IEX commences trade on high price day ahead market

Indian Energy Exchange (IEX) has announced the commencement of trade in the high price day ahead market (HP – DAM) segment.

The Central Electricity Regulatory Commission (CERC), in its order dated February 16, 2023, had approved the introduction of HP-DAM in the integrated day ahead market (I-DAM) segment in the power exchange. This will provide a new avenue to the high variable cost generators who may not have been able to participate in day ahead market (DAM) due to the existing price ceiling of Rs 12 per kWh. HP-DAM will enable high-cost generators like gas based power plants using imported regasified liquefied natural gas (RLNG) and naphtha, imported coal based power plant, and battery energy storage systems to participate in the market. These generators will now be able to sell electricity on IEX platform, with a price range of Re 0 to Rs 50 per unit. The price discovery for HP-DAM will be on double-sided closed auction. HP-DAM will function as part of the I-DAM, with sequential clearing of green DAM first, followed by DAM and finally HP-DAM. Buyers and eligible sellers will have the option to transfer unselected bids in DAM to HP-DAM, with the flexibility to specify different prices and quantum for different segments at the time of bidding. There will be a single window for bidding as per the existing timeline of 10 am to 12 noon.