Naveen Singh: Vice-President and Head, Business Development, Strategy and Policy Advocacy, Hindustan Power Exchange

Naveen Singh has over 18 years of experience ac­ro­ss different facets of the power sector. He has held key positions at Sterlite Po­w­er, Adani, IEE and Price­water­houseCoopers in the past. He curre­ntly heads the business de­velopment, st­ra­­­te­­gy and po­licy advocacy functions at the Hindustan Power Exchange (HPX). Under his leadership, HPX has been able to capture about 35 per cent share in the term-ahead market within 10 months of its launch.

Singh notes, “The power trading market is getting ready for a major transformation. New long-term contracts for firm baseload supply have decreased over the last few years. The focus is shifting towards renewable energy. With fast increasing de­ma­nd, there is a need for short-term supply options. Gene­rators that were facing financial trouble due to limited Case 1 tenders during the last de­cade are now happy to have merchant capacity, which is giving them good returns. The share of the short-term market, which remained in the 9-10 per cent range for almost a decade till 2019-20, has seen a major breakout and was about 12.4 per cent in 2021-22 and about 12 per cent in 2022-23. This is a huge increase and has mostly benefited the exchanges, which now account for 55-60 per cent of this short-term market.”

Singh believes that as there will be greater addition of renewable capacity in the future, states will face system in­tegra­tion challenges. Solutions could in­clude the addition of large hydro pla­nts, particularly with pumped storage, and the integration of GW-scale battery storage systems, besides demand res­ponse measures.

“With recent market developments such as long-duration contracts and the ancillary services market getting laun­ched on the power exchanges, cha­nges such as MBED and market coupling, and with most legacy PPAs nearing conclusion, we can expect at least five to six times more volumes to be traded over ex­­cha­nge platforms in the next five ye­ars. The exchanges thus need to provide a variety of products that can cater to the changing needs of market players,” Singh notes.

His top priorities for HPX are ensuring exemplary levels of service to clients, bringing all active power market participants on to the exchange, increasing tra­de volume and market share in the existing segments, launching new segments, and ensuring corrective action for some critical market design aspects.