Power Trading: All power exchanges will be connected in the country, it will help in reducing the cost of energy
Power Trading: CERC has been told by the government that all the parties want all the power exchanges in the country to be connected. This will help in bringing uniformity in electricity prices.
On behalf of the Ministry of Power, the Central Electricity Regulatory Authority (CERC) has been asked to connect several power exchanges present across the country. Its objective is to ensure uniformity in the valuation of energy prices.
At present, there are three power exchanges in the country - Indian Electricity Exchange (IEX), Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX).
At present, buyers and sellers have to buy electricity at different rates on all platforms and once all the power exchanges are connected, there will be uniformity in the price of electricity.
In a letter sent by the ministry to CERC, it was said that all parties have asked the power ministry to merge several power exchanges into one exchange. The Ministry has decided to move forward in this direction. CERC has been requested to take action on the matter.
Business Development Head from Hindustan Power Exchange, Naveen Singh said that the decision to implement market coupling on power exchanges is a welcome step for the power market. We thank the Energy Minister and the Ministry of Energy for this courage. This step of the government will help in reducing the energy prices in the country.
An IEX spokesperson said that today in India we have a voluntary market structure where all exchanges have a level playing field. Market coupling is for individual markets which is not applicable in our case. All sectors in India are already connected and there is one market and one price in the country. Presently, IEX accounts for 88 percent of the power trade in the country.
