Categories & Products of exchange
Power exchanges are categorised as follows:
- INDIAN ENERGY EXCHANGE LTD. (IEX)
INDIAN ENERGY EXCHANGE LTD. (IEX) is India’s premier power trading platform. Providing a transparent, neutral, demutualized and automated platform for physical delivery of electricity, IEX enables efficient price discovery and price risk management for participants of the electricity market, including industries eligible for open access. Today, over 2600 participants across utilities from 27 States, 5 Union Territories (UTs), 500+ private generators and more than 2300 open access consumers are leveraging the exchange platform to manage their power portfolio in the most competitive and reliable way.
- Power Exchange India Limited (PXIL)
Power Exchange India Limited (PXIL) is India’s first institutionally promoted Power Exchange that provides innovative and credible solutions to transform the Indian Power Markets. PXIL is India's first and only Quality Management System "ISO 9001:2008" certified Power Exchange in the country.
PRODOUCTS OF IEX:
- Day Ahead Market:
On a daily basis the Exchange will offer a double side closed auction for delivery on the following day, which is termed as day-ahead market. Price discovery would be through double side bidding and buyers and suppliers shall pay/receive uniform price.
Day Ahead Market operations will be carried out in accordance with the procedure for scheduling of collective transactions issued by the Central Transmission Utility (PGCIL), CERC (Open Access in inter-State Transmission) Regulations, 2008, its modifications issued from time to time and the Bye-Laws, Rules and Business Rules of the Exchange.
Procedure for Day Ahead Transaction in Exchange
Ø Participants enter bids for sale or purchase of power for delivery on the following day. (T+1 day)
Ø Bids for a total of 96 blocks of 15 minute each can be entered.
Ø Bidding session: 1000 hrs. - 1200 hrs.
Ø Bids can be single and/or block including linked bids:
Ø Single bids: 15-Minute bids for different price and quantity pairs can be entered through this type of order. Partial execution of the bids entered is possible.
Ø Block bids: Relational Block Bid for any 15-min block or series of 15-min blocks during the same day can be entered. Although no partial execution is possible i.e. either the entire order will be selected or rejected.
Ø The bids so entered are stored in the central order book. The bids entered during this phase can be revised or cancelled till end of bid call period (i.e.1200 hrs. of trading day)
Ø At the end of the bidding session, bids for each 15 minute time block are matched using the price calculation algorithm. (available in exchange bye-laws)
Ø All purchase bids and sale offers are aggregated in the unconstrained scenario. The aggregate supply and demand curves are drawn on Price-Quantity axes. The intersection point of the two curves gives the market clearing price (MCP) and market clearing volume (MCV) corresponding to price and quantity of the intersection point.
Ø MCP and MCV are determined for each block of 15 minutes as a function of demand and supply which is common for the selected buyers and sellers.
Ø Selected members are intimated about their partially or fully executed bids and other trade related information.
Ø By 1300 hrs, transmission corridor required to fulfill successful transactions are sent to NLDC.
Ø Transmission Corridor & Funds Availability
Ø Preliminary MCP and MCV are used to calculate the provisional obligation of the selected participants and the provisional power flow.
Ø Funds available in the settlement accounts of the participants are verified based on the provisional obligation.
Ø In case of insufficient funds in the account, the bids entered by such a participant are deleted.
Ø Required corridor capacity and provisional power flow is sent to NLDC for scrutiny and corridor allocation is requisitioned based on availability.
Ø By 1400 Hrs, NLDC reverts with actual transmission corridor availability during all 15 minute time blocks across congestion prone bid areas.
Ø Based on the reserved transmission capacity intimated by NLDC, IEX recalculates MCP and MCV as well as area clearing price (ACP) and area clearing volume (ACV). See Market splitting for more info.
Ø ACP is used for the settlement of the contracts. On receipt of final results, obligations are sent to the Clearing Banks for Pay In from buying Members at 14.30 hrs and the bank is asked to confirm the same.
Ø Final results for confirmation and application for scheduling of collective transactions are sent to NLDC.
Ø NLDC sends the details of the schedule to respective SLDCs.
Ø RLDCs /SLDCs incorporate Collective Transactions in the Daily schedule.
Ø A scheduled transaction is considered deemed delivery.
Ø Deviations from schedules are dealt under UI or Deviation Settlement or Imbalance Settlement regulations. The Regional Entities (those connected at ISTS networks) are governed by CERC Regulations and Embedded Entities (those connected to state transmission or distribution network) are governed by respective State Commission’s regulations.
- TERM AHED MARKET:
This market segment will cover all electricity contracts except those mentioned in the Day Ahead Market segment. This will cover market timeframes of intra-day, day-ahead contingency, daily, weekly etc. as allowed by the Commission. The Term Ahead Market will operate in accordance with the procedures issued by CTU for “Scheduling of Bilateral Transactions”. All terms and conditions of the contracts including trading sessions, matching rules, margin requirement and delivery procedure etc., will be as per specific rules mentioned herein.
Contracts: The Exchange shall make the contracts as specified in this section available for trading as per the trading calendar. These contracts will be traded in accordance with provisions of trading as specified in the respective Contract Specification. The trade sessions, matching rules applied in each trade session for concluding the contracts, risk management and settlement for such contracts will be as per specific contract specifications provided herein. The delivery of such contracts will be in accordance with CERC (Open Access in Inter-State Transmission) Regulations, 2008, as amended from time to time and relevant procedures issued by CTU and by Open Access Regulations of concerned State. The Exchange holds the right to modify all other parameters except those specified in regulation 7 of CERC (Power Market) Regulation, 2010. These contracts will be further differentiated on time of day basis (Peak and Off-Peak basis), day-of-the week basis (weekday, week-end and holiday). Following contracts shall be available for trading in Term-Ahead Market:
- Day-Ahead Contingency Contracts:
The Exchange shall make the daily contracts available for trading up to a period specified by CERC for delivery of electricity for defined blocks of hours of the day. The Exchange will carry out trading in such contracts either through “Uniform Price Step Auction” or “Continuous Trade” sessions or a combination of both depending on market feedback. The timeline for trade matching sessions will be specified in Contract Specifications. They will be sent for scheduling in accordance with CERC (Open Access in Inter-State Transmission) Regulation, 2008, as amended from time to time and relevant procedures issued by CTU as specified in the contract specifications. The contracts may contain provisions allowing quantity variation in delivery. The Exchange holds the right to modify parameters as specified by CERC.
- Weekly Contracts:
The Exchange shall make the weekly contracts available for trading maximum up to a period specified by CERC for delivery of electricity for defined blocks of hours on all defined week-days and/or weekends of the week. The Exchange will carry out trading in such contracts through “Uniform Price Step Auction” or “Continuous Trade” sessions or a combination of both as approved by CERC. The timeline for trade matching sessions will be specified in Contract Specifications. They will be sent for scheduling in accordance with CERC
- Daily Contracts:
The Exchange shall make the daily contracts available for trading up to a period specified by CERC for delivery of electricity for defined blocks of hours of the day. The Exchange will carry out trading in such contracts either through “Uniform Price Step Auction” or “Continuous Trade” sessions or a combination of both depending on market feedback. The timeline for trade matching sessions will be specified in Contract Specifications. They will be sent for scheduling in accordance with CERC (Open Access in Inter-State Transmission) Regulation, 2008, as amended from time to time and relevant procedures issued by CTU as specified in the contract specifications. The contracts may contain provisions allowing quantity variation in delivery.
- Renewable Energy certificates
Central Electricity Regulatory Commission introduced REC mechanism to ease the purchase of renewable energy by the state utilities and obligated entities, including the states which are not well endowed with RE sources. REC framework seeks to create a national level market for renewable generators to recover their cost. One REC (Renewable Energy Certificate) represents 1 MWh of energy generated from renewable sources.
Under the REC mechanism, a generator can generate electricity through the renewable resources in any part of the country. For the electricity part, the generator receives the cost equivalent to that from any conventional source while the environment attribute is sold through the exchanges at the market determined price. The obligated entity from any part of the country can purchase these RECs to meet its RPO compliance.
- Energy Saving Certificates
Perform, Achieve and Trade (PAT) is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy intensive large industries and facilities, through certification on energy savings that could be traded.
Targets for improvements in energy efficiency are set under section 14 of the Energy Conservation Act, 2001 in a manner that reflects fuel usage and the economic effort involved. The Government, in March 2007 notified units in nine industrial sectors, namely aluminium, cement, chlor-alkali, fertilizers, iron and steel pulp and paper, railways, textiles and thermal power plants, as Designated Consumers (DCs).
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