New Delhi
Hindustan Power Exchange Limited (HPX), which is promoted by PTC India, Bombay Stock Exchange and ICICI Bank, on Thursday said that it has got approval from the Central Electricity Regulatory Commission (CERC) for introduction of high price contracts in three key markets.
The markets are—High Price Day Ahead Market (HP-DAM), High Price Term Ahead Market (HP-TAM), and High Price Contingency Contracts, HPX said.
“As a part of this development, HPX will now offer these contracts in the High Price Day Ahead Market and High Price Term Ahead Market segments. The move comes as a part of the Commission’s efforts to further enhance market dynamics, deepen the market, and provide more opportunities for members to manage their risk and optimise their energy portfolios, it added.
The High Price Contingency Contracts will provide added stability to the energy market during periods of volatility.
“The HP-DAM pricing has been established with a floor price of zero to mitigate any adverse impact on the integration of renewable energy in the national grid. Simultaneously, the forbearance price has been set at ₹20 per kWh as per the Commission’s order dated March 31, 2023 in Petition 4/SM/2023 (Suo-Motu),” HPX said.
With the fresh alternative of HP-TAM these high price generators can plan for sale of their power to interested beneficiaries under longer term contracts of upto 90 days. This would give them an opportunity to secure fuel supply in advance and plan their operations basis the underlying contracts, moving away from the sole dependency on clearance in the DAM segment.
HPX VP & Head (Business Development) Naveen Singh said, “With the CERC nod to introduce High Price contracts on HPX, we have been successful in delivering two new products for the Power Market within a short time-span of just one year of starting our business operations in July last year. Till date these high-price generators had just one option to sell power, that is through participation in the HP-DAM segment.”
With these new segments the generators can plan their power sale to interested buyers for up to 90 days, giving HP-generators sufficient clarity to plan their fuel procurement, logistics etc. This also ensures a level playing field across different market segments, gives more choice to the consumers and promotes competition, he added.