India`s first power exchange to aid transparency
India`s first power exchange aiding a transparent power market has begun to take form, reports Business Standard.
The Indian Energy Exchange (IEEL), a joint venture company formed by Financial Technologies (India) (FTIL) and MCX (Multi Commodity Exchange), got the Central Electricity Regulatory Commission (CERC) nod to set up the first nation-wide power exchange (PX).
NTPC Vidyut Vyapar Nigam Ltd (NVVN), a subsidiary of NTPC, along with the National Commodity & Derivatives Exchange Limited (NCDEX) have also filed a proposal to set up another PX in the country.
FTIL and MCX jointly have 51% stake in the proposed exchange with rest of the share taken by the power sector companies, financial institutions along with power trading companies, informed a senior official of MCX. The country`s largest power trading company, PTC India has also become part of this venture.
PX would bring transparency with multiple buyers and sellers converging on one platform, replacing the current trader-dominated system. It will be similar to stock and commodity bourses.
The upcoming power exchange may be driven by the market with minimal regulation.
The power exchange will have contract systems for the day-ahead power
