Power Exchange India Limited (PXIL), which is the power trading platform of National Stock Exchange (NSE), after its relaunch, will now be focussing on reviving the Renewable Energy Certificates (REC) market.
PXIL faced financial crisis in 2017 when its net worth eroded. During the time promoters of NSE and NCDEX wanted to shut it down. In the same period it came up with initial public offering (IPO) in NSE.
Prabhjit Kumar Sarkar, managing director of PXIL, said, “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.”
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.”
Power trading market has two platforms in India namely 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 as well as term-ahead market (TAM).
REC was launched in 2010. For the help of 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. It is tradable at power exchanges.
It is also a means to fulfill Renewable Purchase Obligation (RPO) notified under the National Tariff Policy. Under which it is obligatory for state-owned distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy.
Sarkar, said, “RECs still remain a difficult territory. Lack of interest from the market and nil buyers crashed the REC market in 2017 with more than 10 million unsold RECs. Sarkar said since then the number of RECs available for sale has come down on trading platforms, but that has reduced the size of market.”
The GMR Energy, Tata Power, and JSW Energy, state-owned Power Finance Corporation, Gujarat Urja Vikas Nigam Limited (GUVNL) and West Bengal State Electricity Distribution Company, are the companies that form part of the PXIL board are the companies that form part of the PXIL board are GMR Energy.
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