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What is Indian Energy Exchange (IEX)?

Indian Energy Exchange (IEX):

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 milestones.

  • 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.
  • It is a publicly listed company with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
  • It is approved and regulated by Central Electricity Regulatory Commission (CERC) and has been operating since 2008.

Mission:

    • To leverage technology and innovation to establish transparent and efficient energy marketplaces for delivering affordable, reliable energy to consumers.

Trading Platform for:

  • Physical Delivery of Electricity:
  • Day-Ahead Market (DAM):
  • Term-Ahead Market (TAM):
    • The contracts under TAM cover a range for buying/selling electricity for a duration of 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.

Renewable Energy Certificates (REC):

  • Under the REC mechanism, a generator can generate electricity through renewable resources in any part of the country.
  • For the electricity part, the generator receives the cost equivalent to that from any conventional source while the environment attribute is sold through the exchanges at the market-determined price.
  • The obligated entity from any part of the country can purchase these RECs to meet its RPO (Renewable Purchase Obligation) compliance.
  • Obligated entities may either purchase renewable energy or can purchase RECs to meet their RPO set under RPO of their respective States.

Energy Saving Certificates (ESCerts):

  • These are the tradable certificates under the Perform, Achieve, Trade (PAT) Scheme of the Bureau of Energy Efficiency (BEE).
  • It is a market-based mechanism to incentivize energy efficiency in large energy-intensive industries.
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