The Indian Energy Exchange is the country's leading energy exchange, offering a countrywide electronic trading network for the physical delivery of electricity, renewable energy, and certificates. IEX has recently pioneered cross-border energy trade with an integrated South Asian Power Market to develop and expand its power market outside India.
Expansion
The IEX ecosystem includes more than 6,800 participants from 29 states and five union territories, including 55 distribution utilities and 500 conventional generators. It also has a solid base of over 4400 commercial and industrial customers, including metal, food processing, textiles, cement, ceramics, chemicals, autos, information technology, institutional, housing, real estate, and corporate bodies.
Trading Market Choices and Offerings
Electricity Market
1. Day-Ahead Market: The Day-Ahead Market is a physical power trading market for sales commencing at midnight for any/some/all 15-minute time blocks in the next 24 hours.
2. Term Ahead Market: Includes various products that allow participants to purchase and sell electricity on a term basis for up to 11 days ahead of time.
3. Real-Time Market: The Real-Time Market is a market sector in which a new auction session takes place every half hour, with electricity being distributed afterwards. 4-time blocks or one hour after the auction's gate close.
4. Cross Border Electricity Trade: Electricity cross-border is an effort to increase the Indian power sector to create an integrated South Asian power market.
Green Market
1. Green Term Ahead Market: The Green-Term Ahead Market is a market sector for trading renewable energy that is delivered. Contracts such as Intraday, Day-ahead Contingency, Daily, and Weekly are available in this market segment, divided into solar and non-solar categories.
2. Green Day-Ahead Market: Solar, Non-Solar, and Hydro are the three bid categories for buyers and sellers. Sellers in each category, i.e. solar, non-solar, and hydro, have separate quantity limits.
Certificate Market
1. Renewable Energy Certificates: RECs are divided into two types: solar and non-solar. Electricity and RECs are positioned as fundamental drivers of the renewable energy market.
2. Energy Saving Certificates: A market-based instrument developed for energy-intensive businesses and sectors users to lower their specific energy usage overtime to meet set objectives. The certificates were developed under the Ministry of Power's Perform Achieve Trade initiative.
Timeline and Development
On 26 March 2007, Indian Energy Exchange Limited was established as a public limited company in Maharashtra.
On April 17, 2007, the Company received a certificate of incorporation.
In 2008, trading in the Day-Ahead Market (DAM) began on its exchange with 58 participants. Around 20 million units volume cleared in DAM daily.
In 2009, the IEX enrolled first open access customers and established Term-Ahead Market.
In 2010, Trading in the term-ahead market (TAM) and the first industrial consumer was registered on the company's exchange. The average monthly cleared volume on its exchange exceeded 500 million units (MU).
In 2011, the first non-solar Renewable energy certificates (RECs) were first traded on its exchange.
In 2012, the first solar REC trade agreement was signed with PJM Technologies, introducing a 15-minute contract in DAM.
In 2013, the IEX signed an MOU with EPAX SPOT (France).
In 2014, the daily average cleared volume on its exchange was 79 million units per day, with the largest cleared volume in a single day being 117 million units.
In 2015, the IEX created a round-the-clock Term-Ahead Market, and the exchange's biggest cleared volume in a single day was over 131 million units.
In August 2016, the Exchange was awarded three ISO certifications, including ISO 9001:2008 for quality management, ISO 27001:2013 for information security management, and ISO 14001:2004 for environmental management.
On 26 September 2017, it began trading energy-saving certificates (ESCerts) on its platform.
Between the 9th and 11th of October 2017, the company launched an initial public offering (IPO). The offering for sale of 60.65 lakh shares by selling stockholders as part of the IPO.
In 2018 the IEX signed a Memorandum of Understanding with JEPX (Japan).
In 2019, the greatest volume traded on its exchange in the Day-Ahead Market (DAM) was 306 MU. This is an all-time high volume.
During the year 2019, the Company started a buyback proposal for up to 3729729 fully paid-up equity shares.
In 2020, two new bid categories were introduced along with TAM contract enhancements.
In 2020, the IEX signed a Memorandum of Understanding (MOU) on the Real-Time Electricity Market (RTM) with Power Ledger, Australia.
The Indian Gas Exchange was established (IGX), and the Green Term-Ahead Market (G-TAM) was also launched in the same year.
On 17 April 2021, IEX pioneered cross-border power exchange when it began trading with Nepal on its Day Ahead electricity market by adopting the improved MILP algorithm and launching a web-based trading platform.
On 21 August 2021, Following CERC permission, the Green-Term Ahead Market was launched.
On 29 March 2022, ONGC became the first domestic producer to cohere IGX.
On the 30th of March, the REC trading session at IEX witnessed a cleared volume of 5.11 lac RECs.
Conclusion
Indian Energy Exchange Limited offers a power-trading platform for the physical supply of electricity. For power market players, the company facilitates price discovery and risk management. In India, the metal, food processing, textile, cement, ceramic, chemicals, autos, and information technology sectors are served by the Indian Energy Exchange.
Indian Energy Exchange
