IEX green market completes the first year & achieves significant milestones

21 August 2021 marks the first anniversary of IEX Green Market.

On this occasion, the Exchange is delighted to announce that its green term-ahead market has cumulatively traded 2744 MU of renewable energy in its first year comprising 1267 MU volume in the solar segment and 1477 MU in the non-solar segment. The market discovered Rs 3.75 per unit as the avg price in the first year with avg solar price at Rs 3.48 per unit and the average non-solar price at Rs 4.06 per unit.

The green market has received an overwhelming response and has reached a robust participant base close to 100 in a short span of time. The distribution companies from Karnataka, Telangana, Tamil Nadu and Himachal including RE generators like Choudhary Power, Bhilangana Hydro Power, Amplus Green, Adani solar and MRN Cane Power are a few key participants on the sell-side. While the distribution companies like CESC, Haryana, DNH, Tata Power Company and DVC along with Industrial consumers like Vedanta, SAIL, Jindal Steel, Tata Steel etc. are the key participants on the buy-side.

In the first year, Power Company Karnataka Limited (PCKL) has emerged as the top seller while Vedanta Limited was the top buyer in the Green Market.

Launched formally by Shri R.K. Singh, Hon’ble Minister of Power and New & Renewable Energy on 1 September’20, the green market offers a robust value proposition such as competitive prices, transparent and flexible procurement, as well as payment security to the buyers and sellers. The green power generators, and distribution utilities that have surplus renewable energy, are now participating in the market to sell this surplus to other deficit entities facilitating them to meet their energy and RPO requirements in an integrated way. The market has been a great leveller towards addressing the RE integration challenges.

Speaking on the occasion, Shri G. Kumar Naik, Chairman, PCKL and Additional Chief Secretary to Government, Energy Department, Government of Karnataka, “The State of Karnataka has proud credentials of being a renewable – rich State with 15 GW of installed capacity base and another 9 GW of green capacity under implementation. PCKL has been successfully leveraging the recently introduced Real-Time Electricity Market and the Green Term – Ahead Market at IEX to sell our surplus renewable energy, as per the Govt of Karnataka’s decision to effectively integrate renewable energy without undertaking RE power curtailment. This has helped Karnataka to reduce the renewable intermittency as well as strengthen the State’s grid security. These measures have been helping the PCKL/ESCOMs to save the precious financial resources, making it a win-win solution for the State (KPTCL) as well as the renewable energy generators.”

According to Shri. C Srinivasa Rao, Joint Managing Director, Telangana Transco, “The, Telangana DISCOMs have sold about 797 MU of solar energy from September 2020 to July 2021.  It has helped the State in ensuring financial liquidity while also enabling us to channelize the surplus renewable energy into the market. The green market is an important part in India’s green energy shift and going forward, we will increasingly tap into the market segment”.

Shri S N Goel, Chairman and Managing Director, IEX added that “The inception of the green market has been a landmark milestone for our nation. Recently, on the eve of 75^th Independence Day, the Honorable Prime Minister announced that India aspires to attain energy independence by the year 2047. The market can play a catalyst role in facilitating our efforts towards achieving energy independence and building a green and sustainable energy economy in the most competitive and efficient manner. The forthcoming introduction of the green day-ahead market will evolve the market further. In the mid to long term, gradual shift from PPA to market-based models will build and deepen the markets to next level, paving way for India to meet its ambitious 450 GW green capacity by 2030.”

IEX petition regarding the introduction of the Green Day Ahead Contract towards commencing the integrated Day Ahead Market at the Exchange is accessible on its website (www.iexindia.com) for public comments.