IEX’s green market to counter India’s energy turmoil

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India’s energy industry is a lot like the philosophical experiment Ship of Theseus: the more its parts change, the more it stays the same.

Over the years, payment problems, transmission losses and the financial collapse of electric distribution companies, or discoms, have plagued the sector, resulting in a gaping US$80 billion sum.

hole


hole

Living mint
There’s an $80 billion hole in India’s climate pledge
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in the Indian energy system.

Radical changes may be on the way, however, in the form of

An Act to amend the Electricity Act


An Act to amend the Electricity Act

Ministry of Power
Bill amending the Electricity Act
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and the draft

New energy policy


New energy policy

Press Information Office
Draft new energy policy
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. India’s Ministry of Electricity is seeking to de-license the distribution sector to lower barriers to entry and make energy more accessible and sustainable.

It also has a rather grandiose target of increasing the share of trade in India’s total electricity supply from the current 7.5% to 25% by 2023. the share will surely reach around 14% at least – double what it is today,” says a senior analyst at a Bengaluru-based asset management firm.

Every time this happens, one company stands to profit: the Indian Energy Exchange (IEX). Established in June 2008, it was listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in 2017. Today, it has established a virtual monopoly in the Indian power trading market, with its only rival, the Power Exchange. of India, failing to give it tough competition.

IEX is to electricity trading what NSE is to equity trading: a marketplace where independent power producers (IPPs), corporations, discoms and utility companies come together to buy and sell electricity. electricity.

Even before the new policies take effect, IEX already has strong momentum. Over the past year, its stock has risen more than 50%, compared to a rise of just 5% in the S&P BSE 500 index. Today, its market capitalization stands at Rs 16,382 crore (2. $1 billion). And in the year ended March 2021, IEX reached a record volume of 102 billion units (BU), a growth of 37% on an annual basis. Its net profit increased by almost 50%, while its margins improved by about 12%, during this period.

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