Indian Energy Exchange (IEX) said electricity prices in spot market declined by 21% in March 2020 even as there was a 18% surge in trade volume.
IEX saw a trade of 4,291 million units (MU) – the Day-Ahead Market (DAM) traded 3,971 MU during March 2020 and saw 18% year-on-year (YoY) growth while the Term Ahead Market (TAM) traded 320 MU and recorded 30% YoY growth, IEX said in a statement. The southern distribution utilities continued preference for TAM contracts.
The total sell bids in day-ahead market were 12,207 MU and the buy bids at 4,545 MU. The sell-bids being over 2.5 times the buy bids imply surplus power availability on the platform, it added.
The average market clearing price in DAM at Rs 2.46 per unit saw a decline of 21% this month over the price of Rs 3.12 per unit in March 2019, offering the distribution utilities and discoms a compelling opportunity to reduce their financial burden, IEX said.
One Nation One Price prevailed for 24 days during the month.
According to the NLDC data, on an all India basis, the peak demand was at 170 GW in March 2020 over 169 GW in March 2019 growing by a marginal 1%.
On 26th March, the REC (Renewable Energy Certificates) trading session at IEX saw a total trade of 5.20 lakh RECs comprising of 4,80,379 non-solar RECs and 39,299 Solar RECs.
The price for Solar RECs at Rs 2400 per REC continued to be at the ceiling price prescribed by the CERC. The price has been at ceiling since October 2019. The price for non-Solar RECs (issued after 1 April 2017) at Rs 1,000 decreased 44% from Rs 1,800 in February 2020.
Shares of Indian Energy Exchange closed 4.45% higher at Rs 134.85 on Friday. The stock has tumbled 27.4% in last one month as compared to a 28.56% fall in benchmark BSE Sensex.
IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs) and ESCerts (Energy Saving Certificates).
On a consolidated front, IEX reported a 2.2% decline in net profit to Rs 41.69 crore on a 9.8% decline in total income to Rs 69.42 crore in Q3 December 2019 over Q3 December 2018.