The Central Electricity Regulatory Commission (CERC) has granted approval to Power Exchange India Limited (PXIL) for the introduction of a High Price Day Ahead Market (HP-DAM) on its PRATYAY platform. The decision is in line with Regulation 25 of the Central Electricity Regulatory Commission (Power Market) Regulations, 2021 (PMR 2021).
PXIL sought the approval in a petition, which included several requests, such as the introduction of HP-DAM as a segment within the Integrated Day Ahead Spot Contract, amendment of Business Rules for the inclusion of contract specifications for HP-DAM, and appropriate orders or directions to POSOCO/NLDC for the introduction of the new segment.
The Commission found that the introduction of HP-DAM may provide new opportunities for high variable cost generators, which may have been unable to participate in the Day Ahead Market (DAM) due to existing price ceilings. The approval is aimed at ensuring that such price caps do not drive high-cost generators away from the market.
The Commission has also directed that the eligibility of generating stations to participate in HP-DAM should be subject to periodic review. Initial eligibility will include gas-based power plants using imported RLNG and Naphtha, imported coal-based power plants, and battery energy storage systems (BESS).
The floor price for HP-DAM has been set at ‘0’, while the upper price limit has been set at Rs. 20/kWh until further orders. This is in line with the approval granted to the Indian Energy Exchange (IEX) in a similar petition.
Regarding the implementation of market coupling for the Integrated Day Ahead Market (IDAM), the Commission found that the matter needs wider consultation and is beyond the scope of the current petition.