Representational file picture.
| Photo Credit: Ok Murali Kumar
The power ministry has requested Central Electricity Regulatory Authority (CERC) to provoke the process of coupling a number of power exchanges, a mechanism which seeks to guarantee uniformity in worth discovery of power at buying and selling platforms.
At current India has three power exchanges — Indian Electricity Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX).
In the current state of affairs, patrons and sellers at every change do buying and selling of electrical energy and uncover spot worth individually at these exchanges. After coupling of exchanges, the value discovery could be uniform.
In a communique to the power regulator CERC, the ministry stated, “Several stakeholders approached the Ministry of Power on the subject of market coupling in the context of multiple power exchanges.”
“The ministry of power has decided to go ahead with the process…CERC is requested to take suitable action, so that the process of consultation and the finalisation of the construct for its implementation is done expeditiously and the same can be implemented.”
Naveen Singh, head, enterprise growth at Hindustan Power Exchange, stated in an announcement that the choice to implement market coupling on power exchanges is a welcome transfer for the power market.
“We thank the power minister and the power ministry for initiating such a transformative reform. We are confident that the CERC would soon come up with the necessary regulatory framework to ensure its implementation at the earliest.”
He identified that this may give a fillip to the service ranges within the power market, and guarantee higher transparency and uniform costs discovery throughout exchanges.
The transfer can also be anticipated to deliver down the power tariff within the nation considerably, he opined.
An IEX spokesperson stated, “Today in India we have a voluntary market framework where all exchanges have equal opportunities. Market coupling is done to couple different markets operating in different geographies, which is not applicable in our case.” The spokesperson defined that in India all of the areas are already coupled and the nation has one market and one worth.
“Government has requested the CERC to initiate the process of consultation and finalisation of construction. I am sure all aspects like the objective of coupling and need in the current market framework will be examined,” the spokesperson added.
The IEX has the biggest market share of 88% in whole power commerce at a number of exchanges in India.
