With the improvement in the power trading platform, the Indian Energy Exchange (IEX) also commenced Cross Border Electricity Trade (CBET). It also mainly helps to easily get the better expansion of the power resource generation. These also help to exchange on expanding the power market even beyond the country to across various South Asia region. With the increase in the trading options the company also becomes high moving towards the integrated South Asian regional power market.
Government designated nodal agency with the CBET and these have been implemented by the fully-owned subsidiary of NTPC limited called the NTPC Vidyut Vyapar Nigam Ltd (NVVN). Indian Energy Exchange (IEX) secured approval for Nepal for easily participating day-ahead market on the IEX.
Newly Established CBET:
Union ministry of power issued guidelines to make the import/export of the electricity. These mainly set the best trading option which provided the policy framework for the newly established CBET. By following the guidelines, exporters of coal-based power that not only suitable for importing the coal but also suitable for mining.
Central Electricity Regulatory Authority (CERC) also states that the new regulations with the ‘Cross-border electricity trade’. These also make the trade of electricity to neighboring countries much more seamless. It is also mainly included with setting up a nodal agency for the bilateral trade of electricity. These are also mainly set for monitoring as well as planning by the central agencies along with similar technology.
Mohit Bhargava, CEO of NVVN stated that Nepal avails these benefits by buying the power from power exchange. This NVVN process is one of the first of its kind and this also involves with a new beginning in the South Asian region. Indian Energy Exchange (IEX) trading option also increased with the most awaited attributes to be set alongside with it.
NVVN mainly has experience in power trading which mainly provides extensive expertise with the power trading option. These also enabled with the complete working closely with Bhutan and Myanmar countries in the near future. NVVN exports the power to Bangladesh as well as Nepal. These also extensively facilitates with major settlements alongside the grid operation.
CBET along with many other neighboring countries stands about 18 Billion Units (BUs). These are extensively conducted all throughout medium and long bilateral contracts. India is also set for importing to more than 8.7 BU from Bhutan as well as exports 2.37 BU to Nepal and 7 BU to Bangladesh. Based on the IRADe study stating Power trading option with these countries is expected to increase more than 40 BU by FY22 as well as 70 BU to FY27. Before trading, you can find more stock information at https://www.webull.com/quote/etflist.