IEX Power Market Update, June 2021

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Power Market trades 7093 MU in June’21 achieving 48% YoY growth.
● Exchange culminates Q1 FY’22 with the volume of 21,340 MU achieving 44% YoY growth.
● Real-Time Electricity Market trades highest ever volumes of 1726 MU with spectacular growth of 235% YoY.
● Green Market trades highest ever volume of 412 MU in June’21 seeing 15% MoM growth.

The Indian Energy Exchange traded 7093 MU of electricity volume in June’21 recording 48% YoY growth. According to the power demand data published by the National Load Dispatch Center, the national peak demand saw 16% YoY increase, with the highest ever peak demand at 191.51 GW, while energy consumption at 115 BU grew 8% YoY. The growth has been led by relaxations in COVID-19 related lockdowns across the country along with peak summer season and heat wave in Northern India.

Cumulatively for the first quarter of fiscal year 2022, the Exchange Market witnessed a robust performance despite the CoVID-19 induced lock-down restrictions. The electricity market achieved the volume of 21,340 MU during the first quarter resulting in 44% YoY growth.

Amidst growing power consumption in the country, distribution utilities and industries are
increasingly relying on IEX electricity market to source power in the most competitive,
efficient, sustainable, and flexible manner.

DAY- AHEAD, TERM- AHEAD & REAL- TIME ELECTRICITY MARKET
The day-ahead market traded 4314 MU volume in the month of June’21 with the average
monthly price at Rs 3.06 per unit. The sell-bids at 2X of the cleared volume during the month of June’21 ensured ample availability of power and discovery of competitive prices thereby providing optimization opportunities to the distribution utilities. For the first quarter of the year 2022, the day-ahead market on the Exchange, traded 14,377 MU and registered 7% YoY growth.

The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 641 MU during the month recording a 539% YoY growth. Cumulatively, for the first quarter, the term-ahead market traded a total of 1372 MU and registered 54% YoY growth.

The real-time electricity market continued to show exceptional performance with the highest ever monthly volumes of 1726 MU at an average monthly price of Rs 3.02 per unit. The trade volume saw a significant 235% YoY growth and 20% MoM. The market also recorded highest ever volume in a single day with 80 MU traded on 22nd June. In the first quarter, the market has done a cumulative trade of 4,635 MU. The consistent growth of real-time electricity market is an indication of growing reliance of distribution utilities and industries on the market to address their power demand-supply balancing in real time at competitive prices.

GREEN MARKET
The green term-ahead market also saw the highest ever monthly volume being traded in
June’21. With a volume of 412 MU during June’21, the market saw 15% growth over the
previous month led by the ongoing wind season. For the first quarter, the market has
registered a cumulative trade volume of 955 MU, already surpassing the total green volumes achieved in FY 2021. The market is witnessing a growing increase in participation and has become a key facilitator of green power trade among distribution utilities, industrial consumers, and green generators offering the most competitive and viable avenue.

A total of 49 participants participated during the month with distribution utilities from West Bengal, Bihar, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, Maharashtra, Daman & Diu, Assam and New Delhi among several others, as key participants.

RENEWABLE ENERGY CERTIFICATES
The REC trading session which was scheduled on 30 June’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 5th, 7th, and 9th of July 2021.

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