HPX crosses 5 Billion Units Of Trade In 11 Months Post Launch

India’s third power exchange, Hindustan Power Exchange Ltd. (HPX), has successfully crossed the milestone of 5 Billion Units of power traded within 11 months of its launch. HPX was able to cross this landmark with a rapid increase in trade volume across Contingency and Long Duration Contracts (LDC) segments. The strong growth in members/client base and trading volumes demonstrate the trust and support the platform has been able to garner from power sector participants.

HPX raced to 5 BUs within a span of 173 days with a daily average volume of ~18 MU, post-crossing the historic landmark of 1 BU, which happened within a time frame of 171 days. 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 that witnessed encouraging participation from generators. Since then 75 e-RA tenders have been floated on HPX with a successful contract award in 16 such contracts,  indicating a success ratio of ~21.3% as against an industry average of ~10%.

With over 550 market participants now onboarded, HPX now has almost all the major players across the country on its platform and is poised for an increased market presence in the coming months. HPX garnered a market share of ~35% in April, in the Term Ahead Market (TAM) segment.

The exchange is presently offering trades in all segments of Collective and Continuous transactions including but not limited to 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 offers trading in 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.

HPX ispromoted by PTC India, BSE and ICICI Bank and has a diverse shareholder base represented by state power utilities, central generators, independent power producers, market makers in trading, and power sector consultants.

The gains for the exchange come even as some dust has been raised by government plans to push for market coupling of power trades in the country, a move seen as targeted at IEX, the leading power exchange with a market share of over 90%.