Indian Energy Exchange: IEX shares in focus after July power market update

Shares of Indian Energy Exchange Ltd (IEX), is in focus on Monday morning after the electricity exchange said it achieved the highest-ever total volume in July, up 56 per cent YoY. IEX said electricity volume jumped 29 per cent YoY to 10,093 MU, with green electricity volume climbing 259 per cent YoY to 1 BU.

The renewable energy certificates (REC) stood at 3,150 MU for the month, up 405 per cent YoY. At Rs 120 per certificate, the REC market recorded an all-time low price in the trading session held on July 31, IEX told stock exchanges today.

"These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations," it said.

According to the government data published in July, the country's energy consumption reached 145.4 BUs, representing 4 per cent increase YoY. 

IEX said the Day-Ahead Market (DAM) volume increased to 5,056 MU in July from 3976 MU in the same month last year, up 27 per cent YoY. The Real-Time Electricity Market (RTM) volume increased to 3,334 MU in July from 2,540 MU, up 31 per cent YoY.

"Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency daily & weekly and monthly contracts up to 3 months, traded 712 MU in July.

IEX said the IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 989.6 MU volume in July compared with 275.4 MU in July 2023, up 259 per cent YoY. Weighted average price of G-DAM market was Rs 4.34 per unit, it said. 

IEX G-DAM cleared volume recorded an all-time high of 50 MU on July 28, the company said.

A total of 31.50 lac RECs (equivalent to 3,150 MU) were traded in the trading sessions held on July 10 and July 31, at a clearing price of Rs 128 per REC and Rs 120 per REC, respectively. The next REC trading sessions at the exchange are scheduled on August 14 and August 28.