IEX Total Trade Volume Plunges by 18% YoY in August ’22

The Indian Energy Exchange, India’s premier energy exchange, achieved 7805 MU volume in August 2022, registering a 9% MoM growth. This comprised 6517 MU in the conventional power market, 437 MU in the Green Power Market, and 851 MU (8.51 lac Certificates) in the REC Market. The total volume in the said period was lower by 18% on YoY basis.  The average clearing price in Day Ahead market increased 2% YoY, from Rs. 5.06 per unit in August ’21 to Rs. 5.17 in August 2022. The supply side constraints continued due to high prices of imported coal, fuel shortage and increased e-auction prices.

According to the power demand data published by the National Load Dispatch Center, the energy consumption at 130.4 BU saw 1% YoY growth during the said period. While the national peak demand at 195 GW witnessed 2.6% growth on MoM basis, it was lower by 1% YoY due to good monsoon spell.

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

The Day-Ahead Market volume at 3529 MU, registered a flat growth on MoM basis. Although imported coal prices remained high, increased hydro and RE generation resulted in the market clearing price lowering by 5% on MoM basis at Rs. 5.17 per unit.

The Real-Time Electricity Market achieved 2265 MU volume during the month, registering 22% YoY and 6% MoM growth. The highest single-day volume of 104 MU was achieved on 16th August 22.

The Term-Ahead Market, comprising intra-day, contingency, daily & weekly contracts, traded 723 MU during the month, registering 17% YoY growth and 64% MoM growth.

Green Market: Green Day-Ahead & Green Term-Ahead Market

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 437 MU volume during August 2022.

The Green Day-Ahead Market achieved 321 MU volume with a weighted average price of Rs 5.20 per unit. The market saw participation from 157 market participants during the month, with the highest number of participants in a single day at 114 on August 10.

The Green Term-Ahead Market achieved 117 MU volume with an average monthly price of Rs 3.57 per unit for solar, Rs 6.15 per unit for non-solar, and Rs. 5.47 per unit for hydro.

Key distribution utilities from across states, including UP, Gujarat, Haryana, Karnataka, Delhi, Telangana, Daman & Diu, Dadra & Nagar Haveli, as well as several industrial consumers participated in the Exchange’s green market during the month.

REC MARKET

A total of 8.51 lacs RECs, increase of 79% MoM, were cleared in the trading session at IEX held on Tuesday, 30th August’22. The volume comprised 4.18 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 4.32 lacs Solar RECs traded during the month. There was no REC trading session in the corresponding period last year due to stay order dated 20th July 2020, as issued by the honourable Appellate Tribunal of Electricity. The next REC trading session at the Exchange is scheduled on Wednesday, 28 September 2022.