The Hindu Business Line : Indian Energy Exchange records over 18,000 MW trade on Aug 8

Mumbai, Aug. 29 Indian Energy Exchange (IEX), which completed two months of operations, has recorded a total volume of 251 million units with a trading of 58 MW on day one touching the highest transaction of over 18,000 MW on August 8.

The hourly prices were in the range of Rs 6.50 a KW to Rs 8.50 a KW with an average price of Rs 7.50 a KW.

The exchange trades day-ahead contracts and has 52 members, including Reliance Energy Trading, Tata Power Trading Company, Tata Power Company, PTC India, JSW Power Trading and state electricity boards of West Bengal, Kerala, Karnataka, Andhra Pradesh, Maharashtra and Himachal Pradesh.

Mr Jayant Deo, Managing Director, IEX, said members are utilising the exchange to their benefit against the unscheduled inter-change (unscheduled power flow) prices prevailing in the region. The industry in the last two months has benefited over Rs 20 crore.

It is estimated that 4,000 MW of the bottled up captive capacity can be put to use if a vibrant platform is provided to determine the prices, he added.

The exchange plans to launch more products such as week ahead contracts keeping in view the requirement of the market. The exchange believes the platform will attract more capacity additions in the power sector, Mr Deo said.

How it works

Members quote the price for every hour of power requirement. At 11.30 p.m. an indicative price is given to both the buyers and sellers so that they can revise the bids. At mid-night, the aggregate supply and demand curves will be drawn on price-quality axes. The intersection point of the two curves will give market clearing price (MCP).

All the bids above the MCP for the buyers and below the MCP level for sellers will be accepted. The exchange will work out provisional obligation and power flow.

Funds available in the settlement account of the members will be checked with the clearing banks and also requisition for capacity allocation will be sent to the national load despatch centres (NLDC).

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