CEA supports removal of intraday contracts from power exchanges
POWER & RENEWABLE ENERGY

CEA supports removal of intraday contracts from power exchanges

The Central Electricity Authority (CEA) has endorsed the Central Electricity Regulatory Commission’s (CERC) draft order, which addresses issues related to price discovery, market liquidity, and contract structuring on power exchanges. The draft proposes the removal of intraday contracts due to their low liquidity, as well as the growing popularity of the real-time market as an alternative. CEA believes this move will help consolidate and streamline the fragmented market.

The Term Ahead Market (TAM) allows for short-term power procurement for delivery periods ranging from T+2 to T+90 days. CEA’s review of this market revealed irregular trading patterns, such as limited transactions and last-minute bids, raising concerns over possible market manipulation. CEA proposes extending the bidding window to curb last-minute activity and suggests limiting trading days for monthly and weekly contracts to improve liquidity.

Additionally, CEA has proposed capping the number of daily contract deliveries to six days per trading session, allowing greater standardization and competition in the market.

The DAC market, which operates from 13:00 to 23:30, faces similar liquidity issues, exacerbated by a long trading window and the ability for participants to submit customised delivery bids. CEA recommends restructuring the DAC into three sessions: 13:00-15:00, 17:00-19:00, and 21:00-23:00, to improve liquidity and cater to late-day contingencies. The CEA also suggests eliminating the non-standard DAC Dynamic product and prioritising national-level bids to address transmission congestion.

The draft order outlines timelines for ADSS contracts but only sets maximum time limits for key stages like the bid-receiving period and IPO auction. CEA recommends introducing minimum time limits for better transparency and competition, as well as restricting the reverse auction to regular business hours.

These recommendations aim to streamline the power trading market, enhance liquidity, and promote competitive bidding, ultimately supporting the growth of a more efficient and transparent power sector. (Mercom)

The Central Electricity Authority (CEA) has endorsed the Central Electricity Regulatory Commission’s (CERC) draft order, which addresses issues related to price discovery, market liquidity, and contract structuring on power exchanges. The draft proposes the removal of intraday contracts due to their low liquidity, as well as the growing popularity of the real-time market as an alternative. CEA believes this move will help consolidate and streamline the fragmented market. The Term Ahead Market (TAM) allows for short-term power procurement for delivery periods ranging from T+2 to T+90 days. CEA’s review of this market revealed irregular trading patterns, such as limited transactions and last-minute bids, raising concerns over possible market manipulation. CEA proposes extending the bidding window to curb last-minute activity and suggests limiting trading days for monthly and weekly contracts to improve liquidity. Additionally, CEA has proposed capping the number of daily contract deliveries to six days per trading session, allowing greater standardization and competition in the market. The DAC market, which operates from 13:00 to 23:30, faces similar liquidity issues, exacerbated by a long trading window and the ability for participants to submit customised delivery bids. CEA recommends restructuring the DAC into three sessions: 13:00-15:00, 17:00-19:00, and 21:00-23:00, to improve liquidity and cater to late-day contingencies. The CEA also suggests eliminating the non-standard DAC Dynamic product and prioritising national-level bids to address transmission congestion. The draft order outlines timelines for ADSS contracts but only sets maximum time limits for key stages like the bid-receiving period and IPO auction. CEA recommends introducing minimum time limits for better transparency and competition, as well as restricting the reverse auction to regular business hours. These recommendations aim to streamline the power trading market, enhance liquidity, and promote competitive bidding, ultimately supporting the growth of a more efficient and transparent power sector. (Mercom)

Next Story
Infrastructure Transport

Vaduthala-Perandoor Bridge Project: Funds Allotted for CRZ Study

In a step towards constructing the long-awaited Vaduthala-Perandoor bridge, the Kerala state government has allocated Rs 1.5 million to conduct a Coastal Regulation Zone (CRZ) study for the project. This allocation is part of the Rs 325 million administrative approval granted earlier. Ernakulam MLA T.J. Vinod stated that the National Centre for Earth Science Studies (NCESS) in Thiruvananthapuram is tasked with preparing the CRZ study and report. The report will be submitted to the Kerala Coastal Zone Management Authority (KCZMA) for approval, which is essential before initiating the tendering..

Next Story
Infrastructure Transport

Hyderabad Metro Phase-II to Add 76.4 km, 54 Stations

The Phase-II expansion of the Hyderabad Metro will add 76.4 kilometers across 54 stations at a cost of Rs 242.69 billion, according to NVS Reddy, Managing Director of HAML and HMR. Announced on Monday, this expansion responds to increasing demand for enhanced urban transit infrastructure. Part A of the project includes five new corridors: Shamshabad to RGIA Airport, Raidurg to Kokapet Neopolis, MGBS to Chandrayangutta (Old City), Miyapur to Patancheru, and LB Nagar. Part B involves extending the RGIA line to the proposed Fourth City (Skill University), creating a sixth corridor. “These cor..

Next Story
Infrastructure Urban

Kochi's Infopark Connectivity Set for Major Boost

Connectivity to Infopark is set to improve significantly with enhanced transport services and progress on key infrastructure projects. Tech professionals at the campus, which employs nearly 75,000 people and over 1 lakh when including Smart City and Kinfra Park, eagerly anticipate the introduction of e-feeder bus services. "Feeder buses have been a long-standing demand. Their deployment will encourage many employees to switch to water transport. However, last-mile connectivity remains a challenge," said Anish Pandalani, state president of Progressive Techies. He also urged for improved KSRTC ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000