The electricity market at India Energy Exchange (IEX) recorded a total trade of 3,825 million units (MU) in November, marking 7 per cent year-on-year increase in traded volumes due to increased procurement by the eastern and southern states.
"The upsurge demonstrates the growing preference for the exchange platform enabling power-on-demand at the most competitive pricing and flexible procurement for market participants," said IEX in a statement on Thursday.
The day-ahead market (DAM) traded 3,389 MU with an average market clearing price at Rs 2.85 per unit versus price of Rs 3.58 in November 2018, a 20 per cent decline in price, making the marketplace more attractive as well as viable for both distribution utilities and open access customers.
In the DAM, total monthly sell bids were 8,579 MU while buy bids were 4,108 MU. With sell bids at over two times of the buy bids coupled with lower clearing prices, helped discoms as well as commercial and industrial consumers to save costs and optimise power procurement costs.
"Looking at the available historical trends and low demand scenario, this trend is likely to continue during the winter months," said IEX.
One Nation, One Price prevailed for 26 days during the month. The inter-state congestion for the remaining days was on account of import of power to southern states.
More From This Section
In the term-ahead market (TAM), volumes rose 157 per cent year-on-year on the back of a growing number of distribution utilities turning to TAM contracts especially intraday, daily, weekly for meeting their short-term power demand.
All India peak demand at 156 gigawatt in November declined 4 per cent over demand of 162 gigawatt in November last year and the energy met at 3.3 billion units declined 5 per cent year-on-year. The primary reasons for this decline were economic slowdown as well as early onset of winters.
On November 27, the renewable energy certificate (REC) market at IEX saw a total trade of 3.29 lakh certificates comprising of 2.92 lakh non-solar RECs and 37,000 solar RECs.
The price for non-solar RECs (issued after April 1, 2017) at Rs 1,800 increased 9 per cent from Rs 1,650 in October 2019 and price for solar RECs at Rs 2,400 remained unchanged from October 2019.
The continuing increase in REC prices has mainly been due to shortfall on account of low inventory since March this year.
IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, RECs and energy saving certificates (ESCerts).
The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market while also enhancing the speed and efficiency of trade execution.
Disclaimer: No Business Standard Journalist was involved in creation of this content
