Financial Technologies-promoted Indian Energy Exchange (IEX), a consortium of Power Trading Corporation (PTC), Tata Power and other partners, is likely to set a precedent for trading in non-tangible commodities on exchanges, which may ease the way for the regulator to grant permission for other such commodities later. | |
| IEX, India's first power exchange, had recently received approval form the Central Electricity Regulatory Commission (CERC) and will become operational by the end of the current financial year. |
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| It will be a pan India neutral and transparent electronic demutualized exchange for efficient price discovery in the electricity market. |
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| IEX will be the key agent for distributing power by uniting all buyers and sellers on a single platform to trade at a common national price without any risk of counter party, which will be guaranteed in the exchange mechanism. |
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| PTC India has consented to hold 26 per cent stake in this exchange, while a number of other players including Tata Power (TPC), Reliance Energy (REL) Rural Electrification Corporation (REC), Adani Enterprises (AEL) and IDFC have evinced interest to ensure stake in the platform. |
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| Taking into account the nascent stage of exchange-traded power market in India, Financial Technologies has designed a very innovative solution for the power sector by deploying the best fit global technology solution for the Indian market to encourage larger participation by large and small players. |
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| PTC India CMD Tantra Narayan Thakur said, "The Indian power market still possesses a huge under-utilised captive capacity and massive growth potential which, if utilised, can go a long way in bridging the existing demand-supply gap. All these factors have contributed in creating a nationwide consensus and favourable government directives towards the need for development and reforms in the power sector." |
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| "I am confident that Financial Technologies' proven expertise in setting up and operating exchanges globally will ensure efficient distribution and trading of electricity at par with global standards and best practices. |
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| As MCX, an affiliate of Financial Technologies, is already the most profuse platform for energy trading accounting for over 97 per cent of trading in crude oil and natural gas, we are sure all stakeholders who have converged to MCX for other energy products will show similar confidence in IEX for electricity," he added. |
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| Commenting on the success, Dewang Neralla, co-founder, Financial Technologies said, "A pan India neutral and transparent energy exchange is the need of the hour for strengthening of the power sector by providing them efficient short-term and long-term price signals. |
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| IEX is a reflection of Financial Technologies' vision to create world class market driven economy which empowers the entire supply chain equalizing the smallest and the largest. IEX's endeavour will be to create a platform that can eradicate the gap between buyers and sellers by taking the supply where the demand exists at most efficient equilibrium price." |
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| In India the scope of trading power is huge even in the current shortage scenario. The disposition of resources within the country is imbalanced. The eastern region is rich in coal while the northeastern region holds a lot of hydel power potential. However, the western and northern regions of the country suffer from a heavy deficit of such power because of their immense industrial and agricultural load. |
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