Indian Energy Exchange (IEX) has announced the commencement of trade in the High Price Day Ahead Market (HP-DAM) segment.
The Central electricity Regulatory Commission (CERC) in its order dated February 16, 2023, approved the introduction of HP-DAM in the Integrated Day Ahead Market segment in the Power Exchange.
This will provide anew avenue to the high variable cost generators who may not have been able to participate in DAM due to the existing price ceiling of Rs.12 per kwh.
HP-DAM segment was launched at the hands of R.K. Singh, Union Minister of Power and New & Renewable Energy, during a webinar held on March 9, 2023.
How it works
HP-DAM will enable high-cost generators, falling under the following categories to participate in the market:
- Gas based power plants using imported RLNG and naphtha
- Coal-based power plant using imported coal
- Battery energy storage systems
These generators will now be able to sell electricity on IEX platform, with a price range of ‘0’ to Rs.50 per kwh. This unique segment will bring such capacity on the spot markets in a high-demand scenario.
Speaking on the occasion S.N. Goel, CMD, Indian Energy Exchange said, “The High Price Day Ahead Market is an innovative initiative by the Honourable Ministry of Power and Regulator to bring additional power in the market by use of power generated from high-cost fuels, in the high demand period.”
Also read: IEX Becomes India’s First Carbon-Neutral Power Exchange
Price discovery
The price discovery for HP-DAM will be on Double-Sided Closed Auction, same as for G-DAM, DAM and RTM segments. HP-DAM will function as part of the integrated DAM, with 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.
Note: T&D India had carried a story on CERC’s clearance to HP-DAM on IEX on February 16, 2023, the date of the CERC order. (Read full story)
