Indian Energy Exchange has got final approval from the Central Electricity Regulatory Commission (CERC) to introduce trading in high price day ahead market (HP-DAM) contracts.
The eligible sellers for the HP-DAM category would be gas based power plants using imported regasified liquefied natural gas and naphtha, imported coal based power plant using imported coal, and battery energy storage systems. Other power plants operating on low-cost fuel will not be allowed to sell electricity on the new market segment. The category of plants eligible to participate in HP-DAM shall be subject to quarterly review by the central commission. The power regulator has fixed a ceiling of Rs 50 per unit of electricity. Last year, CERC had introduced price cap of Rs 12 per unit of electricity for all spot power market segments, which is still continuing.