Indian Energy Exchange Starts Cross-border Electricity Trade Platform
19 April 2021
The Indian Energy Exchange (IEX) has launched the Cross Border Electricity Trade (CBET) on its platform. “This is a first-of-its kind initiative for the exchanges to expand their power markets beyond India to the South Asia region towards building an integrated South Asian regional power market,” underscored the news release. The IEX aims to provide the most competitive benchmark for power prices and valuable signals for the value chain. It will work closely with designated nodal agencies for cross border electricity trade to facilitate inter-country power trade through the exchange market.
The NTPC Vidyut Vyapar Nigam Ltd. (NVVN), the nodal agency for cross border trading of power with Bangladesh, Bhutan and Nepal, has secured approval from India’s Central Electricity Authority (CEA) to participate in the day-ahead market on the CBET. India’s power trade with Bangladesh, Bhutan, and Nepal, is expected to increase to about 40 BU (billion units) by FY22 and 70 BU to FY 27, according to a study by the Integrated Research and Action for Development (IRADE). India’s current cross-border trade with its neighbors stands at about 18 BU conducted through medium to long-term bilateral contracts.
Nepal is the first country to tap into the cross-border electricity trade in the day-ahead electricity market, shared Mr. S N Goel, Chairman and Managing Director, IEX, as he welcomed the country to the CBET. India has a large installed power generation capacity base of 382 gigawatts and peak demand of about 185 GW. As a power surplus nation, India can lead the regional power market development and make efforts towards enhancing the energy access and security among neighboring nations in the region, he noted.