The Union power ministry has directed the Central Electricity Regulatory Commission (CERC) to initiate the process of “market coupling” of power exchanges, in order to have uniform prices across multiple exchanges.
While the decision has been hailed by some analysts saying it could improve price discovery, Indian Energy Exchange (IEX), the largest platform handling more than 90% of power deals in India, said it will “kill innovation.” Citing many stakeholders want market coupling of multiple power exchanges, the ministry, in a letter dated June 2, directed the regulator to initiate the process of implementation of market coupling.
“CERC is requested to take suitable action, so that the process of consultation and the finalisation of the construct for its implementation is done expeditiously and the same can be implemented,” the ministry’s letter said.
