Purpose: The purpose of this program is to provide the participants with the background knowledge and skills necessary for developing the institutional and human capacity to design, develop, and operate a power exchange.
Objectives: The objectives of the program shall include:
- Providing participants with proficient knowledge of fundamentals of power markets and various products
- Providing participants with proficient knowledge in designing, developing and operating a power exchange
- Providing participants with an improved understanding of how the open market has evolved into a successful multi buyer/multi seller organization
- Providing participants with a comprehensive understanding of the Indian market and power exchange, the interaction between exchange and grid operator, and ways to maximize the benefits of selling and buying energy in that market
- Providing participants with a comprehensive understanding of the legislative, policy and regulatory measures, as well as grid management measures, such as scheduling and dispatch, implemented in India that have led to the establishment of competitive and liquid markets, including real time, day ahead, and intra-day markets
The program shall be tailored to South Asia, drawing heavily on India’s experience with power markets, specifically the power exchanges.
The program is envisaged to comprise of ten days of training, separated into two modules, each five days in duration. However, bidders can propose different formats including number of days they consider sufficient to cover all the requested topics and practical exercises. Classroom lectures will be delivered by highly experienced instructors, supplemented by hands-on exercises that emphasize development of skills and knowledge in the functional operations of a power exchange. The training shall include mock exercises on bidding and scheduling, and demonstrations of simulated or bidding platforms.
The anticipated SARI/EI delegation will comprise of 20 participants, including 6 participants each from Bangladesh, Nepal and Bhutan, and 2 participants from Sri Lanka. The same set of participants will participate in both modules of training. USEA will initiate selection and coordination with the participants. The trainer will be responsible for ongoing communication with the participants to coordinate video conferencing logistics, provide updates on the training, and be responsive to inquiries and discussions.
Training sessions shall include pre-training and post-training surveys administered to all participants. A pre-training survey shall be conducted prior to the first training module. It will be designed to assess participants’ baseline knowledge and competencies and to identify knowledge gaps and weak areas. The planned training courses shall be modified to address the identified gaps. A post-training/skill assessment survey will take place after the second module and will be designed to measure participating trainees’ knowledge improvements in the subject areas. The assessments should inform quantitative and qualitative results.
The contractor must have extensive knowledge of the design and development of energy markets and the political, economic, and technical issues associated with South Asian regional energy trade. The contractor is expected to have prior relevant working experience in the region and a solid understanding of the South Asian power sectors and market capabilities (particularly Bangladesh, Bhutan, India, Nepal, and Sri Lanka).
Tasks: The tasks to be performed by the Contractor under this Scope of Work shall include the following:
Task 0: Sign Subcontract Agreement: Once the subcontract agreement has been signed by both parties, the contractor will be allowed to invoice 10% of the total cost of the subcontract agreement.
Task 1: Conducting the 1st module of the training. The contractor will develop and conduct Module 1 – a five-day classroom-style training program for the SARI/EI delegation via web conferencing. Module 1 will focus on the overall background, rules, and regulations that govern a power exchange and will provide the participants with the background knowledge to prepare them for Module 2. The module will include the following topics:
- Fundamentals of power markets
- Power exchange operation
- Trading process flow
- Modes of power trading
- Products and services offered
- Power exchange participants and governing bodies
- Technical requirements
Task 2: Conducting the 2nd module of the training. The contractor will develop and conduct Module 2 – a five-day classroom-style training program for the SARI/EI delegation via web conferencing. Module 2 will focus on India’s power markets and power exchanges and include the following topics:
- Overview of India power market
- Open access
- Development of a competitive platform for trading (policy & regulations, and establishment of power exchanges)
- Products and services offered on IEX and PXIL and trading platforms
- Price discovery in power exchange products and exchange operation
- Interaction between power exchange and grid operator
- Case studies of Indian experience of operating a multi power exchange model
- New developments in power exchange space in India
- Other international case studies
Module 2 will also include – on the final day of the training – a brainstorming session. During the brainstorming session, participants, led by the contractor, will develop action plans outlining steps that need to be taken towards establishing their country’s own power exchange entity and/or expanding or starting participation in India’s.