The electricity market at IEX recorded a total trade of 4,768 MU in December 2019. The market witnessed a 51% yoy and 25% mom increase in traded volumes demonstrating increased preference by the distribution utilities for the Exchange platform that offers power procurement at the most competitive prices in a flexible and customized way.
The increase in traded volumes on the Exchange was largely due to surge in demand from the northern states as well as the southern States. The northern states experienced intense cold wave this month leading to an increase in peak demand in several states.
The day-ahead market traded 4,333 MU with an average market clearing price at ~Rs 2.93 per unit vs Rs. 3.3 in December 2018, an 11% decline in price. In the DAM market, total monthly sell bids were 10,195 MU while buy bids were 5,260 MU. Sell bids at nearly two times of the buy bids coupled with lower clearing prices signified that the market remained attractive for both the distribution utilities as well as open access buyers.
One Nation One Price prevailed for 21 days during the month. The congestion was mainly towards import of power by the Southern States specially during the peak hours since HVDC Bhadrawati was under outage leading to import capacity reduction.
TAM volumes rose 347% YoY on back of growing acceptance for TAM contracts by the distribution utilities for meeting their short-term power requirements.
After dip in demand over the last three months, all India peak demand at 170 GW in December’19, rose 5% YoY over demand of 163 GW in December’18 and rose 9.6% MoM over demand of 155 GW in November’19.