IEX Reports 11% YoY Increase in Profit for Q1 FY23, Trades 22.2 BU of Power

The exchange reported a 10% YoY increase in revenue for the Q1 FY23


The Indian Energy Exchange (IEX) has reported an 11.3% year-on-year (YoY) increase in profit after tax from ₹621 million (~$7.78 million) to ₹691 million (~$8.66 million) in the first quarter (Q1) of the financial year (FY) 2022-23.

The revenue for Q1 stood at ₹1.13 billion (~$14.16 million), a 10.2% increase from ₹1.03 billion (~$12.91 million) during the same period last year.

The earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was ₹961 million (~$12.04 million), a 10.8% increase from ₹867 million (~$10.86 million) in Q1 FY 2021-22.

During the quarter, electricity volumes on the exchange grew by 10% YoY, with 22.2 billion units (BU) traded against 21.3 BU in Q1 FY 2021-22. The volume comprised 20.64 BU in the conventional power market, 1.52 BU in the Green Market segment, and 1.2 million Renewable Energy Certificates (REC), equivalent to 1.2 BU.

The growth in volumes was driven by a substantial increase in electricity consumption and the distribution utilities’ preference to meet their short-term supply requirements in a competitive and flexible manner through IEX.

The national electricity consumption stood at 401 BU during the first quarter of the financial year, which is an 18% YoY growth. The peak demand grew to 212 GW, an 11% YoY increase. The increased demand was caused by the intense heatwave during peak summers and an increase in industrial activities.

 Recently, the Central Electricity Regulatory Commission approved the introduction of additional Term-Ahead and Green Term-Ahead contracts beyond T+11 days (T indicating zero-day of trading) on power exchanges. Earlier, exchanges were allowed to sell contracts for up to 11 days. With the introduction of longer-duration contracts, they will now be able to facilitate daily, weekly, and monthly trade contracts for up to three months.

Earlier, CERC issued ‘Terms and Conditions for RECs for Renewable Energy Generation Regulations, 2022.’ According to these regulations, renewable energy generating stations, captive generating stations based on renewable energy sources, distribution licensees, and open access consumers are now eligible to issue RECs.