Between April and September, 28584 million units (MUs) of electricity were traded both in the day ahead and term ahead market
A revival in power demand spurred volumes growth in electricity trading at Indian Energy Exchange (IEX). The exchange’s electricity trade volume rose 19 per cent during April-September, aided by pan-India 6.2 per cent increase in electricity generation in the period.
Between April and September, 28584 million units (MUs) of electricity were traded both in the day ahead and term ahead market. Trade in renewable energy certificates (RECs) zoomed 325 per cent year-on-year (y-o-y), growing from 1205 MUs to 5121 MUs. Total volume trade on IEX went up 34 per cent to 33705 MUs in the period under review.
During the period, the market was congestion free on most of the days. Volume curtailment due to congestion was only 0.6 per cent. IEX’s revenue in April-September was up 21 per cent to Rs 1494 million on the back on increase in trade volume in electricity and REC segments. At Rs 1247.4 million, IEX’s Ebitda (earnings before interest, taxes, depreciation and amortisation) was up 23 per cent with the bourse registering robust Ebitda margin of 83 per cent. But total operating expenses rose 14 per cent to Rs 246.6 million due to increase in employee cost, professional fee, CSR (corporate social responsibility) and other expenses. Depreciation was higher by 19 per cent at Rs 52.2 million on account of capital expenditures incurred during FY18, primarily on the acquisition of trading software technology. Tax expense in the period stood at Rs 348.4 million, resulting in an effective tax rate of 29 per cent.
IEX logged its highest volume trade of 306 MU in the day ahead market (DAM) on September 29, 2018. Average Market Clearing Price increased 33 per cent from Rs three to Rs 3.98 per unit largely due to inadequate availability of coal with the generators, the exchange noted in an investor presentation. In the term ahead market, 892 MUs were traded, marking a spike of 86 per cent over the April-September period of 2017-18. Twenty-two (22) solar projects aggregating a capacity of 1066 Mw were registered and solar energy was sold through DAM on the exchange.
The energy exchange’s volumes growth and performance were bolstered by the marked uptick in electricity demand. To cater to the demand growth, power generation- renewable generation included, rose 6.2 per cent in April-September to 705 billion units (BUs) compared to 664 BUs in the year-ago period. Key states that witnessed increase in energy demand in the period are Karnataka (27 per cent), Telangana (19 per cent), Maharashtra (18 per cent), Andhra Pradesh (17 per cent), Odisha (16 per cent) and Gujarat (16 per cent).
The thermal generators faced lack of availability of coal, leading to increase in e-auction rates of coal. Even the imported coal prices went up significantly. Consequently, this led to increase in market clearing price on the exchange which reached Rs 3.98 per unit, an increase of 33 per cent in the comparable period of FY18.