Indian Energy Exchange Ltd - July 2021 operating highlights

The electricity market at the Indian Energy Exchange traded 7322 MU volume and achieved 37% YoY growth in July'21.

According to the power demand data published by the National Load Dispatch Center, the national peak demand on 7 July'21 at 200.6 GW was highest ever registering a 17.6% YoY increase while the energy consumption at 125.5 BU grew 10.6% on a YoY basis. During the month, India's manufacturing PMI rose to 3-month high at 55.3. With easing of lockdown restrictions, economic activities as well as power consumption accelerated.

While the increase in power demand has been contributing to the electricity volume growth at IEX, the Exchange's role as the most flexible, competitive and transparent platform for power procurement for the distribution utilities and industries has been the most key aspect towards its increasing role and impact. Amidst the severe operational and financial challenges faced by the utilities and industries due to the CoVID-19 pandemic, the competitive power prices coupled with flexible procurement and a diverse spectrum of market segments have been enabling the participants to accrue significant financial savings.

DAY-AHEAD, TERM-AHEAD & REAL-TIME ELECTRICITY MARKET

The day-ahead market traded 4238 MU volume during the month at the average monthly price at Rs 2.95 per unit. The sell-bids at 2X of the cleared volume ensured ample availability of power and providing competitive procurement opportunities to the distribution utilities and industries.

The cross-border electricity trade under day-ahead market saw 72 MU volume traded and registered 68.4% MoM increase. Currently, Nepal is the only participating country in IEX CBET market while other South Asian Countries like Bangladesh and Bhutan, are expected to join the platform shortly.

The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 761 MU during the month recorded 11 times growth.

The real-time electricity market continued to show exceptional performance with the monthly volumes of 1596 MU seeing a significant 103% YoY increase with the highest-ever single day volume since inception at 81.6 MU on 10th July 2021. The average monthly price of Rs 2.77 per unit saw 8.4% MoM decline making the real-time power sourcing a compelling opportunity for the market participants.

GREEN MARKET

The green term-ahead market performed exceptionally well this month, surpassing all the previous milestones.

The market traded the highest-ever volume of 726 MU in July'21 seeing 76% MoM increase. The green term-ahead market also registered the highest-ever single day volume of 153.1 MU on 16th July 2021. Since the onset of wind season in April-May, the green market has been greatly enabling the distribution utilities to sell excess energy for the other deficit States to buy. In fact, July saw high wind generation in the country, with average wind generation recorded at 349 MU per day, 64.5% higher than in 212 MU per day in 2020.

During the month, the market saw participation from 51 members which is the highest-ever since inception in August'20. It reflects growing traction in the green market as it becomes a key facilitator of competitively priced renewable energy procurement among distribution utilities and industrial consumers.

The market saw participation from distribution utilities from West Bengal, Bihar, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, Maharashtra, Punjab, DNH, Daman & Diu, Assam and Tamil Nadu among others.

RENEWABLE ENERGY CERTIFICATES

The REC trading session which was scheduled on Wednesday 28 July 2021 did not take place due to a stay order from Appellate Tribunal for Electricity (APTEL), in response to the petitions filed by a few Renewable Energy Associations.

Shares of Indian Energy Exchange Limited was last trading in BSE at Rs. 421.95 as compared to the previous close of Rs. 429.35. The total number of shares traded during the day was 144004 in over 7497 trades.

The stock hit an intraday high of Rs. 431.65 and intraday low of 420.25. The net turnover during the day was Rs. 61181447.

Source : Equity Bulls

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