Power Exchange bets on renewable energy; to focus on revival

Power Exchange India Limited (PXIL), a power trading platform, is positioning its stake on renewable energy after its re-launch. It will focus on reviving the Renewable Energy Certificates (REC) market, which has been facing tepid interest from the market.

“Promoters have been keen that they develop different market places. The catch-22 situation was erosion of net worth and finding external financing which was difficult. But FY18 onwards, PXIL has been making profit; the main reason for revival was shifting focus on our strength areas,” Prabhjit Kumar Sarkar, managing director of PXIL told Business Standard.

Sarkar said PXIL’s emphasis primarily has been on term-ahead market (TAM) and RECs in the in last two years.“ and now we have enough liquidity to also have day-ahead spot market on a large scale,” he added.

Power trading market has two platforms in India – PXIL and India Energy Exchange (IEX). IEX holds 95 per cent of the day-ahead spot power trading market. PXIL holds 40 per cent market share in REC and term-ahead market (TAM).

REC was launched in 2010 as a means for companies and states to purchase renewable energy without physically setting up renewable power plants. Project developer can sell the energy produced as REC. One REC represents 1mw-hour of power produced from a renewable energy source and is tradable at power exchanges. It is divided into Solar REC and non-solar REC.

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