Close on the heels of regulatory approval being handed out for the country's first power trading exchange, the application for the second one is likely to get a green signal by the month-end.
PTC, Tata Power likely to invest in the NTPC-NCDEX project, too
NEW DELHI: Close on the heels of regulatory approval being handed out for the country's first power trading exchange, the application for the second one is likely to get a green signal by the month-end. NTPC Ltd and the National Commodities and Derivatives Exchange (NCDEX) have sought the permission of Central Electricity Regulatory Commission (CERC) for the purpose.
Sources said the application was likely to be heard on September 25, after which a decision would be taken. CERC last week gave in-principle approval for a power trading exchange to be set up by the Multi Commodity Exchange of India Ltd (MCX) and Financial Technology India Ltd.
Sources said Power Trading Corporation (PTC) and Tata Power, which are likely to pick up equity in the MCX exchange, were also likely to take equity stake in the NTPC-NCDEX exchange.
Asked if rules permitted PTC and Tata Power to pick stake in both the exchanges, a senior CERC official replied in the affirmative. "We want to encourage investment in power exchanges," he said.
PowerGrid is also in talks with NTPC-NCDEX.
The MCX-FTIL led exchange, called Indian Energy Exchange Ltd (IEEL), is likely to see 26% participation from PTC India. FTIL would provide the licensed software to the exchange and MCX the expertise in operation management.
Under the guidelines set by CERC, the promoters would be required to develop their own model of power exchange. The promoter of exchange would need to have adequate knowledge of the power sector, the electricity grid code, open access issue, availability-based tariff, unscheduled interchange mechanism, scheduling dispatch and energy accounting procedure.
The power exchanges would enable participants to trade electricity the subsequent day through standard hourly contracts and block contracts. The transaction would happen through injection or drawing power from the grid at a given hour at a market price.
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