INDIAN ENERGY EXCHANGE ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2020
• Q1 FY’21 sees 14.5% YoY increase in electricity volumes on the Exchange when overall energy consumption declines 16% YoY
• PAT growth of 6.3% YoY in Q1 FY’21
• Exchange power prices down 26% YoY yield significant savings for distribution utilities and Industries
• Company plans to introduce new market segments and products
Q1 FY21 began with a severe slump in economic activity with IIP contracting by almost 57.6% in the
month of April. However from the month of June, an increased economic activity led by easing of the
lockdown restrictions in most parts of the country and peaking summers, India’s peak electricity
demand returned to 90% of pre-COVID levels although the energy consumption saw 16% YoY decline.
India’s total installed power capacity reached 371 GW as on June 30, 2020. In line with India’s
commitment to the Paris Agreement 2016 to increase the share of green energy in the overall energy
mix, the renewable capacity grew 10% YoY and reached 88 GW as on March 31, 2020. Thermal
generation reduced 23% in the same period.
In May 2020, the CERC notified new Regulations on Inter-State Transmission Charges and Losses
enabling transactions on the exchange to be treated at par with intra-state transactions. This will
incentivize DISCOMs to further optimize their power purchase through exchange and increase viability
on the sell side as well.
Further, MoP amended the Methodology of Coal Allocation under Shakti Scheme allowing generators
to participate in the coal linkage auction for selling of power on the day-ahead market on Power
Exchanges and DEEP platform.
On July 10, 2020, the Ministry of Power released an office memorandum which indicates resolution
of a decade old jurisdictional conflict between CERC and SEBI, ably led by the Government in order to
facilitate introduction of longer duration power forwards and derivates. It is a much-awaited positive
step that will facilitate power markets to leapfrog to the next level of growth. Further, on July 18 2020,
the CERC also issued the Draft Power Market Regulations 2020 to create a market framework that is
robust, efficient and transparent and enable growth.