IEX Power Market Update, May’21

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Power Market trades 6540 MU in May’21 achieving 9% YoY growth amidst
lockdowns affecting the power demand.
• Real-Time Electricity Market trades 1436 MU and records highest ever single
day volume of 74 MU supporting the cyclone affected states.
• Green Market trades highest ever monthly volume of 357 MU seeing 92%
MoM growth

The Indian Energy Exchange traded 6540 MU of electricity volume in May ’21
achieving 9% YoY growth amidst continuation of the COVID-19 lockdowns as well
the cyclonic disturbances which affected the overall power demand in the country.
The national peak demand at 169 GW recorded a 2% YoY growth while the energy
consumption at ~111 BU saw 8% YoY growth on the weak base, as per the power
demand data published by the National Load Dispatch Center.

IEX endeavors to provide uninterrupted 24*7 access to its platform to facilitate the
distribution utilities as well as industrial consumers buy electricity on demand in the
sustainable and efficient manner. Driven by the state-of-the-art technology with
customer centricity at its core and coupled with the virtues such as the most
competitive power prices, flexibility of procurement in 15-minute time blocks and
transparency, the Exchange as now positioned as the most preferred destination
within the short-term power market.

DAY- AHEAD, TERM- AHEAD & REAL- TIME ELECTRICITY MARKET
The day-ahead market traded 4364 MU volume in the month of May’21 with the
average monthly price at Rs 2.83 per unit. The market clearing price saw a steep
decline of 24% on MoM basis since average monthly price was Rs 3.70 in the month
of April’21. The sell-bids at 2.2X of the cleared volume during the month ensured
ample availability of power and discovery of competitive prices thereby providing
optimization opportunities to the distribution utilities.

The real-time electricity market witnessed a monthly volume of 1436 MU with
average monthly price at Rs 2.53 per unit seeing 28% MoM decline. With sell-side
bids at 2.6X of cleared volume, the market continued to have ample availability of
power and competitive price discovery. The market emerged as a great support to
the Southern and Western coastal States that were hit by the Cyclone Tauktae and
facilitated them in real time power demand-supply balancing at competitive prices
with a great reliability. The market recorded highest ever single day volume of 74
MU on 29 May’21 since its inception on 01 June’20. The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 383 MU during the month.

GREEN MARKET
The green term-ahead market traded the highest ever volume of 357 MU during
May’21 comprising 194 MU in the solar segment and 164 MU in the non-solar
segment, achieving a significant growth of 92% MoM.

A total of 43 participants participated during the month with distribution utilities from
West Bengal, Bihar, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, and Gujarat
among others, as key participants. The market has become a key facilitator of green
power trade among distribution utilities, industrial consumers, and green generators
offering the most competitive and viable avenue.

CROSS BORDER ELECTRICITY TRADE
The recently launched Cross Border Electricity Trade achieved 119 MU volume in the
month of May’21. While Nepal has already been participating actively in the dayahead market on the Exchange, the other South Asian countries are expected to join
in soon. The market will be instrumental in developing an integrated South Asian
regional power market ecosystem and support efficient and sustainable growth of
the energy sector in the region.

RENEWABLE ENERGY CERTIFICATES
The REC trading session which was scheduled on 26 May’21 did not take place due
to a stay order from Appellate Tribunal for Electricity (APTEL), in response to the
petitions filed by a few Renewable Energy Associations. The next hearing on the
matter on APTEL is scheduled to be held on 14 July’21.

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