IEX Power Market Update For October- Prices Continue To Drop

The Indian Energy Exchange, India’s premier energy exchange, achieved 7972 MU volume in October 2022, including Green Power trade of 403 MU, and 3.58 lac RECs (equivalent to 358 MU).

The total volume on the Exchange in October’22 was lower by 13% on YoY basis due to high volume base of last year, and lower by 2% on MoM basis due to reduced REC trading.

Improved supply of domestic coal led to easing of supply side constraints, resulting in decline of prices on IEX. The average clearing price in the Day-ahead market was Rs. 3.83 in October, which was lower by 32% on MoM basis and 52% on YoY basis.

Going forward, further correction in prices due to improvement in coal availability and reduction in demand due to onset of winters, will provide opportunity for cost optimization by Discoms and Open Access consumers, and higher trading volumes for the exchange.

According to the power demand data published by the National Load Dispatch Center, the energy consumption at 115 BU during October ’22, increased 1% on YoY basis, however it declined 10% on MoM basis.

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

The Day Ahead Market clearing price was Rs. 3.83 per unit as against Rs. 5.63 per unit in September 2022. As a result, the Day-Ahead Market volume increased from 4050 MU in September 2022 to 4325 MU in October 2022, i.e 7% growth on MoM basis. However, the Day Ahead Market volume was lower by 34% on YoY basis due to high volume base of last year.

The Real-Time Electricity Market achieved 2265 MU volume during the month, registering 13% YoY growth. The highest single-day volume of 124 MU was achieved on 6th October 2022. There were 630 participants in this segment during the month. 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.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and LDCs traded 621 MU during the month, a decrease of 29% on MoM basis. However, the segment grew 176% on YoY basis.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 403 MU volume during October ’22, growing 10% YoY.

The Green Day-Ahead Market achieved 293 MU volume with a weighted average price of Rs 4.02 per unit. The market saw participation from 721 market participants during the month, with the highest number of participants in a single day at 621 on 9th October 2022.

The Green Term-Ahead Market achieved 110 MU volume with an average monthly price of Rs 3.77/unit for Solar, Rs 5.45/unit for Non-Solar.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 3.58 lacs RECs were cleared in the trading session at IEX held on Wednesday, 26th October’22. The volume comprised 1.76 lacs Non-Solar RECs with clearing price at Rs 1,000 per REC. Increased inventory of solar RECs saw the clearing price reaching floor-level at Rs. 1000 per REC, with 1.82 lacs Solar RECs traded during the month. The next REC trading session at the Exchange is scheduled on Wednesday, 30th November 2022.