The first Indian power exchange, Indian Energy Exchange(IEX), was approved in principle by India's power regulator Central Electricity Regulatory Commission (CERC) in Sept. 2007.
Power Trading Corp. (PTC) and market technology firm Financial Technologies (FTIL) are the leading entities behind the New Delhi-based online power trading exchange. FTIL is also a major backer of the country's largest energy and commodities exchange, the Multi Commodities Exchange (MCX), where 92% of India's energy futures trading currently takes place.
In 2006, the Indian power market had about 15-billion kWh of energy traded with most of them being bilateral, interstate transactions. Another encouraging factor is the growing number of market players, with about 32 buying entities and 37 selling entities participating in physical power trading.
The promising prospects of the Indian power market became more evident with the application of another power exchange by the National Thermal Power Corp. (NTPC) and National Commodity & Derivatives Exchange (NCDEX).
It would be interesting to see the competitiveness of two exchanges operating in the same geography. There is no empirical evidence yet of two parallel exchanges operating successfully in the energy sector.
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