The average market clearing price on the day ahead market (DAM) segment at the Indian Energy Exchange (IEX) rose 35 per cent Y-o-Y to ₹5.90 per unit (kilowatt hour) during FY23 on account of higher demand for electricity amid lower supplies.
DAM, which accounts for the majority of trade on India’s largest power exchange, witnessed a trade of 51,151 million units (MU) during FY23, which was lower by 21 per cent on an annual basis due to higher prices, IEX said in a statement.
The average market clearing price was ₹5.90 per unit during FY23, higher by 35 per cent over FY22 due to demand-supply mismatch, it added.
“Cumulatively for FY23, IEX traded 96.8 billion units (BU), a de-growth of 5 per cent on Y-o-Y basis, despite a highly constrained sell-side liquidity, which led to the price increasing by 35 per cent on YoY basis,” it said.
The April-June 2022 period witnessed a significant growth in power demand due to earlier than expected summers coupled with intense heat waves with peak demand hitting almost 216 gigawatts (GW) in April 2022. Besides, growing industrial activity also impacted consumption, which led to a rise in demand for coal.
“While high temperatures and increased demand are expected in the coming months, supply side liquidity should improve due to the various conducive policy and regulatory initiatives announced by the government to increase coal and gas-based generation,” IEX said.
These are likely to result in improved sell-side availability on the Exchange, leading to competitive prices and higher clearance for Discoms and Open Access consumers, it added.
Volumes rise in March
IEX achieved 9,212 MU overall volume in March 2023. The overall volume during the month was higher 12 per cent on a M-o-M basis, while it declined 4 per cent on a Y-o-Y basis. The price during March 2023 was Rs 5.25 per unit, which was lower by 23 per cent on a M-o-M basis, due to cooler weather conditions.
The energy met in the country during March 2023 stood at 128 BU, declining 2 per cent on a Y-o-Y basis.
DAM volumes increased to 4,745 MU in March from 4,664 MU in February 2023, which is a growth of 2 per cent on M-o-M basis due to favourable prices.
The Real-Time Electricity Market (RTM) achieved 2,098 MU volume during March 2023, registering a 22 per cent M-o-M growth. There were 701 participants in this segment during the month. The consistent growth of the RTM segment reflects its relevance to distribution utilities and industries for efficiently balancing their power demand-supply on a real-time basis.