Indian Energy Exchange (IEX) intends to create the country’s first natural gas trading market place by March 2020. As India aims at increasing the share of natural gas in its energy mix to 15% by 2030 (from the current 6%), the creation of an trading platform is expected to lower the price of natural gas. However, before launching the exchange, India needs to unify gas trading regulations and sales tax systems among state governments. In addition, a program to set aside a certain volume of domestic gas for trading at the new market place is yet to be approved by the government.
The government has previously planned to set up a gas trading exchange by October 2018 to ensure a transparent market-linked gas pricing mechanism, but the project has been delayed. Two power trading places started operating in 2008: IEX, Indian Energy Exchange, and PXIL, Power Exchange of India Ltd. Combined, they trade about 4% of the electricity generated in the country (as of June 2019). IEX has nearly 100% of the market share for electricity trading and 73% for the Renewable Energy Certificates (RECs).
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