A first in India as IEX gets the go-ahead for green energy trading

Exchange will offer trade in four types of 'green term-ahead' contracts; it already has a platform for trading of Renewable Energy Certificates

Indian Energy Exchange (IEX) will commence trading of green energy on its power trading platform, the first such for the country. IEX has received nod from the Central Electricity Regulatory Commission (CERC) to set up a ‘green term-ahead market’. In a statement, IEX said it will offer trade in four types of green term-ahead contracts – Green Intra-day contracts, Day-ahead Contingency contracts, Daily contracts and Weekly contracts. 

“There will be separate contracts for solar and non-solar energy,” said the company. IEX already has a platform for trading of ‘Renewable Energy Certificates’. With the green term-ahead market, it would be the first physical trading of renewable energy. IEX said it plans to commence trading from Friday.

CERC, in its order, noted the sellers participating in the green trading contracts will have to produce a no-objection certificate from regional and state load despatch centres, indicating the source of generation. 

This would be needed to establish that the power to be sold is truly renewable. Then only “it will go towards the fulfillment of renewable purchase obligation (RPO) of the buyer,” said the order.  States have an annual mandatory RPO target as a per cent of their energy demand.

Rajiv Srivastava, managing director (MD) and chief executive officer (CEO), IEX, said, “As India moves towards building a sustainable energy economy, we are excited about this new chapter which offers choice to consumers. It will play a key role in achieving the national renewable aspirations”

IEX recently launched a real-time electricity market (RTM) on its platform. The RTM will help buyers purchase electricity just an hour in advance. The RTM has 48 auction sessions daily wherein power generators with surplus capacity can sell anytime during the day. The firm said the green term-ahead market along with RTM would support seamless integration of renewable power.

“This will greatly support the renewable energy generators as well as distribution utilities in trading through market platforms. The new market segment will support states with surplus renewables to sell. Buyers will be able to procure energy as well as meet the renewable purchase obligations,” IEX said.