Indian Energy Exchange (IEX), today announced the commencement of trade in the High Price Day Ahead Market (HP – DAM) segment. The Central Electricity Regulatory Commission (CERC) in its order dated 16th February 2023, approved the introduction of HP-DAM in the Integrated Day Ahead Market segment in the Power Exchange. This will provide a new avenue to the high variable cost generators who may not have been able to participate in DAM due to the existing price ceiling of Rs.12/kWh.
HP-DAM segment was launched by Shri. R.K. Singh, Honourable Minister of Power and New and Renewable Energy, during a webinar held on 9th March 2023. Speaking at the launch of HP-DAM, the Honourable Power Minister congratulated all the stakeholders for working collaboratively and envisioning the HP-DAM segment. He noted that it is a step towards reforming the evolving power market by meeting the current demand through optimum utilisation of the power generation capacity.
HP-DAM will enable high-cost generators, falling under the category – Gas based Power Plants using imported RLNG and Naphtha; Imported Coal based Power Plant using imported coal; and Battery Energy Storage Systems – to participate in the market. These generators will now be able to sell electricity on IEX platform, with a price range of ‘0’ to Rs. 50/unit. This unique segment will bring such capacity on the spot markets in a high-demand scenario.
Speaking on the occasion Shri SN Goel, Chairman and MD, Indian Energy Exchange said, “The High Price Day Ahead Market is an innovative initiative by the Honourable Ministry of Power and Regulator to bring additional power in the market by use of power generated from highcost fuels, in the high demand period.”
The price discovery for HP-DAM will be on Double-Sided Closed Auction, same as for G-DAM, DAM and RTM segments. HP-DAM will function as part of the integrated DAM, with sequential clearing of GDAM first, followed by DAM and finally HP-DAM. Buyers and eligible sellers will have the option to transfer unselected bids in DAM to HP-DAM, with the flexibility to specify different prices and quantum for different segments at the time of bidding. There will be a single window for bidding as per the existing timeline of 10 am to 12 noon.
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