Financial Technologies, PTC India promote Indian Energy Exchange Ltd, India''s first power trading exchange

Mumbai: India''s first national level power exchange, Indian Energy Exchange Limited (IEX) for trading electricity power exchange, proposed to be set up by Financial Technologies (India) Ltd and PTC India Ltd (formerly known as Power Trading Corporation of India Limited) has received approval from the Central Electricity Regulatory Commission (CERC).

Currently, short-term trading constitutes only 3 per cent of the total energy market as against over 15 per cent globally. The need for a power exchange has been felt for quite some time to meet the demand and supply of power on time and to provide a common platform to both buyers and sellers and to assist them in price discovery.

Power markets generally operate with power purchase agreements (PPAs) for long-term trading and bilateral contracts for the short term. For very short-term requirements there is the unscheduled interchange (UI). In future, these markets will be complemented by the exchange, which will have standard contracts, nationwide choice, better price and payment security.

IEX, promoted by Financial Technologies, is intended to be a pan-India neutral and transparent electronic demutualised exchange for efficient price discovery in the electricity market. PTC India Ltd has consented to take 26 per cent stake in IEX.

Other corporates who will to take a stake are Tata Power (TPC), Reliance Energy (REL) Rural Electrification Corporation (REC), Adani Enterprises (AEL) and IDFC in the consortium. Financial Technologies will continue to invite strategic partners to join the power exchange. Taking into account the nascent stage of exchange traded power market in India; Financial Technologies has designed a very innovative solution for the power sector by deploying the best-fit global technology solution for the Indian market to encourage larger participation by large and small players.

"The Indian power market still possesses a huge under-utilised captive capacity and massive growth potential which, if utilized, can go a long way in bridging the existing demand-supply gap," said PTC India Ltd CMD Tantra Narayan Thakur said.