Representative image | Photo credit: Sushil Kumar Verma
Indian Energy Exchange is expected to exchange electricity electricity of the country, register a two -digit volume growth in the current financial year that began in April, thoroughly of the growing liquefability of the sale side and the launch of new products, accessories.
The current financial year is likely to see a 11 GW capacity incorporation into the thermal side and up to 40 GW on the renewable side that is expected to keep liquidity on the supply side in strong exchanges, which drives the discovery of prices in the key negotiation segments such as the day market and the real -time market (RTM).
According to analysts, the introduction of new products such as Green RTM and long -term contracts (LDC) or up to 11 months will be added to volumes in IEX. In 2024-25, IEX registered the highest electrical volume of 121 billion units (bus), 18.7 percent more year after year.
“The approval of 11 -month LDC contracts, Green RTM, private participation in the sale of surpluses no requirements in exchanges, the decrease in Bess prices, the increase in FDRE/RTC Green projects is likely to increase the liquidity of the supply side/perspective of volume growth,” said Axis Capital in his subsequent earnings note.
“As Bess becomes more and more competitive, it will support the growth of FDR solutions and, therefore, will improve liquuidity in exchanges,” said the note.
According to analysts, IEX has submitted a request to the near regulator for an 11 -month LDC contract. It will help to change part of the deep volume (40 BU in the fiscal year24) to exchanges. The discovery of prices in LDC is expected to be around 25 percent lower than on the deep platform for a similar duration. In addition, the margin requirements for customers will mean that IEX does not run any risk of working capital in LDC contracts. Approval is expected.
The long -term contract aims to offer greater flexibility for market participants, distribution companies in part, by allowing longer -term contracts for a more stable energy acquisition.
“If approved in the next two or three months, IEX expects an additional annual potential of 40 BU (one billion units). In addition, the Green RTM (new product) would allow the resellers to obtain a price premium on conventional energy, while allowing buyers to comply with their renewable purchase obligations when obtaining green electricity,” said the agglibe of antique actions in a report.
“(The launch of LDC) will help change part of the deep volume to exchanges. The discovery of prices in LDC is expected to be ~ 25 percent lower than on a deep platform during a similar duration. In addition, requests for the margin of customs hiring said in their note.
Beyond the electricity trade, IEX is witnessing traction in other exchanges of basic products such as gas with almost 50 percent of volume growth, carbon exchange that common operations in fiscal year 2015 and carbon exchange where a consultation document has been.
According to the increase in old volume, IGX is mainly due to Reliance Industries and Ond selling a good part of its market production now.
“IGX achieved a record of 60 million MMBTU in the volume of negotiated gas in fiscal year 2015, an increase of 47 percent Yoy. With the fall in gas prices, IGX expects continuous growth of volume,” said the old note.
“The diversity in carbon exchange and coal exchanges in the future and improvement in the volume growth perspectives for IGX add growth options on the medium term,” said Axis.
IEX is working with the Ministry of Coal to establish the first exchange of coal of India for fiscal year 27. The launch is expected to require the Law of Mining and Mineral Development Regulations for the sale of surplus coal facilitation through the exchange of coal, including commercial and captive mines.
Speaking about market coupling, analysts have said that there is still no clarity on the subject. “Excessive delays from the government/ regulator imply limited challenges/ merit in the implementation of the same,” said Iifl Capital in his note after profits.
During prosecutor 2024-25, IEX reported a consolidated net gain or ₹ 429.16 million rupees compared to ₹ 350.78 million rupees a year ago, while total income increased to ₹ 657.36 million rupees of ₹ 550.84 million rupees in 2023-24.
Posted on May 4, 2025
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