IEX trade volume dips 13% to 7,972 mn units in October

NEW DELHI: The total trade volume of Indian Energy Exchange (IEX) dipped 13% to 7,972 million units (MU) in October compared to a year ago.

The Indian Energy Exchange achieved 7,972 MU volume in October 2022, including Green Power trade of 403 MU, and 3.58 lac RECs (equivalent to 358 MU), IEX said.

“The total volume on the Exchange in October was lower by 13% on YoY (year-on-year) basis due to high volume base of last year, and lower by 2% on MoM (month-on-month) basis due to reduced REC (Renewable Energy Certificate) trading,” it stated.

Improved supply of domestic coal led to easing of supply side constraints, resulting in decline of prices on the IEX, it explained.

The average clearing price in the Day-ahead market was ₹3.83 in October, which was lower by 32% on MoM (monthon-month) basis and 52% on YoY (year-on-year) basis.

Going forward, further correction in prices due to improvement in coal availability and reduction in demand due to onset of winters, will provide opportunity for cost optimization by Discoms and Open Access consumers, resulting in increased volumes on the Exchange, it stated.

Day-Ahead Market clearing price was ₹3.83 per unit, as against ₹5.63 per unit in September.

As a result, the Day-Ahead Market volume increased from 4,050 MU in September to 4,325 MU in October, i.e 7% growth on MoM basis. However, the Day Ahead Market volume was lower by 34% on YoY basis due to high volume base of last year.

The Real-Time Electricity Market achieved 2,265 MU volume during October, registering a 13% YoY growth. The highest single-day volume of 124 MU was achieved on October 6, 2022. There were 630 participants in this segment during the month.

The consistent growth of the 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, it stated.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and LDCs traded 621 MU during the month, a decrease of 29% on MoM basis. However, the segment grew by an impressive 176% on YoY basis. IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 403 MU volume during October, growing 10% YoY.

The Green Day-Ahead Market achieved 293 MU volume with a weighted average price of ₹4.02 per unit. The market saw participation from 721 market participants during the month, with the highest number of participants in a single day at 621 on October 9, 2022.