IEX logs trade volume of 8,639 million units in Jan

New Delhi: Indian Energy Exchange (IEX) on Monday said that it has clocked a total trade volume of 8,639 million units (MU) in January 2023, which is the highest in the current financial year so far. However, the data showed that the trade volume in January this year was lower than 8,652 MU recorded in the same month last year. The IEX has achieved 8,639 MU total volume in January, including green power trade of 347 MU, and 3.95 lakh RECs (renewable energy certificates), equivalent to 395 MU, an IEX statement said.

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Total electricity (trade) volume on the exchange in January stood at 8,245 MU

Total electricity (trade) volume on the exchange in January stood at 8,245 MU, saw an increase of nine percent on y-o-y basis and four percent on MoM (month on month) basis. The overall energy trade volume on the exchange during the month was 8,639 MU, registering an increase of two percent on MoM basis.

In January, the exchange witnessed its highest volume in this fiscal year, due to improving supply side conditions, led by gradually increasing coal supply and easing e-auction coal prices. The volume has been steadily increasing month-on-month since November 2022, it noted.

Improving coal inventory at power plants is expected to lower clearing price

Improving coal inventory at power plants due to the government's proactive initiatives is expected to lower clearing price on the exchange in the coming months, it stated, adding that this will provide further cost optimisation opportunities to discoms and open access consumers, resulting in higher volumes on the exchange.

DAM decreased from 5,001 MU in Dec 2022 to 4,893 MU in Jan

The day-ahead market volume decreased from 5,001 MU in December 2022 to 4,893 MU in January, i.e., two percent lower on MoM basis. The day ahead market volume was lower by seven percent on y-o-y basis due to high prices resulting from a constrained supply scenario, which led to high spot e-auction coal prices during the month as compared to the same month last year. The real-time electricity market achieved 2,102 MU volume during the month, registering a 33 percent on y-o-y basis and 19 percent on m-o-m growth.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily and weekly contracts, and contracts up to three months, traded 902 MU during the month, an impressive increase of 131 per cent on YoY basis and 10 percent on MoM basis.

The IEX green market, comprising the green day-ahead and green term-ahead market segments, achieved a 347 MU volume during January 2023, growing 24 percent on y-o-y basis. The green day-ahead market achieved 286 MU volume with a weighted average price of Rs 6.30 per unit. The green term-ahead market achieved 61 MU volume with an average monthly price of Rs 6.22 per unit for non-solar and Rs 8.19 per unit for hydro.

A total of 3.95 lakh RECs were cleared in the trading session at IEX held on January 27 as compared to 11.26 lakh RECs in January 2022.

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