The average power price rose 65% in March to 4.06 per unit in March on the Indian Energy Exchange (IEX) mainly due to increase in temperature and demand for revival of economic activities.
“Day ahead market” [DAM] IEX said in a statement, 6,549 million units of business registering an increase of 65%.
According to the exchange, “The average monthly price during the month was ₹ 4.06 per unit, a 20% increase month over month.” According to IEX data, the average spot electricity price at DAM in March 2020 was ₹ 2.46 per unit and in February 2021, 3.39 per unit.
IEX reported that the increase in price was mainly due to a sharp increase in temperature, revival of economic and commercial activities due to an increase in electricity demand during the month.
During 2020-21, DAM traded 60,416 MU at IEX and registered an increase of 23 percent YoY (year on year).
The market saw substantial availability of electricity during the year, with the day’s rise, which was bid at 1.94X of the Cleared volume. Even though electricity consumption has increased significantly in the last six months with the increase in industrial and economic activities across the country, the average annual value of DAM during the financial year was Rs 2.82 per year, a decline of 6.2 per cent.
The electricity market on IEX achieved all high volumes of 8,248.52 MU in the month of March 2021, surpassing all previous milestones. During this month, the electricity market grew by 92 percent due to strong income growth.
The market faced transmission congestion on the inter-state transmission network, resulting in a loss of 24MU during the month, accounting for 0.03 percent of the total turnover volume.
Cumulatively for FY 2021, the IEX market performed brilliantly despite the CoVID-19 induced lock-down, resulting in a significant reduction in electricity demand in the first two quarters of the year in the country.
The electricity market achieved all-time high volumes of 73,941 MU during the year, leading to an increase of 37.2 percent.
The green market, along with the new market segment – Real Time Market (RTM) introduced during FY 2021 – contributed 14 per cent to the volume traded during the year.
According to NLDC (National Load Remittance Center) data for FY 2021, the national demand for electricity at 190 GW saw a 3.5 percent increase while electricity consumption was down 0.6 percent at 1,281 BU (billion units).
The term-forward market (TAM) traded 234 MU in intra-day, contingency, daily and weekly contracts during the month of March. For the fiscal year 2021, TAM, in total, traded a total of 3,272 MUs.
The real-time market (RTM) continued its impressive run during March’21 and crossed the 1BU benchmark for the fourth consecutive month.
RTM saw the highest monthly volume of 1,414 MU, with a 26 percent MoM increase. It also recorded the highest single-day single record of 63 MU on 23 March 2021. There remained substantial availability of electricity in the market, with bids sold at 1.8X the clear volume.
Distribution in the market has emerged as the preferred option for utilities and industrial consumers, addressing the real-time power demand supply balance in the most competitive and efficient manner with electricity delivery at only 1-hour notice.
This is also evident from the fact that the market witnessed participation of more than 400 market participants during the month. Since its launch on June 1, 2020, the real-time market has traded a total of 9,468 MU.
The Green Term Ahead Market (GRAM) traded a volume of 51 MU during the month of March, including 21 MU in the solar segment and 30 MU in the non-solar segment.
A total of 24 participants participated during the month, with distribution participants from Haryana, Bihar, Uttar Pradesh, West Bengal, New Delhi, Karnataka, Telangana, and Maharashtra.
GTAM is enabling distribution utilities, industrial consumers and green generators to buy and sell green electricity, while supporting them in meeting their Renewable Purchase Obligation (RPO) goals in the most competitive manner. The market has cumulatively traded at 786 MU volumes since its launch on August 21, 2020.
The REC (Renewable Energy Certificate) trading session which was scheduled on 31 March 21 was not caused by a stay order of APTEL (Appellate Tribunal for Electricity) against CERC in response to petitions filed by some renewable energy associates. (Central Electricity Regulatory Commission) issued in June 2020 and order regarding reclamation of floor and forced prices of REC.
During the financial year 2021, the REC market generated a total turnover of 6.97 lakh certifications.
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