Begin process for coupling power exchanges: Govt to CERC

New Delhi: The Power Ministry has asked Central Electricity Regulatory Authority (CERC) to initiate the process of coupling multiple power exchanges, a mechanism which seeks to ensure uniformity in price discovery of energy at trading platforms.

At present India has three power exchanges — Indian Electricity Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX).

In the present scenario, buyers and sellers at each exchange do trading of electricity and discover spot price separately at these exchanges. After coupling of exchanges, the price discovery would be uniform.

In a communique to the power regulator CERC, the ministry said, “Several stakeholders approached the Ministry of Power on the subject of market coupling in the context of multiple power exchanges.

“The ministry of power has decided to go ahead with the process...CERC is requested to take suitable action, so that the process of consultation and the finalisation of the construct for its implementation is done expeditiously and the same can be implemented.”

Naveen Singh, head, business development at Hindustan Power Exchange, said in a statement that the decision to implement market coupling on power exchanges is a welcome move for the power market.

“We thank the power minister and the power ministry for initiating such a transformative reform. We are confident that the CERC would soon come up with the necessary regulatory framework to ensure its implementation at the

earliest.”