IEX March’22 Update-Green Trading Contracts, High Avg. Solar Prices Of Rs 5.64/unit

The Indian Energy Exchange (IEX) achieved 9,605 MU volume in March’22 comprising 8,702 MU in the conventional power market, 392 MU in the Green Power Market and 511 MU (5.11 lac Certificates) in the REC Market registering 16% YoY volume growth across all market segments. The volumes in the Green Power market as well as REC trading continue to contract, possibly due to higher prices prevailing for energy, especially solar.

According to the power demand data published by the National Load Dispatch Center, the national energy consumption at 126 BU saw 2.5% YoY growth on a high base while the national peak demand at 199.29 GW saw 7.2 % YoY growth during March’22.

For the last quarter of the fiscal year 2022, IEX achieved 27,017 MU volume and achieved 20% YoY growth across all its market segments.

Cumulatively for the fiscal year 2022, the Exchange Market achieved an all-time high volume of 102,035 MU leading to 38% YoY growth.

As per the government data for the fiscal year 2022, the national peak demand for electricity at 200.5 GW saw 5.5% growth while electricity consumption at 1371.7 BU saw about 8% YoY growth

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

The Day-ahead Market volume at 5858 MU saw 4.4% MoM growth during the month. The average market clearing price in March at Rs 8.23 per unit was higher by 85% on MoM and 102% on YoY basis. The price increase was mainly on the account of early onset of the summer season leading to increased demand for power across all the States and low generation from the imported coal and gas-based generators due to record high imported coal and gas prices.

Recently, central regulator CERC has also capped prices at Rs 12 on the exchange, following prices spiking to as high as Rs 20.

The Term-ahead Market comprising intra-day, contingency, daily & weekly contracts traded 823 MU during the month, registering 251% YoY growth.

The Real-time Electricity Market achieved 2021 MU volume, a significant 43% YoY growth. The highest single-day volume of 96.6 MU was achieved on 25 March’22.

For the fiscal year 2022, the conventional electricity market on the Exchange achieved 90,817 MU seeing 23% YoY growth:

• The day-ahead market achieved 65,151 MU volume registering 7.8% YoY growth.

• The term-ahead market achieved 5756 MU volume seeing 74.2% YoY growth.

• The real-time market traded 19,910 MU registering 110% YoY growth

GREEN MARKET: DAY-AHEAD & TERM-AHEAD MARKET

IEX Green Market comprising the day-ahead and term-ahead market segments achieved 392 MU volume during March’22.

The Green Day-Ahead Market achieved 205 MU volume during the month with the weighted average price of Rs 6.7 per unit and saw participation from 173 market participants.

The Green Term-Ahead Market achieved 187 MU volume during the month and witnessed participation from 40 market participants. The average monthly price for solar was Rs 5.64 per unit while the average monthly price for non-solar was Rs 5.08 per unit.

The key distribution utilities from States included Delhi, Himachal Pradesh, Haryana, Telangana, Karnataka, Bihar, Uttarakhand and Dadra Nagar Haveli as well as several industrial consumers also participated in the Exchange’s Green Market during the month.

Cumulatively for the Fiscal Year 2022, the green market on the Exchange achieved 4,854 MU volume seeing 517% YoY growth:

• The GTAM segment achieving 3,933 MU and seeing a spectacular 403% YoY growth

• The GDAM segment achieved 921 MU volume since inception in October 21.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 5.11 lacs RECs were cleared in the trading session held on Wednesday, 30 March’22 on the Exchange. The volume comprised 2.59 lacs Non-Solar RECs with clearing price at Rs 1,000 per REC and 2.51 lacs Solar REC with clearing price at Rs. 2250 per REC. The next REC trading session at the Exchange is scheduled on Wednesday 27 April 2022.

Cumulatively for the Fiscal Year 2022, the Renewable Energy Certificate Market at IEX achieved 60.78 lac RECs equivalent to 6078 MU.

ENERGY SAVING CERTIFICATES (ESCERTs)

During the financial year 2022, the Energy Saving Certificates Market at the Exchange accomplished a cumulative trade of 286,142 ESCerts equivalent to 286 MU volume.