Power trade at IEX up 47% in May

New Delhi: Electricity trade at the Indian Energy Exchange grew 47% to 6005 MU in May due to increased consumption from essential services, especially healthcare institutions, and households. The national national peak demand during the month, however, was down by a 9% YoY.

The steady lifting of lockdown also enabled industries and commerce to get back to business, leading to increased electricity consumption, an IEX statement said.

The Day-Ahead Market traded 5574 MU, recording a 48% YoY increase. The total monthly sell bids were at 10580 MU and buy bids were at 6137 MU. The sell bids were 1.7 times more than the buy bids.

“The consequent lower prices provided a compelling proposition for the industries as well as the distribution utilities to meet their short-term demand as well as replace costlier generation with attractively priced power procured through the exchange,” it added.

The average market clearing price during the month was at Rs. 2.57 per unit registered a 23% decline YoY over price of Rs. 3.34 in May 2019.

Discoms from southern, western and northern states such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab have been procuring power through exchange.

The Term Ahead Market witnessed an increase of 36% YoY trading 431 MU volume.

One Nation One Price prevailed for all 31 days during the month.

IEX said it has received an overwhelming response in last two days with a cumulative volume of 8.73 MU at an average price of Rs. 1.64 per unit.

More than 80 market participants including all the key power distribution, generation companies and open access consumers, traded on the day one itself, marking a grand start.

The REC Trading Session at IEX on May 27, 2020 saw a total trade of 2.78 lakh Renewable Energy Certificates comprising 2,42,714 Non-Solar RECs and 35,793 Solar RECs. There was 48% MoM increase in the cleared volume.

The price for Solar RECs was at Rs 2000 per REC decreased at 16% from a continuing price of Rs 2,400 since October 2019. The reason for drop in solar price was marginal increase in supply and lower participation on the buy side. The price for non-Solar RECs -issued after 1.4.17, was at Rs 1,000 per REC, the statement said.