The Indian government is considering proposals to allow neighbouring countries such as Bhutan to participate in domestic power deals, including the largest spot power trading platform, the Indian energy exchange (IEX).The idea is to deepen the country's electricity market by boosting trading volumes.
"One proposal is to allow power exporters such as Bhutan to participate in the trade.Therefore, we are considering consultation with the foreign ministry."A K Bhalla, head of India's electricity authority, said in A speech to the 10th anniversary of the Indian energy exchange.
Bhalla added that the government expects more suppliers to enter the system and that the number of registered consumers on exchanges will increase."We should do more to deepen the size of the market so that the share of electricity traded on exchanges will rise from 4 per cent now to 6 per cent in a short period of time."
India generates about 120 billion units of electricity a year, about 10 percent of which is traded on short-term markets.Bilateral trade accounted for 4.7 per cent of transactions, 4 per cent of day-ahead transactions and 1.7 per cent of deviations from the settlement mechanism.
India imported 5.6 billion units of electricity from Bhutan last fiscal year.
Bhalla also said power distribution companies should operate like corporate entities and list on exchanges such as the national stock exchange (NSE) and the Bombay stock exchange (BSE).