IEX achieves highest monthly volume of FY23 in January

Indian Energy Exchange (IEX) achieved 8,639 million kwh (million units or MU) of total volume in January 2023 that was the highest in any month in fiscal year FY23, so far.

In an official release, IEX said that the total volume of 8,639 MU in January 2023 comprised of 8,245 MU of electricity volume (which included green power trade of 347 MU) and 3.95 lakh renewable energy certificates (REC) that corresponded to 395 MU.

The total electricity volume on IEX in January 2023, at 8,245 MU, saw an increase of 9 per cent on year-on-year and 4 per cent on month-over-month basis. The overall volume on the exchange during the month, at 8,639 MU, was 2 per cent over that in December 2022.

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. This will provide further cost optimisation opportunities to discoms and Open Access (OA) consumers, resulting in higher volumes on the exchange, IEX said.

Here is a summary of trading volumes by various trading platforms:

• The Day-Ahead Market (DAM) volume decreased by around 2 per cent from 5,001 MU in December 2022 to 4,893 MU in January 2023,. The Day Ahead Market volume was lower by 7 per cent on a year-on-year 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 (RTM) achieved 2,102 MU volume during the month, registering 33 per cent year-on-year and 19 per cent month-over-month growth. There were 707 participants in this segment during the month.
• The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and contracts up to 3 months, traded 902 MU during the month, an impressive increase of 131 per cent on year-on-year basis and 10 per cent on month-over-month basis.
• The Green Day-Ahead Market (G-DAM) achieved 286 MU volume with a weighted average price of Rs.6.30 per unit. The market saw participation from 208 market participants during the month, with the highest number of participants in a single day at 154 on January 25, 2023.
• The Green Term-Ahead Market (G-TAM) achieved 61 MU volume with an average monthly price of Rs.6.22 per kwh for non-solar and Rs.8.19 per kwh for hydropower.
• A total of 3.95 lakh RECs were cleared in the trading session at IEX held on Friday, January 27, 2023 as compared to 11.26 lakh RECs in January 2022. The next REC trading session at IEX is scheduled on Wednesday, February 22, 2023.