IEX Power Market Update July 2022: 13% YoY Decline For Green Market

As per its market update for July 2022  released by Indian Energy Exchange (IEX), it has achieved 7151 MU volume in July 2022 comprising 6088 MU in the conventional power market, with 589 MU in the Green Power Market, and 475 MU (4.75 lac Certificates) in the REC Market. India’s premier energy exchange has recorded a decline of 1.7% across all market segments on YoY basis.

Energy Consumption YoY

According to the power demand data published by the National Load Dispatch Center, during July 2022, the energy consumption at 128 BU saw 2.3% YoY growth, whereas there was a decline of 4% with reference to June 2022.

The national peak demand at 190 GW was lower by 5% YoY and 10% lower on MoM basis. This can be attributed to a good monsoon spell.  Because of the reduction in demand, the clearing price in the Day- Ahead Market reduced to Rs. 5.41 per unit in July’22 from Rs. 6.49 per unit in June’22.

Electricity Market: Day- Ahead, Term- Ahead & Real-Time Market

The Day-Ahead Market volume at 3517 MU saw a decline of 17% YoY during the month. The market clearing price was Rs. 5.41 per unit, which was lower by 17% on MoM basis. The clearing price was high by 84% with reference to the same period last year, owing to supply constraints.

The Real-Time Electricity Market achieved 2131 MU volume during the month, registering a growth of 34% YoY. The highest single-day volume of 89.16 MU was achieved on 20th July 2022.

The Term-Ahead Market comprising intra-day, contingency, daily and weekly contracts traded 440 MU during the month, registering de-growth of 42%.

Green Market: Day-Ahead & Term-Ahead Market

The IEX Green Market comprising the Day-Ahead and Term-Ahead Market segments achieved 589 MU volume during July 2022, registering a decline of 13% YoY.

The Green Day-Ahead Market achieved 446 MU volume with the weighted average price of Rs 4.63 per unit and saw participation from 169 market participants during the month. The highest number of participants in a single day was 116 on July 12.

The Green Term-Ahead Market achieved 142 MU volume and witnessed participation from 18 market participants. The average monthly price for Solar was Rs 3.39 per unit while the average monthly price for Non-Solar green power was Rs 5.78 per unit.

The key distribution utilities from States, including Haryana, Daman & Diu – Dadra & Nagar Haveli, Telangana, Gujarat, Punjab as well as several industrial consumers participated in the Exchange’s Green Market during the month.

Renewable Energy Certificate Market (REC Market)

A total of 4.75 lacs RECs were cleared in the trading session at IEX held on 27 July, 2022. The volume comprised 3.08 lacs Non-Solar RECs with clearing price at Rs 1,000 per REC and 1.67 lacs Solar REC with clearing price at Rs. 1100 per REC.

The next REC trading session at the Exchange is scheduled on 31 August, 2022.