The country’s largest energy trading platform, the Indian Energy Exchange (IEX) on Wednesday said that its Real Time Market had accomplished 515.46 million units (MU) of electricity trades in the first month of June 2020.
To help the market, IEX over the last few months engaged with distribution utilities, power generators as well as commercial and industrial consumers and assisted stakeholders through capacity building sessions as well as provided technology applications and tools. A total of 237 customers participated in the new market segment during the first month.
Another key highlight of the newly commenced market segment was the single-day highest volume of 36.09 MU on June 30 when 110 customers participated in the various auction sessions held over a day.
The double-sided closed auction ensured efficient price discovery, transparency, flexibility and seamless trading experience for the market participants. The market saw substantial sell-side liquidity at 1810 MU, which was 2.4 times of the buy volumes at 742 MU and competitive price discovery. Consequently, the average market clearing price was at Rs 2.22 per unit, lower than the day-ahead market average price for June, at Rs 2.35 per unit. The attractive prices enabled great savings and good financial liquidity for the utilities as well as the open-access consumers.
The market not only facilitated unrequisitioned surplus generation capacity to find buyers but also facilitated generators to purchase power to fulfill obligations created due to outages. Setting a new precedent, two of our clients, Raipur Power and Raigarh Energy Generation became the first generators to have bought electricity to meet their commitment.
“The milestone of 515.46 MU volume in the first month is really an impressive accomplishment and has been possible due to the robust fundamental value proposition of this new market segment. The technology enablement, capacity building and other customer-centric solutions that we provided supported the market to a great start and indeed enabled IEX to reach this high-point in a span of just a month, said Rohit Bajaj, Head Business Development & Senior Vice President, IEX.
Speaking about his experience on the real-time market, KVN Chakradhar Babu, IAS, Andhra Pradesh Southern Power Distribution Co. Ltd said, “Real Time Market is a boon to the cashflow constrained distribution companies to access quality power at the most economical prices. At the same time, meeting the exigent demand, block-wise by the grid operator has become painless.”
Satish Chavan, Director Commercial, Maharashtra State Electricity Distribution Company Ltd also added, “The real-time market was the necessity of the distribution companies. With the increasing purchase of infirm renewable energy to meet renewable purchase obligation (RPO) targets given by the regulator, I think this need is fulfilled by the Govt of India and Central Electricity Regulatory Commission (CERC) by providing real-time market to distribution companies to meet the variation in load generation balance with optimum cost.”
The new market segment was operationalised on the IEX platform at 10.45 pm on May 31 for delivery at 12.00 am on June 1. IEX’s RTM provides utilities with avenues to meet 24x7 power supply aspirations with 48 auction windows during the day, with delivery at one-hour notice.