Indian Energy Exchange (IEX)

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The electricity market at Indian Energy Exchange (IEX) achieved an all-time high volume of 8,248.52 MU (million units) in the month of March 2021 surpassing all the previous numbers.

Reasons for price rise

• The increase in price was mainly due to the increase in demand for electricity during the month due to a sharp rise in temperature, the revival of economic and commercial activities.

Data Analysis

• The growth was mainly led by higher volumes in the Day-ahead market (DAM) registering a growth of about 65 per cent y-o-y followed by incremental volumes from the Real-time Market.
• During the year, IEX has introduced several new products to better serve its customers such as RTM and various products under the Green Market which contributed around 14 per cent to the total volume traded.
• Also during the year, IEX’s newly launched gas exchange IGX has been able to secure strategic partnerships to provide a vibrant gas market platform for accelerating gas consumption in the country thereby helping towards achieving national sustainable energy aspirations.

About Indian Energy Exchange (IEX)

• It is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates.
• The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.
• The Exchange is a publicly listed company with NSE and BSE. IEX is approved and regulated by Central Electricity Regulatory Commission (CERC) and has been operating since 27 June 2008.

Product Segments

Day-Ahead Market (DAM)

• Launched in June 2008, in this segment, participants transact electricity on a 15-minutes block basis, a day prior to the delivery of electricity.
•  Both buyers and sellers submit their anonymous bids electronically during the market bid session and matching of bids are done on a double-sided auction mechanism with a uniform market clearing price.

Term-Ahead Market (TAM)

• Launched in September 2009, contracts under TAM cover a range for buying/selling electricity for a duration up to 11 days.
•  It enables participants to purchase electricity for the same day through intra-day contracts, for the next day through day-ahead contingency, on a daily basis for rolling seven days through daily contracts, and on a weekly basis through weekly contracts to manage their electricity portfolio for different durations.

Renewable Energy Certificates (REC)

• Launched in February 2011, the Renewable Energy Certificate market facilitates transaction in environmental attributes.
• The Renewable Energy (RE) generator can opt to get RECs against the green attributes of their generation.
• These generators can sell RECs through the exchange. On the other hand, the obligated entities-distribution companies, captive plants and open access consumers may opt to purchase RECs to fulfil their Renewable Purchase Obligation (RPO).
• The renewable energy generators are able to sell electricity to distribution companies at their average power purchase cost, utilize the same for captive consumption, or sell it to third parties while selling the environmental attribute of the renewable electricity through RECs. The REC Market offers both solar and non-solar RECs

Energy Saving Certificates (ESCerts)

• ESCerts are the tradable certificates under the Perform, Achieve, Trade (PAT) Scheme of Bureau of Energy Efficiency (BEE), a market-based mechanism to incentivise energy efficiency in large energy-intensive industries.
• IEX became the first and only Power Exchange to commence trading in ESCerts on 26 September 2017. Total trade of 12,98,904 ESCerts was traded under PAT Cycle 1 in the 17 trading sessions between September’17 and January’18.

Source :TH