Commodities

Buyers of electricity contracts in IEX Real Time Market see 21 per cent cheaper average trading prices

Our Bureau Mumbai | Updated on June 02, 2020 Published on June 02, 2020

Indian Energy Exchange (IEX)

Buyers of electricity contracts in the Real Time Market (RTM) platform of Indian Energy Exchange (IEX), witnessed 21 per cent cheaper average trading prices.

According to data released by IEX, prices for June 2 delivery were Rs 2.2 per unit, 21.8 per cent cheaper when compared to June 1 when prices per unit were trading at Rs 2.68 per unit when compared to the Day-Ahead Market (DAM) data.

Electricity contracts are traded on the DAM where market participants purchase and sell electric energy at financially binding day-ahead prices for the following day. Before RTM came into play, participants were able to buy power from exchanges between 10 AM to 12 noon in the DAM.

The real time market traded 3.41 MU volumes in 48 auction sessions on the first day of the launch, IEX said. The platform also witnessed a significant sell side liquidity at about 10X of the total buying volume leading to attractive prices for the buyers.

IEX said that on the first day of trading, it has received an overwhelming response from Discoms, power generators as well as commercial and industrial consumers on its RTM platform. Further, the launch witnessed the participation of more than 80 market participants including all major distribution utilities and generating companies. During the auctions, the prices went down as low as Rs 0.10 per unit.

It also saw participation from industrial customers through open access, which indicates interest from this segment of consumers as well, IEX said. The RTM enables trading in electricity through 48 half-hourly closed double-sided auctions during the day, with delivery of power within one hour of closure of the bid session.

IEX is largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs). IEX’s RTM is powered by the double-sided closed auction to ensure transparency, competitive price discovery, to the market participants.

The RTM is expected to help the discoms to forecast and schedule green energy in an effective way thereby supporting their push towards contributing to India’s renewable energy generation target of 175 GW by 2022.

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Published on June 02, 2020
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