iex share price: IEX share drops 12% on reports of market coupling to be implemented by FY25
iex share price Market coupling is a model in which all national power exchanges' purchase and sell bids are combined and matched to find a single MCP.
Ankush Pandey
The government also wants market coupling as it wants to significantly increase the share of power exchanges in power trading.
Shares of power trading platform IEX fell sharply from 52-week highs after a news report suggested that the central government is planning to implement market coupling for power exchanges.
Under the market coupling approach, a standard market clearing price (MCP) is determined by aggregating the buy and sell bids from all power exchanges in India.
The Power Ministry has requested the Grid Controller of India (GRID-India) to ensure that the pilot study is completed as per the timeline, business news channel ET Now reported, quoting sources familiar with the development.
Blogyhub has not yet independently confirmed this development.
This is being considered a major downside for the Indian Energy Exchange (IEX) - a market for power trading - and at 1.15 pm, IEX shares were trading over 12 per cent lower at Rs 210.4 on the NSE.
Market coupling would mean that there would be only one price for electricity traded through these exchanges at any given point of time. If implemented, the power exchanges would serve as a platform where only buy and sell bids would be received and electricity would be sent to the buyer.
The Central Electricity Regulatory Commission is expected to make a final decision in this regard after reviewing the study that Grid-India is purportedly undertaking. Additionally, the Power Ministry intends to put the new mechanism into effect by the end of FY25 or the start of the next fiscal year.
Apart from achieving uniform pricing among exchanges, the central government is keen to increase the proportion of power exchanges in the electricity trading industry, which is why it supports market coupling. The current system of long-term power purchase agreements (PPAs), which can last up to 25 years, is something the administration wants to see reduced.
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