by July 4, 2009 0 comments



There is a lot of untapped power from Captive Power Producers and Independent
Power Producers ). This capacity can be tapped to meet the power shortage in
India. There was a need to grow this market by providing a platform to all
market participants including State Electricity Boards to toy the idea of buying
available power through a transparent price discovery mechanism to meet its
demands. Also there is a huge demand/ supply gap at geographical level,
requiring a market where surpluses can be disposed off efficiently on a
real-time basis to optimise resource allocation on short-term basis. Central
Electricity Regulatory Commission, being the power markets regulator initiated
reforms by introducing ‘Open Access’, in which utilities (generation,
transmission or distribution companies were given permission to utilise the
available capacities of a power transmission, distribution system or a
associated facilities in the country. As a result, power exchange platform was
conceptualized to allow power trading.

Company Scenario
Before Deployment
  • The untapped power from Captive Power Producers, Independent Power
    Producers can be tapped to meet the power shortage in the country.
After Deployment
  • Using the platform of power exchange, the overall availability of
    power across deficit states has improved.

Project Head

Ashish Dandekar, CIO

Power Exchange went for in-house development of power exchange to meet the
Indian power market requirements. With support from its group company NSE.IT,
PXIL developed the entire solution in less than six months.

The trading/ bidding platform of the project provides a neutral platform to
receive orders/ bids from each buyer and seller, match its bids (using a
matching algorithm) for determining the best price and the corresponding
quantity/ volume at the best prices. The bids would be matched based on price,
volume and time. The matching engine would run an algorithm to derive schedules
to be cleared. The clearing of these schedules would be done by the grid
operator and communicated to respective buyers and sellers during the defined
timeslots. The matched trades would then be stored in database for long term
retention. Project also has a risk management system which manages the day to
day financial risks on a trading system. The system would entail seeking
operating margins and online clearing of funds, pay-in from buyers and pay-out
to sellers through online connectivity with the clearing banks authorised to
operate with the Power Exchange. The risk management system ensures that there
are no payment defaults and that the buy and sell on the Power Exchange is
harmonically achieved.

According to PXIL, currently transaction of an average volume of 3 million
units of power is done on a daily basis. Also with the planned load forecast,
each state would be able to improve the overall power availability within the
state.

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