Multiple power exchanges in India -A case study

One of the distinguishing features of the Power Exchange implementation in India is the operation of multiple Power Exchanges in a single market handling physical delivery. Two Power Exchanges are operational and in-principle approval has been accorded to the third Power Exchange by the Central Regulator. In India, a hierarchical model with National, Regional and State Load Despatch Centers (NLOe, RLDC and SLOC respectively) is mandated for System Operation and this has facilitated the implementation of pan-India National level Power Exchanges. Scheduling of trades discovered on multiple Power Exchanges is smooth in case adequate transfer margin is available. In the event of congestion, allocation of available transfer margins between multiple Power Exchanges is an issue which has impact on the overall economy in the grid. Multiple Power Exchanges give multiple price signals, which are showing signs of convergence. In this paper, the authors study the experience gained from the operation of multiple power exchanges in a single physical delivery market in India, allocation ofavailable transfermargins, congestion management and interplay between the bilateral market, day-ahead market in Power Exchanges and the real time market.