IEX MD Jayant Deo, who was also founder member of the Maharashtra Electricity Regulatory Commission (MERC), said, “It has been a commendable journey of the IEX. The exchanges should strive to become a regional hub for the South Asian Electricity Market.”

Marking its three years of existence, IEX on Monday launched a book titled “Three years of Indian Energy Exchange and a report on “Impact of Electricity Exchange on the Power Sector and Indian Economy”.

Deo said IEX has maintained over 85% market share since inception. During these three years, the total traded volume on IEX has crossed 25 billion units, with an average of 40 Mus being traded daily. More than 600 participants mark their presence by bidding daily on IEX. IEX has grown from few participants in June 2008 to currently over 1,000 participants in 26 states and 3 Union Territories, thus making a significant presence across the nation. More than 110 private generators use the IEX platform to sell electricity.

The exchanges are gaining popularity over the bilateral markets by offering day-ahead and term-ahead (including intra-day, day-ahead contingency, and weekly) products that cater to the short-term needs of the consumers.

The scope of power exchanges have been further widened with the launch of Renewable Energy Certificates (RECs). The central regulator has recently provided the mandate for sub-hourly market in the power exchanges. “Going forward, the exchanges are also looking to add medium- and long-term products (futures and derivatives) and energy saving certificates (ESCerts) to their portfolio,” said Deo.

While all this has contributed towards increasing private interest in the power sector, the growth of trading volumes at the power exchanges remains conditioned by several issues.

One of the biggest concerns is the true provision of non-discriminatory open access to the intra-state transmission system. State utilities do not allow the sale of power to other states in case of power shortage within the state. The lead time required to obtain open access is currently very long.