- Indian Energy Exchange (IEX) is seeking comments and suggestions for its proposal to introduce new renewable energy trading contracts, which it submitted to the Central Electricity Regulatory Commission
- IEX proposes to introduce new contracts for trading renewables on the Green Day Ahead Market (G-DAM), further divided into Solar Day-Ahead Market and Non-Solar Day Ahead Contract
- Electricity contracts would be awarded on the basis of electronic bids submitted by both buyers and sellers anonymously
- If proposals are not cleared in the G-DAM segment, they will be eligible to participate in the Day Ahead Market segment (DAM)
The Indian Energy Exchange (IEX) has invited suggestions and comments from all stakeholders on its petition to introduce renewable energy contracts. In September 2016, it had petitioned the Central Electricity Regulatory Commission (CERC) for such comments. The IEX has provided details of the proposal on its website that can be accessed here.
The IEX is a government run power trading platform in India and has been around since June 2008. It has asked CERC for permission to introduce exclusive exchange-based contracts for trading renewable energy. This is aimed at providing avenues to existing and prospective RE generators for sale of renewable energy through the exchange platform and should also help entities fulfil their renewable purchase obligations (RPO).
The IEX has proposed to introduce new contracts in the Green Power Market Segment, namely the Green Day Ahead Market (G-DAM) that will include both Solar Day Ahead Contracts and Non-Solar Day Ahead Contracts. The Day-Ahead Market (DAM) segment of the IEX allows participants to transact electricity on a 15-minutes block basis, a day before it is delivered to consumers. Buyers as well as sellers submit their anonymous bids electronically. In case their bids are not cleared in G-DAM, they can always participate in the existing DAM process.
Solar is proposed to be given priority as compared to non-solar energy. In August 2016, the Ministry of New and Renewable Energy (MNRE) had instructed CERC to ensure ‘must-run’ status to solar in view of many load dispatch centers asking solar power to back down (see MNRE Backing Solar).
The IEX has suggested timelines for G-DAM activities during a trading day.
In return for selling power, renewable energy generators would be paid on schedule – something that is not common in India these days. The RE
generators would not be required to tie up capacity in advance or depend on the PPA with incumbent distribution companies (discoms). States that are rich in renewable sources can sell their green energy to those states that have fewer RE resources to help them meet their RPO. This way, the quickly growing RE capacities feeding into the grid would generate power that can be actually used.
According to Mercom Capital Group’s assessment, India is likely to commission 11,068 MW of solar power capacity in the current fiscal year. With many discoms showing their unwillingness to buy solar power, the IEX offer could help streamlining things for the Indian renewable energy sector.
Contact address for comments
Interested stakeholders can submit their comments or suggestions in PDF and MS word format by January 5, 2017 to:
Ms. Shruti Bhatia Vice President (Regulatory Affairs & Communications) Indian Energy Exchange Limited
Fourth Floor, TDI Centre Plot No – 7,
Jasola New Delhi – 110025
FAX: +91-11– 4300 4015