Average spot power price falls 27% to Rs 2.47 per unit in July on IEX

The average spot power price in day ahead market dipped 27 per cent to Rs 2.47 per unit in July as compared to the year-ago period on the Indian Energy Exchange (IEX).

The day ahead market (DAM) traded 4,487 MU(million units)during the the month, an IEX statement said.

"With robust sell side liquidity, the average market clearing price in the day-ahead market during the month at Rs 2.47 per unit registered a 27 per centyear-on-year decline over a price of Rs 3.38 in July2019," the statement said.

The attractive pricecontinued to ensure significant savings to distribution companies and industries during this time.

The market continued to see high sell side liquidity.The total sell bids at 9,734 MU were close to 1.9X of the buy bids which stood at 5,199 MU.

The electricity market at IEX witnessed a total trade of 5,334 MU in July 2020.

The volume traded in July 2020 registered an increase of 11 per cent over the previous month and remained at par with the volumetraded in the year-ago period, while the national electricity consumption and peak demand saw 3 per cent decline last month, it added.

The distribution utilities from western, southern as well as a few northern states such as Maharashtra, Telangana, Andhra Pradesh and Rajasthan, leveraged the exchange market to optimize their power portfolio and build on the financial liquidity which is so critical at this hour.

Moreover, as electricity demand andconsumption rise to the pre-Covid-19 levels driven by the increasing industrial and economic activity,availability of ample power at affordable prices will assist the economic revival and growth, it stated.

One Nation One Price prevailed during all 31 days during the month making IEX the most reliablepartner in power procurement as well as cost optimization.

The real-time electricity market (RTM) registered 52 per cent month-on-month rise with a total trade of 785 MU during July 2020.

With 241 customers participating, RTM saw sell bids volume about 2X of buy bids, indicative of the ample liquidity in the real-time market as well.

While the sell bids saw 17 per cent month-on-month rise, buy bids witnessed a whopping 36 per cent increase demonstrating growth and the rising preference of market participants for RTM.

IEX began RTM trading in June this year.

The real time electricity market saw 42.69 MU as the highest volume traded in a single day on July28, 2020. The average monthly market clearing price stood at Rs 2.49 per unit for RTM alone.