for the each 15 minute time block by using the pricing calculation algorithm. (Available on IEX website).
  • All purchased bids and sale offers are aggregated in unconstrained scenario. Aggregate supply and demand curve are drawn on the Price-Quantity axes. The intersection of the two curve gives the market clearing price (MCP) and market clearing volume (MCV) corresponding to the price and quantity of the intersection point.
  • MCP and MCV are determined for each time block of 15 minutes as a function of demand and supply which is common for the buyer and seller.
  • Selected bidders are informed about their partially or fully executed bids and other trade related information.
  • By  1.00PM, transmission corridor required to fulfill successful transaction sent to the NLDC.

Transmission Corridor and Fund Availability

  • MCP and MCV are used to calculate the provisional obligation of the selected participants and provisional power flow.
  • Funds available in the settlement account are verified on the basis of provisional obligation.
  • In case the fund in the account is insufficient the bid entered by such participant is deleted.
  • Required corridor capacity and provisional power flow sent to the NLDC.
  • By 2.00PM, NLDC revert back actual transmission corridor availability during all 15 minutes time block across congestion prone bid areas.

Results

  • Based on the reserved transmission capacity informed by the NLDC, IEX again calculates MCP and MCV as well as area clearing price (ACP) and area clearing volume (ACV).
  • As the final results are received obligations are sent to the banks to pay in from buying members at 2.30PM.

Confirmation

  • Final results for confirmation and application for scheduling of collective transaction are sent to the NLDC.
  • NLDC send the details of scheduling to the respective SLDCs.

Scheduling

  • NLDC/SLDCs carry out collective transaction in the daily scheduling.
  • Deviation from the schedule is treated under the unscheduled interchange (UI) or deviation settlement or imbalance settlement regulation.
  • A scheduled transaction termed as the deemed delivery.

Source….

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