Hindustan Power Exchange Ltd. (HPX), India’s fastest power exchange promoted by PTC India Ltd, Bombay Stock Exchange, and ICICI Bank, has successfully crossed the milestone of 2.5 Billion Units of power traded within 8 months of its launch. HPX was able to cross this landmark with a rapid increase in trade volume across Contingency, Weekly, Monthly, and Long Duration Contracts (LDC) segments. The exchange recently concluded monthly long-duration contracts of 453.7 MU which will be delivered in the months of March and April 23 and is a part of the above volume.
HPX raced to 2.5 BU within a short span of 67 days with a daily average volume of ~18 MU, post crossing the historic landmark of 1 BU, which happened within six months of its launch. This is the fastest increase in volume for the initial few months of the existence of the power exchanges operating in the country. A large part of this volume is attributed to the LDCs, which were introduced on the HPX platform in the month of February. HPX successfully executed the very first Electronic Reverse Auction (e-RA) contract for the Indian Railways, which saw encouraging participation from generators. Since the launch, more than 25+ E-RA tenders have been launched on HPX in just three weeks with the successful execution of 7 e-RAs, and more are in line to be executed.
The LDC segment on HPX is picking up pace because of the support HPX provides for the identification of demand pockets for the Buyers and helping them to optimise their power purchase costs. The team at HPX also works closely with all major generators and traders to ensure encouraging responses to these LDCs and to ensure better liquidity for these contracts. The exchange plays an important role in ensuring the conversion of auctions into successful contracts as well as guaranteed timely payments to the sellers, which is increasing the acceptability of e-RAs’ on HPX.
With roughly 500 market participants now onboard HPX, the exchange has covered almost all the major players across the country and is looking well-prepared for increased market presence in the coming months. Backed by the latest technology and a series of innovative features, the fastest power exchange of India promises to offer speed, transparency, and better price discovery in the execution of trades.
In the Contingency segment, HPX has garnered market share of 30 % on average in the last two months, which went up to 55% on certain days. Since inception, the market share of HPX stands at ~20% in these segments.
The exchange is presently offering trades in Contingency & Green Contingency contracts, Intra-day, Weekly, Monthly, and Any-day contracts in the Term Ahead Market (TAM) along with e-RA based Long Duration contracts for up to 90 days. The exchange is also trading Renewable Energy Certificates (REC) and ESCerts (Energy Saving Certificates) contracts. The Day Ahead Market (DAM), Green Day Ahead Market (G-DAM) & Real Time Market (RTM) are also live at HPX and would be the next focus areas.
HPX is steadily increasing its product portfolio and is set to provide a wide range of contracts to address the demand of different segments of the electricity market.
