The Indian Energy Exchange (IEX) is an electronic system-based power trading exchange, which is a type of institution, regulated by the Central Electricity Regulatory Commission (CERC). Incorporated on March 26, 2007, and commencing operations on June 27, 2008, IEX was established to pioneer the development of power trading in India. The exchange was created to abridge the demand-supply gap and magnify the potential of the Indian power market by providing a transparent, competitive, and efficient marketplace for electricity. The development of an electricity market is mandated for regulators under Section 66 of the Electricity Act, 2003.
IEX operates an automated trading platform for the physical delivery of electricity, Renewable Energy Certificates (RECs), and Energy Saving Certificates (ESCerts). A key mechanism is the Day-Ahead Market (DAM), where power is traded for delivery on the next day in 15-minute time blocks using a closed auction with double-sided bidding and uniform pricing. It also offers a Real-Time Market (RTM) for intra-day contracts and a Term-Ahead Market for contracts up to 11 days ahead. The exchange is connected to the broader regulatory framework, primarily the Electricity Act, 2003, and is regulated by the CERC, which was constituted under Section 76 of the same Act.
A significant recent development is the CERC's proposal of draft regulations for market coupling, which aims to introduce a unified price discovery mechanism across all power exchanges, starting with the Day-Ahead and Real-Time markets. Under this proposal, the Grid Controller of India would act as the market coupling operator, while exchanges like IEX would function as bid aggregators, potentially overhauling the existing power exchange structure.