Power Trading Financial Markets Electricity

Triple Point Technology2 Current Situation… GenerationTransmissionDistributionConsumers

Triple Point Technology3 Electricity price is a natural candidate for Volatility Cannot be stored Essential Grid constraints Temperature/ Weather Load Crash Amount of daylight Price of generation fuels Imbalances immediate

Triple Point Technology4 The New Value Chain Production Company Transport Company Distribution Company Retailer Trader Energy Exchange RLDC/ SLDC (Grid operator) Consumer Service Provider New Power Sector

Triple Point Technology5 Isolated markets Bilateral agreements Long-term auctions Daily auctions Market splitting Integrated market The Evolution Process

Triple Point Technology6 Status first Power Markets in EUROPE CountryStartMarketSpotForwardZonal price Balancing Nordic1/1993NordpoolYYYY Spain1/1998OMELYYNY Holland5/1999APXYNN**Y** Germany6/2000LPX*YNYN UK-UKPX6/2000UKPXYYNY Poland6/2000 Gielda Energii YNNN Germany7/2000EEX*YYNN UK-NETA3/2001ElexonNNNN UK-APX3/2001APX UKYYNY

Triple Point Technology7 Today…. Demand side of the industry has no role in the price setting mechanism Large portfolio generating companies influence price Does not facilitate traders and other non-traditional players into the market Excessive price opacity in the contracts market. c Energy Act Government Regulator Regulatory rules Market Operator Exchange Rules Tariff code Network code System code System Operator

Triple Point Technology8 Steps Forward The replacement structure: è Standardized Contracts è Short Term Bilateral Market è Day Ahead Auctions Market è Hour Ahead Market

Triple Point Technology9 India Electron Exchange Where electricity could be Bought, Sold Or Traded In An Open But Regulated Environment

Triple Point Technology10 IEE- Short Term Market CPP/ IPP/ SEB/ Trader Auto matching Availability of Transmission AuctionsAuctions Day Ahead Hour Ahead ContractsContracts Standard Products Credit Limit/ Check BidBid

Triple Point Technology11 Contract Spectrum CONSTRUCTION DELIVERY 3+ Years MonthsHoursMinutes Decreasing time before delivery Decreasing Term of the Contract Long term Complex Tailored Bilateral Negotiated Short term Standardised Auction Based Formula/ Fixed- priced Bilateral Day Ahead Simple Standardised Bilateral Posted bids/offers Formula/ Fixed Priced Hour Ahead Auto matched Formula Priced/ Fixed Priced Immediate Scheduling

Triple Point Technology12 A typical operator Bilateral (Base load) contract Bilateral (peak load) contract Day Ahead Hour Ahead Sell Buy Sell Forecasted demand Ancillary Service Intra Day demand Real-time demand  Surpluses/Deficits - balance Company physical supply and demand

Triple Point Technology13 An Exchange will facilitate Price Transparency Ability to know the price of electricity now and in the future (up to 15 months) Index based Trading Buy/ Sell +/- UI Risk Management Manage price/ delivery risk Secure and Regulated market Guaranteed performance of trades Credit tracking mechanism Default Mitigation mechanism Lower Transaction Cost Flexibility Term of delivery Time of Closure Access to a wider/ larger market spectrum Power of Buyers Power of Suppliers New Entrants Substitutes Open/ Transparent/ Competitive Market

Triple Point Technology14 More Options ……

Triple Point Technology15 IEE Value Added Services

Triple Point Technology16 Asset Management Scheduling Tagging LDC & Electronic Market Communications Load Management Auctions Trading Load Aggregation and Forecast Resource Information Accepted Bids Deals Schedule Information Tags & Tag Disposition Notification & Assess messages Auction Information Bids Accepted Bids Bids & Schedules Accepted Bids, Final Schedules, Settlement Info & Market Information Wholesale Settlements Deals Schedules Invoices & Payments Doing Business with IEE

Triple Point Technology17 Integrated suite of enterprise-wide trading systems Manages a multitude of commodities: power, natural gas, oil, refined products, chemicals, and others Built on Triple Point’s next-generation n-tier architecture The Triple Point “XL” Platform

Triple Point Technology18 Position Manager TradesTrade Manager Forecasting, Real Time – Position / PL Real Time Reporting, and Maintenance Scheduling Manager Real Time – Book Outs, Back-to-Backs, Movements Settlement Manager Real Time – Invoices / Statements Payment Application - Options Manager - Hourly Trade Blotter - Confirmation Manager - Contracts Manager - Forward Price Curves -Price / Load Shaping (P) - P/L Analyzer - Position by Counterpart* - Match Manager - Nominations* - Transportation* - Allocations* - Statement Manager - Payments Blotter - Payments Manager Create a Trading Back- Office

Triple Point Technology19 Development Center in Pune India Current strength= 70. Client Services Team Support to Asian Clients Technical Support Group 24 * 7 Support to clients in US/ India. Triple Point (India) IEE

Triple Point Technology20 The Company That We Keep….