The Indian Energy Exchange (IEX) in its monthly Power Market Update announced that the electricity market at IEX saw a trade of 4052 MU recording only 6.6% YoY decline, while the national peak demand at 133GW declined 25% YoY in April’20. This was mainly due to contraction in commercial and industrial demand in lieu of the COVID 19 related preventive lockdown says IEX.
The day-ahead market volume was at 3692 MU while the term-ahead volume was at 360 MU. The termahead segment recorded a significant 8% YoY growth due to increased preference for TAM contracts amongst Southern, Western and Northern utilities.
Power procurement by distribution utilities from southern, western and northern states such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab amongst others increased by over 10% in April owing to ample power availability and very attractive prices.
IEX stated that “The distribution utilities continue to leverage the Exchange for accumulating significant financial savings as well as supplying 24*7 uninterrupted power to critical sectors like health care, public utilities and other essential services.”
The total sell bids in day-ahead market at 9,294 MU were 2.3 times the buy bid at 3,917 MU. Robust sell side liquidity kept prices under check with average price at low of Rs 2.42 per unit registered 25% YoY decline vis-à-vis price of Rs 3.22 per unit in the corresponding period last year,according to IEX.
One Nation One Price prevailed for 30 days during the month.
On 29thApril, 2020 the REC Trading Session at IEX saw a total trade of 1.88 lac Renewable Energy Certificates comprising 1,72,488 Non-Solar RECs and 15,991 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’19.
The price for non-Solar RECs (issued after 1.4.17) at Rs. 1,000 decreased 44% from Rs. 1,800 in March’20.