Indian Energy Exchange trade volume dips over 11% to 23.1 billion units in Q2

The total trade volume of Indian Energy Exchange (IEX) dipped over 11 per cent to 23.1 billion units in the July-September quarter, compared to the year-ago period, due to supply-side constraints.

The total trade volume of IEX was 26 billion units (BU) in July-September 2021, a company statement showed.

It said, "during the quarter, the Exchange traded 23.1 BU electricity volume versus 23.4 BU in Q1 FY'23. The volume comprised 19.7 BU in the conventional power market, 1.5 BU in the Green

Market segment and 19.14 lakh Certificates in the Renewable Energy Certificates (REC) Market which is equivalent to 1.9 BU."

During the quarter, the volumes declined by 11 per cent YoY (year-on-year), as compared to Q2FY'22, it stated.

However, it said that during H1FY23 (April-September 2022) the volumes declined marginally by 2 per cent YoY.

The volumes were impacted due to supply-side constraints, led by high prices of e-auction coal, imported coal and gas.

The average Day Ahead Market prices increased to Rs 5.40 per unit during Q2 FY23, as against Rs 4.14 in Q2 FY22.

However, it stated that the average Day Ahead Market price was Rs 7.76 per unit during Q1 FY23.

Going ahead, easing supply-side constraints and lower demand in the impending winter season, an increase in liquidity on the exchange platform leading to reduction in prices is likely, which will provide opportunity to discoms to optimize their power procurement and commercial and industrial consumers to buy cheaper power it stated.

During the quarter, the IEX added new products to the existing Longer Duration Contracts portfolio such as Daily contracts for up to 90 days, Weekly contracts for up to 12 weeks and Monthly contracts for a period for up to 3 months.

On the Gas market front, despite the increase in prices, during the quarter, the Indian Gas Exchange (IGX) traded 5.9 million MMBTU in terms of volume and the profit after tax was recorded at Rs 2.42 crore, a growth of 111 per cent on QoQ basis, it stated.

The IEX on Thursday reported nearly 7 per cent fall in its consolidated net profit at Rs 71.20 crore in September quarter, compared to a year ago.

The consolidated net profit was Rs 77.38 crore in the quarter ended on September 30, 2021, a BSE filing stated.

Total income declined to Rs 113.77 crore in the quarter under review, from Rs 122.30 crore in the same period a year ago.