Objectives & Benefits
A Power Exchange shall function with the following objectives:
- Ensure fair, neutral, efficient and robust price discovery.
- Provide extensive and quick price dissemination.
- Design standardised contracts and work towards increasing liquidity in such contracts. Explanation: Liquidity is a measure of ease of entering or exiting into a transaction (generally large transaction) with minimal impact in the market price of the transacted contract.
Benefits of Power Exchange
- Transparency: A Power Exchange offers a transparent, national-level platform for trading electricity in India leading to a vibrant power market.
- Access a diversified portfolio: A Power Exchange offers a broader choice to generators and distribution licensees at the national-level so that they can trade in smaller quantities and smaller number of hours without additional overheads.
- Payment security: A Power Exchange stands in as the counter-party for all trades; so participants need not be concerned about the risk-profile of the other party.
- Minimal transaction overheads/charges: All charges are displayed on the power trading company’s terminals; so there is no room for negotiation.
- Hedging UI risks: A Power Exchange provides a tool to hedge against adverse movements in electricity prices. Thus, price risks are minimised.
- Market development: A Power Exchange may launch a range of products to facilitate development of power markets in India in such a way that investment in capacity enhancement is encouraged.
Are you a member of Power Sector..! The article you are trying to view is accessible to registered users of Power Sector community. If you are a registered user, please login using your account details, or create new account to become a registered user.
As a registered user you get the following benefits -
- Access to Power Sector knowledgebase that is updated on daily basis
- Access to daily news and articles related to power sector
- Access to various forums and discussions
- Daily newsletters letters delivered directly to your inbox
- Special offers and discounts on various power sector conferences held across the country
- One year limited free access to premium content such as tenders
- Special discounts on market research reports
Grow your network through our extensive social networking community. Follow us on
To know about advertising options and other available promotional activities that Power Sector can help your company, please contact us.