January 04, 2019

POWER MARKET UPDATE: December 2018, Spot Market Trades 3,059 MU with Avg. MCP at Rs. 3.30 per unit

Indian Energy Exchange
New Delhi, Friday, 4 January, 2019
The all India peak demand touched 163 GW on 28 th December 2018 registering 7% increase over demand in December’17 as per the statistics issued by NLDC. The energy supplied at 1,03,004 MU in December’18 increased 6% over 97,348 MU supplied in December’17.
The electricity market at IEX – the Day Ahead- Market (DAM) and Term Ahead-Market (TAM) combined traded 3,156 MU in December’18 almost at par with 3,186 MU traded in December’17.
On the year to date basis the electricity market at IEX traded 42,304 MU over 35,349 MU traded in same period last fiscal registering growth of 20%.
The Day-Ahead Market traded 3,059 MU almost at par with the volume traded in December’17. While on the year to date basis, the DAM traded 40,632 MU over 34,185 MU traded in same period last fiscal registering growth of 19 %.
On a daily average basis about 99 MU were traded in December’18.
The average Market Clearing Price (MCP) was Rs. 3.30 per while MCP during different time-periods of the month was:
žŸ• Morning (07:00 to 10:00 Hrs): Rs. 4.14 per unit
• Day (11:00 to 17:00 Hrs): Rs. 3.47 per unit
• Evening peak (18:00 to 23:00 Hrs): Rs. 3.85 per unit
• Night (01-06 Hrs and 24 Hrs): Rs. 2.19 per unit
Avg MCP in December’18 registered 10% increase on YOY basis and 8% decline on MOM basis mainly on account of winter season leading to subdued demand for power particularly in the Northern and Western States.
One Nation, One Price was realized for 23 days. The day-ahead market experienced transmission congestion of 2.6% mainly in the import towards Southern Region.
On daily average basis 682 participants traded in the market during the month.
The Term-Ahead Market traded 97 MU in December’18 registering 25% increase over December’17. While on the year to date basis, the TAM traded 1,672 MU over 1,164 MU traded in same period last fiscal registering growth of 44 %.
A total of 3,83,873 RECs were cleared in the REC trading session held on Wednesday, 26 December, 2018 almost at par with trade in November’17. The key highlights of the trading session are as below:
• The clearing price for Solar REC Market at Rs 1,450 per REC saw increase of 32% over Rs 1101 per REC price in November’18.
• The clearing price for Non-Solar Market at Rs 1,320 per REC saw 5% increase over price of Rs 1,252 per REC in November’18.
• Both Non-Solar and Solar REC saw reversal in demand-supply situation with buy bids exceeding the sell bids.
• The Discoms were the major buyers in the session followed by Captive users companies and Open Access consumers.
On a year to date basis, IEX has cumulatively traded 63.18 lac RECs over 66.77 lac RECs traded in same period. The demand for RECs from the obligated entities has been there however due to exhaustion of the inventory the market the not seen much vibrancy this year. The situation clearly signals the need for new REC based capacity.