India’s first power exchange starts operations

June 27th, 2008 - 7:20 pm ICT by IANS  

Mumbai, June 27 (IANS) The country’s first-ever power exchange, the Indian Energy Exchange Ltd (IEX), commenced operations Friday. With this, India joins a select group of developed countries which have a common platform for buying and selling power .

On the opening day, IEX - approved by the Central Electricity Regulatory Commission (CERC) - received bids for 13,176 megawatt of power. The same was cleared at market clearing prices between Rs.6.46 per megawatt and Rs.8.01 per kilowatt.

The deal will materialise Saturday, as IEX is currently trading a day ahead.

IEX currently has more than 50 members and users from Maharashtra, Madhya Pradesh, Karnataka, West Bengal and Tripura, and the number is likely to go up soon.

CERC chairman Pramod Deo said the agency has issued guidelines for setting up power exchanges to develop competitive power markets in the country.

“The operation of power exchanges has become feasible due to the transparent and non-discriminatory inter-state open access regime implemented by CERC,” Deo said.

Financial Technologies India Ltd (FTIL), which launched India’s first multi-commodities exchange (MCX), has co-promoted IEX with PTC India Ltd, formerly known as Power Trading Corp of India.

Other partners in the initiative are Reliance Energy, Tata Power Co, Rural Electrification Corp, Adani Enterprises, Infrastructure Development Finance Co and Lanco Infratech.

FTIL chairman and managing director Jignesh Shah said IEX would encourage power companies to generate surplus merchant power capacities and attract new investments to meet India’s growing requirements.

He added that though India suffers from power shortage, the scope of trading is huge since power availability is not uniform and there is a lot of demand-supply mismatch all over the country.

Tags: , , , , , , , , , , , , , , , , , ,

Posted in Business |