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.
Indian Energy Exchange (IEX) on Friday announced the expansion of its Green Market with the launch of new contracts that will offer greater choice to market participants to buy renewable energy on the same day and up to 11 days ahead. IEX has expanded its delivery-based Green Market with the launch of two new products – Green Daily Contract and Green Weekly Contract, an IEX statement said.
According to the statement, trading in the new contracts in both solar and non-solar segments will commence with immediate effect. With this launch, the IEX Green Market now has four contracts and offers greater choice to market participants to buy renewable energy on the same day and up to 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 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. 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 Power Minister R K Singh on September 1, 2020.
The market has received encouraging response from all stakeholders and has cumulatively traded 459 MU (million units) comprising 404 MU under Solar and 55 MU under Non-Solar segments within 100 days since the commencement of trading on August 21, 2020. Moreover, it stated that with an average price of Rs 3.47 per unit in solar and Rs 3.77 per unit in non-solar segments, the market offers an attractive avenue to participants for renewable energy procurement.
”India is witnessing a rapid change in the 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.” IEX Chairman S N Goel said. IEX Green Market allows the obligated entities to meet their Renewable Purchase Obligation as well as facilitates efficient and seamless integration of the renewable energy.
With a total of 36 market participants, the platform is being leveraged by the distribution utilities, renewable generators and open access consumers. The utilities from the States and Union Territories of: West Bengal, Haryana, Dadra and Nagar Haveli (DNH), Daman & Diu, Delhi, Bihar, Maharashtra, Delhi, UP, Telangana and Karnataka amongst the top market participants on the IEX.