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The Indian Energy Exchange (IEX), an energy trading platform, has stated that it has witnessed heightened activity on exchange and the distribution utilities across India since the Covid-induced lockdown on March 25.
While the peak demand declined by almost 25 per cent, the exchange has witnessed high sell side liquidity, which is almost at 2.7 times the demand side, which is helping to keep the price in the market under check.
The average price in IEX day-ahead market has been as low as ₹2.36 per unit during March 24 to April 20.
Power procurement by distribution utilities from Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab has increased over the last several weeks owing to ample power availability and attractive prices.
“The distribution utilities are meeting their seasonal demand as well as replacing their costlier generation with low cost power available on the exchange, thereby optimising procurement costs and saving significantly. A southern and a western distribution utility could individually save over ₹50 crore after the lockdown by stepping up procurement through exchange. This is so relevant at a time like this when distribution companies have the dual role of supplying 24x7 uninterrupted power as well as maintaining good financial liquidity,” Rajiv Srivastava, Managing Director and CEO, IEX, said in a statement.
“To facilitate the industry and commerce to bounce back, the State governments and regulators are urged to consider exemption of open access charges and ease other restrictions,” Srivastava said.
IEX assures 24x7 access to its platform with the flexibility of trading in 15-minute trading block. This allows buyers to procure power to meet the fluctuating demand during different time blocks in a single day and ensure 24x7 power to consumers.
AP Discoms continue to swap their high cost power sources in April while keeping all high cost conventional sources under reserve shut down.
All thermal stations are asked to stock coal to meet the exigencies for May. The State Discoms have saved about ₹132 crore in April by purchase of power from exchanges.
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