IEX share price up 3% on strong Q1 update; electricity volumes jump 25%

IEX shares rise: Shares of Indian Energy Exchange (IEX) soared as much as 2.59 per cent to hit an intraday high of Rs 189.80 per share. 

The rise in the share price came after IEX announced a strong Q1 power market update. For the first quarter of the fiscal year 2025, IEX achieved electricity volume of 28,178 MU, an increase of 19 per cent on a year-on-year (Y-o-Y) basis. 

Total volume for the quarter including certificates was at 30,354 MU, up 20.8 per cent from Q1FY24.

In June, IEX recorded an electricity volume of 10,185 MU, marking a 24.7 per cent Y-o-Y increase. 

 

Meanwhile, the total monthly volume including certificates at 10,677 MU, increased 19.4 per cent on a year-on-year basis.

According to government data published in June 2024, the country's energy consumption reached 152.4 BUs, representing a 8.9 per cent increase Y-o-Y.

In June 2024, the day-ahead market (DAM) experienced a major upturn, reaching 4,849 MU, reflecting an 18.2 per cent increase compared to the same period last year.

During the same month, the real-time electricity market (RTM) volume also saw a notable rise, reaching 3,213 MU, marking a 20.1 per cent year-on-year increase in June 2024.

Looking at the first quarter of FY25, DAM achieved total volumes of 13,336 MU, indicating a modest growth of 6.7 per cent over Q1 FY24. 

In contrast, RTM volumes showed a robust growth of 26.8 per cent year-on-year, totaling 9,193 MU.

The day-ahead contingency and term-ahead market (TAM), covering contingency, daily, weekly, and monthly contracts, traded 1,378 MU in June 2024, marking a substantial 23.3 per cent increase compared to the previous year. 

For the entire first quarter of FY25, TAM recorded a total volume of 3,875 MU, reflecting a growth of 28.4 per cent over Q1 FY24.

The Indian Energy Exchange (IEX) is an electronic power trading exchange in India regulated by the Central Electricity Regulatory Commission (CERC). 

Established on June 27, 2008, IEX has been instrumental in advancing power trading within the country. It provides a digital platform for various participants in the power market, including State Electricity Boards, power producers (Gencos), power traders, and Open Access Consumers (both Industrial & Commercial).

As one of the two operational Power Exchanges in India, IEX has consistently maintained a significant market share since its inception. 

The exchange operates a day-ahead market using closed auctions with double-sided bidding and uniform pricing mechanisms. Currently, IEX serves more than 3,800 registered clients, facilitates transactions for over 300 private generators, and supports the needs of more than 3,300 industrial electricity consumers.

At 11:01 AM, shares of IREDA were trading 0.68 per cent higher at Rs 186.25 per share. By comparison, BSE Sensex was trading 0.66 per cent higher at 79,963.99 levels.