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Average spot power price fell 23 per cent to Rs 2.57 per unit in May, compared to Rs 3.34 per unit a year ago at the Indian Energy Exchange (IEX).
“The average market clearing price during the month (May) was at Rs 2.57 per unit, a 23 per cent decline year-on-year over price of Rs 3.34 in May 2019,” an IEX statement said.
The IEX data showed that electricity market at the exchange saw a total trade of 6005 MU (million units) in May, 2020, a 47 per cent increase over the year-ago period, despite the national peak demand recording a 9 per cent year-on-year fall during the month under review.
It said, the market demonstrated a significant uptick mainly owing to the increase in demand and consumption during May driven by seasonality factor -- peaking summers leading to increased consumption across essential services, especially healthcare institutions, and households due to increase in work-from-home for corporate employees.
Moreover, steady lifting of the Covid-19 preventive lockdown enabled industries and commerce to get back to business, and thus consumption from commercial and industrial customers through open access also witnessed a rise, it added.
The Day-Ahead Market (DAM) traded 5574 MU recording a 48 per cent year-on-year increase.
Total monthly sell bids stood at 10580 MU and buy bids were at 6137 MU. The buy-sell dynamics indicate ample power availability in the market - 1.7 times more sell than buy.
The consequent lower prices provided a compelling proposition for the industries as well as distribution utilities to meet their short-term demand as well as replace costlier generation with attractively priced power procured through the exchange, it added.
Low prices have prompted utilities from Southern, Western and Northern states such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab amongst others to continue procuring power through the Exchange.
The Term Ahead Market (TAM) witnessed 36 per cent year-on-year growth. The distribution utilities showcased increased preference of TAM contracts.
One-Nation-One-Price prevailed for all 31 days during the month of May.
The Exchange commenced trade in RTM (real time market) on May 31, 2020 with delivery at 12:00 AM on June 1, 2020. The new market segment features an auction session every half an hour and 48 auction session through the day, it added.
IEX has received an overwhelming response in last 2 days (June 1 and 2) with a cumulative volume of 8.73 MU at an average price of Rs. 1.64 per unit, it said adding more than 80 market participants including all the key power distribution, generation companies and open access consumers, traded on the day one itself (June 1).
The Renewable Energy Certificate (REC) trading session at IEX on May 27, 2020 saw a total trade of 2.78 lakh RECs.
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