'Detailed impact assessment': IEX shares update on market coupling; stock in focus

Shares of Indian Energy Exchange Ltd (IEX) are in focus on Friday, a day after up to 29.50 per cent on NSE and BSE, following the Central Electricity Regulatory Commission (CERC) order on market coupling.

In a filing to the stock exchanges, the Indian Energy Exchange (IEX) stated that the Commission has initiated the process of implementing market coupling in a phased manner. This includes the coupling of the Day-Ahead Market (DAM) across power exchanges through a round-robin mechanism, targeted for implementation by January 2026.

Under this round-robin framework, power exchanges will assume the role of Market Coupling Operator (MCO) on a rotational basis. Grid-India will serve as the fourth MCO, responsible for backup and audit functions. The commission has also directed the exploration of market coupling in other segments—such as the Real-Time Market (RTM) and the Term-Ahead Market (TAM)—through shadow pilots and further regulatory consultations.

Of all the electricity that is traded in the Indian power exchanges, IEX has a share of about 90 per cent. Market coupling, once implemented, is likely to reduce the dominance of IEX in terms of market share, stock analysts said.

Since 2008, IEX is an industry-leading technology-driven platform for the trading of electricity, RE certificates, and energy-saving certificates. It has a base of 7,900-plus participants.

“This regulatory development signals a proposed change in the market mechanism of the Day-Ahead Market (DAM). The company is currently conducting a detailed impact assessment of this change and will keep stakeholders updated on future developments,” IEX said.

Analysts noted that market coupling had sparked a debate on efficiency and dominance of IEX in the Indian power market. Throughout the world, market coupling integrates different electricity markets, but in India, it tries to discover a uniform market clearing price, optimise transmission infrastructure and maximise economic surplus. In addition to such benefits, market coupling improves liquidity and prices, thereby attracting new market participants.