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. Nepal was the first country to avail the benefit of buying day ahead power from the power exchange through NVVN Limited. It was also reported that increased efforts will be made to improve power trade in Bhutan and Myanmar in the future
Currently, the CBET with India’s neighbours stands at about 18 billion units conducted through medium-to-long-term bilateral contracts. Of this, India imports 8.7 billion units from Bhutan and exports 2.37 billion units and 7 billion units to Nepal and Bangladesh, respectively. The new announcement is expected to increase power trade with these countries to about 40 billion units by 2022 and 70 billion units by 2027.
In January 2019, the Ministry of Power had issued guidelines to facilitate and promote import and export of electricity and power trading with neighbouring countries under the overall framework of the Central Electricity Regulatory Commission.
In 2020, IEX introduced its green energy power trading platform, where prices followed a pattern similar to conventional power traded at the day-ahead market. In April 2021, the electricity market at the Indian Energy Exchange recorded an all-time high volume of 8,249 million units traded in March 2021.