Big Benefits of Online Trading

Big Benefi ts of Online Trading Vishal Pandya, Director, REConnect Energy, shares his thoughts on the current scenario about online green power trading in India, with SustainabilityNext

What’s the size of green power market today and how much of that is traded?

Of 30 GW of renewable energy (RE) capacity installed so far, about 5 to 5.5 GW of RE is supplying power under open-access/captive transactions. Most of these have been handled through either local brokers or directly between a generator and a consumer. There is no organized marketplace available at the moment. Now, while the country is aiming to achieve 175 GW of total installed capacity in next 6-8 years, and the growing trend among the generators is to opt for direct contract with bulk consumers, we can expect green power market in India to reach scale of 30-40 GW which would also include roof-top solar market.

What will be the saving for utilities/ consumer by going online – away from brokerages?

The marketplace is expected to bring up scale and faster execution and hence lower transaction cost for buyers and sellers to begin with. This is where a generator can gain significantly. Further, with increased competition, consumers can expect better tariffs than what otherwise some broker would be able to get only from few limited sources.

What are the global best practices in online trading of green power, which India needs to adopt/adapt?

So far, is a discovery platform for over the counter contracts (OTC) market. The transactions happen only after face-to-face meetings with counter parties. If we can add up features like payment security and assured off-take through a large scale aggregation, it would bring in comparison with likes of where B2B transactions are carried out through a secure online settlement system.

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