Power exchanges to share mkt experiences at Boston meet

Written by Sanjay Jog | Mumbai | Updated: Oct 10 2009, 04:21am hrs
Indian power exchangesIndian Energy Exchange (IEX) and Power Exchange India (PXI)will get a maiden opportunity to share their experiences at the three-day conference of Association of Power Exchanges (APEx) being held in Boston from October 11. While IEX began its operations in June, PXI became functional in October last year. IEX MD & CEO Jayant Deo and PXI MD & CEO Rupa Devi Singh will be making presentations on operating markets in supply deficit while attracting new businesses and the role of power exchanges in developing a competitive market in India, respectively.

The conference will also see debates on the power markets of North and South America, Europe, Asia Pacific, climate change and the impact of renewables. The participants will also deliberate on the risk of moving back to a more regulated environment in different areas---energy markets and investment and demand response and market designs.

IEX has, till date, traded over 5,100 million units, with trade value close to Rs 4,000 crore. IEX sources told FE, IEX MD & CEO Jayant Deo will share how in a power deficit scenario, IEX went against all odds and set up Indias first power exchange, which aims to not only balance the prices of energy but also attract investment for capacity addition.

PXI has clocked a volume of 434 million units as on September 30. PXI sources said its MD & CEO Rupa Devi Singh would talk at length on the role of power exchanges in the growth and development of a competitive power market in India. She will also touch upon the functioning of power exchanges in India during the last one year.

The participation of these exchanges at the conference is crucial at a time when both have launched trading in long-term electricity contracts. The day-ahead contingency contract, launched by IEX, allows buying/selling for chosen hours on the next day while intra-day contract gives a choice to buy/sell for hours on same day. Daily contracts provide flexibility to choose a few days in the following week, whereas weekly contracts will offer flexibility to choose a few weeks in next month.

PXI has also launched weekly products and day-ahead contingency products. Weekly products are delivery-based and have been designed in line with the existing bilateral trade mechanism. The day-ahead contingency products have been developed in response to the desired needs of electricity buyers and sellers to provide them with an option to trade bids that could not be matched during the day-ahead spot market session early in the day.