Day ahead market prices up 20% m-o-m at IEX in November

The market clearing price (MCP) in the day-ahead market (DAM) at the Indian Energy Exchange (IEX) rose by 20 per cent on a month-on-month (m-o-m) basis to ₹4.60 per unit (kWh) against ₹3.83 in October 2022.

“The Day Ahead Market (DAM) clearing price was ₹4.60 per unit as against ₹3.08 per unit in the previous corresponding year, due to supply constraints caused by geopolitical factors,” IEX said.

Despite the high price, the volume of electricity traded at DAM rose 18 per cent on a m-o-m basis to 5,084 million units (MU) and by 8 per cent on an annual basis.

Overall, the power exchange achieved a volume of 7,764 MU which includes 354 MU of green power and 372,000 renewable energy certificates (RECs), which are equivalent to 372 MU. The total volume declined by 3 per cent on a monthly basis.

IEX pointed out that the overall volume fell 16 per cent y-o-y, as the corresponding month last year had exceptionally high REC volumes of 2,440,000 to fulfil the pent-up demand caused by a 16-month gap of trading.

The total electricity volume traded on the exchange in November this calendar year was 7,392 MU, an increase of 9 per cent y-o-y, but fell 3 per cent on a monthly basis.

Price correction

The prices last month are still lower compared to ₹5.41 per unit, ₹5.17 a unit and ₹5.63 per unit in July, August and September, respectively, this calendar year at the DAM.

“Improving coal inventory and onset of winter will lead to further price correction on the exchange, providing cost optimisation opportunities to Discoms and Open Access consumers,” IEX said.

The country’s power demand is also tapering with the mercury dipping further. During November, India’s energy consumption stood at 113 billion units (BU), increasing by 13 per cent y-o-y, but declined by 2 per cent m-o-m. In August and September, the total energy demand stood at 130.4 BU and 127 BU, respectively.

Green market

The volume of electricity traded at the Green Day-Ahead Market (GDAM) and the Green Term-Ahead Market (GTAM) also declined in line with softening demand for electricity as winters

IEX Green Market, comprising the GDAM and GTAM, achieved 354 MU volume during November declining 12 per cent M-o-M. The GDAM achieved 288 MU volume with a weighted average price of ₹4.31 per unit, while GTAM achieved 66 MU volume with an average monthly price of ₹5.01 per unit for Solar, ₹5.66 a unit for non-Solar.



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