The electricity market at the Indian Energy Exchange trades 5467 MU in August’20 witnessing a 1% increase over volume traded in August’19. The national peak demand in the same period sees a 6% YoY decline while the energy consumption declines 2% in August 20 according to the data issued by the NLDC.
The day-ahead market traded 4484 MU during the month with average market clearing price at Rs. 2.43 per unit. The price saw a significant 27% YoY decline over Rs 3.32 in August’19. The attractive prices made electricity procurement from the exchange an attractive proposition for both the distribution utilities and industries yielding significant savings.
The day-ahead market sees adequate availability of power with high sell side liquidity. The total sell bids at 10,123 MU were twice of the buy bids at 5081 MU.
The distribution utilities from states such as Southern, Western and Northern states continued to leverage the exchange market to meet their short-term electricity requirements. Moreover, as the COVID restrictions ease, industries have been procuring power at attractive prices that has been facilitating revival of industrial growth.
One Nation One Price prevailed during all 31 days during the month.
The trade in the term-ahead market at 115 MU increased 97% MoM basis indicating continued acceptance of TAM contracts by the distribution utilities for meeting their short-term power requirements.