Green Market Achieves 372.4 MU In Oct Volumes on IEX, As Power Trading Grows 36% YOY

In October’21 the electricity market at the Indian Energy Exchange traded 9165 MU volume with 8792 MU in power market and 373 MU in green market, achieving 36% YoY growth, according to a release from IEX. (Indian Energy Exchange). After the mini-power crisis of September, the month also saw a temperance in trading prices, for both green energy and power otherwise.

According to the power demand data published by the National Load Dispatch Center, the national peak demand at 175 GW saw 3% YoY growth during the month while the energy consumption at 114 BUs also saw 3% growth during the month.

October also saw the start of trading in the green day-ahead market on 25 October 2021. With this, the conventional and green day-ahead market now operate in an integrated manner. The Exchange seeks bid for both conventional and renewable energy at the same time through distinct windows and separate price formation take place.

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

The day-ahead market achieved 6568 MU volume in October’21 achieving 19.4 % YoY growth. The market saw an average monthly price at Rs. 8 per unit. In the first fortnight, the average price was ~Rs.12 per unit. However, with the various supply-side interventions initiated by the government such as improved domestic coal availability and prompt intervention by the railways to enhance supply of coal to the power generating stations, the price corrected to Rs. 4.1 per unit in the second fortnight. In fact in the last week of the month, the power price further corrected to Rs 3.4 per unit.

The term-ahead market comprising intra-day, contingency, daily & weekly contracts traded 225 MU during the month.

The real-time electricity market traded 1999 MU volume and saw a significant 145% YoY volume growth with the average monthly price at Rs 6.91 per unit. The consistent growth of real-time electricity market is an indication of growing reliance of the distribution utilities and industries to achieve power demand-supply balancing in real time in the most efficient manner.                                                                               

GREEN MARKET: DAY-AHEAD & TERM-AHEAD

The green market at IEX now comprises of both the day-ahead and term-ahead contracts. During the month, the market achieved 372.4 MU volume in both the segments.

The green day-ahead market (GDAM) achieved 24.8 MU volume in the first six days since commencement of trade on 26 Oct’21. The market discovered weighted average price of was Rs 3.8 per unit and  about 56 participants participated in the first six days of trading.

The Green Term-Ahead market (GTAM) achieved 347.7 MU volume seeing a significant 67% YoY growth. The market witnessed participation from 46 participants during the month with key distribution utilities from states like West Bengal, Bihar, Haryana, Telangana, Karnataka, DVC, Uttar Pradesh, Maharashtra, Punjab, Tamil Nadu and Madhya Pradesh.

The green market has seen a rising response from the participants as more and more utilities and C&I consumers participate in the market to meet their energy and RPO requirements .

ENERGY SAVING CERTIFICATES 

The Exchange commenced trade in the Energy Saving Certificates (ESCerts) under Perform, Achieve & Trade Cycle-II (PAT-II) on Tuesday, 26 October. In the first trade, the Exchange accomplished trade of 43,409 ESCerts. The trade will take place every Tuesday.

RENEWABLE ENERGY CERTIFICATES

The REC trading remains in pause mode due to a stay order from the Appellate Tribunal for Electricity (APTEL), in response to the petitions filed by a few Renewable Energy Associations. The matter has already been heard by APTEL and a final decision is awaited shortly. IEX is likely to resume REC trading in the coming months basis the final order from APTEL.