{"id":35865,"date":"2023-06-11T07:00:37","date_gmt":"2023-06-11T01:30:37","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=35865"},"modified":"2025-04-21T12:55:34","modified_gmt":"2025-04-21T07:25:34","slug":"power-trading-govt-asks-regulator-cerc-to-begin-process-for-coupling-power-exchanges","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/power-trading-govt-asks-regulator-cerc-to-begin-process-for-coupling-power-exchanges\/","title":{"rendered":"Power trading: Govt asks regulator CERC to begin process for coupling power exchanges"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>About Central Electricity Regulatory Commission (CERC)<\/strong><\/li>\n<li><strong>Power Exchanges in India<\/strong><\/li>\n<li><strong>What will be the Advantages of Coupling the Exchanges?<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>The Ministry of Power has asked the Central Electricity Regulatory Authority (CERC) to initiate the process of coupling multiple power exchanges.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>About Central Electricity Regulatory Commission (CERC):<\/strong><\/h2>\n<ul>\n<li>CERC &#8211; a key <strong>regulator <\/strong>of the power sector in India, is a <strong>statutory body<\/strong> functioning with quasi-judicial status under <strong>the Electricity Act 2003<\/strong>.<\/li>\n<li>It was initially constituted in <strong>1998 <\/strong>under the Ministry of Power&#8217;s Electricity Regulatory Commissions Act, 1998 for &#8211;\n<ul>\n<li><strong>Rationalisation of electricity tariffs,<\/strong><\/li>\n<li>Transparent policies regarding subsidies,<\/li>\n<li>Promotion of efficient and environmentally benign policies, and<\/li>\n<li>Matters connected Electricity Tariff regulation.<\/li>\n<\/ul>\n<\/li>\n<li>CERC was instituted primarily to regulate &#8211;\n<ul>\n<li><strong>The tariff of Power Generating companies <\/strong>owned or controlled by the government of India, and<\/li>\n<li><strong>Any other generating company<\/strong> which has a composite scheme for power generation and interstate transmission of energy, including tariffs of generating companies.<\/li>\n<\/ul>\n<\/li>\n<li>In accordance with the Electricity Act 2003,<strong> the CERC is also responsible for development of the power market in India <\/strong>for efficient, transparent and competitive price discovery through power exchanges.<\/li>\n<\/ul>\n<figure class=\"media\">\n<div data-oembed-url=\"https:\/\/www.youtube.com\/watch?v=TtJo3Ecx_9g\">\n<div><iframe src=\"https:\/\/www.youtube.com\/embed\/TtJo3Ecx_9g\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/figure>\n<p>&nbsp;<\/p>\n<h2><strong>Power Exchanges in India:<\/strong><\/h2>\n<ul>\n<li>At present India has <strong>three power exchanges<\/strong> &#8211; Indian Electricity Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX) <strong>functioning with guidance from the CERC.<\/strong><\/li>\n<li><strong>Indian Electricity Exchange (IEX):<\/strong>\n<ul>\n<li>IEX is approved and regulated by the CERC and has been operating since <strong>2008 <\/strong>and is a publicly listed company with NSE and BSE since 2017.<\/li>\n<li><strong>It is India\u2019s premier energy marketplace,<\/strong> providing a nationwide automated trading platform for the physical delivery of electricity, renewables, and certificates.<\/li>\n<li>It is powered by state-of-the-art, intuitive and customer centric technology, <strong>enabling efficient price discovery and facilitating the ease of power procurement.<\/strong><\/li>\n<li>More recently, IEX has pioneered cross border electricity trade expanding its power market beyond India in an endeavour to create an integrated <strong>South Asian Power Market<\/strong>.<\/li>\n<li>The IEX has the <strong>largest market share of 88% <\/strong>in total power trade at multiple exchanges in India.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Power Exchange India Limited (PXIL):<\/strong>\n<ul>\n<li>It is India\u2019s <strong>first <\/strong>institutionally promoted Power Exchange that provides innovative and credible solutions to transform the Indian Power Markets since 2008.<\/li>\n<li>Both IEX and PXIL have started their <strong>real-time market (RTM)<\/strong> trading platforms for electricity transactions in 2020. The real-time market is a platform widely used across the world.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Hindustan Power Exchange (HPX):<\/strong>\n<ul>\n<li>It is the <strong>new age power exchange<\/strong> in the Indian Electricity Market that provides a comprehensive market platform for different electricity products.<\/li>\n<li>It provides opportunity to market participants to transact in the most equitable and transparent manner <strong>through advanced technology and customised value-added services.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What will be the Advantages of Coupling the Exchanges?<\/strong><\/h2>\n<ul>\n<li>In the present scenario, buyers and sellers at each exchange do trading of electricity and discover <strong>spot price separately at these exchanges<\/strong>.<\/li>\n<li>Market coupling is done to couple different markets operating in different geographies.<\/li>\n<li>After coupling of exchanges, <strong>the price discovery <\/strong>of energy at trading platforms <strong>would be uniform, transparent <\/strong>and is expected to<strong> bring down power tariffs significantly.<\/strong><\/li>\n<li>Government has requested the CERC to initiate the process of consultation and finalisation of coupling.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is the Electricity Act 2003?<\/strong><\/h3>\n<p>The act covers major issues involving generation, distribution, transmission and trading in power. The Act delicenses power generation completely (except for all nuclear and hydro-power projects over a certain size).<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Q2) What is the Central Electricity Authority (CEA) of India?<\/strong><\/h3>\n<p>It advises the government on policy matters and formulates plans for the development of electricity systems. It is a statutory organisation constituted under the Electricity Supply Act 1948, which has been superseded by the Electricity Act 2003.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.thehindu.com\/business\/power-trading-govt-asks-regulator-cerc-to-begin-process-for-coupling-power-exchanges\/article66954653.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Govt asks regulator CERC to begin process for coupling power exchanges<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CERC is responsible for development of the power market in India for efficient, transparent and competitive price discovery through power exchanges<\/p>\n","protected":false},"author":5,"featured_media":35866,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-35865","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=35865"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/35866"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=35865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=35865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=35865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}