Power Exchange (IEX/ PXIL/ HPX) ... Why & how it works?

1. Short title and commencement
(1) These regulations may be called the Central Electricity Regulatory Commission
(Power Market) Regulations, 2021.
(2) These regulations shall come into force from the date to be separately notified by
the Commission.
2. Definitions and Interpretation
(1) In these regulations, unless the context otherwise requires,
(a) “Act” means the Electricity Act, 2003 (36 of 2003);
(b) “Ancillary Services” shall have the same meaning as defined in the Grid Code;
(c) “Ancillary Services Contract” means a contract for providing Ancillary Services;
(d) “Associate” in relation to a Power Exchange or Trader Member or Proprietary
Member or Facilitator Member of a Power Exchange, as the case may be, means
associate company or related party as defined in sub-sections (6) and (76) of
Section 2 of the Companies Act, 2013 (18 of 2013) respectively;
(e) “Automated audit trail” means automated creation and maintenance of electronic
time-sequenced record of transactions (creation, modification or deletion) in the
Power Exchange for reference or audit at a later date or time;
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(f) “Bid” means the electronic document by which a member of a Power Exchange
submits price and quantity in relation to a contract, for which it seeks to make a
transaction;
(g) “Bid type” means the category of bids with distinct specifications as applicable
in relation to each contract to be transacted on a Power Exchange;
(h) “Board” means the Board of Directors of a Power Exchange;
(i) “Cartelization” means an act by Market Participants who, by agreement amongst
themselves, limit or control or attempt to limit or control generation,
distribution, sale, price or trade of electricity;
(j) “Capacity Contract” means a contract where the capacity of a generating station
is contracted in advance wherein the generating station is obligated to despatch
contracted electricity as and when required by such buyer during the tenure of
the contract and consideration by way of capacity payment is made by the buyer;
(k) “Circular Trading” means and relates to trading and transactions by a member
or group of members, wherein on one side, one or more entities of the member
or group of members enter buy bids and on the other side, one or more entities of
the same member or same group of members enter sell bids or vice versa, by
design to manipulate the price of electricity or by design to create an artificial
market or to defraud or misuse the system;
(l) “Clearing” means the process of determination of obligations of members of a
Power Exchange resulting from the conclusion of a transaction at the Power
Exchange;
(m) “Client” means a person who has executed an agreement with a member of a
Power Exchange for dealing with or clearing through such member;
(n) “Collective Transactions” means a set of transactions executed in the Power
Exchange(s) and whose price is discovered through anonymous and
simultaneous competitive bidding by buyers and sellers;
(o) “Conduct of Business Regulations” means the Central Electricity Regulatory
Commission (Conduct of Business) Regulations, 1999, as amended from time to
time and any re-enactment thereof;
(p) “Contingency Contract” means a contract wherein Continuous Transactions
occur on day (T) after the finalization of day ahead transactions and the delivery
of electricity is on the next day (T+1);
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(q) “Continuous Transactions” means a set of transactions executed in the Power
Exchange(s), not being Collective Transactions, where the buy bids and the sell
bids are matched on a continuous basis with price-time priority;
(r) “Contract” means an agreement between seller and buyer for sale and purchase
of electricity or Renewable Energy Certificate or Energy Savings Certificate or
any other product as may be decided by the Commission;
(s) “Day Ahead Contract” means a contract wherein Collective Transactions occur
on day (T) and delivery of electricity is on the next day (T+1);
(t) “Day Ahead Market (DAM)” means a market where Day Ahead Contracts are
transacted on the Power Exchange(s);
(u) “Energy Savings Certificates Regulations” means the Central Electricity
Regulatory Commission (Terms and Conditions for Dealing in Energy Savings
Certificates) Regulations, 2016, as amended from time to time and any reenactment thereof;
(v) “Gate closure” refers to the time at which the bidding for a specific delivery
period closes and no further bidding or modification of already placed bids can
take place for the said delivery period;
(w) “Grant of Connectivity Regulations” means the Central Electricity Regulatory
Commission (Grant of Connectivity, Long-term Access and Medium-term Open
Access in inter-State Transmission and related matters) Regulations, 2009, as
amended from time to time and any re-enactment thereof;

[ramduttvaishnav]

Thanks for the best explanations on power exchanges in india

[mitulchaudhari]

The efficiency of power depends on time(like morning, night and afternoon), weather (like rainy etc.) and different festivals (Diwali, Christmas etc.). So we can improve efficiency by resolving the above problems. Also efficiency can be improved by power trading. Power trading can be done in mid term and short term agreements. Three exchanges made for power exchange in India are 1. IEX (Indian energy exchange)and PXIL (power exchange India ltd) by NSE 2. Pran urja by BSE and 3. Hindustan power exchange.

[chintanhirani]

Concept of power exchange....
Reason behind establishment...
Generation depend on different type of wheather, availability of raw material....
Consumption changes during different time ...

To get best deal for purchase of power..& best competition
Easy platform for trading of electricity....
For generating company as well as consumer...

Long term power purchase agreement 3 year to 25 year can avail...

Threee power exchanges....till date...IEX, PXIL, & HEX

[vaibhavsrivastava]

In this video, Sir explained about the concept of Power Exchange in India and the reasons behind its establishment. He also explained that there are two main issues with electricity in India. First, electricity generation is weather-dependent. Hydropower plants generate a lot of electricity during the rainy season, but not enough during the dry season. Second, electricity demand fluctuates. For example, there is a surge in demand during Diwali, when people light up their houses. These fluctuations cause inefficiencies. Power plants may not be able to sell all the electricity they generate during the rainy season, and there may not be enough electricity to meet demand during peak seasons. Power exchanges are a way to address these inefficiencies. They are marketplaces where buyers and sellers of electricity can come together to trade electricity. This allows power plants to sell excess electricity and buyers to purchase electricity when they need it. The video also discusses the history of power exchanges in India. The Electricity Act of 2001 did not explicitly mention power exchanges, but it did give the Central Electricity Regulatory Commission the authority to develop the power market. In 2008, two companies received licenses to establish power exchanges in India: Indian Energy Exchange (IEX) and PXIL. A third power exchange, Hindustan Power Exchange Limited (HPX), was granted a license in 2019.

[kanishkasharma]

Most electricity in Australia is generated, bought, sold and transported in markets that need to match supply and demand in real time.The NEM is one of the largest interconnected electricity systems in the world. It covers around 40, 000 km of transmission lines and cables, supplying around 9 million customers. The NEM is a wholesale market through which generators and retailers trade electricity in Australia. It interconnects the six eastern and southern states and territories and delivers around 80% of all electricity consumption in Australia. The NEM facilitates the exchange of electricity between generators and retailers. Retailers resell the electricity to businesses and households. High voltage transmission lines transport the electricity from the generators to electricity distributors, who deliver it to homes and businesses on lower voltage ‘poles and wires’.

[anshumanupadhyay]

Russia's power market is centered around the Moscow Exchange, which serves as the primary platform for electricity trading. This exchange is crucial for price discovery through active trading, setting a benchmark value for electricity nationwide. Much like a marketplace for other commodities, the exchange brings buyers and sellers together to ensure ample participation, which is essential for determining fair and efficient prices. Additionally, the Moscow Exchange plays a key role in resource allocation, ensuring electricity reaches those who need it most at a true market value price. Essentially, the Moscow Exchange functions as the central nervous system of Russia's electricity sector, ensuring its smooth and efficient operation.

[Noonaishere]

Russia's power market revolves around the Moscow Exchange, which serves as the essential marketplace for electricity trading. This exchange plays a pivotal role by facilitating price discovery through active trading. This process goes beyond simply determining a price - it establishes a benchmark value for electricity across the entire nation. The exchange functions much like a marketplace for any other commodity, with buyers and sellers coming together to ensure sufficient participation. This robust participation is crucial for determining fair and efficient prices. Furthermore, the Moscow Exchange plays a vital role in resource allocation. By facilitating these trades, the exchange ensures electricity reaches those who need it most, at a price that reflects true market value. In essence, the Moscow Exchange acts as the central nervous system of Russia's electricity sector, ensuring its smooth and efficient operation.

[dikshajain]

Power exchanges with non-explicitly modeled countries are modeled ex-ante based on historical data. This is the approach followed also in ENTSO-E (2019). In addition, to avoid cases when a modeled country with scarcity conditions in a given hour (e.g. load curtailment) is exporting energy to a non-explicitly modeled country, due to a predefined exchange imposed to the interconnection, a certain level of flexibility is introduced allowing for an appropriate calibration of the pre-defined exchange

[YashiGaur]

The video delves into India's power exchange system, focusing on the weather-sensitive nature of electricity generation, particularly hydropower, which fluctuates with seasonal rainfall. It highlights the critical role of long-term power purchase agreements, ranging from 3 to 25 years, in ensuring supply stability. The establishment of the Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL) is crucial for efficient electricity trading, requiring regulatory approval and licensing from the Central Electricity Regulatory Commission (CERC). Promoted by the NSE and BSE, these exchanges started operations on July 6th, under CERC's oversight, ensuring regulatory compliance and transparency. This system enhances electricity supply and demand management, addressing seasonal variability and fostering a stable power market in India.

[AyanshGangwar-iksm]

The video explores India's power exchange system, emphasizing the weather-sensitive nature of electricity generation, particularly hydropower, which varies with seasonal rainfall. It underscores the importance of long-term power purchase agreements, spanning 3 to 25 years, in maintaining supply stability. The creation of the Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL) is vital for efficient electricity trading, necessitating regulatory approval and licensing from the Central Electricity Regulatory Commission (CERC). Promoted by the NSE and BSE, these exchanges began operations on July 6th under CERC's supervision, ensuring regulatory compliance and transparency. This system improves the management of electricity supply and demand, addressing seasonal fluctuations and promoting a stable power market in India.

[eishanayan]

A description of India's power exchange dynamics is given in the material, with special attention to the effect of weather, especially hydropower generation. It emphasizes how important long-term power purchase agreements, lasting three to 25 years, are to ensuring supply stability. It is noted that the Central Electricity Regulatory Commission (CERC) must grant regulatory approval for the establishment of the Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL). Ensuring regulatory compliance and transparency, these exchanges were launched on July 6th and are supported by the NSE and BSE. They are overseen by CERC. This system fosters a healthy power market in India by optimizing trading in electricity, supporting supply management during seasonal fluctuations. It also integrates flexibility in power exchanges to avert unfavorable situations, such as exporting energy when there is a shortage, thereby augmenting the overall resilience of the system.

[essencia_upsc]

Sir, under new GNA regulations there is T-GNA and GNA CONCEPT REPLACING THESE STOA, MTOA, LTA

[beepee]

Sri Lanka
Sri Lanka, as of now, does not have a formal power exchange. However, power trading does occur in Sri Lanka. Sri Lanka is a part of the South Asian Power Pool (SAPP), which enables cross-border electricity trading among its member countries. SAPP is an initiative aimed at facilitating cooperation and power exchanges among the South Asian nations.
Through bilateral agreements and power purchase agreements (PPAs), Sri Lanka has engaged in the import and export of electricity with neighboring countries like India. These transactions allow for the exchange of surplus power between countries, helping to address electricity shortages or meet peak demand requirements.
India has built an overhead electricity link with Sri Lanka and trades electricity through IEX as part of the Cross Border Electricity Trade (CBET) since April 2021.
Furthermore, within Sri Lanka, power trading can also occur between different entities within the country's power sector. This could involve the purchase and sale of electricity between power generators, distribution companies, or even through direct power purchase agreements with large industrial consumers.
USA
In the United States, the regulation of power markets and the establishment of regional transmission organizations (RTOs) and independent system operators (ISOs) are primarily governed by federal laws and regulatory bodies, as well as some state-level laws and regulations.
The following key laws play a significant role in enabling the regulation of power markets:
• Federal Power Act (FPA): The FPA, enacted in 1935, grants the Federal Energy Regulatory Commission (FERC) authority over the interstate transmission and wholesale sale of electricity. FERC is responsible for regulating wholesale electricity markets, overseeing transmission planning and rates, and ensuring fair competition and reliable operation of the grid.
• Public Utility Regulatory Policies Act (PURPA): PURPA, passed in 1978, encourages the development of renewable energy and promotes energy efficiency. It requires utilities to purchase electricity from qualifying small-scale renewable generators at avoided cost rates and establishes a framework for promoting cogeneration and small power production.
• Energy Policy Act of 1992 (EP Act 1992): EP Act 1992 introduced provisions to promote competition and open access in the electricity industry. It authorized FERC to require utilities to provide non-discriminatory access to their transmission systems and paved the way for the establishment of RTOs and ISOs.
• State Laws and Regulations: In addition to federal laws, states have their own jurisdiction over retail electricity markets and can enact laws and regulations that govern various aspects, such as retail rates, customer choice, renewable energy standards, and other market-specific policies. State regulatory bodies oversee these aspects and work in coordination with federal regulators.
It's important to note that the specific laws and regulations governing power markets can vary between regions and may evolve over time. Additionally, regional transmission organizations and independent system operators may have their own market rules and protocols approved by FERC to govern the operation of their respective markets.
In the United States, there are several regional transmission organizations (RTOs) and independent system operators (ISOs) that operate wholesale electricity markets. These entities oversee the efficient operation and coordination of the transmission grid and facilitate the buying and selling of electricity on a wholesale basis.
Some of the major power exchanges in the United States include:
• PJM Interconnection: Serves the Mid-Atlantic and parts of the Midwest region.
• New York Independent System Operator (NYISO): Operates in the state of New York.
• California Independent System Operator (CAISO): Manages the bulk electric system in California.
• Electric Reliability Council of Texas (ERCOT): Oversees the electricity market in Texas.
• Midcontinent Independent System Operator (MISO): Covers a large portion of the central United States.
These power exchanges provide a platform for market participants to buy and sell electricity, manage grid reliability, and ensure efficient utilization of resources. They use market mechanisms such as auctions and day-ahead or real-time trading to determine prices and allocate electricity among participants.

[jayadubey]

Sir how can be we diffrentiate in power trade and power exchange?
And how effective there will be if power exchange applied in our power sector induatry

[tanyabajaj]

The position in Australia is-
The National Electricity Market(NEM) is the wholesale electricity market for the interconnected eastern and southern states and territories of Australia. Western Australia and the Northern Territory are not connected to the NEM and each have their own regulatory regimes and markets.

The NEM facilitates exchange between electricity producers and consumers through a pooled system, where output from all generators is aggregated and scheduled to meet consumer demand. The Australian Electricity Market Operator (AEMO) manages the wholesale market, oversees system security for the NEM electricity grid and is responsible for transmission planning.
The Australian Energy Market Commission (AEMC) makes and amends the detailed NER. The Australian Energy Regulator (AER) is responsible for the economic regulation of the electricity transmission and distribution networks in the NEM and enforces the NEL, and National Energy Retail Law.

[varunkesharwani]

The power exchange concept in Japan
JEPX is Japan's only wholesale electricity exchange acting as an intermediary for electricity sales between producers and retailers. he establishment of power exchanges in Japan is a result of the liberalization and deregulation efforts in the electricity market. Here's a general overview:

Liberalization Policy: The liberalization of Japan's electricity market began in the early 2000s with the enactment of the Electricity Business Act. The objective was to introduce competition, promote efficiency, and provide consumers with choices in electricity supply.

Regulatory Framework: The regulatory framework was developed by the Ministry of Economy, Trade, and Industry (METI) and the Agency for Natural Resources and Energy (ANRE). They established rules and guidelines for the operation of the electricity market, including the establishment of power exchanges.

Market Operator: The actual establishment and operation of power exchanges in Japan are carried out by licensed operators. These operators are typically established as independent entities, separate from the government or utilities. They are responsible for managing the trading platform, ensuring fair transactions, and maintaining market stability.

Market Entry: Power exchanges in Japan typically operate under licenses issued by METI or ANRE. Interested parties can apply for a license to become a market operator, subject to meeting certain requirements and demonstrating their ability to fulfill the responsibilities of running a power exchange.

Market Evolution: The establishment of power exchanges in Japan has been a gradual process. The initial phase of liberalization focused on the wholesale market, enabling competition among power generators and retailers. Subsequent phases introduced more opportunities for participation and trading, including the introduction of bilateral contracts and the establishment of balancing markets.

[amarnathmishra]

दीपावली की रात इंडस्ट्रियल लोड नहीं होता है सर।अतिरिक्त बिजली की आवश्यकता नहीं होती है।

[kamakshitiwari]

Power Exchange concept in Nepal

The power sector in Nepal has undergone significant changes in recent years, including the implementation of power exchanges. A power exchange is a platform where electricity is traded between buyers and sellers, facilitating the efficient allocation of power resources and promoting competition in the market.

In Nepal, the establishment of a power exchange was a part of the government's efforts to reform and liberalize the power sector. The Nepal Electricity Regulatory Commission (NERC) has been playing a crucial role in overseeing and regulating the power exchange activities.

the Nepal Electricity Market Operator (NEMO) is power exchange platform. The main objectives of the power exchange in Nepal include:

Promoting competition: The power exchange provides a transparent platform for multiple power producers and traders to participate, fostering competition and encouraging market efficiency.

Price discovery: Through the power exchange, market participants can discover the market-clearing price of electricity based on supply and demand dynamics. This helps in establishing fair and competitive electricity prices.

Efficient allocation of resources: The power exchange facilitates the efficient allocation of electricity by matching the demand from various buyers with the supply from multiple sellers. This ensures optimum utilization of available power resources.

Renewable energy integration: The power exchange can play a significant role in promoting the integration of renewable energy sources into the grid. It allows renewable energy producers to sell their excess electricity to buyers who may have a higher demand.