It is now very much clear that more than one power exchange is going to be launched in the country. The NSE and NCDEX together have filed an application for setting up a power exchange. It is learnt that the NTPC is in consultation with other parties to set up another exchange. Already the team of Financial Technologies and PTC India has decided to set up the Indian Energy Exchange (IEX). The Electricity Act 2003 allows for the setting up of pan India power exchanges for the trading of electricity.
The IEX was set to be launched by February end, but has been postponed due to technical reasons. The IEX has secured the expertise from the Scandinavian Electricity Exchange Nord Pool ASA for operational expertise to ensure that the kick-starting the bourse goes without a hitch. The Financial Technology led exchange has already got expression of interest from large number of power producers and distributors.
The power exchange carries out future trading in power and will be a platform for power trade in the coming years. The exchange is aimed to function like the commodity exchanges like the MCX, NCDEX and NMCE. But at present commodity trading is under criticism from many quarters of inflating prices of trading commodities.