3.5 Institutional arrangements

3.5.1 Developed markets have a complex bulk power market structure comprising the following.

1. Suppliers of bulk power :

(i) Merchant generators with no long term contracts,
(ii) IPPs bound by long term contracts to specific buyers and
(iii) Vertically integrated utilities in surplus areas.
(iv) Power Marketers.

2. Buyers of bulk power :

(i) Vertically integrated utilities in deficit areas
(ii) Power Marketers who may buy from merchant generators or have long term contracts with IPPs or purchase the surplus capacity of vertically integrated utilities for sale to others.
(iii) Integrated distribution and retail supply company.
(iv) Retail supplier
(v) Bulk consumer

3. Infrastructure providers:

(i) Power Exchanges, which provide a forum for posting prices, acknowledging and servicing buy/sell contracts, billing and settlement of trades.
(ii) Transmission Owners whom maintain and operate transmission lines and charge users of the use of the facility.
(iii) Independent System Operator which are responsible for scheduling, despatch and energy accounting.
(iv) Ancillary Service Provider
(v) Scheduling Coordinators

3.5.2 The Indian market structure is simpler as given below.

1. Suppliers of bulk power:

(i) Central generating stations like NTPC, NHPC etc.
(ii) IPPs or mega power projects, which are being currently negotiated.

(iii) Vertically integrated utilities (SEBs) in surplus areas
(iv) Power marketers like Power Trading Corporation (PTC) will sell to state level transmission companies or SEBs.

2. Buyers of bulk power :

(i) State level transmission utilities (GRIDCO in Orissa and AP TRANSCO in Andhra Pradesh) which buy in bulk and are monopoly suppliers to distribution companies.
(ii) Vertically integrated SEBs.
(iii) Power marketers like Power Trading Corporation (PTC) which will buy from the mega projects.

3. Infrastructure providers :

(i) POWERGRID and state level transmission utilities which provide transmission access
(ii) RLDCs which are currently managed and staffed by POWERGRID and function as ISOs for the regional pools though with limited functions. State level load despatch centers (SLDC) perform these tasks but in addition also perform the tasks performed by the REBs at the regional level.
(iii) Regional Electricity Boards (REB) which function as Power Exchanges for the regional pools, record and settle transactions and do energy accounting and settlement of trades.
(iv) Vertically integrated utilities which provide transmission and distribution networks.

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