IEX in demand after good biz update for May

Indian Energy Exchange (IEX) jumped 3.01% to Rs 365.60 after the exchange said it traded 6,540 MU of electricity volume in May 2021 achieving 9% year on year growth amidst continuation of the COVID-19 lockdowns as well the cyclonic disturbances.

The company's day-ahead market traded 4,364 MU volume in the month of May 2021 with the average monthly price at Rs 2.83 per unit. The market clearing price saw a steep decline of 24% on MoM basis since average monthly price was Rs 3.70 in the month of April 2021. The sell-bids at 2.2X of the cleared volume during the month ensured ample availability of power and discovery of competitive prices thereby providing optimization opportunities to the distribution utilities.

The real-time electricity market witnessed a monthly volume of 1436 MU with average monthly price at Rs 2.53 per unit seeing 28% MoM decline. With sell-side bids at 2.6X of cleared volume, the market continued to have ample availability of power and competitive price discovery. IEX said that the market emerged as a great support to the Southern and Western coastal States that were hit by the Cyclone Tauktae and facilitated them in real time power demand-supply balancing at competitive prices with a great reliability. The market recorded highest ever single day volume of 74 MU on 29 May 2021 since its inception on 01 June 2020.

The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 383 MU during the month of May 2021.

The green term-ahead market traded the highest ever volume of 357 MU during May 2021 comprising 194 MU in the solar segment and 164 MU in the non-solar segment, achieving a significant growth of 92% MoM. IEX said the market has become a key facilitator of green power trade among distribution utilities, industrial consumers, and green generators offering the most competitive and viable avenue.

The recently launched Cross Border Electricity Trade achieved 119 MU volume in the month of May 2021. While Nepal has already been participating actively in the day ahead market on the exchange, the other South Asian countries are expected to join in soon. IEX added that the market will be instrumental in developing an integrated South Asian regional power market ecosystem and support efficient and sustainable growth of the energy sector in the region.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs) and ESCerts (Energy Saving Certificates).

On a consolidated basis, IEX reported 35.1% jump in net profit to Rs 61.5 crore on 26% rise in total revenue to Rs 100.3 crore in Q4 FY21 over Q4 FY20.

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