CERC has given approval to the petition filed by Pranurja Solutions Ltd, to establish what will become India’s third power exchange after Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Pranurja Solutions Limited proposes to offer a power trading exchange platform and had filed a petition with the power market regulator, CERC (Central Electricity Regulatory Commission) on September 7, 2018 for grant of license for setting up a new power exchange.
CERC, however, has asked the promoters to comply with power market regulations before the regulator grants registration. During the public hearing of the matter, stakeholders, including the existing two exchanges, raised concerns on the shareholding pattern of Pranurja. Pranurja will be granted registration after meeting the stipulated shareholding. According to the Power Market Regulations, PTC India and BSE will have to cut their holding to 5 percent if they become members of the exchange.
PTC India Executive Director and Group Chief Risk Officer Rajiv Malhotra said the company was confident of meeting all the required regulations in the stipulated eight weeks. “Thereafter, following the directives of CERC, we can look at operationalising the exchange in another eight-nine months, effectively next financial year,” said Malhotra.
Current Power Trading Scenario in India:
CERC has permitted trading of Electricity through Power Exchange with effect from June 2008. India has two power exchanges — Indian Energy Exchange (IEX) and Power Exchange India (PXIL). Power exchange facilitates over-the-counter sale and purchase of power via different types of contracts — day-ahead, term-ahead, renewable energy certificates, and recently introduced real-time electricity market. IEX has 95 per cent share in the day-ahead contracts market.
Indian Energy Exchange (IEX) is first (started in 2008) and largest energy exchange in India. IEX was initially promoted by Financial Technologies (I) Ltd, which runs commodity exchange MCX, and the state-owned Power Trading Corporation. Its other shareholders included TPC, REL, Lanco Electric, Adani Enterprises, REC and IDFC. However, due to regulatory breaches, the promoters stake was divested converting it to a professionally run company with diverse ownership.
Power Exchange India (PXIL) is India’s first institutionally promoted power exchange. PXIL has been jointly promoted by the National Stock Exchange of India Limited (NSE) and the National Commodity and Derivative Exchange (NCDEX) along with other central government, state government & private institutional promoters.
Pranurja Solutions Limited
Pranurja Solutions Limited is promoted by Bombay Stock Exchange (BSE) Investments , PTC India Ltd and ICICI Bank. PTC India and BSE Investment hold 25 per cent each in Pranurja, followed by 9.9 per cent held by ICICI bank. Other shareholders are Greenko Energies (5 per cent), Jindal Power (2 per cent), Meenakshi Power (5 per cent), and six others.
According to company website, this proposed institutional exchange, subject to necessary regulatory approvals, would leverage on the experience and expertise of its stakeholders in their fields; knowledge of the power sector, funding of power projects and associated infrastructure, setting-up and running various exchanges and platforms in India, and offer the market participants a credible power trading platform.