nse: iex – IEX stands for Indian Energy Exchange. IEX is India’s premier energy marketplace, providing a nationwide automated trading platform. For the physical delivery of electricity, renewables and certificates. The Exchange has extended to a total volume of more than $1 trillion since its founding.
In this blog, we will cover all aspects of iex that can be very informative and helpful for you to use.
Table of Contents
About Indian Energy Exchange (IEX)
The Central Electricity Regulatory Commission (CERC) oversees the IEX, an electronic system-based power trading exchange in India. The IEX began conducting business on June 27, 2008.
The state electricity boards, power producers, power traders, and open access customers (both industrial and commercial) are just a few of the several players in the power market that offers an electronic platform. It also served as a pioneer in the development of power trading in India.
Since iex and its inception, it has controlled a significant market share of more than 90%. With more than 3,800 registered clients, more than 300 private generators, and more than 3,300 industrial energy consumers, IEX runs a day-ahead market based on controlled auctions with double-sided bidding and uniform pricing.
More About IEX
IEX held a 95% stake in the power exchange market available to power exchange firms.
IEX is powered by state-of-the-art, intuitive and customer-centric technology, which enables more efficient facilitating to the ease of the ordinary people. Recently IEX has pioneered and expanded its trade electricity market across borders. Moreover, iex crosses beyond India to create an integrated South Asian Power Market.
There are 7,300+ registered players in the IEX ecosystem, including 600+ generators, 1,500+ RE Generators & Obligated Entities, and 55+ distribution utilities spread throughout 29 States and 5 Union Territories. Additionally, it has a sizable base of 4400+ commercial and industrial clients, including those from the metal, food-processing, textile, cement, ceramic, chemical, automotive, and information technology industries as well as from institutional, residential, commercial, and real estate organizations.
The Exchange has been in operation since June 27, 2008, and the Central Electricity Regulatory Commission has licenced and controlled it. The Exchange has had ISO Certifications for quality management, information security management, and environmental management since August 2016. Since October 2017, The Exchange has a publicly traded business on the NSE and BSE.
Services Provided By IEX
IEX was envisioned as a neutral platform where members from various area segments might participate. And use the range of products and services to match their requirements. The members are expected to bear an enrolment and partake in the bid for the separate item/administration. The trade has sent off a scope of items that are extensively named Power Market, Green Market and certificate market.
The electricity market comprises four sub-markets. They are:
Day Ahead Market
This is a physical electricity trading market where deliveries are made for any/some/all 15-minute time blocks during the 24 hours of following day, beginning at midnight. A double-sided closed auction bidding method is used to establish the pricing and quantity of power to traded.
Term Ahead Market
Consists of several items that enable users to buy or sell electricity on a factual basis up to 11 days in advance. Intra-day, Day-Ahead Contingency, Daily, and Weekly contracts are among products offered in Term Ahead Market. It also assist players in managing their portfolio of power for various time frames.
This market segment features a new auction session every half-hour. Power is distributed four times after auction’s gate closes. A two-sided closed auction bidding method is used to set the price and quantity of power trade.
Cross-Border Electricity trading
On April 17, 2021, IEX launched the first cross-border electricity trading by starting to trade with Nepal in its day-ahead electricity market. The South Asian Power Market will built by expanding the Indian power market through the Cross Border in Electricity initiative. Initially, the grid-connected South Asian nations of Bangladesh, Nepal, and Bhutan will be able to trade on the Exchange’s Day-ahead Market and Term-ahead Market.
It includes two sub-markets:
Green Term Ahead Market
However, the double-sided open auction process will only used once each week. Following CERC permission, the market opened on August 21, 2020.
Green Day-Ahead Market
Day-ahead is the green day-ahead market that permits anonymous and double-sided closed collective auctions for renewable energy. Through distinct bidding periods, the Exchange integrates offers for conventional and renewable sources. The clearing occurs in order, starting with the renewable portion with the must-run status. The market opened on October 26 and 21.
Renewable Energy Certificates
Furthermore, the green characteristics of power produced from renewable resources. RECs can divided into two categories: solar and non-solar. Due to their flexibility and the fact that they are not constrain by the geographical and physical elements. The underlying commodity, electricity, REC is position as the main driver of renewable energy market. To complete their Renewable acquire Obligation, the Obligated Entities acquire RE.
Energy saving Certificates (ESCs)
It allow sectors to lower their energy usage for each compliance period following predetermined targets. They Perform Trade Programme of the Ministry of Power to create the certificates.
Frequently Asked Questions
Why is IEX Share Price falling?
Moreover, As per Editor’s note: After tumbling more than 35% in 2022, portions of force exchanging stage IEX have fallen once more.
Portions of IEX succumbed to the eighth successive meeting on Tuesday, 28 Walk 2023. The stock has slumped around 12% in the last eight sessions. In intraday Exchange, IEX shares were down as much as 4%.
However, it capitulated to selling strain during reports that the Dalmia Gathering could manage its stake in the organization.
Dalmia Gathering holds a 14.8% stake in IEX through 3 substances. The gathering intends to lessen its stake in the organization and exit.
Nonetheless, this isn’t the primary justification for why IEX share cost is falling.
Furthermore, the organization experienced strain in the past too. Back in October 2022, we composed an itemized publication making sense of the explanations for the underperformance of IEX.
In the above article, our website Just Buffer has collected all the information related to Indian Energy Exchange, which is valid to the extent. We hope you find this information very informative and helpful.