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Power Market trades 9165 MU volume in October’ 21 achieving 36% YoY growth
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RTM trades 1999 MU volume during the month achieving 145% YoY growth
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Honorable Shri R K Singh, Minister for Power and Renewable Energy commences trade in Green Day-Ahead Market on 25 Oct’21
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Green Market achieves 372.4 MU volume during the month
In October’21 the electricity market at the Indian Energy Exchange traded 9165 MU volume with 8792 MU in power market and 373 MU in green market, achieving 36% YoY growth. According to the power demand data published by the National Load Dispatch Center, the national peak demand at 175 GW saw 3% YoY growth during the month while the energy consumption at 114 BUs also saw 3% growth during the month.
Shri R K Singh, Honorable Minister for Power and New and Renewable Energy commenced trading in the green day-ahead market on 25 October 2021. The new market segment is aligned with India’s aspiration of building a sustainable and efficient energy economy and achieving 450 GW of green capacity by 2030. The conventional and green day-ahead market now operate in an integrated manner. The Exchange seeks bid for both conventional and renewable energy at the same time through distinct windows and separate price formation take place.
ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL- TIME
The day-ahead market achieved 6568 MU volume in October’21 achieving 19.4 % YoY growth. The market saw an average monthly price at Rs. 8 per unit. In the first fortnight, the average price was ~Rs.12 per unit. However, with the various supply-side interventions initiated by the government such as improved domestic coal availability and prompt intervention by the railways to enhance supply of coal to the power generating stations, the price corrected to Rs. 4.1 per unit in the second fortnight.
In fact in the last week of the month, the power price further corrected to Rs 3.4 per unit. The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 225 MU during the month. The real-time electricity market traded 1999 MU volume and saw a significant 145% YoY volume growth with the average monthly price at Rs 6.91 per unit. The consistent growth of real-time electricity market is an indication of growing reliance of the distribution utilities and industries to achieve power demand-supply balancing in real time in the most efficient manner.
GREEN MARKET: DAY-AHEAD & TERM-AHEAD
The green market at IEX now comprises of both the day-ahead and term-ahead contracts. During the month, the market achieved 372.4 MU volume in both the segments. The green day-ahead market (GDAM) achieved 24.8 MU volume in the first six days since commencement of trade on 26 Oct’21. The market discovered weighted average price of was Rs 3.8 per unit and about 56 participants participated in the first six days of trading.
The Green Term-Ahead market (GTAM) achieved 347.7 MU volume seeing a significant 67% YoY growth. The market witnessed participation from 46 participants during the month with key distribution utilities from states like West Bengal, Bihar, Haryana, Telangana, Karnataka, DVC, Uttar Pradesh, Maharashtra, Punjab, Tamil Nadu and Madhya Pradesh.
The green market has seen an exciting response from the participants as more and more utilities and C&I consumers participate in the market to meet their energy and RPO requirements in an integrated, flexible, and competitive manner.
RENEWABLE ENERGY CERTIFICATES
The REC trading has not been taking place due to a stay order from the Appellate Tribunal for Electricity (APTEL), in response to the petitions filed by a few Renewable Energy Associations. The matter has already been heard by Honorable APTEL and a final decision is awaited shortly. IEX is likely to resume REC trading in the coming months apropos final order from Honorable APTEL.
ABOUT IEX
IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.
The Exchange is ISO Certified for quality management, Information security management and environment management since August 2016. The Exchange is a publicly listed company with NSE and BSE since October 2017 and is approved and regulated by Central Electricity Regulatory Commission since 27 June 2008.
