NTPC plans to acquire 5% equity stake in PXIL
POWER & RENEWABLE ENERGY

NTPC plans to acquire 5% equity stake in PXIL

Energy major NTPC is planning to acquire a 5% equity stake in Power Exchange of India Ltd (PXIL) that renders different electricity trading options, a senior authority told the media.

The PXIL is the nation's first institutionally promoted power exchange, which has been rendering several electricity trading solutions and linking buyers and sellers since 2008.

A senior authority told the media that NTPC has plans "to purchase up to 5% equity stake in PXIL. The decision has been taken considering the government's aim to boost the share market to 25% of the total electricity supply in India by 2023-24. NTPC cannot acquire over a 5% equity stake in the PXIL as it could additionally be a seller or buyer on the trading platform.

The government plans to raise the share of the spot power market in the total electricity supply in the nation to 25% by 2023-24. It is expected to be part of the draft National Electricity Policy (NEP). An expert group appointed by the Power Ministry has suggested developing the size of short-term power trading from about 5% presently to 25% by 2023-24. The power ministry is reportedly vetting the suggestion of the expert panel submitted in October 2021.

As per the Central Electricity Regulatory Commission (CERC), the share of the short-term market is estimated to be 10% of the total electricity acquired in 2019-20. The remaining 90% of the total power supply was acquired primarily by discoms through long-term contracts and short-term intra-state deals.

As per the industry data, short-term trading is about 14-15% of the total power supply in India, and most of that is bilateral PPAs (power purchase agreements) while the exchange trading is 5%. Government plans to boost this 5% to 25% by 2023-24.

Image Source

Energy major NTPC is planning to acquire a 5% equity stake in Power Exchange of India Ltd (PXIL) that renders different electricity trading options, a senior authority told the media. The PXIL is the nation's first institutionally promoted power exchange, which has been rendering several electricity trading solutions and linking buyers and sellers since 2008. A senior authority told the media that NTPC has plans to purchase up to 5% equity stake in PXIL. The decision has been taken considering the government's aim to boost the share market to 25% of the total electricity supply in India by 2023-24. NTPC cannot acquire over a 5% equity stake in the PXIL as it could additionally be a seller or buyer on the trading platform. The government plans to raise the share of the spot power market in the total electricity supply in the nation to 25% by 2023-24. It is expected to be part of the draft National Electricity Policy (NEP). An expert group appointed by the Power Ministry has suggested developing the size of short-term power trading from about 5% presently to 25% by 2023-24. The power ministry is reportedly vetting the suggestion of the expert panel submitted in October 2021. As per the Central Electricity Regulatory Commission (CERC), the share of the short-term market is estimated to be 10% of the total electricity acquired in 2019-20. The remaining 90% of the total power supply was acquired primarily by discoms through long-term contracts and short-term intra-state deals. As per the industry data, short-term trading is about 14-15% of the total power supply in India, and most of that is bilateral PPAs (power purchase agreements) while the exchange trading is 5%. Government plans to boost this 5% to 25% by 2023-24. Image Source

Related Stories

Gold Stories

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 86574 75330

Join us Telegram

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back