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Indian Energy Exchange slumps after CERC announces decision to initiate power market coupling

24-Jul-25 11:50 Hrs IST

According to reports, under the first phase of the new regulatory framework, the day-ahead market (DAM) is expected to be coupled by January 2026. The model proposes a round-robin system where multiple power exchanges will alternately function as Market Coupling Operators (MCOs).

Market coupling is a mechanism through which buy and sell bids from all power exchanges are aggregated and centrally matched to arrive at a single, uniform market clearing price (MCP). Once implemented, this would mean only one trading price for electricity across all exchanges at any given time, eliminating price variations across platforms.

While the change may not have an immediate impact on end users, reports suggests that in the long run, market coupling could help bring down overall electricity tariffs for consumers by improving efficiency and liquidity in the power trading ecosystem.

Currently, multiple exchanges'including IEX'operate independently in the DAM segment. Under the proposed model, these exchanges will no longer determine prices individually but will serve solely as interfaces for collecting bids, with a centralized system managing price discovery and dispatch.

As per reports, multiple power exchanges, including Indian Energy Exchange (IEX), operate independently in the current scenario. The coupling of the day-ahead market (DAM) would mean that bids from all participating exchanges will be matched centrally to determine a single market clearing price.

Reports suggest that the new framework will influence not just price discovery but also market operations, trade volumes, and settlement mechanisms. As the dominant player in the DAM and real-time market segments, IEX is expected to be significantly impacted by these changes, the report said.

IEX is India's premier electricity exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates.

The board of IEX will meet today to consider and approve the earnings for the quarter ended on 30 June 2025.

The company's consolidated net profit rose 21.12% to Rs 117.11 crore on 17.29% increase in net sales to Rs 142.25 crore in Q4 March 2025 over Q4 March 2024.