To expand power markets beyond India, the Indian Energy Exchange (IEX) has introduced cross-border electricity trade (CBET) on its platform. The initiative is a step towards building an integrated South Asian regional power market.
Mercom had earlier reported that in January 2019, the Ministry of Power had issued guidelines to facilitate and promote import and export of electricity and power trading with neighboring countries under the overall framework of the Central Electricity Regulatory Commission (CERC).
Following the notification of CBET Regulations by CERC in 2019 and the recent notification of CBET Rules in March 2021 by the Central Electricity Authority (CEA), NTPC Vidyut Vyapar Nigam (NVVN) secured approval from the CEA for Nepal’s participation in the day-ahead market on the Exchange.
Currently, the CBET with neighboring countries of India stands at about 18 BU conducted through medium-to-long-term bilateral contracts. As per the CEA and CERC, as of date, India imports 8.7 BU from Bhutan and exports 2.37 BU and 7 BU to Nepal and Bangladesh, respectively.
The power trade with these countries is expected to increase to about 40 BU by the financial year (FY) 2022 and 70 BU by FY 2027, according to a study by Integrated Research and Action for Development (IRADe).
[source: mercomindia.com, 19/04/2021]