Indian Energy Exchange Announces Unaudited Financial Results for the Second Quarter

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● In Q2 FY’21, electricity volumes on the Exchange increase 13.2% YoY owing to
significant recovery in the energy consumption in India.
● With high sell side volumes, the Exchange sees 20% YoY decline in power prices
enabling significant savings for the distribution utilities and industries.
● Q2 FY’21 operating revenues increase 5.2% YoY.

The key highlights of the unaudited consolidated* financial results for the second quarter ended
September 30, 2020 as declared by the Company on October 20, 2020 are as below:

above financials are consolidated to include financials of Indian Gas Exchange – wholly owned subsidiary of Indian Energy Exchange incorporated on November 06, 2019. On a standalone basis, revenue was up 0.8% YoY and PAT was down by 4.3% YoY during the quarter on account of one time tax benefit in Q2 FY’20 amounting to Rs 3.7cr.
*all volumes nos. are based on traded quantity.

Overall, the second quarter of fiscal year 2021 saw a sharp recovery in industrial activity and electricity consumption owing to easing of the lockdown restrictions across the country. The start of the second quarter saw a slump in manufacturing due to re-lockdowns in a few States, however, the industrial activity picked up momentum in the months of August and September 2020. In September’20, the Manufacturing PMI rose to 56.8 – the highest in the last eight years. With increase in economic and
industrial activity, the power demand also accelerated and returned to the pre-COVID levels. The country witnessed 2% YoY increase in national peak demand and 4.6% YoY increase in energy consumption in September’20.

India’s total installed power capacity reached 373 GW as on September 30, 2020, an increase of 3% YoY. In line with the national vision to increase the share of renewable energy and its efforts to fulfil its commitment under Paris Agreement 2016, the renewable capacity registered an 8% YoY growth.
As of 30 September,’20, India’s installed renewable capacity stood at 89.2 GW, and constituted 24% of the total installed power capacity.
On August 26, 2020, the Uttar Pradesh Electricity Regulatory Commission issued Draft Merit Order Despatch & Power Purchase Optimization Regulations, 2020 which aim to improve efficiency in generation and power procurement in the State. The regulations rightly recognize the Exchange based short-term power market as a possible avenue for power purchase by the distribution utilities for efficient and cost-effective optimisation while meeting the State’s overall demand-supply situation.
Similar such regulations are already in vogue in the States of Delhi and Maharashtra and serve as a great precedence for other States in pursuing an efficient merit order despatch for procurement of
electricity.

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