Power Exchange India Ltd (PXIL) has launched the “Integrated Day Ahead Spot market (I-DAS)”, a collective transaction that integrates transactions for Renewable Energy (RE) along with Conventional energy.
In a release, PXIL said that I-DAS offers market participants the convenience of submitting orders for transacting in RE as well as Conventional power in the same bidding window. The matching algorithm is designed to discover separate prices for both the RE and Conventional segment, thus offering an integrated contract to the participants.
How it works
The I-DAS contract enables an integrated transaction processing in the most transparent, flexible, competitive and efficient manner. Transactions on the platform are executed in a sequential manner where RE orders will be cleared first, followed by merging of uncleared orders from the RE segment with other orders received in the Conventional segment. This provides an opportunity for both RE Sellers and Buyers to transact power under any segment and thus optimize their portfolio.
Additional option for RE generators
Commenting on the launch of I-DAS, Prabhajit Kumar Sarkar, MD & CEO, PXIL said, “I-DAS is yet another addition to our offerings intended to strengthen the power market ecosystem in the country. I-DAS provides an additional option to RE generators to sell power directly in the market thus creating a more robust market mechanism while ensuring better price discovery. The best part of I-DAS is that it enables obligated entities like Distribution licensees, Open Access consumers and Captive power consumers to meet RPO target by purchasing RE power throughout the year.”
Reducing curtailment of RE power
I-DAS is expected to reduce curtailment of RE power and help unlock untapped RE potential while ensuring prompt payment to RE generators. It will also help in mitigating price risk of discoms in purchasing power under long term PPA, thereby enabling portfolio optimisation for them. I-DAS will be the best facilitator for building a sustainable and energy efficient economy by providing price signals for capacity addition in RE segment.
Contract characteristics
There are 96 Contracts of 15-minute duration each for delivery of Renewable and Conventional power separately for the next day. Buyers and sellers get cleared at market cleared price in both segments, which is equal to or better than the price quoted with the principle of economic surplus maximization and equitable distribution of surplus among buyers and sellers. The order placement and price discovery mechanism is neutral and transparent, conducted under strict surveillance, allowing for anonymity of bids and eliminating individual credit risk.
Also read: The Outlook For PXIL Remains Encouraging: Power Exchange India Ltd
Contract structure
The market structure proposed for operating Integrated Day Ahead Spot is:
- Orders for RE and Conventional power to be placed during the same auction session
- Matching of Order for transactions in RE in first matching
- Uncleared Orders from RE segment to be merged with Orders received in Conventional segment
- Exchange to submit single application to NLDC for scheduling RE and Conventional power
- Buyer to receive RPO credit for RE energy procured in the RE session
- RE Sellers (that are registered under REC mechanism) cleared in second matching are eligible to receive RECs
Featured illustration showing proposed market structure for I-DAS provided by PXIL