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Our Bureau

Mumbai, Sept. 15 Power Exchange India Ltd (PXIL) on Tuesday launched products of longer tenure; its ‘weekly’ and ‘day-ahead contingency’ products will be commissioned for nationwide trading on September 15.

Through these products, transaction in power units can happen for up to a month in advance, said Ms Rupa Devi Singh, Managing Director and Chief Executive Officer of PXIL, at a news conference.

Currently, trading in power units is allowed on a day-to-day basis only.

The exchange recently received approvals from the Central Electricity Regulatory Commission for these long-tenure products.

The ‘weeks-ahead’ products provide market participants an opportunity to minimise their electricity portfolio risk by minimising price and quantity by securing trades on weeks-ahead basis.

The Day-Ahead Contingency products have been developed in response to the expressed requirements of electricity buyers and sellers to provide an option to trade those bids that could not be matched during Day-Ahead Spot (DAS) market session. The objective of this product is to maximise the generation capacity utilisation by providing a second chance to trade electricity once the DAS market is closed.

PXIL started operations last year and has so far achieved power transaction volumes of 400-million units.

With one more power exchange on the anvil, Ms Singh expects the volumes of power traded on exchanges to rise to 30,000-40,000 MW a hour over a period of three-five years compared with negligible volumes currently.

The bulk of incremental power would hit the exchanges in 18-24 months’ time, she added.

Currently, 20 million units of contracts are traded on the exchanges, contributing to 0.5 per cent of the overall power market, she said.

“We are also planning to launch one-month, two-month and three-month contracts, once we receive approvals for the same,” said Ms Singh.

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