PXIL to set up intra-state power exchange in Maharashtra

To tie up with stranded power plants, distribution companies and captive power generators

Power Exchange India Ltd (PXIL), which has been operating as a national level power exchange since 2008, proposes to set up an intra-state power exchange in Maharashtra.

The exchange would be limited to intra-state trade and it would be the first such exchange in India.

PXIL, promoted by the National Stock Exchange and National Commodity and Derivatives Exchange, has approached the Maharashtra Electricity Regulatory (MERC) for permission to commence and operate the intra-state power market based on Central Electricity Regulatory Commission norms.

MERC is expected to hold a hearing early next month.

PXIL hopes to facilitate better utilisation of the assets of entities connected to the intra-state grid. It will do so by tying up with stranded assets and distribution utilities in the event of occasional surplus or deficit of power.

PXIL is also eyeing power producers who have not tied up in long-term power purchase agreements. Besides, PXIL is expected to target a few captive generators having surplus capacity.

M G Raoot, managing director and CEO of PXIL, told Business Standard: “The proposed exchange will help optimally utilise the assets of Maharashtra.”

In its petition, PXIL has argued the proposed intra-state power market would provide another avenue for consumers of 1 Mw and above, utilities and producers to trade power.

It has also said the transmission corridor should be equally allocated in case multiple power exchanges are operated in the intra-state market.

According to PXIL, the intra-state week-ahead market designed for participants within Maharashtra would “significantly reduce the landed cost for the participants” as the delivery point shifts to the state periphery and no regional charges need to be paid.