IEX reduces electricity trading limit to 1 MW

To bring small players on power trading platform, India Energy Exchange, has reduced the trading limit of electricity to one megawatt (MW) from earlier 10 MW in day-ahead market contract, the exchange said today.

"This step will enable small captive and co-generation plants located nation-wide to sell their surplus power on exchange," IEX Managing Director and CEO Jayant Deo told PTI.

After the success of the trading of 10-MW contracts, the Central Electricity Regulatory Commission permitted the quantum of one MW, he said.

IEX initially started with 10 MW, and with the reduction of trading limit, volume of 1,000 kilowatt could be traded for as low as one hour, Deo said.

Trading in one MW contracts commenced on October 27.

The current installed capacity of power in the country from all sources is about 1.45 lakh MW. On IEX, only 0.5 per cent of the total power produced in the country is traded now.

IEX started trading in electricity on August 31 and has since then clocked the highest daily trade volume of 21 million units valued at over Rs 14 crore on November 1.