Power exchange trade volumes to surge three times in next 3-5 years: IEX chief

Private equity-backed Indian Energy Exchange Ltd (IEX), the country’s first and largest exchange for trading of electricity and renewable energy certificates, expects trade volumes to triple in the next three to five years on the back of growing interest in spot market from state distribution companies (Discoms).

“I will not make any futuristic statement, but according to CRIS report the market potential is quite high,” Satyanarayan Goel, Managing Director and Chief Executive Officer, IEX, told BusinessLine on the sidelines of IEX’s upcoming IPO press conference. “The short-term market should increase from 10 per cent to 20 per cent in the next five years and exchange volumes should triple from today’s 40 billion units in next three-five years”.

Industry watchers point out that the power exchange, started almost a decade ago with an intention to make electricity markets more transparent, efficient and competitive is yet to make a significant impact in terms of traded volumes.

However, Goel says the volumes on IEX are set to grow as overall power demand in the country is growing driven by government policies and also because the Discoms have started opting for purchases in the spot market rather than signing long-term power purchase agreements (PPAs).

Continue reading

Share

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *


*