Indian Energy Exchange powers ahead with impressive September 2023 update

Indian Energy Exchange Limited (IEX) which provides an automated platform and infrastructure for carrying out trading in electricity units for physical delivery of electricity has reported impressive results for September 2023 in its recent media release. The leading energy exchange achieved an overall volume of 9147 MU, reflecting a substantial 13% year-on-year growth. This figure includes 230 MU from green market trade, 5.15 lakh Renewable Energy Certificates (RECs), and 1.06 lakh Energy Saving Certificates (ESCerts).

The positive momentum in demand witnessed in August 2023, continued into September 2023, with India’s electricity consumption reaching 140 billion units (BU) compared to 127 BU in the same month the previous year. This marked a significant 10% year-on-year increase. Notably, the country recorded an all-time high peak demand of 240 GW on September 01 and the highest-ever single-day energy consumption of 5224 MU on September 02, according to Grid-India. For the second quarter of fiscal year 2023, IEX achieved a remarkable 15% year-on-year growth, with a total volume of 26,533 MU traded across various market segments.

An essential development to note is the implementation of the General Network Access (GNA) regulation, Indian Electricity Grid Code (IEGC) regulations, and Transmission Charges Sharing regulations from October 01, 2023. These regulatory changes are expected to boost trading volumes in the Day-Ahead Market (DAM) on the Exchange as sellers will no longer be required to pay interstate transmission charges.

In the last trading session, the stock closed at Rs 129.65. Today it opened at Rs 132.05 and ended around Rs 133.15, marking a 2.70% increase. It has a 52-week high of Rs 163.75 and a 52-week low of Rs 116.05. The company currently has a market capitalization of approximately Rs 11,965 crore.

The company is the first Power Exchange, licensed by the Central Electricity Regulatory Commission (CERC) for spot trading in electricity and trading of Renewal Energy Certificates (REC) and ESCerts. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.

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.