Power exchanges demoted to aggregators as traders like PTC take the lead

New Delhi: In a landmark development, the Central Electricity Regulatory Commission (CERC) has approved the implementation of Market Coupling in India’s power sector. This reform is set to be rolled out in phases, beginning with the Day-Ahead Market (DAM) from January 2026.

Key Implications:

Exchanges relegated to aggregators:

Power exchanges such as Indian Energy Exchange (IEX), Power Exchange India Ltd. (PXIL), and Hindustan Power Exchange (HPX) will no longer compete on price discovery. Instead, they will operate as market access platforms—merely aggregating buy/sell bids and disseminating information.

Uniform market clearing price (MCP):

Bids from all exchanges will be pooled centrally, and a single MCP will be determined for each time block. This erodes the competitive edge and valuation premium previously enjoyed by dominant platforms like IEX.

Democratization of access:

The policy is designed to level the playing field, making market access more uniform. However, it also commoditizes the role of exchanges, stripping them of pricing power and differentiation.

Rise of power traders like PTC India:

In contrast, power traders—especially established players like PTC India Ltd.—are expected to benefit. Their ability to leverage arbitrage opportunities, optimize positions, and manage bilateral contracts will become more valuable in the new regime.

Strategic shift in value chain:

The center of gravity in India’s short-term power market is shifting—from platform-centric price discovery to participant-driven arbitrage and trading strategies.

The approval of market coupling marks a tectonic shift in the structure of India’s power markets. While it aligns with global best practices for market efficiency and transparency, it significantly alters the business models of power exchanges. The change opens up new strategic space for traders like PTC India, who may now emerge as the primary profit-makers in the short-term power market ecosystem.

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