Presentationon

NVVN Journey Challenges /Cross – Border

Trading

5th November 2018Kathmandu, Nepal

1

NVVN – A wholly owned subsidiary of NTPC

Only PSU in Power Trading

Incorporated on 1st Nov. 2002

Commencement of Business 26th Nov. 2002

Paid up Share Capital Rs.20 Crores

Trading License Category - I

2

NTPC VUDYUT VYAPAR NIGAM LIMITED

Consistently Achieved Excellent MOU Rating Since Beginning

Installed Capacity

83%

1% 2%14%

Coal & Gas/ Liquid fuel Hydro Renewable Energy projects Subsidiaries/ JVs

NTPC53 GW NVVN

Bilateral Power Exchange

Renewable Projects

Cross Border

64%13%

2%

21%

Nuclear

All India344.68 GW

Utilities

Nuclear

Board of Directors

CEO –NVVN

Business Development

BD RE

Planning Commercial

Contracts & Materials Finance & Accounts System Operations

SO PX / IT

Comp. Secy Sr. E.S

NVVN Organization Chart

Incorporated in 1st

November 2002

JNNSM Phase-I in FY 2010

Start of cross border trade with Bangladesh from Oct 2013

Trading of power in PX in 2014

Start of cross border trade with Nepal from Feb 2016

NVVN Journey of Excellence

NVVN has paid ₹158 Cr dividend to NTPC

FY 2017-18=>Won international Contract for supply of 300MW power to BPDB.

=>Highest trading volume of 17278 MU in FY 2017-18

=>Traded highest ESCerts (74528) in PX

NVVN’s Performance

8529 83819321

1042112600

15861

17278

2379

30753532

3888 4055

52735056

-1000

0

1000

2000

3000

4000

5000

6000

0

5000

10000

15000

20000

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

PERFORMANCE OF NVVNVolume Traded by NVVN (MU) Turnover (Rs Cr)

MUs

Financial Year

Challenges

• Poor financial health of DISCOM

• Limited Transmission Link•Payment Security

• Reverse Auction• Tariff for Solar• Transmission Access

• Working Capital• NOC from Discom / Generator

Trading in PX

National Solar

Mission

Bilateral/ Swap

Cross Border

Trading in PX

NVVN took time to understand the market

“Sale” in PX is cool

“Buy” is hot , need working capital

Learning was quickly enter into new market

Small and flexible Company

Fast Decision Making

Structured Delegation Of Power

Technology (S/W) Driven

Availability of Funds (Working capital)

Strong Technical / Financial back office staff

Round the Clock Control Room

Characteristic of Power Trading company

CROSS-BORDER SUPPLY OF POWER &

KEY CHALLENGES

Supply of Power to Neighbouring Countries.

Sl.No CountryFrom

CountryTo

Quantum(MW)

1 India Bangladesh 1160

2 India Nepal 400

3 India Myanmar 03

4 Bhutan India 1542

Copyright © 2016 Your Company All Rights Reserved. 12

Existing Cross-Border Power Trading

Bhutan

BangladeshMyanmar

Country Contract quantum Type

India -> Bangladesh (1160 MW)

BPDB Long-term contract with NVVNL for 250 MW from NTPC

G to G

BPDB Long-term contract with NVVNL for 300 MW from DVC Commercial

BPDB Long-term contract with Sembcorp for 250 MW Commercial

BPDB Short-term contract for 200 MW with WBSEDCL + long term with Meenakshi Power through PTC.

Commercial

Tripura – Comilla 160 MW under Radial Mode through NVVN G to G

India -> Nepal (400 MW)

BSPHCL (Bihar to Nepal) 200MW G to G

160 MW power from NVVNL to Nepal Commercial

20-30 MW power from Open Market to Nepal during Dec to April month Commercial

Bhutan -> India (1542MW)

Contract with Chukka (336 MW), Kurichhu (60 MW) Hydro Projects (Long Term ) G to G

Contract with Tala (1040 MW) Hydro Project (Long Term ) G to G

Contract with Dagachhu (126 MW) Hydro Project (Long Term ) Commercial

India-> Myanmar (3MW)

Contract with Myanmar (3 MW) Power flow from Manipur G-G

Inter-Country Transmission (ICT) Link

Delivery Point

Currency of Supply (NR / INR / $)

Risk of Currency Fluctuation

Round the Clock Power through ICT

Deviation Management for Active & Reactive Power

Risk of Transmission Charges / Losses

Payment Security Mechanism

Political Risk

Challenges of Cross – Border Trade

Nepal

• Arun III / UKHEP / IPPs,Other Projects Ex-bus

• Transmission Charges & Losses till Indo- Nepal Border

India

• Injection loss • Withdrawal Charge &

loss • DSM Charges (India &

Nepal)

Bangladesh

• Drawl loss & charges at Interconnection Point of Indian CTU with PGCB System

• DSM Charges (India & B,desh)

Conceptual Diagram of Power Flow

Arun III / UKHEP / IPPs,Other Projects,

NepalIndo-Nepal border

I/c point – PGCIL with Powergrid of B’desh /

other System

Bangladesh / Other Country

system

I/c point – PGCIL with State Discoms in India

Indian Discom system

I/c point with PGCIL ISTS system

PGCIL ISTS system in India (LTA to be secured from CTU)

Nepal – India - B desh – Bhutan Transmission Link

Copyright © 2016 Your Company All Rights Reserved. 16

THANKS