IEX December Updates- Drop in Green Market, REC Volumes

The Indian Energy Exchange (IEX) has released its December trade figures. 9035 MU (Million Units) volume was cleared in December’21 (9477 MU in November) comprising 7285 MU in the conventional power market; 365 MU in the green power market and 1385 MU (13.85 lac Certificates) in the REC Market. Overall, the Exchange achieved 24% YoY volume growth in December’21 across all its market segments. A key highlight is Bhutan commencing trading on the exchange in the day ahead market from January 1.

For the third quarter of the fiscal year 2022, Indian Energy Exchange (IEX) has recorded 27,677 MU volume and achieved 37% YoY growth across all its market segments.

According to the power demand data published by the National Load Dispatch Center, the energy consumption at 110.34 BU saw 3.12 % YoY growth while the national peak demand at 183.39 GW saw a mere 0.2% YoY growth during Dec’21.

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

The Day-ahead Market volume at 5423 MU saw a 15% MoM (Month on Month) increase and 3% YoY decline. The average market clearing price at Rs 3.54 per unit in Dec’21 saw 15% MoM and 25% YoY increase. For the third quarter of the fiscal year 2022, the day-ahead market traded 16,710 MU and registered a 5% YoY growth.

Bhutan commenced trade in the day-ahead market through Druk Green Power Corporation. Besides Nepal and Bhutan, Indian Energy Exchange (IEX) has been working with stakeholders in Bangladesh to facilitate its participation towards reinforcing the cross-border electricity trade and building an integrated South-Asian regional power market.

The Term-ahead Market comprising intra-day, contingency, daily & weekly contracts traded 350 MU during the month. Cumulatively, for the third quarter, the term-ahead market traded a total of 878 MU and registered a 2% YoY decline.

The Real-time Electricity Market achieved 1512 MU volume (1311 MU in November) and saw a significant 34% YoY growth with the average monthly price at Rs 3.61 per unit. The highest single day volume of 67.5 MU was achieved on 3 December. For the third quarter, the market achieved a cumulative 4,822 MU volume and registered a robust 70% YoY growth.

During Dec’21, 557 participants transacted in the Exchange’s RTM market. The consistent growth in volumes in this market segment has been indicative of the significance of this segment for both distribution utilities and industries in balancing real-time power demand-supply requirements.

GREEN MARKET: DAY-AHEAD & TERM-AHEAD MARKET

Indian Energy Exchange (IEX) Green Market comprises of both the day-ahead as well term-ahead market segments.

During Deceber’21, 365 MU volume (457 MU in November) was traded and cleared in both segments. For the third quarter, the market achieved 1,194 MU volume registering a growth of 158% YoY.

The Green Day-Ahead Market (GDAM) achieved 157 MU volume during Dec’21 with the weighted average price of Rs 4.09 per unit and saw participation from 105 participants.

The Green Term-Ahead Market (GTAM) achieved 208 MU volume during Dec’21 and saw a significant 131% YoY growth with participation from 39 participants.

Key distribution utilities from States including Delhi, Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, Telangana, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, West Bengal, and, Assam as well as several industrial consumers participated in the Exchange’s Green Market during Dec’21.

RENEWABLE ENERGY CERTIFICATE MARKET

A total of 13.85 lacs Renewable Energy Certificates (24.33 lacs in November)  were cleared in the trading session held on the Exchange on 29 December’21. The volume comprised of 11.3 lacs Non-Solar RECs with clearing price at Rs 1000 per REC and 2.55 lacs Solar REC with clearing price at Rs. 2211 per REC. The next REC trading session at the Exchange will be scheduled on Wed. 26 January 2022.