You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

IEX says average spot power prices down 21% in March

Topics
Business Finance

Capital Market 

Indian Energy Exchange (IEX) said electricity prices in spot market declined by 21% in March 2020 even as there was a 18% surge in trade volume.

IEX saw a trade of 4,291 million units (MU) - the Day-Ahead Market (DAM) traded 3,971 MU during March 2020 and saw 18% year-on-year (YoY) growth while the Term Ahead Market (TAM) traded 320 MU and recorded 30% YoY growth, IEX said in a statement. The southern distribution utilities continued preference for TAM contracts.

The total sell bids in day-ahead market were 12,207 MU and the buy bids at 4,545 MU. The sell-bids being over 2.5 times the buy bids imply surplus power availability on the platform, it added.

The average market clearing price in DAM at Rs 2.46 per unit saw a decline of 21% this month over the price of Rs 3.12 per unit in March 2019, offering the distribution utilities and discoms a compelling opportunity to reduce their financial burden, IEX said.

One Nation One Price prevailed for 24 days during the month.

According to the NLDC data, on an all India basis, the peak demand was at 170 GW in March 2020 over 169 GW in March 2019 growing by a marginal 1%.

On 26th March, the REC (Renewable Energy Certificates) trading session at IEX saw a total trade of 5.20 lakh RECs comprising of 4,80,379 non-solar RECs and 39,299 Solar RECs.

The price for Solar RECs at Rs 2400 per REC continued to be at the ceiling price prescribed by the CERC. The price has been at ceiling since October 2019. The price for non-Solar RECs (issued after 1 April 2017) at Rs 1,000 decreased 44% from Rs 1,800 in February 2020.

Shares of Indian Energy Exchange closed 4.45% higher at Rs 134.85 on Friday. The stock has tumbled 27.4% in last one month as compared to a 28.56% fall in benchmark BSE Sensex.

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 front, IEX reported a 2.2% decline in net profit to Rs 41.69 crore on a 9.8% decline in total income to Rs 69.42 crore in Q3 December 2019 over Q3 December 2018.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, April 06 2020. 15:01 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU