Indian Energy Exchange (IEX)

While everyone is focused on Market Coupling, here are some diversification and growth catalysts shaping IEX:

1. Long Duration Contracts Pending CRC Approval:

• IEX has filed for approval of 11-month contracts, awaiting CERC’s final decision.
• Also filed for the Green RTM segment, offering premium pricing opportunities for renewable energy and enabling green power trading just one hour in advance, helping to manage weather-related supply variations.

2. Launch of International Carbon Exchange Subsidiary:

• IEX’s subsidiary is accredited as India’s first renewable energy certificate issuer for globally recognized I-REC digital certificates (representing 1 MWh of renewable energy).

3. Potential Launch of India’s First Coal Exchange:

• Recently announced by the Coal Minister; IEX is collaborating with stakeholders to explore this new platform.

4. Draft Guidelines for EPR Trading and Settlement:

• CPCB’s draft guidelines for Extended Producer Responsibility (EPR) trading platform (for plastics, e-waste, battery waste, etc.) aim to enable transparent price discovery for recycling compliance certificates. IEX is evaluating entry into this segment.

5. CERC’s Proposed Enhancements to Market Structure:

• Proposed changes in Term Ahead Market (TAM) aim to standardize products across exchanges, boost liquidity, and increase Real-Time Market (RTM) volumes due to stricter grid discipline requirements.

6. Cross-Border Power Flexibility:

• CEA now allows plants selling power cross-border to redirect unscheduled power to Indian exchanges, potentially improving liquidity.

7. Extension of Section 11 for Coal-Based Plants:

• MoP’s directive to operate imported coal-based plants until Dec 31, 2024, supports demand on exchanges.

8. New Rules for Late Payment Surcharge (LPSC):

• Directives for long-term PPA generating stations to offer un-requisitioned power (URS) on exchanges, with 100 million units of URS power now available daily.

9. Enhanced Compliance Norms Under Gujarat’s Energy Conservation Act:

• GERC’s stringent penalties for unmet renewable purchase obligations aim to strengthen the REC market, maintaining a vibrant platform for green certificates.

Overall, these developments enhance liquidity, help manage power prices, and support DISCOMs and C&I consumers in optimizing procurement costs. Positive signals for IEX growth!