IEX clocks 58 pc growth in electricity trade volume at 25.9 BU in Q2

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October 22, 2021 1:17 PM

The Indian Energy Exchange has recorded a 58 per cent growth on a year-on-year basis in its electricity trade volume at 25.9 billion units in the September quarter.

Continuing its outstanding performance, the RTM contributed 20 per cent to the overall volumes during the quarter.

The Indian Energy Exchange (IEX) has recorded a 58 per cent growth on a year-on-year basis in its electricity trade volume at 25.9 billion units (BU) in the September quarter. The electricity trade volume of IEX during July-September 2020 stood at 16.5 BU.

During the first half of FY ’22 (April to September in 2021), the IEX traded a total of 47.2 BU of electricity, as against 31.4 BU in the year-ago period, implying a robust year-on-year (YoY) growth of 50.6 per cent, IEX said in a statement.

IEX said the growth in volumes was driven by substantial increase in electricity consumption as well as the preference by the distribution utilities to meet their short-term supply requirements in a competitive and flexible manner through IEX. The Real-Time Market (RTM) remained one of the fastest-growing electricity market segments on the Exchange, achieving a growth of 125 per cent YoY with 5.3 BU of volumes traded during the second quarter, it said.

Continuing its outstanding performance, the RTM contributed 20 per cent to the overall volumes during the quarter. On August 21, the Green Term-Ahead Market marked its first anniversary, recording a cumulative volume of 3.4 BU since its inception. Furthering the customer centric initiatives, IEX launched Value-Added Services (VAS) for the Renewable Energy generators.

The Exchange is now gearing to launch trade in ESCERTs (energy saving certificates) under Perform, Achieve and Trade-II cycle (PAT-II); commence the Green Day-ahead contract under the Integrated Day-ahead Market, and also launch the Longer Duration delivery contracts in electricity and renewable segment, it said.

On the gas market front, the Indian Gas Exchange (IGX) witnessed an increase in both volume and participation. During the quarter, IGX traded approximately 10 lakh MMBTU in terms of cumulative volume.

The Ministry of Petroleum & Natural Gas vide its Office Memorandum dated August 19, 2021 has provided an additional mechanism to domestic gas producers, who have been granted pricing and marketing freedom, to trade on Gas Exchanges.
Accordingly, the domestic gas producers may sell a quantity of gas, up to 500 MMSCM (million metric standard cubic meters) or 10 per cent of annual production from Contract, whichever is higher, per year through Gas Exchanges. This will provide cheaper gas and induce market liquidity and depth, it said.

Meanwhile, IEX on Thursday posted a nearly 75 per cent jump in consolidated net profit at Rs 77.38 crore for the September quarter, mainly on the back of higher revenues. The consolidated net profit of the company stood at Rs 44.33 crore in the corresponding quarter of the previous fiscal, it said in a regulatory filing. Total income rose to Rs 122.30 crore in the quarter, from Rs 78.71 crore in the year-ago period.

The board has also recommended a bonus issue of equity shares in the proportion of two shares of Re 1 each for every one existing share of Re 1 each held by the shareholders as on the record date.

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