IEX shares crack 12% on report that market coupling may be implemented by FY25

The government wants market coupling also because it wants to significantly increase the share of power exchanges in the trade of electricity.

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26 Aug, 2025 12:21

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Shares of electricity trading platform IEX sharply retreated from their 52-week highs after a news report suggested that the Centre is planning on implementing market coupling for power exchanges.

Market coupling is a model where buy bids and sell bids from all power exchanges in India will be aggregated and matched, to discover a uniform market clearing price (MCP).

The Grid Controller of India (Grid-India) has been requested by the Power Ministry to ensure the pilot study has been completed as per timeline, business news channel ET NOW reported quoting sources familiar with the development.

Moneycontrol is yet to independently verify the development.

This is being seen as a major negative for Indian Energy Exchange (IEX) - a bourse for electricity trading - and at 1.15 pm, IEX shares were quoting Rs 210.4, lower by over 12 percent on the NSE.

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Market Coupling will mean there will be only one price for the electricity that is to be traded at any point of time through these exchanges. If implemented, power exchanges will be rendered as a platform where only buy and sell bids will be received and power dispatched to the buyer.

Grid-India is reportedly conducting a study, following which the Central Electricity Regulatory Commission will make a final decision in this regard. The Power Ministry is also planning to implement the new mechanism either by the end of FY25 or at the beginning of the next financial year.

Apart from the point of uniform price discovery across exchanges, Centre also wants market coupling as it is keen to increase the share of power exchanges in the trading of electricity. The government wants to reduce the prevalence of current format of long-term power purchase agreements (PPAs), which run for as long as 25 years.

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