In its monthly power market update, the trading platform stated that its 6.6 percent decline was incurred while the national peak demand at 133 GW declined 25 percent YoY in the month of April
May 06, 2020. By News Bureau
The Indian Energy Exchange (IEX) has announced that the electricity market at IEX saw a trade of 4052 MU in the month of April 2020, observing a decline of 6.6 percent YoY. In its monthly power market update, the trading platform stated that its 6.6 percent decline was incurred while the national peak demand at 133 GW declined 25 percent YoY in the month of April.
“This was mainly due to contraction in commercial and industrial demand in lieu of the COVID-19 related preventive lockdown,” it stated.
The report further added that the day-ahead market volume was at 3692 MU while the term-ahead volume was at 360 MU. The term-ahead segment recorded a significant 8 percent YoY growth due to increased preference for TAM contracts amongst Southern, Western and Northern utilities.
Power procurement by distribution utilities from southern, western and northern states such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab amongst others increased by over 10 percent in April owing to ample power availability and very attractive prices.
“The distribution utilities continue to leverage the Exchange for accumulating significant financial savings as well as supplying 24*7 uninterrupted power to critical sectors like health care, public utilities and other essential services,” it added.
The total sell bids in the day-ahead market at 9,294 MU were 2.3 times the buy bid at 3,917 MU. Robust sell-side liquidity kept prices under check with the average price at low of Rs 2.42 per unit registered 25 percent YoY decline vis-à-vis price of Rs 3.22 per unit in the corresponding period last year. One Nation One Price prevailed for 30 days during the month.
In the renewable energy certificate (REC) market, it stated that on April 29, 2020, the REC Trading Session at IEX saw a total trade of 1.88 lakh RECs comprising 1,72,488 Non-Solar RECs and 15,991 Solar RECs.
The price for Solar RECs at Rs 2400 per REC continued to be at the ceiling price prescribed by the CERC. The department added that this price has been at the ceiling since October 2019. The price for non-Solar RECs (issued after 1.4.17) at Rs 1000, however, decreased 44 percent from Rs 1800 in March 2020.
At the back end of April, the Central Electricity Regulatory Commission (CERC) in its order stated that the validity of RECs which expired or are likely to expire between April 01, 2020, and September 30, 2020, is extended up to October 31, 2020. After reviewing the performance of the REC market in terms of participation of buyers and sellers, volume cleared and the prices discovered, the Commission came to the conclusion that there is a need to extend the validity of RECs, so as to avoid demand-supply imbalance in the REC market.
As per the inventory data analysed by the Commission, 1,30,500 RECs, including 34,768 for solar and 95,732 for non-solar, were issued prior to April 01, 2017, and expired as on April 01, 2020. Besides, 32,069 RECs which were issued after April 01, 2017, is also due to be expired within the next 6 months till September 30, 2020, including 674 RECs for solar and 31,395 for non-solar.
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