Power Exchange of India Limited (PXIL) promoted by NSE & NCDEX, except the proposal of ‘Market Coupling’ the mechanism in electricity trading on exchanges.
As per CERC’s Draft Power Market Regulation 2020 the objectives of Market Coupling is to discover a uniform market-clearing price for the Day-Ahead Market or Real-time Market and optimal use of transmission infrastructure; The algorithm for enabling Market Coupling shall be developed and managed by a designated Market Coupling Operator and implemented with the approval of CERC. The price discovery mechanism shall adopt the principle of maximisation of economic surplus (sum of buyer surplus and seller surplus), taking into account all bid types. The bidding mechanism shall be double-sided closed bid auction.
Prabhajit Kumar Sarkar, MD & CEO, PXIL said: “The rapidly changing framework of the entire power sector demonstrates the key role that power markets have to play. The underlying need for competition in the power markets is therefore gaining acute significance in the industry. A competitive marketplace can thrive on a strong foundation of an enabling market structure like market coupling, fair rules that allow competition to thrive and ensuring ease of participation on various marketplaces.”
