IEX commences trade on High Price Day Ahead Market

New Delhi: Indian Energy Exchange on Friday said that it has commenced trade in the High Price Day Ahead Market segment to provide a new avenue for high variable cost electricity generators like imported coal and gas-based projects. "IEX, India's premier energy exchange on Friday announced the commencement of trade in the High Price Day Ahead Market (HP-DAM) segment," said IEX in a statement.

HP-DAM will enable high-cost generators to participate in market

The HP-DAM will enable high-cost generators, falling under the category - Gas-based Power Plants using imported RLNG and Naphtha, imported coal-based power plants using imported coal and battery energy storage systems to participate in the market.

These generators will now be able to sell electricity on the IEX platform, with a price range of 0 to Rs 50/unit. This unique segment will bring such capacity to the spot markets in a high-demand scenario.

Price discovery for HP-DAM will be on Double-sided closed auction

The price discovery for HP-DAM will be on Double-Sided Closed Auction, which is the same as for G-DAM, DAM and RTM (real-time market) segments. The HP-DAM will function as part of the integrated DAM, with the sequential clearing of GDAM first, followed by DAM and finally HP-DAM.

Buyers and eligible sellers will have the option to transfer unselected bids in DAM to HP-DAM, with the flexibility to specify different prices and quantum for different segments at the time of bidding. There will be a single window for bidding as per the existing timeline of 10 am to 12 noon, it stated.

SN Goel, Chairman and MD, IEX, said, "The High Price Day Ahead Market is an innovative initiative by the Ministry of Power and CERC to bring additional power to the market by use of power generated from high-cost fuels, in the high demand period."

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)