Mumbai: The electricity market at the Indian Energy Exchange (IEX) recorded 27% increase on YoY basis and 15% increase on MoM basis in July 2019. The increase in volume corroborated well with increase in demand for electricity in the select eastern, western and southern states. The distribution companies across these states preferred the day-ahead and the term ahead electricity market on exchange to leverage the competitive price discovery, coupled with the benefit of flexible and predictable procurement since ‘One Nation and One Price’ prevailed on all 31 days during the month.
The day-ahead market alone saw increase in volumes by 19% YoY while the term-ahead market (TAM) which is leveraged by the DISCOMS to manage demand-supply variability close especially in the scenario of high renewable energy concentration in the grid, increased 290% on YoY basis.
The average Market Clearing Price (MCP) in the day-ahead market was Rs. 3.38 per unit – it recorded decrease of 2% on Y-o-Y basis from Rs.3.46 per unit in July’18. The low price coupled with greater certainty and predictability in procurement continue to make compelling proposition for the distribution companies as well as open access consumers to step up their procurement through Exchange.