About Power Exchange India Limited (PXIL)

A) Introduction

Power Exchange India Limited (PXIL) is one of India's premier power exchanges, providing an electronic platform for trading electricity. Established in 2008, PXIL is a public-private initiative under the aegis of the Power Market Regulations.The exchange connects power generators, distribution companies, and other market participants, enabling efficient and competitive electricity procurement.

B) What PXIL Does

PXIL facilitates the trading of electricity and related products through its platform. It operates under the supervision of the Central Electricity Regulatory Commission (CERC). The exchange offers market participants a platform to trade in various electricity market segments, including:

1. Day-Ahead Market (DAM): A marketplace for buyers and sellers to trade electricity for the next day.
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3. Term-Ahead Market (TAM): Includes contracts for electricity delivery up to 11 days in advance.
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5. Renewable Energy Certificates (REC): A mechanism for promoting renewable energy, enabling obligated entities to meet their Renewable Purchase Obligations (RPO).
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7. Energy Saving Certificates (ESCerts): Certificates traded by companies under the Perform, Achieve, and Trade (PAT) scheme, incentivizing energy efficiency.

C) Business Model

PXIL's business model revolves around providing a platform for electricity trading while charging transaction fees for services rendered. Its operations focus on:

1. Platform Access Fees: Fees charged to participants for registering and using the exchange.
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3. Transaction Fees: Based on the volume of electricity traded, providing PXIL with a steady revenue stream.
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5. Innovation: PXIL focuses on launching new products, such as Green Day-Ahead Markets, to meet evolving energy demands.

Additionally, the company earns revenue by providing ancillary services, such as facilitating Renewable Energy Certificate trading and providing data analytics to market participants.

D) Investors in Power Exchange

As of December 2024, PXIL is promoted by key stakeholders in the Indian power sector, which include:

1. National Stock Exchange of India (NSE): A leading stock exchange, providing financial backing and operational expertise.
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3. National Commodity and Derivatives Exchange Limited (NCDEX): A prominent player in commodity exchanges, adding strategic value.
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5. In January 2022, NTPC Vidyut Vyapar Nigam Ltd. (NVVN), a wholly-owned subsidiary of NTPC Ltd., acquired a 5% equity stake in PXIL.