The power exchange of the three countries -Hindustan Power Exchange Ltd NSE 0.82 %. (HPX)- Promoted by PTC India Ltd NSE 1.81 %, the Bombay Stock Exchange and ICICI Bank NSE 2.21 % began the operation on Wednesday after receiving approval from the Central Electricity Regulation Commission.

Initial exchange will offer trade in an emergency contract, green contingency contract and renewable energy certificate. This will continue to increase its product portfolio and provide various contracts to overcome the demands of various electric market segments, an official statement said.

The need for the third power exchange has been felt for some time now by buyers and sellers for the discovery of optimized prices and better efficiency in power purchases. HPX will be a smooth platform that has been built on the same technology, which makes the Bombay Stock Exchange the fastest exchange in the world, “said Akhilesh Awasthy, COO, HPX.

Nearly 90% of India’s electricity is traded through a bilateral contract that lasts for 20 years or more between the company’s power generation and utility companies. These contracts do not provide flexibility to sector participants to take advantage of market conditions at different times.

The power exchange gives the platform market participants with various ways for the sale of power and therefore managing their power portfolio efficiently. Introduction to HPX will provide a definite encouragement for th …

The latest technology solutions, efficient price mechanisms and service quality offered on HPX, will act as a differentiator in the Indian electric market,” said Samir Patil, CBO, BSE.