- 03 Aug 2022
- ICICIdirect Research
Centre weighs new segment on power bourses for costly projectsIEX - 150 Change: -0.30 (-0.20 %)
News: The government is considering a new market segment on power exchanges that would allow the sale of electricity at prices higher than the general ceiling to allow high-cost projects such as gas or imported coal-based plants to sell power. Nearly 24 GW of gas-based capacity and 17 GW of imported coal-based capacity is either idle or under-utilised due to a lack of buyers since per unit prices are high because of steep fuel costs. The proposed high price day ahead market segment will enable high-cost power plants to be made available during the high demand.
View: This consideration came in a time when India is struggling to maintain its demand & supply of electricity. However, for this segment to be operational power exchanges must get a go ahead nod from CERC and must launch a new product in parallel DAM market or tweak their trading platform so as to enable the trading of new segment after approval from CERC which will at least require a quarter or two.