Real-Time Power Trading Will Offer Competitive Prices, Says PTC India’s CMD
A Power Plant (Photographer; Prashanth Vishwanathan/Bloomberg)

Real-Time Power Trading Will Offer Competitive Prices, Says PTC India’s CMD

The electricity regulator’s plan to replace the current day-ahead mechanism of power trading with a real-time one will offer more competitive prices and allow generators to participate in the market, according to Deepak Amitabh, chairman and managing director of PTC India Ltd.

“It’s really going to be a welcome change because what the Central Electricity Regulatory Commission is trying to do is issuing an enabler towards market development,” Amitabh told BloombergQuint in an interview, adding that this will expedite power trading.

The mechanism—expected to launch from April 1—will allow better portfolio management by power distribution and generating companies and other consumers, a research note by Emkay Global Financial Services said.

“For over-the-counter market operators, for people in power exchanges, as well as in bilateral platform markets, this gives an opportunity to hedge counter-party risks,” he said, adding that this mode offers the option to cover counter-party risks as they are happening. “This will lead to the creation of a lot of structured products, which is the regulatory objective of any OTC market participation.”

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