After being delayed for months, the country?s first online power trading platform ? India Energy Exchange (IEX) is expected to go live by end of this month. IEX promoted by promoted by Financial Technologies also promoters of Multi Commodity Exchange (MCX) and the state owned Power Trading Corporation (PTC), would trade power as a share or a commodity.
?IEX seeks to address the volatility in power supply by bringing about an equilibrium between demand and supply on its trading platform,? a senior MCX official said.
At present, more than 90% of electricity is sold through long-term, bilateral power purchase agreements between buyers and producers. Yet the distributors rely on traders for short-term supply. The deals are usually negotiated over telephone and other means often tend to be non-transparent and counterpartys are never sure whether they have got the best price in the deal.
According to MCX official, IEX would operate as spot exchange where actual demand and supply of energy will take place. The price of electricity will be determined on the basis of bids and offers during the transaction period.