New Delhi, September 27, 2022: PXIL introduced the ‘Any-Day Single Sided Reverse Auction Contract’ today. This contract enables Buyers to procure power through a reverse auction process to meet their power requirement for period up to 90 days ahead. The introduction of this Reverse Auction based Contract is in line with the approval granted by Hon’ble Central Electricity Regulatory Commission (CERC) vide Order in Petition no 229/MP/2021 dated 07.06.2022.
In this Contract, a Buyer can initiate a Reverse Auction event by prescribing requirements in terms of quantum (in MW), minimum quantum from any Seller (in MW), delivery duration (‘T+2’ to ‘T+90’) and date of reverse auction event.
The Reverse Auction happens in two stages, i.e., Initial Price Offering (IPO) and Reverse Auction (RA). Interested Sellers can submit their Offers specifying quantum (in MW) and price (in Rs. /MWh) in the IPO stage. Later in the Reverse Auction stage, the qualified Sellers may improve their Offers within defined period of two-hour session.
On completion of Reverse Auction, the Offers would be ranked from ‘lowest-to-highest’ price till the buyer’s requisitioned quantum is fulfilled. Buyer then has a right to accept or reject the ranked Offers. On receipt of acceptance from the Buyer, the Exchange will submit application for scheduling delivery of power.
Commenting on the development, Mr. Prabhajit Kumar Sarkar, MD & CEO, Power Exchange India Limited (PXIL) said, “The introduction of ‘Any-Day Single Sided Reverse Auction Contract’ marks a new chapter in the Power exchange based transaction in the country as it allows greater planning, effectiveness, and transparency in power transactions. With commencement of 90-day contracts, power will be traded for a longer duration allowing Discoms to meet their power requirement in transparent and cost-effective way.”
The ‘Any-Day Single Sided Reverse Auction Contract’ introduced from today, enables participants to transact in Conventional power and in different types of Renewable energy i.e., Solar, Wind, Hydro, and other Renewable sources enabling Buyers to meet their Renewable Purchase Obligations as well.