Indian Energy Exchange Ltd - July 2020 volumes

The electricity market at the Indian Energy Exchange witnessed a total trade of 5334 MU in July '20.

The volume traded in July'20 registered an increase of 11% over June'20 and remained at par with volume traded in July '19 while the national electricity consumption and peak demand saw 3% decline in July'20.

The day-ahead market traded 4487 MU during the month. The market continued to see high sell side liquidity - the total sell bids at 9734 MU were close to 1.9X of the buy bids which stood at 5199 MU.

With robust sell side liquidity, the average market clearing price in the day-ahead market during the month at Rs. 2.47 per unit registered a 27% YoY decline over a price of Rs. 3.38 in June'19. The attractive price continued to ensure significant savings to DISCOMS and industries during this time.

The distribution utilities from western, southern as well as a few northern states such as Maharashtra, Telangana, Andhra Pradesh and Rajasthan, leveraged the Exchange Market to optimize their power portfolio and build on the financial liquidity which is so critical at this hour. Moreover, as electricity demand and consumption rise to the pre-COVID levels driven by the increasing industrial and economic activity, availability of ample power at affordable prices will assist the economic revival and growth.

One Nation One Price prevailed during all 31 days during the month making Exchange the most reliable partner in power procurement as well as the cost optimization.

According to the data published by NLDC, the national peak demand and energy consumed registered a decline of 3% on a YoY basis, and an increase of 3% and 7% respectively on MoM basis. This increase in electricity consumption has mainly been due to the easing of the lockdown restrictions across the country.

REAL TIME MARKET

The real-time electricity market registered a 52% MoM rise with a total trade of 785 MU during July'20. With 241 customers participating, RTM saw sell bids volume about 2X of buy bids, indicative of the ample liquidity in the real-time market as well. While the sell bids saw a 17% MoM rise, buy bids witnessed a whopping 36% MoM increase demonstrating growth and the rising preference of market participants for RTM.

The real time electricity market saw 42.69 MU being the highest volume being traded in a single day on July 28, 2020. The average monthly market clearing price stood at Rs 2.49 per unit for RTM alone.

RENEWABLE ENERGY CERTIFICATES

The REC trading session which was scheduled on July 29, 2020 could not take place because of the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations against the CERC order dated June 2020 regarding correction of the floor and forbearance prices of RECs. We are of the view that REC trade sessions should not have been halted as it prevents needy distribution utilities as well as the open access customers to meet their statutory requirement of RPO.

Shares of Indian Energy Exchange Ltd was last trading in BSE at Rs.179.3 as compared to the previous close of Rs. 175.55. The total number of shares traded during the day was 8360 in over 367 trades.

The stock hit an intraday high of Rs. 181 and intraday low of 176. The net turnover during the day was Rs. 1490096.

Source : Equity Bulls

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