Indian Energy Exchange IEX eyes new geographic market, strategic investments & alliances with global power exchanges
The IO-bound Indian Energy Exchange (IEX), which is currently involved in the day ahead market (DAM), the term ahead market (TAM) and renewable energy certificates, has drawn up an expansion strategy. It includes entering into new geographic market, strategic investments in and alliances with international power exchanges and develop new products and services in India.
In the draft papers with the Securities and Exchange Board of India (Sebi), IEX said it is in the process of developing products for trading in renewable energy contracts such as the ‘green day-ahead market’ consistent with the government’s focus on renewable energy.
IEX also plans to initially offer TAM products in Bhutan, Bangladesh and Nepal which are connected at one ore more points with the Indian power grid.
IEX managing director and CEO Satyanarayan Goel declined to offer any comment. However, the power exchange in its filing hoped, “The listing of the equity shares will enhance our company’s brand and provide liquidity to the existing shareholders. Our company expects that the proposed listing will also provide a public market for the equity shares in India.”
IEX will engage the relevant regulators in India and in neighboring countries to develop collaboration opportunities with the local power grid companies so as to allow participants from these countries to trade on our Exchange. This is aimed to expand into such new geographic markets to increase customer base and also enhance the liquidity of electricity products available on its platform.
”In the longer term, we also intend to explore and pursue strategic investments in and alliances with international power exchanges that will enable us to supplement our internal growth, expand our trading products and related services, advance our technology and take advantage of experience and new developments in international energy markets,”IEX informed.
Further, the power exchange plans to increase the number of new participants to help increase revenue but also increase the liquidity of electricity products which will encourage increased trading activity from the existing participants.
IEX is in the midst of offering a computer-to-computer link to its trading platform so as to allow members to individually develop their own software which would, in turn, allow their own clients to directly access the trading platform of power exchange.
POWER PLANS
It plans to offer TAM products in Bhutan, Bangladesh, Nepal, connected at one or more points with Indian power grid
The power exchange plans to increase the number of new participants to help increase revenue
Source: DNA
