NEW DELHI, Nov 18: Power sector regulator CERC will look into Marquis Energy Exchange’s application seeking permission to start an electricity bourse, this month.
Notwithstanding the rising demand for electricity in the country, the domestic power trading segment is still at nascent stage.
Ahmedabad-based Marquis Energy Exchange Ltd (MEX) has sought permission from Central Electricity Regulatory Commission (CERC) to start operations.
According to the regulator, the hearing of MEX application is scheduled for November 27.
Presently, there are two operational power bourses, IEX and Power Exchange India Ltd (PXIL). IEX accounts for more than 90 per cent of electricity trading on bourses.
A third bourse—National Power Exchange—has received approval but is yet to start operations.
Currently, an average of about 3,000 MW electricity is traded on the exchanges, accounting for three per cent market share. In monetary terms, the annual turnover is pegged at around Rs 10,000 crore.
A senior official, actively involved in electricity trading-related activities, said setting up of another power exchange would boost competition in trading. “This is a high-volume business and margins are low. Presence of more players will also help in bringing better technologies into the market,” he noted.
Going by estimates, power trading market could be worth as much as Rs 60,000 crore in the coming years.
The application for setting a new exchange amid the power sector itself facing tough times, that are also impacting overall electricity trading activities. A slew of issues related to fuel supplies and transmission lines, among others, are hurting the sector. (PTI)
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