PTC India gets approval to set up India’s 3rd power exchange

Published: August 4, 2020

The Central Electricity Regulatory Commission has given sanction to set up the third power exchange platform in the country and it will be floated by PTC India along with BSE Investments and ICICI Bank. However, it has also been asked that PTC India complies with all the power market regulations before going live in the market.

Power Exchanges in India

India has two power exchanges – Indian Energy Exchange (IEX) and Power Exchange India. Power Exchange is meant for over-the-counter sale and purchase of power through different types of contracts – day-ahead, term-ahead, renewable energy certificates and recently introduced real-time electricity market. Between the two, IEX has the lion’s share of the market with around 95% in the day-ahead contracts market.

Background of the New Venture by PTC India

PTC India, along with BSE Investments and ICICI, established Pranurja Solutions in 2019 as a power exchange platform and also applied for registration from the CERC. There was some concern regarding the shareholding pattern of the new company as PTC India and BSE Investments hold 25% followed 9.9% by the ICICI Group. Other stakeholders in the company are – Greenko Energies, Jindal Power, Meenakshi Power, among others.

Road ahead

The new types of power contracts are coming and this new company could take advantage of the same. Also, the over-the-counter power market is in the middle of new developments in the country. Also, one of the existing players is facing considerable financial crisis to reinvent itself. The launch of the real-time electricity market and increasing interest of states are also creating new opportunities for the sector.

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