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

New Delhi: The total trade volume of the Indian Energy Exchange (IEX) dipped 13 percent to 7,972 million units (MU) in October compared to a year ago. There were 630 participants in this segment during the month. "The Indian Energy Exchange (IEX) achieved 7,972 MU volume in October, including Green Power trade of 403 MU, and 3.58 lac RECs (equivalent to 358 MU)," an IEX statement said. Improved supply of domestic coal led to the easing of supply-side constraints, resulting in a decline of prices on the IEX, it explained.

Total volume on the Exchange was lower by 13 percent on a YoY basis due to the high volume base of last year: IEX

"The total volume on the Exchange in October was lower by 13 percent on YoY (year-on-year) basis due to the high volume base of last year, and lower by 2 percent on a MoM (month-on-month) basis due to reduced REC (Renewable Energy Certificate) trading," IEX said. Going forward, correction in prices due to improvement in coal availability and reduction in demand due to the onset of winters will provide an 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 Rs 3.83 per unit in September: IEX

"The average clearing price in the Day-ahead market was Rs 3.83 in October, which was lower by 32 percent on a MoM (month-on-month) basis and 52 percent on YoY (year-on-year) basis," IEX said in a statement.  It added, "Day-Ahead Market clearing price was Rs 3.83 per unit, as against Rs 5.63 per unit in September 2022. As a result, the Day-Ahead Market volume increased from 4,050 MU in September 2022 to 4,325 MU in October i.e., 7 percent growth on a MoM basis. However, the Day Ahead Market volume was lower by 34 percent on a YoY basis due to the high volume base of last year."

Real-Time Electricity Market registers growth of 13%

The Real-Time Electricity Market achieved 2,265 MU volume during October, registering a 13 percent YoY growth. The highest single-day volume of 124 MU was achieved on October 6. The consistent growth of the real-time electricity market is an indication of the growing reliance of the distribution utilities and industries to achieve power demand-supply balancing in real-time in the most efficient manner, IEX said.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and LDCs traded 621 MU during the month, a decrease of 29 percent on an MoM basis. However, the segment grew by an impressive 176 percent on a YoY basis.

IEX Green Market grows by 10%

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 403 MU volume during October, growing 10 percent YoY. The Green Day-Ahead Market achieved 293 MU volume with a weighted average price of Rs 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.

The Green Term-Ahead Market achieved 110 MU volume with an average monthly price of Rs 3.77/unit for solar, Rs 5.45/unit for non-solar. A total of 3.58 lacs RECs were cleared in the trading session at IEX held on Wednesday, October 26.

The volume comprised 1.76 lacs Non-Solar RECs with a clearing price at Rs 1,000 per REC. Increased inventory of solar RECs saw the clearing price reaching floor-level at Rs 1,000 per REC, with 1.82 lacs Solar RECs traded during the month.

The next REC trading session at the Exchange is scheduled on Wednesday, November 30.

(With PTI inputs)

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