Commerce Dashboard

Go Back

Energy exchange jumps 180% this year as India battles coal crisis

IBEF:  October 11, 2021

A bourse with a near domination in electricity trading in India is gainig attention as a severe coal crisis and the union government’s aim to push ahead with reforms shift dynamics in the country’s power sector.

Shares of Indian Energy Exchange Ltd., whose platform is progressively being logged in by power producers, distributors and corporates for their short-term energy requests, have surged 181% so far in 2021. That’s the second-best performance on the S&P BSE India Power Index subsequent to Adani Transmission Ltd.

Indian Energy Exchange has surpassed a gauge of power firms this year.

IEX’s real-time market product has been a “game changer” as it permits companies to bid for their power needs over next one hour, according to Mr. Meet Jain, an analyst with Mumbai-based LKP Securities Ltd.

This has allowed firms to take advantage of cheaper electricity prices than their existing long-term purchase rates, he added. “The government is in the setting up stage to push for procuring 100% power via exchanges, which have more precision and better price discovery.”

For three months ended September 2021, Indian Energy Exchange saw a 57% y-o-y growth in power trading volume with demand across market segments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.