Latest news with #Real-TimeMarket
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
IEX sees record-high volume in July; electricity prices continue to drop
Indian Energy Exchange (IEX), India's premier electricity exchange, witnessed a 25.5 per cent increase in electricity traded volumes in July, reaching 12,664 million units (MU). However, prices continued to decline. The Day-Ahead Market (DAM) registered a 9 per cent rise in volumes to 5,510 MU, while the Real-Time Electricity Market (RTM) saw a sharp 53 per cent increase to 5,109 MU. According to government data published last month, India's energy consumption reached 153.6 billion units (BUs), an increase of 2.6 per cent year-on-year (Y-o-Y). Despite the higher demand, prices on power exchanges were lower than last year due to increased supply-side liquidity. The average market clearing price in the Day-Ahead segment fell 16 per cent Y-o-Y to ₹4.18 per unit, while Real-Time Market prices declined 23 per cent to ₹3.83 per unit. IEX's Green Market — comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market — recorded 1,025 MU last month, up from 990 MU a year earlier. The weighted average price in G-DAM for July was ₹3.91 per unit. In the Renewable Energy Certificate (REC) segment, 1.63 million certificates were traded last month, down 48 per cent Y-o-Y. The IEX stock has fallen over 30 per cent in the past month following negative sentiment around market coupling norms, which continue to weigh on investor sentiment. The Central Electricity Regulatory Commission (CERC) has approved the implementation of market coupling norms for the Day-Ahead Market, in line with the Power Market Regulations of 2021. Under Phase I, coupling of DAM will be implemented by January 2026, where different power exchanges will act as Market Coupling Operators (MCOs) on a round-robin basis. The decision, which goes against a report submitted by Grid India, is viewed as a negative for IEX, as it could weaken its position as the leading platform for price discovery. The introduction of market coupling could shift significant trading volumes to rival exchanges. At present, IEX holds nearly 85 per cent of the spot power market share. A market coupler will collect all buy and sell orders from every exchange and aggregate them to determine a uniform market clearing price across platforms. The CERC staff will also initiate stakeholder consultations on DAM coupling and propose necessary regulatory amendments. Grid India will act as the fourth MCO for backup and audit functions. It will also develop software for Term-Ahead Market coupling, conduct a three-month shadow pilot, and submit feedback upon completion. For the Real-Time Market, coupling will be considered at a later stage after assessing the DAM experience, as further regulatory and operational inputs are needed. Shares of IEX were trading 0.24 per cent higher on Tuesday at ₹134.30.
The Hindu
7 days ago
- Business
- The Hindu
'Market coupling in DAM segment of power exchanges may have little benefit'
The Central Electricity Regulatory Commission's (CERC) proposed implementation of market coupling in Day Ahead Market (DAM) segment of power exchanges from January 2026 may have little benefit for the power sector and is contrary to the findings of the pilot study conducted by Grid Controller of India, according to industry officials and analysts. They said the marginal improvements do not offer a 'compelling rationale' for implementing market coupling on a full scale, particularly in the absence of a detailed 'robustness and sensitivity' analysis. They added that even the January 2026 timeline for implementation would be challenging. 'The results of the shadow pilot conducted by Grid-India released in July 2025 do not indicate any significant benefits from market coupling. This is in line with the earlier CERC order dated 6th February 2024,' said an industry official 'In the DAM segment, overall welfare increased by a negligible 0.3%, and overall volume cleared increased by only 0.2%. Similarly, in the Real-Time Market (RTM) segment, both overall welfare increase and increase in volume cleared saw an insignificant gain of 0.01%,' the official said. Further, the increase of social welfare by ₹38 crore in case of DAM coupling doesn't mean that there will be saving of ₹38 crore, the official said. 'Savings will be miniscule, if at all. The reported increase in social welfare of ₹38 crore in DAM is theoretical, used for algorithmic modelling, and does not imply actual consumer savings,' the official added. 'Introducing central market coupling mechanism risks adding complexity, delaying market operations, and duplicating functions, without resolving core challenges such as market liquidity, deepening of participation, or improving investor confidence,' the official said. According to industry officials while the idea has been presented as 'market coupling', the proposed design more closely resembles 'exchange coupling' with no precedence globally. They pointed out that while Grid-India had submitted a detailed report to CERC, the Commission's order does not adequately reflect the comprehensive findings of that report. For ensuring transparency and stakeholder confidence, the complete Grid-India report should be made publicly available to facilitate informed discussions and independent assessments of the recommendations, they emphasised. According to a report by JM Financial the benefits of market coupling are negligible. 'A shadow pilot study by Grid-India revealed that DAM coupling resulted in an overall welfare gain of just 0.3% in price and 0.2% in volume. The volume of electricity that could not be cleared as % to unconstrained cleared volume was just 0.10% in FY24,' JM Financial analysts said in the report. 'Anticipated benefits (price, volume, transmission) of market coupling are not explicitly evident in the Indian context,' they said. According to them the implementation of power market coupling requires upgrading and integration of software, modification in infrastructure for compatibility, formation of data sharing protocol as well as consensus on financial settlement mechanism. 'We believe the January 2026 target for implementation of coupling is very ambitious, and implementation will not be possible before December 2027,' they said in the report. 'If applied elsewhere, this approach would imply merging competitive platforms like NSE and BSE or even Jio and Airtel — contradicting the principles of open markets. This will effectively kill innovation, service excellence and the incentive to launch new products,' said Ashish Kapur, CEO, Invest Shoppe, a boutique financial firm offering wealth management solutions.
Economic Times
24-07-2025
- Business
- Economic Times
IEX shares in free fall, nosedive 28%. What should investors do now?
Shares of Indian Energy Exchange (IEX) plunged 28% to Rs 135.26 on NSE on Thursday after the Central Electricity Regulatory Commission (CERC) formally approved the implementation of market coupling for India's power sector. ADVERTISEMENT The regulatory development comes just hours ahead of IEX's first-quarter earnings for FY26, heightening investor anxiety over the company's near-term outlook. In an order issued late Wednesday, the CERC said it would initiate market coupling in a phased manner, beginning with the Day-Ahead Market (DAM) by January 2026. This move follows extensive consultations with Grid-India and other power sector stakeholders. Market coupling is aimed at unifying price discovery by pooling bids from multiple power exchanges and clearing them centrally. The mechanism is expected to improve efficiency and reduce regional price disparities, but it may also disrupt the existing revenue model for dominant players like IEX operates independently as a leading player in the DAM and Real-Time Market (RTM). The introduction of coupling would mean bids from IEX and other exchanges will now be centrally matched, potentially eroding IEX's competitive advantage. ADVERTISEMENT Bernstein downgraded its target price to Rs 122 from Rs 160, maintaining a 'Market-Perform' rating. The brokerage noted, 'Coupling… as bad as it gets,' citing risks to IEX's transaction charges and market share. 'With the moat of liquidity gone, the only way to compete is transaction charge,' it however, maintained a 'Buy' call with a target price of Rs 285. While acknowledging the move was a negative surprise, the firm pointed out that the Grid-India report estimated only a 0.01–0.3% benefit in terms of savings or volume cleared. It also noted that RTM coupling would be considered in later phases. In FY25, DAM and RTM together contributed nearly 80% of IEX's revenue. ADVERTISEMENT Axis Capital highlighted the earnings risk, estimating that had market coupling been in place in FY25, IEX's EPS could have been around 30% lower due to loss of market the regulatory update lands just ahead of IEX's Q1FY26 results, which are expected later today. Analysts and investors will focus on management commentary around the implications of market coupling, expected volume trends, and how IEX plans to adapt ahead of the January 2026 implementation. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
24-07-2025
- Business
- Economic Times
IEX suffers worst single-day loss since listing, down 26%. Should you buy the dip?
Shares of Indian Energy Exchange (IEX) tanked 26% on Thursday, logging their worst intraday single-day performance since listing in 2017. The stock is on track for its seventh consecutive session of losses, extending the declines to 33% in this period. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Should you buy the dip? Shares of Indian Energy Exchange IEX ) tanked 26% on Thursday, logging their worst intraday single-day performance since listing in 2017. The stock is on track for its seventh consecutive session of losses, extending the declines to 33% in this their 52-week low of Rs 139.02 today, IEX saw massive sell-off with nearly 3 crore shares changing hands on the NSE around 1 fall is attributed to the Central Electricity Regulatory Commission (CERC) formally approving the implementation of market coupling for India's power sector. The regulatory development came just hours ahead of IEX's first-quarter earnings for FY26, scheduled later an order issued late Wednesday, the CERC said it would initiate market coupling in a phased manner, beginning with the Day-Ahead Market (DAM) by January 2026. This move follows extensive consultations with Grid-India and other power sector an order issued late Wednesday, the CERC said it would initiate market coupling in a phased manner, beginning with the Day-Ahead Market (DAM) by January 2026. This move follows extensive consultations with Grid-India and other power sector coupling is aimed at unifying price discovery by pooling bids from multiple power exchanges and clearing them centrally. The mechanism is expected to improve efficiency and reduce regional price disparities, but it may also disrupt the existing revenue model for dominant players like IEX operates independently as a leading player in the DAM and Real-Time Market (RTM). The introduction of coupling would mean bids from IEX and other exchanges will now be centrally matched, potentially eroding IEX's competitive downgraded its target price to Rs 122 from Rs 160, maintaining a 'Market-Perform' rating. The brokerage noted, 'Coupling… as bad as it gets,' citing risks to IEX's transaction charges and market share. 'With the moat of liquidity gone, the only way to compete is transaction charge,' it however, maintained a 'Buy' call with a target price of Rs 285. While acknowledging the move was a negative surprise, the firm pointed out that the Grid-India report estimated only a 0.01–0.3% benefit in terms of savings or volume cleared. It also noted that RTM coupling would be considered in later phases. In FY25, DAM and RTM together contributed nearly 80% of IEX's revenue. Axis Capital highlighted the earnings risk, estimating that had market coupling been in place in FY25, IEX's EPS could have been around 30% lower due to loss of market share.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
24-07-2025
- Business
- Time of India
IEX suffers worst single-day loss since listing, down 26%. Should you buy the dip?
Shares of Indian Energy Exchange ( IEX ) tanked 26% on Thursday, logging their worst intraday single-day performance since listing in 2017. The stock is on track for its seventh consecutive session of losses, extending the declines to 33% in this period. Hitting their 52-week low of Rs 139.02 today, IEX saw massive sell-off with nearly 3 crore shares changing hands on the NSE around 1 pm. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Data Science Design Thinking Operations Management Healthcare Data Analytics Finance healthcare MCA CXO Data Science Management MBA Project Management Leadership others Cybersecurity Artificial Intelligence Public Policy Product Management PGDM Degree Digital Marketing Others Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop And Nudges Her To Follow - Watch What Happens Happy in Shape Today's fall is attributed to the Central Electricity Regulatory Commission (CERC) formally approving the implementation of market coupling for India's power sector. The regulatory development came just hours ahead of IEX's first-quarter earnings for FY26, scheduled later today. In an order issued late Wednesday, the CERC said it would initiate market coupling in a phased manner, beginning with the Day-Ahead Market (DAM) by January 2026. This move follows extensive consultations with Grid-India and other power sector stakeholders. In an order issued late Wednesday, the CERC said it would initiate market coupling in a phased manner, beginning with the Day-Ahead Market (DAM) by January 2026. This move follows extensive consultations with Grid-India and other power sector stakeholders. Live Events Market coupling is aimed at unifying price discovery by pooling bids from multiple power exchanges and clearing them centrally. The mechanism is expected to improve efficiency and reduce regional price disparities, but it may also disrupt the existing revenue model for dominant players like IEX. Should you buy the dip? Currently, IEX operates independently as a leading player in the DAM and Real-Time Market (RTM). The introduction of coupling would mean bids from IEX and other exchanges will now be centrally matched, potentially eroding IEX's competitive advantage. Bernstein downgraded its target price to Rs 122 from Rs 160, maintaining a 'Market-Perform' rating. The brokerage noted, 'Coupling… as bad as it gets,' citing risks to IEX's transaction charges and market share. 'With the moat of liquidity gone, the only way to compete is transaction charge,' it added. UBS, however, maintained a 'Buy' call with a target price of Rs 285. While acknowledging the move was a negative surprise, the firm pointed out that the Grid-India report estimated only a 0.01–0.3% benefit in terms of savings or volume cleared. It also noted that RTM coupling would be considered in later phases. In FY25, DAM and RTM together contributed nearly 80% of IEX's revenue. Axis Capital highlighted the earnings risk, estimating that had market coupling been in place in FY25, IEX's EPS could have been around 30% lower due to loss of market share.
