CEA Amends Norms To Offer RTM For Cross-Border Power Trading

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The Central Electricity Authority (CEA), in its recent order, has amended the procedures for approval and facilitation of the import and export of electricity with neighbouring countries. The order said that the move was taken to accommodate the participation of the Real-Time Market (RTM) segment in addition to the existing Day-Ahead Market (DAM) for electricity trading. 

The order said the ministry, on July 26, 2023, conveyed the participation of entities of neighbouring countries in the RTM segment of the Indian Power Exchange. The latest order, issued by the Central Electricity Authority (CEA), said that to facilitate the transfer of power through the RTM segment of the Indian Power Exchanges, it amended the “procedure for approval and facilitating import/export (cross border) of electricity by the designated authority” norms, issued on February 26, 2021. 

The new order proposed to delete Clause 6.5 (ii) of the 2021 order, which talked about the eligibility of the power exchanges which can operate in cross-border electricity transactions. This clause talked about the eligibility of Indian entities trading in the Day-Ahead Market (DAM) and made them eligible for cross-border power transactions. 

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The new order also proposed changes in Clause 6.5 (iv), which discusses the eligibility of participation in Indian Power Exchanges. At the same time, the older norms used the term “Indian Power Exchange” to facilitate cross-border power trading. The new norms changed eligibility and terms to “power exchanges (DAM/RTM or both DAM and RTM segment.”

The amended Clause 6.5 (iv) said, “Any Indian power trader, on behalf of any Entity of neighbouring country, may trade in Indian Power Exchanges (DAM/RTM/Both DAM and RTM segment), after obtaining approval from the Designated Authority, up to specified quantum (MW) and duration, provided, however, that the entity on behalf of where the Indian Power Trader is trading belongs to the neighbouring country which has an agreement on cooperation in the power Sector with India, and the generating asset from which power is being traded is also owned/controlled by the said country having agreement on Power cooperation with India.” 

Indian Power Exchanges like the IEX are involved in trading electricity with some neigbouring countries. Some of the country’s power exchanges have already made development of power trading with some of them and works are on to expand it too. Some of the targeted countries for this currently are Nepal, Bhutan and Bangladesh from the perspective of Indian power exchanges. 

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