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NEW DELHI: Power exchange PXIL on Tuesday introduced ‘Any-Day Single Sided Reverse Auction Contract’ that enables buyers to procure power through a reverse auction process to meet their requirement for period of up to 90 days ahead. This is in line with the approval granted by Central Electricity Regulatory Commission (CERC).
Under this, a buyer can initiate a reverse auction by prescribing requirements in terms of quantum (in MW), minimum quantum from any seller (in MW), delivery duration (‘T+2’ to ‘T+90’) and date of reverse auction event.
The reverse auction happens in two stages, i.e., Initial Price Offering (IPO) and Reverse Auction (RA). Interested sellers can submit their offers specifying quantum (in MW) and price (in Rs. /MWh) in the IPO stage. Later in the reverse auction stage, qualified sellers may improve their offers within defined period of two-hour session.
On completion of the reverse auction, the offers would be ranked from ‘lowest-to-highest’ price till the buyer’s requisitioned quantum is fulfilled. Buyer then has a right to accept or reject the ranked offers. On receipt of acceptance from the buyer, the exchange will submit application for scheduling delivery of power.
“The introduction of ‘Any-Day Single Sided Reverse Auction Contract’ marks a new chapter in the Power exchange based transaction in the country as it allows greater planning, effectiveness, and transparency in power transactions. With commencement of 90-day contracts, power will be traded for a longer duration allowing Discoms to meet their power requirement in transparent and cost-effective way,” said Prabhajit Kumar Sarkar, MD & CEO, Power Exchange India Limited (PXIL).
The ‘Any-Day Single Sided Reverse Auction Contract’ enables participants to transact in conventional power and in different types of renewable energy i.e., solar, wind, hydro, and other renewable sources enabling buyers to meet their renewable purchase obligations as well.
Power Exchange India Limited (PXIL) is country’s first institutionally promoted Power Exchange. It is promoted by National Stock Exchange and National Commodity & Derivatives Exchange.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
