Indian Energy Exchange records decent growth in July

The electricity market at Indian Energy Exchange recorded 27 per cent increase on year-on-year basis and 15 per cent increase on a month-on-month basis in July 2019.

The increase in volume was led by an increase in demand for electricity in select eastern, western and southern states. The distribution companies across these states preferred the day-ahead and the term ahead electricity market on exchange to leverage the competitive price discovery, coupled with the benefit of flexible and predictable procurement since ‘One Nation and One Price’ prevailed on all 31 days during the month.

The day-ahead market alone saw an increase in volumes by 19 per cent YoY while the term-ahead market (TAM) which is leveraged by the discoms to manage demand-supply variability close especially in the scenario of high renewable energy concentration in the grid, increased 290 per cent on YoY basis.

The average Market Clearing Price (MCP) in the day-ahead market was Rs. 3.38 per unit – it recorded a decrease of 2 per cent on YoY basis from Rs. 3.46 per unit in July’18. The low price coupled with greater certainty and predictability in procurement continues to make a compelling proposition for the distribution companies as well as open access consumers to step up their procurement through Exchange.

On all India basis, peak demand met touched 175 GW registering 4 per cent increase on YoY basis while all India energy met at 117 BU increased 6 per cent YoY as per data sourced from NLDC.

On Wednesday, the stock of IEX opened at Rs. 144.70. During the morning trading session, it made intraday high and low of Rs. 145.45 and Rs. 144.70, respectively.