IEX green market trades 2744 MU volume in its first year

The market discovered Rs. 3.75 per unit as the average price in the first year with average solar price at Rs. 3.48 per unit and average non solar price at Rs. 4.06 per unit

Indian Energy Exchange (IEX) has completed the first year of Green Market. The Exchange has announced on Monday 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 Green Term-ahead Market (GTAM) trades 2744 MU volume at an avg price of Rs. 3.75 per unit with a participant base close to 100 in the first year. The market discovered Rs. 3.75 per unit as the average price in the first year with average solar price at Rs. 3.48 per unit and 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) emerged as the top seller while Vedanta Limited was the top buyer in the Green Market.

Launched formally by R. K. Singh, 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 who 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 leveler towards addressing the RE integration challenges.

Speaking on the occasion, G. Kumar Naik, Chairman, PCKL and Additional Chief Secretary to Government, Energy Department, Government of Karnataka said, “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 the 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 precious financial resources, making it a win- win solution for the State (KPTCL) as well as the renewable energy generators,” added Naik.

According to 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.”

S. N. Goel, Chairman and Managing Director, IEX said, “The inception of the green market has been a landmark milestone for our nation. Recently, on the eve of 75th 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 the next level, paving the way for India to meet its ambitious 450 GW green capacity by 2030,” added Goel.