Indian Energy Exchange (IEX) will commence trading of green energy on its power trading platform, the first such for the country. IEX has received the approval of Central Electricity Regulatory Commission (CERC) to set up a ‘green term-ahead market’.
In a public 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’ (REC). 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, August 21 onwards.
CERC in its order however noted the sellers participating in the green trading contracts will have to produce a NOC 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 and 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 total energy demand.
Rajiv Srivastava, Managing Director and CEO, IEX said, “As India moves towards building a sustainable energy economy, we are excited about this new chapter which offers choice to consumers and will play a key role in achieving the national renewable aspirations”
IEX also recently launched a real-time electricity market (RTM) at its platform. RTM will help buyers purchase electricity just an hour in advance. The RTM has 48 auction sessions in a day wherein power generators with surplus capacity can sell anytime during the day.
The company in its statement said with the introduction of green term-ahead market along RTM would support seamless integration of RE power.
“This will greatly support the renewable energy generators as well as the distribution utilities in trading through market platforms. The new market segment will support states with surplus renewables to sell while the buyers will be able to procure energy as well as meet the renewable purchase obligations,” IEX said.