IEX Electricity Market Trades Highest Ever Monthly Volume 7260 MU Registering 52% YoY growth in December 2020

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The electricity market at Indian Energy Exchange traded an all-time high volume of 7260 MU during the month of December 2020 witnessing an 52% YoY during the month.

According to the data published by the National Load Dispatch Center (NLDC), the national peak demand in December’20 saw 7% YoY increase while the energy consumption registered 5% YoY growth. On 30 December when peak demand touched 182.9 GW, IEX electricity markets underpinning the core values such as most competitive prices, transparent as well as flexible power procurement, contributed to a significant 6.9% of the peak demand met.

The day-ahead market traded 5606 MU of electricity and registered 29% YoY growth during the month. The total sell bids at 10814 MU were almost twice that of the cleared volume implying ample availability of the power in the market. This consequently led to an attractive average market clearing price of Rs 2.83 per unit which saw 3% YoY decline. One Nation One Price prevailed during 31 days of the month.

The distribution utilities and open access consumers identify with the Exchange electricity market as one of the most viable, competitive and efficient power procurement options for meeting their growing demand for electricity as well as for replacing costlier power tied up under long term arrangement.

The term-ahead market comprising intra-day, contingency, daily and weekly contracts traded 436 MU volume during December’20.

REAL TIME MARKET

The real-time electricity market continued to witness exceptionally good response from the market participants.

The market registered an all-time high-volume of 1129 MU in Decemeber’20 since commencement on 1 June 2020 and achieved 26% MoM growth in volume. The highest volume traded on a single day was 51.34 MU on 04 December’20. The market saw robust sell-side liquidity which was twice the buy side volume and it ensured attractive average market price of Rs 2.94 per unit.

During the month, the market saw participation from 344 participants with highest number of participants on a single day at 180.

Over the last six months, the market has cumulatively traded 5703 MU of electricity. The market has been successfully facilitating utilities and open access consumers in addressing demand- supply variations in the most dynamic and efficient manner with delivery at just 1-hour notice.

GREEN MARKET

The Green Term Ahead Market registered a volume of 90 MU comprising 68 MU in solar and 22 MU in non-solar. The month of December also saw launch of two new contracts – Green Daily Contracts and Green Weekly Contracts.

With an encouraging participation from distribution utilities, renewable generators and open access consumers, the green market has emerged as a key avenue for obligated entities to fulfil Renewable Purchase Obligation (RPO). Moreover, the utilities as well as the green generators are being able to sell renewable power at competitive and viable prices. A total of 25 participants traded during the month with distribution utilities from Uttar Pradesh, West Bengal, Delhi, Haryana, Bihar, Telangana, and Karnataka among others, as the key participants.

Since its launch on August 21, 2020, the market has cumulatively traded over 549 MU volume.

RENEWABLE ENERGY CERTIFICATES

The REC trading session which was scheduled on December 30, 2020 could not take place due to the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations against the CERC order dated June’20 regarding revision in the floor and forbearance prices of REC.

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