IEX Crossed 100BU in The Electricity Market For The First Time Since Inception

On April 04, 2024, Indian Energy Exchange Ltd, the premier electricity exchange in India, stated in an exchange filing that the company had achieved 110 BU in the financial year ended on March 31, 2024, registering a growth of 13.8% on a YoY basis.

The company further added that the Government took numerous measures, which resulted in a better supply scenario across the country. Due to this, the sell side liquidity improved on the Exchange. During FY2024, the sell liquidity on the exchange rose by 16.9% YoY, which led to a decline in the Day-Ahead Market (DAM) prices from ₹5.94/unit in FY 2023 to ₹5.24/unit in FY 2024.

The company further added that the financial year 2024 experienced a number of favourable policy and regulatory interventions that further deepened power markets. These policies included General Network Access (GNA) regulation, the Indian Electricity Grid Code (IEGC) regulations, and Transmission Charges Sharing regulations. Further, there were amendments in the Electricity Late Payment Surcharge Rules of 2024, which require the sale of URS power on exchanges. During the year, the energy requirement rose by 7.5% YoY to 1,626 BU, according to data recorded by the government.

During Q4 FY2024, the exchange achieved 30.1 BU volume across all segments, reflecting a growth of ~15.7% on a YoY basis. This volume comprises 25.9 BU from the conventional power market segment, 1 BU from the green market segment, and 32.48 lac Renewable Energy Certificates (RECs) (equivalent to 3.2 BU).

During March 2024, the company achieved a YoY growth of 6.2% in overall volume to 9.8 BU. The Market Clearing Price in DAM during March 2024 was ₹3.91/unit, down ~28% on a YoY basis because of the increased sell quantum. The sell bids on the exchange (Day Ahead Market plus Real-Time Market) during the month increased by ~37% on a YoY basis.

About Indian Energy Exchange Ltd

Indian Energy Exchange Ltd provides an automated platform and infrastructure for trading in electricity units for the physical delivery of electricity. On April 04, 2024, the IEX share price opened at ₹145.15 and touched the day high of ₹147.80 at 12:49 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.