IEX Market Sees 5 Percent Growth to Reach 4790 MUs in June

The electricity market at the IEX witnessed a total trade of 4,790 MUs in June, recording a 5 percent year-on-year increase

The electricity market at the Indian Energy Exchange (IEX) witnessed a total trade of 4,790 million units (MUs) in June, recording a 5 percent year-on-year increase despite the national peak demand registering a 10 percent decline during the month.

Increased economic activity and easing of the lockdown restrictions in most parts of the country coupled with peaking summers contributed to national peak demand at 165 GW and energy consumed at 107 BU, according to data released by the National Load Despatch Centre.

The day-ahead market traded 4,174 MU and witnessed high sell-side liquidity in the month with total sell bids at 10,164 MU being close to 1.5X the buy bids at 4,661 MU.

The average market clearing price during the month was at Rs 2.35 per unit registered 29 percent year-on-year decline over a price of Rs 3.32 in June last year.

“The increased availability of power and attractive prices in the market ensured that industries, as well as distribution utilities, continue to have access to lower electricity prices, leading to greater savings as well as assisting them in building the much-needed financial liquidity which is critical at this hour,” IEX said in a statement on Monday.

In fact, the open-access volume in June witnessed a 30 percent month-on-month increase. One Nation One Price prevailed for all 30 days during the month.

Recently, we had reported that the average spot power price in the real-time market (RTM) in its first month of operation of June was at Rs 2.22 per unit, this is lower than the Rs 2.35 per unit in the day-ahead market at the Indian Energy Exchange.

The RTM allows consumers to purchase electricity at the exchange just one hour before delivery while in the day-ahead market (DAM), power is bought for supply the next day.

IEX launched the real-time market on May 31, 2020, for the delivery of power from June. In a statement, the firm said that RTM has accomplished a volume of 515.46 MU (million units) in June 2020. According to the statement, RTM saw substantial sell-side liquidity at 1,810 MU – 2.4 times of the buy volumes at 742 MU-and competitive price discovery.

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