Indian Energy Exchange: IEX shares in focus as exchange's Q3 volume jumps 16.9% YoY

Shares of Indian Energy Exchange Ltd (IEX) will be focus on Thursday after the company in its quarterly update note said it achieved 28,326 MU overall volume in the December quarter, up 16.9 per cent on year-on-year (YoY) basis. For the month of December, the energy exchange said it achieved 9,707 MU overall volume, including 10.52 lakh Renewable Energy Certificates (RECs) (equivalent to 1052 MU), marking a 14.9 per cent increase on YoY basis.

IEX achieved 8,655 MU total electricity volume in December 2023, registering an increase of 8.7 per cent on YoY basis, the company said in a BSE filing. According to the government data, India's energy consumption remained flattish at 119.07 BUs in December.

The market clearing price in the Day Ahead Market for the month was Rs 4.54 per unit, marking a 13 per cent YoY fall.

"With favourable Policy and Regulatory interventions, the sell bids on the exchange (Day Ahead Market plus Real Time Market) during the month increased by 18% on YoY. Going forward, the sell liquidity is expected to further improve, leading to a decline in power prices on the exchanges. This will present an opportunity for Discoms and Industrial consumers to optimize their power procurement costs," IEX told stock exchanges.

IEX said the Day-Ahead Market (DAM) volume stood at 4,798 MU in December compared with 5,001 MU in December 2022. The DAM segment registered total volumes of 14,684 MU in the December quarter, up 1.5 per cent YoY.

The Real-Time Electricity Market (RTM) volume increased to 2,405 MU in December from 1,763

MU in December 2022, up 36.4 per cent YoY. The RTM segment registered volume of 7,166 MU in Q3FY24, up 31.9 per cent YoY.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly and monthly contracts up to 3 months, traded 1,220 MU during December, up 48.4 per cent on YoY basis. The total volume on the segment during the quarter stood at 3,810 MU, up 91.4 per cent over Q3 FY23.

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 232 MU volume in December. During Q3FY24, the segment achieved volume of 609 MU.

"The Green Day-Ahead Market (G-DAM) achieved 216.6 MU volume during the month, with a weighted average price of Rs 4.86 per unit. The segment saw participation from 187 market participants during the month. During Q3FY24, the segment achieved volume of 579.6 MU," IEX said.

The Green Term-Ahead Market (G-TAM) achieved 15.4 MU volume in December, IEX said, with average monthly price of Rs 6.08 per unit (non-solar). For Q3FY24, the segment achieved volume of 29.9 MU. In the case of renewable energy certificate market, a total of 10.52 lakh RECs (equivalent to 1052 MU) were traded in the trading sessions held on December 13 and December 27, 2023, at a clearing price of Rs 370 per REC and Rs 360 per REC, respectively.

"REC traded volume in December 2023 increased by 115.9 per cent on YoY basis. A total of 20.24 lac RECs (equivalent to 2,024 MU) were traded during Q3FY24. The next REC trading sessions at the Exchange are scheduled on 10th January 2024 and 24th January 2024," IEX said.

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