PXIL to launch Real-Time Market for electricity

POWER Exchange India Limited (PXIL), promoted by NSE and NCDEX, will be launching the Real-Time Market (RTM) for electricity transactions from June 1, 2020.

The Real-Time Market (RTM) provided by PXIL would ensure that buyers and sellers can purchase or sell electricity from anywhere across the country with just one hour’s prior notice. The entire transaction would be online and accessible from any corner of the country.

This would be the first exchange contract that would allow even generators with Long Term PPAs to participate on the exchange where they can sell their unrequisitioned surpluses. This would also allow renewable energy generators, who may have unanticipated surpluses to sell such supply and earn revenues and in turn obtain Renewable Energy Certificates (RECs) as well. This market on PXIL also has the provision for generators who may have faced a forced outage, to purchase power and fulfill their contractual commitments.

For the Discoms, this market would provide a golden opportunity to access the market to meet any last-minute sudden requirements, either due to unforeseen weather, unplanned events or even to access electricity at competitive rates to manage their overall power purchase portfolio more efficiently.

The RTM is designed as a half-hourly market, comprising of 48 auction sessions of 15-minute duration each. The auction sessions would be conducted during even time blocks of the hour with delivery to commence from 1-hour after the closure of the trade session. The RTM provides Double Sided Closed Bid Auction with Uniform Market Clearing Price.

PXIL’s RTM Trading platform can be accessed through its portal-PRATYAY.

Commenting on the launch of RTM trading Prabhajit Kumar Sarkar, MD & CEO of PXIL said, “PXIL’s Real-Time Market (RTM) would be a game-changer in the electricity market like it, for the first time, allows Generators with even Long Term PPAs to participate in the vibrant power market of the country. The RTM would present to the Discoms as well as both conventional and renewable generators a vibrant market-based platform to better manage their power requirements in a planned, efficient, and transparent manner.

The Real-Time Market would thus provide a platform where generation capacity would be available from all types of sources and enable the Discoms to balance the demand in their systems even at the last moment.

This would go a long way in fulfilling the objective of utilising efficient power markets for balancing the power system across the country.”

Benefits for Discoms:

RTM will offer the distribution utilities (Discoms) immense flexibility to meet their dynamically varying schedule with delivery of power within an hour of the closure of the bid session.

  • The RTM provides an alternate mechanism to access the larger market at a competitive price one-hour prior to the start of the delivery
  • Meet the requirement of power after the end of the right to the revision of schedules by purchasing in RTM
  • A revolving reserve available in the form of half-hourly trading opportunity
  • Provides the opportunity for large scale integration of Renewable energy
  • Improved management of Over Drawl/Under Drawl (OD/UD) and Sign reversal requirements as mandated under the DSM regulations
  • Offer own Un-Requisitioned Surplus (URS) in the market either directly or through the generator and share the gains
  • Access to buy URS power of other beneficiaries which was not available earlier and remained largely untapped

       Benefits for the Gencos:

Generating companies otherwise tied up to long term PPAs can also access the power market through RTM for transacting their un-requisitioned surpluses. Till this point no other market mechanism allowed the generating companies to do so.

Generators with untied capacity have the opportunity to sell power by participating in an RTM session one-hour prior to starting of the delivery.

  • The generator has an option to purchase power in RTM, in the case of forced outage of a unit(s)
  • ISGS Gencos can offer URS at a commercial gain in the market rather than letting it go through ASM, SCED or the DSM
  • RE and hydro generators can also offer unanticipated surpluses in the market
  • Merchant RE generators can sell in the market and obtain RECs for the scheduled generation 

Product highlights at PXIL platform:

  • Participants are allowed to place orders for all time blocks of the upcoming hours of the day in advance. However, the matching of placed orders shall be considered for clearing as per the specified time blocks
  • The maximum price quote for RTM proposed to be limited to Rs. 8 per unit
  • The minimum price quote for RTM proposed to be limited to Rs. 0 per unit, further negative price quotes can be introduced with a minimum price quote of Rs. (-3) per unit
  • The smaller size of block bids – individual block bids of 25 MW, without any restriction on the number of block bids
  • Multiple price points – introduce up to 100 price points for normal bids

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