IEX Shares Drop

Market Coupling Explained

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Impact on Power Exchanges

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IEX Under Pressure:

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Government’s Vision:

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Pilot Study in Progress

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Timeline for Implementation

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Regulatory Decision Pending

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IEX Shares Drop

IEX shares fell sharply by over 12% following a report on the implementation of market coupling for power exchanges by FY25.

Market Coupling Explained

Market coupling is a system where buy and sell bids from all power exchanges are aggregated to discover a uniform market clearing price (MCP).

Impact on Power Exchanges

The introduction of market coupling would mean that all power exchanges would have a single uniform price for electricity at any given time.

IEX Under Pressure:

The development is seen as a negative for Indian Energy Exchange (IEX), as it would turn power exchanges into platforms for bid matching only. –

Government’s Vision:

The government aims to increase the role of power exchanges in electricity trade, reducing the dependence on long-term power purchase agreements (PPAs).

Pilot Study in Progress

The Grid Controller of India (Grid-India) is conducting a pilot study on market coupling, as requested by the Power Ministry.

Timeline for Implementation

The Power Ministry is looking to implement market coupling by the end of FY25 or the beginning of the next fiscal year.

Regulatory Decision Pending

The final decision on market coupling will be made by the Central Electricity Regulatory Commission, after reviewing the pilot study results.