Power exchange IEX awaits CERC nod for cross-border trading

Indian Energy Exchange (IEX) is awaiting permission from sectoral regulator CERC to start short-term cross-border trading of electricity with three nations, including Nepal, a top official of the bourse said.
"The power ministry is framing policy for trading. We are waiting for that," Indian Energy Exchange (IEX) Director Rajesh Kr Mediratta said on the sidelines of MCC Chamber of Commerce interactive session.
At an annual South Asian Association for Regional Cooperation (Saarc) energy ministers' meeting here in October 2014, the Centre had arrived at a consensus over an inter-country grid connecting members of the Saarc bloc and allow cross-border trading on the IEX.

"We have already filed with Central Electricity Regulatory Commission in January this year," Mediratta said.
Once allowed (it) will initially enable short-term buying and selling of power with Nepal, Bangladesh and Bhutan.
Mediratta said IEX will continue cross border transactions on the existing platform which is on for domestic trading.

According to reports, in a petition, IEX has sought consent and directions for cross-border trading of 120 Mw with Bhutan and 50 Mw each with Nepal and Bangladesh.
Meanwhile, speaking about power trading market, Mediratta said power price at the exchange will remained subdued due to capacity addition not matching demand with price expected to stay below Rs 3 a unit.

According to him now 1.4 GW of capacity is not utilised out of 2.8 GW installed capacity.