Power Market Update, January 2021, JANUARY 2021: IEX

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  • Electricity Market achieves highest ever monthly volume of 7434 MU registering 47% YoY growth.
  • Real-time Market achieves highest ever volume of 1233 MU registering 9% MoM growth.
  • Term-ahead market trades 524 MU registering a significant 93% YoY growth.

The electricity market at the Indian Energy Exchange achieved a new milestone in the month of January’21 with all-time high volume of 7434 MU leading to a significant 47% YoY growth in electricity volume traded during the month.

According to the data published by the National Load Dispatch Center, the national peak demand touched 190 GW on 30 January’21 seeing 11% YoY growth while the energy consumption grew 4.7% YoY during the month. IEX electricity market continues to facilitate power demand-supply equilibrium in the country through its flexible, transparent, and efficient power procurement at the most competitive prices.

One Nation One Price prevailed during all 31 days of the month.

The distribution utilities and the open access consumers continue to leverage the exchange market to source competitively priced power as industry and economy gear up for revival post-COVID-19. The accelerated focus on competition, efficiency, automation, consumer choice and technology in the power sector, as also mentioned by the Honorable Finance Minister in the Union Budget 2021-22, paves way for the key role the electricity markets will play in building a viable power sector.

DAY- AHEAD, TERM- AHEAD & REAL- TIME ELECTRICITY MARKET

The day-ahead market traded 5584 MU and saw a notable 17% YoY growth in January’21. The market registered ample availability of power with the total sell bids at 10074 MU being almost 2X of the cleared volume.

The term-ahead market comprising intra-day, contingency, daily and weekly contracts traded 524 MU volume during January’21 recording a significant 93% YoY increase. The real-time market registered highest ever monthly volume of 1233 MU in Jan’21 since commencement on 1 June 2020, achieving 9.2% MoM growth. The market achieved highest-ever single day volume of 55.75 MU on 18 January’21. The sell-side liquidity was 2X of the cleared volume ensuring an attractive market price of Rs 3.01 per unit. About 321 participants participated in the market during the month.

With splendid response from the participants, the real time electricity market has been establishing new benchmarks every month. This is testament to the excellent support offered by the market segment to the distribution utilities as well as the open access consumers in balancing their real-time power demand-supply variations in the most efficient manner at just 1-hour notice. Since its launch, the real-time market has cumulatively traded 6936 MU.

GREEN MARKET

The Green Term Ahead Market has been receiving promising response from the distribution utilities, renewable generators, and open access consumers. The market registered a volume of 92.4 MU during the month comprising 24 MU in solar segment and 68.4 MU in non-solar segment. A total of 24 participants participated during the month with distribution utilities from Haryana, Bihar, New Delhi, West Bengal, Karnataka, and Telangana among others, as the key participants. With prolonged pause in REC trading, the green market has emerged as a key support for obligated entities in meeting their Renewable Purchase Obligation targets.
The market has traded 641 MU cumulatively since its launch on August 21, 2020.

RENEWABLE ENERGY CERTIFICATES

The REC trading session which was scheduled on January 27, 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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