IEX records 7% decline in total volumes in Feb'23

The Indian Energy Exchange, India's premier energy exchange, achieved 8200 MU total volume in February 2023, including Green Power trade of 341 MU, 3.74 lac RECs (equivalent to 374 MU) and 1.54 ESCerts (equivalent to 154 MU).

While the average daily volume traded on the Exchange increased in February '23 by 5% MoM, the overall volume declined 5% MoM due to lesser trading days vis-vis the previous month. The electricity volume on the Exchange in February '23 at 7673 MU, registered 6% decline on YoY basis and 7% MoM basis. The overall volume on the Exchange during the month was 8200 MU, degrowth of 7% on YoY basis.

Sell side liquidity continued to be affected due to high input costs. Demand for power increased due to unusually warm temperature witnessed in February across several parts of the country, and sustained momentum in economic activities. The energy met in the country during February '23 stood at 118 BU, 9% higher on YoY basis, as per data published by the National Load Dispatch Center.

Supply constraints are expected to ease in the coming months due to the conducive policy and regulatory initiatives. These initiatives will lead to increase in coal and gas based generation, resulting in higher liquidity on the Exchange in the coming months. This will provide cost optimisation opportunities to Discoms and Open Access consumers.

IEX resumed trading of Energy Saving Certificates (ESCerts) on 14 February 2023, after a gap of 14 months. During the month, nearly 1.54 Lac ESCerts (equivalent to 154 MU) were traded on IEX, with 97% market share.

ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET

The Day-Ahead Market volume decreased from 4893 MU in January '23 to 4664 MU In February '23, i.e 5% degrowth on MoM basis. The Day Ahead Market volume was lower by 17% on YoY basis due to high prices resulting from a constrained supply scenario, which led to continued high spot e-auction coal prices.

The Real-Time Electricity Market (RTM) achieved 1714 MU volume during the month, registering 10% YoY growth. There were 722 participants in this segment during the month. The consistent growth of RTM segment reflects its relevance to distribution utilities and industries for efficiently balancing their power demand-supply in real-time basis.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and contracts upto 3 months, traded 954 MU during the month, an impressive increase of 81% on YoY basis and 5% on MoM basis.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 341 MU volume during February '23, down 2% on MoM basis.

The Green Day-Ahead Market achieved 250 MU volume with a weighted average price of Rs 6.57 per unit. The market saw participation from 203 market participants during the month, with the highest number of participants in a single day at 159 on 22nd February.

The Green Term-Ahead Market achieved 91 MU volume with an average monthly price of Rs 8.22/unit for Non-Solar and Rs 10.18/unit for Hydro.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 3.74 lac RECs were cleared in the trading session at IEX held on Wednesday, 22nd February, with cleared price of Rs. 1000/REC. In the corresponding month last year, 6.12 lac RECs were traded. The next REC trading session at the Exchange is scheduled on Wednesday, 29th March '23.

ENERGY SAVING CERTIFICATES (ESCerts)

Trading of ESCerts under PAT Cycle II resumed on IEX platform from 14 February 2023. Trading takes place every Tuesday from 1300 hrs. to 1500 hrs. Floor price for trading is fixed at 10% of the price of one Mtoe of energy consumed, as notified by the Central Government, which translates to Rs. 1840. In February '23, 1.54 Lac ESCerts (equivalent to 154 MU) were traded on IEX, with 97% market share. IEX pioneered trade in ESCerts under PAT Cycle I in 2017 with 100% trade on its platform.

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