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NTPC applies for power trading exchange

NEW DELHI: National Thermal Power Corporation (NTPC) has applied to the Central Electricity Regulatory Commission (CERC) for setting up a power trading exchange to be based in New Delhi. National Commodity and Derivatives Exchange (NCDEX) and National Hydroelectric Power Corporation (NHPC) are understood to have given in-principle approval to act as promoters in the new trading company, according to NTPC insiders.

Apart from NHPC and NCDEX, some other major stakeholders are expected to join as promoters for the proposed exchange, which would operate as a separate company. NTPC is also understood to have come out with a public notice on the issue. Other partners for the exchange may include Power Grid Corporation of India and Power Finance Corporation, sources said. The exchange, first of its own kind in the country, would be set up at a cost of about Rs. 15-20 crore and provide an opportunity to sellers and buyers of power to trade their commodity in advance for a 11-day period.

The proposed bourse would handle energy contracts and transmission clearance simultaneously through a single window, including congestion management. All the partners in the venture are likely to have an equal stake.NCDEX has also applied for necessary clearances from the CERC. The CERC had come out with guidelines on setting up of power exchanges at the national and State levels in February to broaden the prospects of power trading.

It is learnt that the CERC is in the process of finalising the norms for setting up such exchanges, after which a formal approval for the proposed bourse may be given.

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