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IEX power market update for November

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Capital Market
Last Updated : Dec 07 2020 | 9:31 AM IST
The Indian Energy Exchange traded electricity volume of 6164 MU in November'20 registering a significant 61% YoY growth. According to the data published by NLDC, the national peak demand in November saw an increase of 3.2% YoY while the energy consumption registered 3.15% YoY growth. The significant growth in the electricity trade volume at IEX despite a moderate increase in consumption and peak demand is a clear reflection that the distribution utilities as well as the open access consumers have a greater preference for competitive and efficient power procurement through the Exchange market.

The day-ahead market volume at 4860 MU also recorded 43% YoY growth. The market continued to see high sell side liquidity with total sell bids at 9778 MU being twice that of the cleared volume. This enabled the market to maintain attractive average market clearing price at Rs 2.73 per unit during the month seeing a 4% YoY decline over the price of Rs 2.85 during the same period last year.

Attractive power prices in the Exchange market continued to yield greater financial savings for the distribution utilities and industries enabling them to build on and improve their financial liquidity as well as overall efficiency.

One Nation One Price prevailed during all 30 days of the month making Exchange the most reliable platform for power procurement.

The term-ahead market traded 245 MU volume during November'20.

The real-time electricity market saw all time high volume of 894 MU in November since commencement on 1 June 2020 and registered a 10% growth on MoM basis. The highest volume traded on a single day was 40.6 MU on 29 November.

The market witnessed a significant sell side liquidity with sell side volume being 2513 MU which was more than twice the buy side liquidity. This also ensured competitive average market price of Rs 2.75 per unit. Further, the market also continued to witness increased participation- a total of 318 participants traded in the market in November with the highest number of participants trading on a single day at 168 on 19 November. Over the past six months, the real time market has registered a cumulative volume of 4574 MU.

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The market has been quite successful in drawing excellent participation from the distribution utilities, open access consumers and generators. The market enables DISCOMs and open access consumers address their demand- supply variations in the most dynamic and efficient manner through ensuring delivery at just 1-hour notice.

The Green Term Ahead Market registered a cleared volume of 164 MU comprising 145 MU in solar and 19 MU in non-solar. Since its launch on August 21, 2020, the market has cumulatively traded over 459 MU volume.

The market segment has been seeing encouraging participation from distribution utilities, open access consumers and renewable generators. A total of 23 participants traded during November and the key participants included utilities from the States and UTs such as: Telangana, Karnataka West Bengal, Haryana, Dadar & Nagar Haveli, Daman & Diu, Delhi, Bihar, Maharashtra among others.

On 4 December, IEX also announced addition of daily and weekly contracts in the green market, both solar and non-solar segments, besides the already existing intra-day and contingency contracts, to facilitate the market participants procure renewable energy over a longer duration.

The REC trading session which was scheduled on November 25, 2020 could not take place due to the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations against the CERC order dated June'20 regarding revision in the floor and forbearance prices of REC.

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First Published: Dec 07 2020 | 9:18 AM IST

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