Power Exchange India Ltd (PXIL), on September 27, 2022, introduced the ‘Any-Day Single Sided Reverse Auction Contract’
This contract enables buyers to procure power through a reverse auction process to meet their power requirement for period up to 90 days ahead.
The introduction of this Reverse Auction based Contract is in line with the approval granted by Central Electricity Regulatory Commission (CERC) as per its order in Petition No.229/MP/2021, dated June 7, 2022.
In this contract, a buyer can initiate a reverse auction event by prescribing requirements in terms of: quantum (in MW), minimum quantum from any seller (in MW), delivery duration (T+2 to‘T+90), and date of reverse auction event. The reverse auction happens in two stages—Initial Price Offering (IPO) and Reverse Auction (RA).
How it works
Interested sellers can submit their offers specifying quantum (in MW) and price (in Rs. per MWh) in the IPO stage. Later in the RA stage, the qualified dellers may improve their offers within defined period of two-hour session.
On completion of RA, the offers would be ranked from ‘lowest-to-highest’ price till the buyer’s requisitioned quantum is fulfilled. Buyer then has a right to accept or reject the ranked offers. On receipt of acceptance from the buyer, the exchange will submit application for scheduling delivery of power.
New chapter
Commenting on the development, Prabhajit Kumar Sarkar, MD & CEO, Power Exchange India Ltd (PXIL) said, “The introduction of ‘Any-Day Single Sided Reverse Auction Contract’ marks a new chapter in the power exchange based transaction in the country as it allows greater planning, effectiveness, and transparency in power transactions. With commencement of 90-day contracts, power will be traded for a longer duration allowing Discoms to meet their power requirement in transparent and cost-effective way.”
Also read: The Outlook For PXIL Remains Encouraging: Power Exchange India Ltd
Conventional and renewables
The ‘Any-Day Single Sided Reverse Auction Contract’ enables participants to transact in conventional power and in different types of renewable energy — solar, wind, hydro, and other renewable sources enabling buyers to meet their Renewable Purchase Obligations (RPO) as well.
