Continuing its exceptional performance during the last fiscal year, the electricity market at Indian Energy Exchange entered the new fiscal year 2022 with 7707 MU volume in the month of April'21, achieving a 90.2% YoY growth.
According to the power demand data published by the National Load Dispatch Center, the national peak power demand at 183 GW while the peak demand & power consumption registered close to 40% YoY growth on a weak base.
While the growing electricity consumption has been one of the key factors behind the consistent performance of the Exchange market, its robust value proposition in terms of the most competitive prices, flexible, and efficient procurement positions Exchange as the most preferred destination for power procurement for both the distribution utilities as well as the industrial consumers.
The day-ahead market traded 5699 MU volume in April'21 achieving a significant
54% YoY growth. The average monthly price at Rs 3.70 per unit witnessed 53%
increase over Rs 2.42 in the corresponding period in 2020. The increase in price was
primarily due to increase in demand and sharp slump in electricity prices in April
2020 due to a stringent nationwide lockdown. The day-ahead market saw ample
availability of power with sell-bids at 1.48X of the cleared volume during the month.
The term-ahead market comprising intra-day, contingency, daily & weekly contracts
traded 349 MU during the month.
The real-time market saw highest ever monthly volume of 1473 MU in April'21
achieving 4.2% MoM growth. It also recorded the highest single day volume of 68.36
MU on 03 April'21. With sell-side bids at 1.8X of cleared volume, the market
continued to have ample availability of power.
The growing volume in the real-time electricity market shows its acceptance by
distribution utilities and industrial consumers as the go-to platform for addressing
the real-time electricity demand-supply balance in the most competitive and efficient
manner with the delivery of power at just 1-hour notice.
The green term-ahead market traded 186 MU volume during April'21 comprising 78
MU in the solar segment and 108 MU in the non-solar segment, achieving a
significant 262% MoM growth.
A total of 34 participants participated during the month with distribution utilities from
Haryana, Bihar, Uttar Pradesh, West Bengal, Maharashtra, Karnataka, and Telangana
among others as the key participants. The market has been enabling distribution
utilities, industrial consumers, and green generators to trade in renewable energy in
the most competitive and viable way.
During the month, IEX commenced the Cross Border Electricity Trade (CBET) on its
platform marking a significant milestone in its endeavor to build an integrated South
Asian regional power market. As a first-of-its kind initiative, the new market segment
allows the Exchange market to expand its reach beyond India to the South Asia
region, thus supporting the growth of energy ecosystem in the region in an efficient
and sustainable manner.
Nepal was the first country to trade in the day-ahead market on the Exchange on 17
April'21. The other South Asian countries like Bhutan and Bangladesh are expected
to join the platform soon, and the market is likely to grow at a fast pace in the coming
months.
The REC trading session which was scheduled on 29 April'21 did not take place due
to the stay order from APTEL in response to the petitions filed by a few Renewable
Energy Associations.
The next hearing on the matter on APTEL is scheduled on 14 July 2021.
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