Lok Sabha Question No. 376 (STARRED), answered on 2019-07-18
Subject: Power Exchanges
Ministry: POWER
Asked by: Y. S. Avinash Reddy, Komati Reddy Venkat Reddy

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.376 TO BE ANSWERED ON 18.07.2019

## POWER EXCHANGES

- *376.   SHRI Y.S. AVINASH REDDY: SHRI KOMATI REDDY VENKAT REDDY:

Will the Minister of POWER be pleased to state:

- (a) whether the Government  has  setup Power  Exchanges  in the power/energy sector as stressed assets have been increasing year by year in this sector;
- (b) if so, the details thereof;
- (c) whether introduction of Power Exchanges has helped the sector in reducing the losses and if so, the details thereof;
- (d) whether  the  desired  objectives/results  have  been  achieved  by setting up these Power Exchanges; and
- (e) if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE  ENERGY  AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

(a) to (e) : A Statement is laid on the Table of the House.

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STATEMENT STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION NO.376 TO BE ANSWERED IN THE LOK SABHA ON 18.07.2019

REGARDING POWER EXCHANGES.

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(a) to  (e) :   As per the Sections 66 of Electricity Act, 2003, the Appropriate Commission shall endeavour to promote the development of a market (including trading) in power in such manner as may be prescribed. The  Power exchange is a Market Infrastructure Institution that provides a fair and competitive market place for trading in electricity. There are two power exchanges in the country i.e. Indian Energy Exchange Limited (IEX) and Power Exchange of India Limited (PXIL), which were set up in the year 2008. All  Discoms,  Generation  utilities  including  IPPs,  Traders  and Open Access consumers spread across the country, actively participate in the  exchanges  to  meet  their  power  requirements.  A  robust  payment security  mechanism  adopted  by  the  Power  exchanges  has  led  to  no default/delay in payment. Power  Exchanges  have  also  played  key  role  in  supporting revival of stressed thermal power plants (without PPAs) by providing them a  platform  to  sell  power  though  Power  exchanges.  Competitive  price discovery  takes  place  at  the    power  exchanges  in  India.  The    power exchange transactions are around 3.5% - 4% of total generation. The year-on-year data of weighted average price and volume of  the  electricity  transacted  through  Power  Exchanges  is  at  Annexure. The  volume  of  electricity  transacted  through  Power  Exchanges  has increased  at  an  annual  growth  rate  of  34%  during  2008-09  to  2018-19, whereas the weighted average price of the electricity transacted through Power Exchanges has declined from Rs. 7.49/kWh in 2008-09 to Rs. 4.26/kWh in 2018-19.

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ANNEXURE

ANNEXURE REFERRED TO IN PARTS (a) TO (e) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO.376 TO BE ANSWERED IN THE LOK SABHA ON  18.07.2019 REGARDING POWER EXCHANGES.

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The year-on-year data of weighted average Price and Volume of the Electricity transacted through Power Exchanges:

| Year    |   Volume of Electricity transacted through Power Exchange* (BU) |   Weighted Average Price of Electricity transacted through Power Exchange (Rs./kWh) |
|---------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------|
| 2008-09 |                                                            2.77 |                                                                                7.49 |
| 2009-10 |                                                            7.19 |                                                                                4.96 |
| 2010-11 |                                                           15.52 |                                                                                3.47 |
| 2011-12 |                                                           15.54 |                                                                                3.57 |
| 2012-13 |                                                           23.54 |                                                                                3.67 |
| 2013-14 |                                                           30.67 |                                                                                2.9  |
| 2014-15 |                                                           29.4  |                                                                                3.5  |
| 2015-16 |                                                           35.01 |                                                                                2.72 |
| 2016-17 |                                                           41.12 |                                                                                2.5  |
| 2017-18 |                                                           47.7  |                                                                                3.45 |
| 2018-19 |                                                           53.52 |                                                                                4.26 |

*Volume  includes  electricity  transacted  through  day  ahead  and  term ahead market at both the power exchanges i.e. IEX and PXIL

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