IEX Power Market Update for September 2022

The Indian Energy Exchange, India's premier energy exchange, achieved 8160 MU volume in September 2022, registering 5% MoM growth. This comprised 7118 MU in the conventional power market, 454 MU in the Green Power Market, and 588 MU (5.88 lac Certificates) in the REC Market.

The supply side constraints continued because of high prices of e-auction coal, imported coal and gas. This led to the average clearing price in the Day-ahead market rising to Rs. 5.63 in September, which was 9% higher on MoM basis and 28% higher on YoY.

The total volume in September'22 was lower by 8% on YoY basis while in the second quarter of the fiscal year 2023, the Exchange Market registered 23,115 MU volume, which was lower by 11% YoY across market segments. Cumulatively, the total volume traded in H1 FY2023 marginally declined by 1% over H1 FY22.

According to the power demand data published by the National Load Dispatch Center, the energy consumption at 127 BU saw 11% YoY growth during September '22. The national peak demand at 199 GW grew 10% YoY.

ELECTRICITY MARKET: DAY-AHEAD, TERM-AHEAD & REAL-TIME MARKET

High e-auction coal price and soaring imported coal prices and international LNG prices resulted in the market clearing price increasing by 9% on MoM basis to Rs. 5.63 per unit as against Rs. 5.17 per unit in August 2022. Despite this, the Day-Ahead Market volume increased from 3529 MU in August 2022 to 4050 MU in September 2022, i.e 15% growth on MoM basis. However, high prices led to lower volume in Dayahead Market by 37% on YoY basis. In the second quarter of FY 2023, 11,095 MU volume was traded on the day-ahead market.

The Real-Time Electricity Market achieved 2193 MU volume during the month, registering 19% YoY growth. The highest single-day volume of 104 MU was achieved on 25th September 22. There were 614 participants in this segment during the month.

The Real-Time Market achieved a cumulative trade of 6,589 MU in Q2 FY2023, registering a robust 24% YoY growth. The consistent growth of real-time electricity market is an indication of growing reliance of the distribution utilities and industries to achieve power demand-supply balancing in real-time in the most efficient manner.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and LDCs traded 875 MU during the month, growing by 21% on MoM and an astounding 721% on YoY basis. Cumulatively for the quarter, TAM traded a total of 2,038 MU and registered a remarkable 30% YoY growth.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 454 MU volume during September '22, with 4% MoM growth. For Q2 FY'23, the market registered a cumulative trade of 1,478 MU, lower by 12% YoY.

The Green Day-Ahead Market achieved 324 MU volume with a weighted average price of Rs 5.42 per unit. The market saw participation from 747 market participants during the month, with the highest number of participants in a single day at 614 on 5th September 2022.

The Green Term-Ahead Market achieved 129 MU volume with an average monthly price of Rs 5.05 per unit for Solar, Rs 6.15 per unit for Non-Solar.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 5.88 lacs RECs were cleared in the trading session at IEX held on Wednesday, 28th September'22. The volume comprised 1.98 lacs Non-Solar RECs with clearing price at Rs 1,000 per REC. Increased inventory of solar RECs saw the clearing price reaching floor-level at Rs. 1000 per REC, with 3.90 lacs Solar RECs traded during the month. The next REC trading session at the Exchange is scheduled on Wednesday, 26th October 2022.

Source : Equity Bulls

Keywords

IndianEnergyExchange IEX Volume September2022