# Presentation: 528522

## Markets Training Plan (DRAFT)

**Mar 23, 2006**

## Implementing Partner Activity Schedule

**Analytical Studies**

## REMI – Implementing Partner’s activities

**USEA PS1 Markets :** Introduction to electricity market structures **(Deadline : May 30, 2006, ***currently scheduled from May 8 -10*)
**Objective**:  Develop champions for implementing market models
- Market Models: Multiple Sellers, multiple buyers and market intermediaries
- Role of traders / brokers as alternate seller or purchaser
- Recognition of market intermediaries as risk mitigation against single buyer model defaults & credit risk (*SAPP initiative to promote investments in IPP projects*)
- Power pool/power exchange as one of the market intermediation mechanisms
- Significance of electricity wholesale price index for peak power buy/sell transactions
**Activities**
- Briefing paper to be prepared by USEA, that addresses the above mentioned objectives (to be approved by USAID)
- Visit to Mid-C (BPA operated OTC market), Alberta Power Pool or Ontario power pool or any other newly developed power pool and a mature power pool (may be Nord Pool or SAPP)
**Key participants**
- Regulators, IPPs, CPPs, Ministry representatives, financial institutions, and traders
**Expected outcome**
- Promotion of OTC trade in Bangladesh and Pakistan for sale and purchase of excess power with IPPs and CPPs
- Recognition of current short term trade as OTC market
- Standardization of power sale-purchase contracts for in-country and cross border short term transactions

**TR 1 Markets : USEA/Nexant - **Introduction to Electricity Markets **(Deadline Jun 30, 2006)**
- Conduct: Training may be conducted in workshop mode and may be for 2 to 3 days. The total participation may be 30 people.  If possible partnership and/or co-sponsorship with organizations from South Asia will be beneficial.
- Objective: Develop and identify champions for market structuring
- Target audience: Senior level executives from Transcos, Regulatory Commissions, Policy Groups, LDCs, Exchanges etc
- Module 1: Brief introduction to electricity markets
- Differentiation between electricity exchange, OTC and power pools
- Overview of 3-4 different types of markets
- Module 2: Market business processes
- Transaction mechanism
- Standard documentation, contracts etc
- Module 3: Role of regulator in structuring markets
- Regulatory orders issued by various regulatory commissions worldwide with background information
- Module 4: Professional case studies (available from Universities and Business Schools)
- Module 5: Presentation from the participants to the key stakeholder from the host country (This may be one day session in workshop or seminar mode where the faculty makes 2-3 presentations and 3-4 presentations from participants followed by discussion/brainstorming session)

## REMI – Implementing Partner’s activities

**USEA PS2 Markets**: Role of portfolio management for utility business management in open electricity markets **(Deadline : Jun 30, 2006)**
**Objective **: How utilities (generation & distribution) can optimize their power purchase and investments in generation assets in the open electricity markets
- Integrated energy plans
- Developing internal framework for buying and selling electricity (including cross border deals)
**Activities**
- Briefing paper to be prepared by USEA, that addresses the above mentioned objectives (to be approved by USAID)
- Exchange to be organized in the region with speakers from leading utilities in North America
**Key participants**
- Distribution & generation utilities, Power Traders
**Expected outcome**
- Recognition of risks and opportunity for purchase of electricity across the border

**TR 2 Markets : USEA/Nexant – **Electricity portfolio management in open electricity markets **(Deadline : Jul 30, 2006)**
- Conduct: Training may be conducted in workshop mode and may be for 2 to 3 days. The total participation may be 30 people.  If possible partnership and/or co-sponsorship with organizations from South Asia will be beneficial.
- Objective: Develop and identify champions for market structuring
- Target audience: Senior level executives from Electricity Suppliers and Buyers (IPPs, CPPs, Central/State GENCOs, DISCOMMS, and Industrial Customers)
- Module 1: Brief introduction to electricity markets
- Differentiation between electricity exchange, OTC and power pools
- Overview of 3-4 different types of markets
- Module 2: Forecasting demands
- Typical econometric forecasting models
- Module 3: Portfolio management
- Introduction various electricity products
- Application portfolio theory for management generation assets and purchase of power
- Developing portfolio management framework
- Strategy for short term and long term electricity purchase and sale
- Module 4: Introduction to UIT (India)
- Power purchase and sale at UIT prices in India
- Module 5: Professional case studies (available from Universities and Business Schools)
- Module 6: Presentation from the participants to the key stakeholder from the host country (This may be one day session in workshop or seminar mode where the faculty makes 2-3 presentations and 3-4 presentations from participants followed by discussion/brainstorming session)

## REMI – Implementing Partner’s activities

**USEA PS 2 Markets**: Implementing market intermediation mechanism in South Asia (**Deadline Jul 30, 2006**)
- Note: This activity will depend to developments in Indian market
**Objective**:  Develop champions for implementing market models (OTC, Power Pool, and Futures exchange)
- Differentiation between OTC, Power Pool, and Futures exchange
- Significance of electricity wholesale price index for peak power or short term OTC traded power
- Organization setup of market operators and governance structure
- Financial figures – transactions, costs etc
- Standard contracts / documents for transactions
- Exposure to IT Infrastructure required for operational market
**Activities**
- Briefing paper to be prepared by USEA, that addresses the above mentioned objectives (to be approved by USAID)
- Visit to Mid-C (BPA operated OTC market), Alberta Power Pool or Ontario power pool or any other newly developed power pool and a mature power pool (may be Nord Pool or SAPP)
**Key participants**
- Regulators, load dispatch centre operators, commodity exchange operators
**Expected outcome**
- Recognition of current short term trade as OTC market
- Standardization of power sale-purchase contracts for cross border transactions
- Development of IT Infrastructure for setting-up a formal exchange

**TR 3 Markets : USEA/Nexant – **Implementing market intermediation mechanism in South Asia **(Deadline : Aug 30, 2006)**
- Conduct: Training may be conducted in workshop mode and may be for 2 to 3 days. The total participation may be 30 people.  If possible partnership and/or co-sponsorship with organizations from South Asia will be beneficial.
- Objective: Develop and identify champions for market structuring
- Target audience: Senior level executives from Electricity Suppliers and Buyers (IPPs, CPPs, Central/State GENCOs, DISCOMMS, and Industrial Customers)
- (to be refined further)
- Module 1: Brief introduction to market intermediary mechanism
- Various market intermediation mechanisms
- Role of market intermediation
- Module 2: Organizational setup
- Governance structure
- Module 3: Transaction mechanisms & costs
- Standard documentation for transactions
- Cost of transactions
- Module 4: Infrastructure for operationalizing market intermediation mechanisms
- IT Infrastructure
- Module 5: Professional case studies (available from Universities and Business Schools)
- Module 6: Presentation from the participants to the key stakeholder from the host country (This may be one day session in workshop or seminar mode where the faculty makes 2-3 presentations and 3-4 presentations from participants followed by discussion/brainstorming session)

## REMI – Implementing Partner’s activities

**SEMINAR Markets **: Energy Market Development (**Deadline: Aug 30, 2006**)
- Note: This activity will depend to developments in Indian market
**Objective**:  Roadmap for setting up power pool / power exchange (Power Pool, and Futures exchange)
- Stakeholder involvement (Commodity Exchange, Financial Institutions, Regulators, Traders, and Power Producers)
- Regional feed back on CERC consultation paper on power exchange
- Organization setup of market operators and governance structure
- Standard contracts / documents for transactions
- Exposure to IT Infrastructure required for operational market
**Activities**
- Briefing paper to be prepared by USEA, that addresses the above mentioned objectives (to be approved by USAID)
**Key participants**
- Commodity Exchange, Financial Institutions, Regulators, Traders, and Power Producers
**Expected outcome**
- Recognition of current short term trade as OTC market
- Standardization of power sale-purchase contracts for cross border transactions
- Development of IT Infrastructure for setting-up a formal exchange