IEX introduces new contracts to enable renewable energy trade on the same day and up to 11 days ahead
Mumbai : India’s leading energy trading platform The Indian Energy Exchange (IEX) on Friday announced the expansion of its delivery based Green Market with the launch of two new products – Green Daily Contract and Green Weekly Contract.
In a Circular issued by the Exchange, it has confirmed that trading in the new contracts in both solar and non-solar segments will commence with immediate effect. With this launch, IEX Green Market now has four contracts, and offers greater choice to the market participants to buy renewable energy on the same day and upto 11 days ahead.
In a first for IEX Green Market, the Daily and Weekly contracts, will enable market participants to trade in on energy basis (MWh) with the bidding taking place on a 15- minute time-block. The trading in trading in energy terms will help to address the intermittency issues involved in renewable energy procurement. Further, this will also assist market participants to minimise deviations as well as related penalties. The energy will be delivered leveraging the national, regional and state level transmission network.
The Green Market at IEX, a first of its kind initiative in the country, was formally launched by R.K. Singh, Minister of State Independent Charge for Power and New & Renewable Energy on September 01, 2020. The market has received encouraging response from all stakeholders and has cumulatively traded 459 MU comprising 404 MU under Solar and 55 MU under Non-Solar segments within 100 days since commencement of trading on 21 August’20.
“India is witnessing a rapid change in energy sector with renewables driving the energy shift. To meet our ambitious renewable energy targets and sustain the existing pace of growth in renewable capacity addition, there is a need for a market-based framework. As already witnessed in developed countries, markets have been facilitating integration of energy from various sources to meet country’s power demand in the most efficient and competitive manner. Therefore, green markets have an instrumental role to play in enabling energy landscape transformation in the country. At IEX, we are committed to facilitate India build a sustainable energy economy through energy markets. We will continue to build and deepen the green market with introduction of new products” S N Goel, Chairman, Indian Energy Exchange Limited said.