CERC order on “Extended Market Session on Power Exchanges”

In order to provide the grid connected entities with measures to respond optimally and in pursuance of development of market, the Commission has come up with following directions on Extended Market Session on Power Exchanges:
  1. Power Exchanges should commence operation of round the clock intraday/contingency market within three (3) months from the date of issue of this order after undertaking all requisite modifications, formulation of appropriate risk management practices considering banking hours and testing and validations of the software application of the trading system, clearing and settlement system and any other applications needed. The features of the intraday/contingency market shall be as under:
    1. The existing products for day ahead contingency and intraday markets would continue to be operated by the exchanges. As a principle, the timeline for these products is being extended so that trading window is open for periods as mentioned below:
      1. Same day Delivery (upto 2400 hours): The trading window is open round the clock for delivery of power on the same day (minimum delivery period 3 hours after contract execution subject to corridor availability).
      2. Next day Delivery (0000-2400 hours): The trading window opens after declaration of day ahead results and remains open till end of day.
    2. Price discovery mechanism remains as is for the respective products.
  2. Power Exchanges are directed to submit for approval of the Commission the proposed amendments, if any, to Rules, Bye-laws or Business Rules along with views of the stakeholders on the modifications and responses of the Power Exchanges on each of the views within one (1) month from the date of issue of this order.
  3. The     Commission     may     review     the functioning     of round     the     clock intraday/ contingency market after six (6) months from the date of operation of the market.
  4. POSOCO shall communicate approval/rejection   of scheduling   of   bilateral transactions for intraday/contingency contracts and inform the Power Exchanges and the applicant within one(1) hour of receipt of such application.
  5. The staff paper mentioned that creation of open access registry, information of TTC/ATC and reduction of time between intraday trading and delivery are critical success factors for this market. The Commission is of the view that with tightening of the frequency band and deviation settlement mechanism coming into force, the market participants need other avenues to meet their contingency requirement of purchasing/selling the power at short notice. The resolution of the issues mentioned shall be taken up simultaneously with the introduction of 24×7 intraday/contingency market.
  6. The evening market based on collective transactions is kept in abeyance at present.

 

Complete order

 

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Amit Antil

After doing Power Management (MBA) from National Power Training Institute (NPTI), Amit Antil is now presently working with Today Green Energy Pvt. Ltd. and looking after business development activities for Solar. Earlier he was associated with leading power trading company Global Energy for 3 years. He has a sound knowledge about bidding, power trading, open access, REC trading, Govt. Liaisoning, Contract Negotiation, Power Purchase Agreement.

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