The electricity market at the country’s leading platform for automated delivery of electricity, the Indian Energy Exchange (IEX) witnessed a total trade of 5334 million units (MU) in July.
The volume traded in July registered an increase of 11 per cent over June and remained at par with volume traded in July last year. The national electricity consumption and peak demand saw a 3 per cent decline during the month.
The day-ahead market traded 4487 MU during the month. The market continued to see high sell-side liquidity. The total sell bids at 9734 MU were close to 1.9x of the buy bids which stood at 5199 MU.
With robust sell-side liquidity, the average market clearing price in the day-ahead market during the month at Rs 2.47 per unit registered a 27 per cent YoY decline over a price of Rs 3.38 in July last year. The attractive price continued to ensure significant savings to distribution companies and industries during the period.
The distribution utilities from western, southern as well as a few northern states such as Maharashtra, Telangana, Andhra Pradesh and Rajasthan, leveraged the exchange market to optimise their power portfolio and build on the financial liquidity. Moreover, as electricity demand and consumption rise to the pre-COVID levels, driven by the increased industrial and economic activity, the availability of ample power at affordable prices will assist the economic revival and growth.
One nation, one price prevailed for all 31 days.
According to the data published by the National Load Despatch Centre (NLDC), the national peak demand and energy consumed registered a decline of 3 per cent on a YoY basis, and an increase of 3 per cent and 7 per cent, respectively, on MoM basis. This increase in electricity consumption has mainly been due to the easing of the lockdown restrictions across the country.
Real-Time Market and RE Certificates
The real-time electricity market registered a 52 per cent MoM rise with a total trade of 785 MU during July. With 241 customers participating, the real-time market (RTM) saw sell bids volume about 2x of buy bids, indicative of the ample liquidity in RTM as well. While the sell bids saw a 17 per cent MoM rise, buy bids witnessed a whopping 36 per cent MoM increase, demonstrating growth and the rising preference of market participants for RTM.
The real-time electricity market saw 42.69 MU being the highest volume being traded in a single day on July 28. The average monthly market-clearing price stood at Rs 2.49 per unit for RTM alone.
The renewable energy certificates (REC) trading session that was scheduled on July 29 could not take place because of the stay order from the Appellate Tribunal for Electricity (APTEL) in response to the petitions filed by a few renewable energy associations against the Central Electricity Regulatory Commission (CERC) order dated June 2020 regarding the correction of the floor and forbearance prices of RECs.
“We are of the view that REC trade sessions should not have been halted as it prevents needy distribution utilities as well as the open-access customers to meet their statutory requirement of RPO,” said IEX in a press statement.