The renewable energy certificates (REC) stood at 1,055 MU, which increased by 640.3 percent YoY.
REC is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).
The renewable energy certificate (REC) represents transferrable proof that one MWh of electricity was produced from renewable energy sources and added to an electrical grid.
It offers various trade markets, such as the electricity market, green market, and certificates.
The market and contracts include the day-ahead market, term-ahead market, renewable energy certificates, energy-saving certificates, and many others.
Exchange stock engaged in providing an automated platform and infrastructure for carrying out trading for the physical delivery of electricity, renewables, and certificates jumped 6 percent in the day’s trade following the release of its monthly business updates.
With a market capitalization of Rs. 14,585 Crores, the shares of Indian Energy Exchange Limited were trading at Rs. 162.30 per equity share, up 3.34 percent from its previous day’s close price of Rs. 157.05.
Indian Energy Exchange Limited has released its monthly Power Market Updates as follows, Achieved monthly overall volume of 10,633 MU, in May 24, marking a 28.9 percent year-over-year increase. It recorded the highest-ever monthly volume of 3,352 mu in RTM, an increase of 38 percent YoY.
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The electricity volumes stood at 9,568 MU, which increased by 21 percent YoY. The renewable energy certificates (REC) stood at 1,055 MU, which increased by 640.3 percent YoY.
REC is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO). It is aimed at addressing the mismatch between the availability of RE resources in the state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO).
The renewable energy certificate (REC) represents transferrable proof that one MWh of electricity was produced from renewable energy sources and added to an electrical grid.
At Rs. 165 per certificate, the REC market recorded an all-time low price in the trading session held on 29th May 2024. These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations.
Proactive measures taken by the government and the regulators, including the sale of surplus unrequisitioned power on power exchanges, increased fuel supply, and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges which kept the prices under control on exchanges.
Therefore, despite the increase in electricity consumption the market-clearing price in the Day Ahead Market during May ‘24 was Rs. 5.3/unit, lower by more than 20 percent as compared to prices discovered under bilateral contracts.
According to government data published in May’24, the country’s energy consumption reached 156.3 BUs, representing a 15 percent increase on a year-on-year basis. Notably, on May 30, 2024, the country witnessed an all-time high peak demand of 250 GW along with the highest ever single-day energy consumption of 5,466 MU.
Indian Energy Exchange Limited provides an automated platform and infrastructure for carrying out trading for the physical delivery of electricity, renewables, and certificates. It offers various trade markets, such as the electricity market, green market, and certificates. The market and contracts include the day-ahead market, term-ahead market, renewable energy certificates, energy-saving certificates, and many others.
Its revenue from operations grew by 13.31 percent from Rs. 107.03 Crores in Q4FY23 to Rs. 121.28 Crores in Q4FY24, accompanied by profits of Rs. 82.87 Crores to Rs. 95.1 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 39.4 percent, a return on capital employed (ROCE) of 44.80, and a debt-to-equity ratio of 0.01.
Written by: Bharath K.S
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