MUMBAI: Power-starved state electricity boards can now vie among themselves on a common platform for extra power to run industries or light households.
Indian Energy Exchange Ltd (IEX), the country’s first power exchange, commenced operations on Friday, ushering in a new way of demand-supply management of electricity.
The exchange received bids for 13,176 Mwh (mega watt hour) of power on the first day which were cleared at prices between Rs 6.46kwh (kilo watt hour) and Rs 8.01kwh for the different hours of the market.
IEX has been promoted by Financial Technologies (I) Ltd, which runs commodity exchange MCX, and the state-owned Power Trading Corporation.
Its other shareholders are TPC, REL, Lanco Electric, Adani Enterprises, REC and IDFC.
Unlike commodity exchanges which trade only futures, IEX will facilitate spot electricity trade which will settle with the delivery of electricity. The price of electricity would be determined on the basis of bids and offers during the transaction period. Power Grid will manage the transmission and scheduling of power.
Joseph Massey, director, IEX, said, “We are currently focussing on the day-ahead market under the first phase of operations and other features will be added once we embark on the second phase.”
Massey, however, said it will be tough to give a timeframe as to when the second phase will start.
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