How IEX’s business has scaled over the years?
The Indian Energy Exchange (IEX) is uniquely positioned to deliver the government’s vision to ‘Power for All on 24×7’. Over the last eleven years of operations, the Exchange has successfully established a competitive power market in the country marked by transparency, efficiency, flexible customised procurement, payment security and counter-party risk management as its key hallmarks.
IEX’s eco-system comprises over 6,500 participants including 50-plus distribution utilities, and more than 4,000 large commercial and industrial consumers, over 500 generating companies located across India. Presently, Exchange contributes 40 per cent of trade in the short-term power market. The volumes traded at IEX platform have grown at CAGR of 15 per cent over the last three years. Electricity and Certificates are two key existing market segments on the Exchange.
That said, over the last one year our endeavour has been two-pronged – deepen the power market and expand into other areas of the energy basket with technology as the underpinning. In the electricity market segment, we are working proactively with market constituents as well as the policy makers and regulators to introduce long-duration contracts up to 365 days, cross border trade with neighbouring South Asian countries such as Bangladesh, Bhutan and Nepal to begin with, real time market comprising 48 auctions with each auction scheduled every 30 minutes, the green market as well as the ancillary market. We expect to introduce the new market products and segments in the fiscal year 2020. Further, to foster the development of gas market in the country and unleash the competitive advantage that markets can bring to spur investors, the Exchange is also working to soon introduce the first ever gas exchange in India.
IEX’s Future Roadmap
We are building our future roadmap with a common goal that is to make energy accessible, available and affordable. As India’s leading energy market platform, we envision to transform the future of energy through markets and technology. The technology is at the heart of everything we do. We have been working relentlessly to deepen the energy markets through new market segments and products as well as expand the competitive advantage of markets into other areas of the energy basket, as already shared. The infusion of Analytics, Artificial Learning, Machine Learning, and Blockchain in our technology offerings will go a long way to make our value proposition even more robust with improved efficiency and security. Towards building and strengthening the organisation, talent acquisition, development and retention will be our key focus areas.
We are proud to be the ones who serve as a benchmark for competition in the power market in India. Today, the prices discovered on IEX serve as reference point for all long- and short-term contracts. It has been an exciting journey to create this unique platform, which is driven by the state-of-the-art technology and innovation providing multiple market products for the efficient management of the customer’s power needs. Customer-centricity is the fulcrum of our operational excellence, and we work relentlessly to deliver unmatched experience to the market participants. Our value proposition including the transparent mechanism for price discovery is what differentiates IEX from its competition.