JUNE 2020, ISSUE 5

IEX BULLETINREGULATORY NEWSMoP Allows Generators with Untied Capacity to Participate in Coal Auctions The Ministry of Power, vide its letter dated 12th May 2020, has amended the Methodology of Coal Allocation under Shakti Scheme. The amendments are made in the eligibility of generators to participate in the coal linkage auction for selling of power on the day-ahead market on Power Exchanges and DEEP platform. It states that the power plants which do not have Power Purchase Agreements (PPAs) shall be allowed to participate for auction of coal linkage for short term for a maximum up to one year. Currently, only those generators can participate in the scheme who have an untied capacity of more than 50% and who are not captive power plants.

For more information: www.powermin.nic.in

CERC Notifies Implementation of RTM from 1st June 2020CERC, vide its order dated 28th May 2020, confirmed the implementation of Real-time Market with effect from 1st June 2020, as well as the transmission corridor allocation methodology. The key highlights of the Order are as follows:

The Real-time Market to implement from 1st June 2020

The corridor between Power Exchanges will be allocated as follows with procedure to be completed within 15 minutes:

• At gate closure, the NLDC to announce ATC for RTM transactions

• Both the Power Exchanges to run the process of bid matching factoring ATC for RTM transactions

• The required flow in corridors to be submitted to the NLDC

• NLDC to confirm volume cleared in both exchanges, against the ATC for RTM

• In case of congestion, NLDC to allocate corridor in pro-rate based on the initial volume and inform the respective Exchange

www.iexindia.com 1

IN THIS ISSUE...

REGULATORY NEWS

MoP Allows Generators with Untied Capacity to Participate in Coal Auctions

01

CERC Notifies Implementation of RTM from 1st June 2020 01

CERC Notifies Sharing of ISTS Charges & Losses Regulations, 2020

02

CERC Drafts Renewable Tariff Regulations, 2020 04

State Orders Issued in May 2020: Key Highlights 04

MEDIA NEWS

Ensure Uninterrupted Electricity Supply to Consumers: PM Narendra Modi to Power Sector

05

` 90,000 Crore Discom Booster a Power Push for Economic Revival: RK Singh, Minister for Power

05

Power Utilities Turn to Cheaper Exchange Power as Prices Crash

06

POWER SECTOR AT A GLANCE

Power Sector at a Glance 07

MARKET NEWS

IEX Launches Real-Time Electricity Market 09

IEX Trades 3.41 MU Volume in the Real-time Market on the First Day

09

What Key Players in the Market have to Say About Real-time Market

10

Electricity Market 11

Renewable Energy Certificate Market 10

TRADE DATA

IEX Market Data: May'20 11

Day-ahead Market: Trade Data, May 2020 12

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X

• The Power Exchanges shall, thereafter, submit the final trades in conformity with the available corridor margin, as provided by the NLDC

• In the extreme event of failure of communication between the NLDC and the Power Exchange or for reasons such as data transfer failure, if the final cleared trades are not received by NLDC for scheduling through the RLDCs or if the information regarding available corridor margin is not received by Power Exchange, the schedules for such RTM session shall be made zero by NLDC

CERC Notifies Sharing of ISTS Charges & Losses Regulations, 2020On 4th May 2020, the CERC notified new Regulations on Inter-State Transmission Charges and Losses. Titled as ‘Sharing of Inter-State Transmission Charges and Losses Regulations, 2020’, the key highlights of it are as below:

Transmission Charges (TC) for Short-term Open Access (STOA)

• Monthly STOA Transmission Charges (Paisa/kWh) = TC of the State for the billing month (in rupees) / (7200 X the quantum, in MW of LTA + MTOA of the State for the corresponding billing period)

• TC for STOA to be payable by the generating stations and embedded entities located in the state, as per the last published STOA rate

• TC for STOA, paid by the embedded entities, to be reimbursed to the state in which such entity is located

• TC for STOA, paid by a DIC (designated interstate transmission customers) with untied LTA (Long-term Agreement) would be offset against the TC payable by the said DIC for untied LTA in the following billing month

• No Transmission Charges for STOA for ISTS, payable by a distribution licensee, which has LTA or Medium-term Open Access or both or by a trading licensee acting on behalf of such distribution licensee

• TC for STOA collected in a billing month after adjustment will be reimbursed to the DICs in proportion to their share in the first bill in the following billing month

Transmission Deviation

• Transmission Deviation Rate in `/MW, for a State or any other DIC located in the state, for a time block during a billing month would be computed as under:

1.05 X (transmission charges of the state for the billing month in `)/(quantum in MW of LTA + MTOA of the state for the corresponding billing period X 2880)

• The transmission deviation charges will be recovered through the third bill and will be reimbursed to the DICs in proportion to their share in the first bill in the following billing month

Sharing of Transmission Losses

• All India average transmission losses for ISTS to be calculated each week, from Monday to Sunday

• Drawl schedule of DICs to be worked out after considering the transmission losses of the previous week

• No transmission loss for ISTS would be applicable while preparing a schedule for injection node, including that for collective transactions over the Power Exchanges

Transmission Charges

• Components of transmission charges and sharing methodology:

i. National Component (NC):

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X

a) RE projects + HVDC

b) To be shared by the drawee DICs and injecting DICs in the ratio of their LTA+MTOA quantum and untied LTA capacity, respectively

ii. Regional Component (RC):

a) Charges for region specific components

b) To be shared by the drawee DICs and injecting DICs of the receiving region in proportion to their quantum of LTA+MTOA and untied LTA, respectively

iii. Transformers Component (TC):

a) Charges for state specific transformers

b) To be borne by the state in which they are located

iv. AC System Component (ACC):

a) Usage-based Component (AC-UBC):

a. To be determined by load flow

b. To be shared by drawee DICs and injecting DICs with untied LTA, corresponding to their respective usage

b) Balance Component (AC-BC):

a. Balance transmission charges for AC transmission system after apportioning the charges for AC-UBC

b. To be shared by all drawee DICs and injecting DICs in the ratio of their LTA+MTOA quantum and untied LTA capacity, respectively

Billing

• The First bill would contain the transmission charges for the billing month based on the methodology detailed in the regulations

• The Second bill will be raised to adjust the variations on account of any revision in transmission charges as allowed by the Commission, including incentives

• The Third bill will be for transmission deviation

Rebate: LTA/MTOA

• A rebate of 1.50% would be allowed for payment of bills within a period of 5 days of presentation of bills

• A rebate of 1% would be allowed where payments are made on any day after 5 days and within a period of 30 days of presentation of bills

CERC Drafts Renewable Tariff Regulations, 2020Central Electricity Regulatory Commission has drafted regulations for Terms and Conditions for Tariff determination from Renewable Energy. The key highlights of the regulations are as follows:

Floating Solar PV, RE with storage and RE Hybrid Projects have been added in the regulations

For project specific tariff, developer must produce beneficiary consent for procurement of power from RE project

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In case of excess generation, the generator can sell excess energy to any entity with the first right of refusal with the original beneficiary

For more information: www.cerc.indi.gov.in

State Orders Issued in May 2020: Key Highlights

Kerala

Kerala State Electricity Regulatory Commission extended the validity of Tariff Order for FY 2019-20 till 31st March 2021

KSERC approved ` 52.68 crore fuel surcharge for the 2nd quarter of FY 2019-20, however, considering COVID-19 situation, recovery of the fuel surcharge is deferred. The Commission has directed the distribution utility to submit recovery details of fuel surcharge for the 1st quarter of FY 2019-20. KERC may take a decision on levy of fuel surcharge for the 2nd quarter after getting details of recovery of fuel surcharge of the 1st quarter.

Karnataka

Karnataka Electricity Regulatory Commission has extended the timeline to meet RPO for FY 2020 by obligated entities till 31st August 2020

As per the Order, entities who will fail to meet RPO will have to purchase RECs to the extent of 110% of the shortfall by 30th September 2020

Chhattisgarh

Chhattisgarh State Electricity Commission has drafted RPO and REC Framework Implementation Regulations, 2020, which proposes to relax RPO targets in line with the advisory issued by MoP/MNRE

Haryana

On 21st May 2020, Haryana Electricity Regulatory Commission issued Order to reduce Tariff by 11% and STOA transmission tariff by 3 paisa/unit

www.iexindia.com 5

Ensure Uninterrupted Electricity Supply to Consumers: PM Narendra Modi to Power SectorPTI | The Economic Times

Amid the coronavirus crisis, Prime Minister Narendra Modi on Friday asked officials to work towards ensuring round-

the-clock supply of power to all consumers.

At a meeting to review the power sector and the impact of COVID-19 pandemic on it, he also discussed various long-

term reforms for enhancing sustainability, resilience, and efficiency of the sector, an official release said.

Underlining the significance of the power sector in propelling country's economy, Modi stressed on the need for

effective enforcement of contracts for attracting private investments during the meeting, which was among others

attended by Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Minister of State for power, skill and

NRE R K Singh, it said

Measures for improving viability of distribution companies, including tariff rationalization and timely release of

subsidies along with improved governance were discussed as well, the release said.

Later in a tweet, the prime minister said he discussed ways to further reforms in the power sector.

"The focus is on enhancing sustainability, resilience and improving efficiency," Modi said.

The statement said discussions included measures regarding ease of doing business, propagation of renewables,

flexibility in supply of coal, the role of public-private partnerships and boosting investments in the power sector.

For more information: https://economictimes.indiatimes.com/industry/energy/power/ensure-uninterrupted-

electricity-supply-to-consumers-pm-narendra-modi-to-power-sector/articleshow/75495846.cms

` 90,000 Crore Discom Booster a Power Push for Economic Revival: RK Singh, Minister for Power

Sarita Singh | The Economic Times

The ` 90,000 crore liquidity booster for distribution companies announced on Wednesday will kick-start a chain of

payments that will make power and related sectors like coal viable, minister for power and renewable energy, RK

Singh told ET in an exclusive interview.

Power Finance Corp. and REC Ltd. are all set to launch on Thursday the liquidity-boosting scheme announced by

finance minister Nirmala Sitharaman. They will offer loans at lesser rates to distribution companies, while the power

ministry is pushing the finance ministry to give the sector access to low-cost funds at repo rate.

Singh is confident that electricity demand will revive soon, and that measures to boost MSME, real estate and power

sectors will put the economy back on track.

He said central public undertakings such NTPC , DVC and Power Grid Corp will take a hit of ` 3,000 crore by waiving

off fixed charges.

MEDIA NEWS

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LTRO Financing Sought: Singh

These charges are for electricity not drawn by discoms during lockdown. But their high regulated return on equity

minimises the impact.

“The package was absolutely necessary and is a great boost for the sector as all outstanding dues of the generation

companies have been taken care of. Viability of distribution companies will go up too because the dues attracted

delayed payment surcharge ranging from 12% to 18% which will be replaced by loans of lower rates, say 8.5%-9% with

10-year repayment. When the coal companies get paid, the railway freight gets paid, the whole sector becomes viable,”

he said.

Normally the spread of PFC and REC is 2.5%-3% but they have agreed to reduce it to 1.5%. The rate of interest will be

same for all discoms, Singh said.

The power ministry has approached the finance ministry for access to finance through long-term repo operation

(LTRO), under which the central bank offers money to banks at repo rate.

“My demand stays and I will pursue it again. I want to access the LTRO funds which come at about 4%. If I get that, the

cost of funds to discoms will go further down,” Singh said.

He added that the power ministry had the jurisdiction to allow central public sector enterprises (CPSEs) to waive off

the fixed charges.

“This was one major burden on the discoms during the period of lockdown because the demand had come down with

all the industrial and commercial establishments being closed. Waiver of the fixed costs is a huge relief for discoms

and falls within the jurisdiction of the power ministry. We have the finance ministry’s approval. The total impact will be

in the range of ` 3,000 crore for all CPSEs for power not drawn,” he said.

For more information: https://economictimes.indiatimes.com/industry/energy/power/90000-crore-discom-booster-

a-power-push-for-economic-revival/articleshow/75726806.cms

Power Utilities Turn to Cheaper Exchange Power as Prices CrashTanya Thomas | Mint

KVN Chakradhar Babu joined the state-owned Transmission Corporation of Andhra Prdesh (APTransco) as Joint MD

last June. At the time, APTransco had about ̀ 40,000 crore in loans, of which ̀ 25,000 crore was unpaid dues to power

generators. The state government was also getting flak from the power industry at the time for forcing re-negotiations

of high-cost power purchase agreements, a disagreement still mired in litigation.

Babu came to this scene and saw the spot power market (buying electricity through an energy exchange) as a good

opportunity to reduce power procurement costs, a move state-owned distribution companies (discoms) have been

reluctant to make. He brought a chartered accountant, a statistician and power system engineers to his team, assessed

the state’s power requirements, the split between thermal and renewable sources, the existing power purchase

agreements (PPAs), spot power price on the exchange and created a statistical model which could forecast how best

to switch between spot purchases from a power exchange and power contracts to minimise procurement costs.

www.iexindia.com 7

“On the exchange you have a pay for the power in advance, so you also need the liquidity buffer to support

your purchases," Babu told Mint. “We’ve been doing this for 6-7 months at APTransco, and we managed to save

` 500 crore in FY20. We were well placed to maximise this benefit when spot prices fell on the exchange during the

lockdown in March and April. We saved ` 56 crore and ` 132 crore in those two months. We were able to buy power

for as low as ` 1.8 a unit at one point."

This shift towards energy trading is true for discoms across states. Typically, discoms sign two-part PPAs -- fixed and

variable -- with thermal power generators. The fixed component of the tariff in the PPA has to be paid regardless of

whether the discom procures power, and the variable component is paid only when the discom enforces the PPA

and procures a certain quantity of power. The variable component covers the cost of fuel while the fixed component

compensates the generator for the overheads of keeping the power plant running. For discoms, when the exchange-

traded price falls below the variable component, they can save on their energy costs by foregoing power through

the PPA and buying on the exchange directly. When the exchange price rises higher than the variable component,

discoms can then return to procuring power under their PPA contracts.

In April, the first full month of the lockdown, national power demand crashed by 25% year-on-year. As thermal power

plants kept running at their technical minimum ranges during the lockdown, the excess power they generated was

routed into the exchange. At the Indian Energy Exchange (IEX), the total sell bids in the day-ahead market for the

month were 2.3 times the buy bids. As supply increased, the average traded price touched a low ` 2.42 per unit,

falling 25% year-on-year.

Power procurement by distribution utilities from southern, western and northern states such as Andhra Pradesh,

Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab increased by over 10% in April on the

IEX.

Satish Chavan, Director - Commercial, Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) told Mint that the

state has also been active on the exchange through March and April. “We saw significant benefits from buying on the

exchange in April but now in May the prices are back up. As long as the landed cost of exchange power is less than

` 3.10 per unit (the average variable cost of Maharashtra’s thermal power stations), we can save by buying through

the exchange."

“States are now realising there is an opportunity by trading on the exchange and the replacement potential that

exchange power provides," Rohit Bajaj, Head-Business, IEX, told Mint. “Discom participation on the exchange started

to increase when the price stabilised at ̀ 2.50 a unit. At this level, thermal generators can recover part of their variable

cost while discoms still benefit from the price being below the average variable cost on PPAs."

APTransco's Babu said that the state’s statistical models showed that power would remain cheap through April, so

much so that it shut down 4700 MW of Andhra Pradesh’s own 5000 MW installed thermal power capacity during

the month. “ Renewables and hydro have must-run status, and Andhra has the second largest installed renewable

capacity in the country. So we depended on renewables and the exchange to meet the bulk of the state’s power

needs and we used the savings to build a coal stockpile in April, since coal prices had fallen too."

For more information: https://www.livemint.com/industry/energy/power-utilities-turn-to-cheaper-exchange-power-

as-prices-crash-11590636539577.html

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India achieves capacity addition of 13,681 MW between May’19 and May’20 with break up as below:

• Thermal capacity: 4,356 MW representing 2% YoY increase

• Renewable Capacity: 9,025 MW representing 12% YoY increase

• Hydro capacity: 300 MW representing 1% YoY increase

• Nuclear capacity: 6,780 MW, no change

All India installed capacity reached 3,70,499 MW in May’20 representing 4% increase over 3,56,818 MW in May’19

All India peak demand at 1,66,973 MW in May 2020 registering 9% YoY decline from 1,83,547 MW in May’19

All India energy met at 1,02,183 MU in May 2020 registering 15% YoY decline from 1,20,020 MU in May’19

POWER SECTOR AT A GLANCE

Peak Demand Comparison of Key States (MW)

(Source: www.cea.nic.in)

The comparison of the peak demand in the key states during May 2019 and May 2020 is as hereunder:

Energy Met Comparison of Key States (MU)

(Source: www.cea.nic.in)

The comparison of the energy met in the key states during May 2019 and May 2020 is as hereunder:

Demand and Supply PositionAll India Installed Capacity (in MW)

2,2

2,92

7

78,3

59

87,3

84

45,

399

45,

699

Thermal Renewable Hydro Nuclear All India

May 2019 May 2020 May 2019 May 2020

2,30

,636

6,7

80

3,56

8,18

3,7

0,4

99

2%

12%1%

4%

Peak Demand (MW) Energy Met (MU)

14.9%

9%

(Source: www.cea.nic.in) (Source: www.cea.nic.in)

2,26

,279

6,7

80

States May'19 May'20 Increase/Decrease

% change

Telangana 8,703 9,121 418 5%

Andhra Pradesh 9,880 10,125 245 2%

Rajasthan 11,791 12,050 259 2%

Madhya Pradesh 10,145 10,038 -107 -1%

Uttar Pradesh 22,487 21,331 -1,156 -5%

Punjab 8,850 8,180 -670 -8%

Maharashtra 23,621 21,463 -2,158 -9%

Tamil Nadu 15,544 14,050 -1,494 -10%

Karnataka 12,172 10,999 -1,173 -10%

Gujarat 18,094 15,578 -2,516 -14%

States May'19 May'20 Increase/Decrease

% change

Karnataka 6,695 6,305 -390 -6%

Madhya Pradesh 6,720 6,193 -527 -8%

Telangana 5,283 4,819 -464 -9%

Andhra Pradesh 6,118 5,565 -553 -9%

Maharashtra 14,989 13,294 -1,695 -11%

Gujarat 11,026 9,541 -1,485 -13%

Tamil Nadu 10,332 8,776 -1,556 -15%

Rajasthan 7,100 4,871 -2,229 -31%

West Bengal 5,342 3,505 -1,837 -34%

Uttar Pradesh 12,908 8,065 -4,843 -38%

1,20

,020

1,66,

973

1,835

47

1,02,

183

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IEX Launches Real-time Electricity Market

The Indian Energy Exchange, India’s premier energy trading platform, launched the much-awaited Real-time Electricity Market (RTM) on its platform on 1st June 2020.

The real-time market is an endeavour by the regulator, CERC, to make the power market dynamic by enabling trade in electricity through half-hourly auctions. There will be 48 auction sessions during the day, with delivery of power within one hour of closure of the bid session.

The market will greatly aid the distribution utilities to manage power demand-supply variation and meet 24x7 power supply aspirations in the most flexible, efficient, and dynamic way. The utilities presently manage unplanned changes in schedule through the Deviation Settlement Mechanism and in the process, end up paying penalties. RTM will facilitate utilities to reduce dependency on deviation framework and save on the huge penalties. It will also support the grid operators to enhance overall safety and security of the grid.

With the fast-paced shift towards renewable energy, RTM will facilitate the distribution utilities to manage the challenge of intermittency associated with renewables. The market will help the utilities and system operators to forecast and schedule green energy in an effective way, thereby supporting the national green energy aspirations towards building India as a sustainable green energy economy.

RTM would also provide an opportunity to generators to sell their un-requisitioned capacity, thereby enabling efficient use of generation capacity.

IEX’s RTM is powered by the state-of-the-art technology and features double-sided closed auction to ensure transparency, competitive price discovery and a seamless trading experience for the market participants.

“With the launch of RTM, the Indian energy markets are moving towards global standards of electricity trading and establishing the new energy order in the country. It will support the utilities in reducing dependence on grid deviation framework, of the order of 20 BU in fiscal year 2020,” said Rajiv Srivastava, CEO & Managing Director, IEX Ltd, further he added “The primary purpose of the real-time market is to allow utilities to manage their power demand dynamically, save on huge deviation related penalties and integrate renewables in an effective way. The new market segment will foster greater flexibility, competition and efficiency in electricity sector and address the emerging needs of the time.” he added.

IEX has already held several capacity building sessions involving the main beneficiaries of this new market segment including market participants, generation companies and utilities. IEX has also successfully conducted various mock trading sessions and made an RTM tool available to help utilities leverage the market effectively.

IEX Trades 3.41 MU Volume in the Real-time Market on the First Day

The Indian Energy Exchange, India’s premier energy trading platform received an overwhelming response from DISCOMs, power generators, as well as commercial and industrial consumers, on the first day of trading on its Real-time Market.

The new market segment was operationalised on the IEX platform at 10:45 pm on 31st May 2020, for delivery at 12:00 am on 1st June 2020.

The launch witnessed the participation of more than 80 market participants, including all major distribution utilities and generating companies. It also saw participation from industrial customers through open access, which indicates high interest from this segment of consumers as well.

The real-time market traded 3.41 MU volume in 48 auction sessions on day one of the launch.

The platform witnessed a significant sell-side liquidity at about 10 X of the total buy volume, leading to very attractive prices for the buyers. The average price discovered on day one was ` 1.55 per unit, where as the auctions saw the price go as low as ` 0.10 per unit on the platform.

This reinforces IEX’s belief that real-time trading of electricity would significantly help utilities and open access consumers manage power demand-supply variation and meet 24x7 power supply aspirations in the most flexible, efficient, and dynamic way. The Real-time Market will support the utilities in reducing dependence on grid deviation framework, reducing penalties and enable a safe and secure grid.

The Real-time Market will make the power market more dynamic by enabling trade in electricity through 48 half-hourly closed double-sided auctions during the day, with delivery of power within one hour of closure of the bid session.

IEX MARKET NEWS

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What Discoms and Generators have to say about Real-Time Market

We welcome Real-time Market. WBSEDCL has been participating actively as & when need basis for real-time deviation management. WBSEDCL is catering to about 95% of state area of West Bengal spreading from Sagardwip to Darjeeling i.e. from area at sea level to Himalayan hill top level. So, due to such wide geographical diversity of the command area, WBSEDCL faces higher level of real-time dynamicity of demand, compared to other distribution utility of the country. Hence, advent of RTM, to WBSEDCL, appeared as a "Recovery Through Market" tool to tackle such dynamicity as a disciplined grid member.

WBSEDCL

1200 MW Teesta III HEP, being the second largest hydro project in India, welcomes the real-time market platform. It has not only helped manage spillage conditions during transition to monsoon season, but the growing market cleared volume and increasing number of participants is expected to help us in relying more on Real-time Market during exigencies as also for maximising revenue in the long run.

Jaideep Lakhtakia, General Manager, Teesta Urja Limited

Real-time Market is a boon to the cashflow-constrained discoms to access quality power at the most economical prices. At the same time, meeting the exigent demand block wise by the grid operator has become painless. My compliments and best wishes to the RTM and the power exchanges for ushering in the transparency and competition in ST power purchases across the nation.

K.V.N Chakradhar Babu, IAS, JMD APTransco

The Real-time Market was the necessity of the distribution Cos., with the increasing purchase of infirm RE power to meet RPO targets given by regulator. I think this need is fulfilled by GOI by providing Real-time Market to Dist. Cos., to meet the variation in load generation balance with optimum cost. I appreciate the efforts taken by MoP, load despatch centres and market players in the field, for making it successful and operational from 1st June 2020.

Satish Chavan, Director Commercial, MSEDCL

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01-

MA

Y

02-

MA

Y

03-

MA

Y

04

-MA

Y

05-

MA

Y

06

-MA

Y

07-

MA

Y

08

-MA

Y

09

-MA

Y

10-M

AY

11-M

AY

12-M

AY

13-M

AY

14-M

AY

15-M

AY

16-M

AY

17-M

AY

18-M

AY

19-M

AY

20-M

AY

21-M

AY

22-M

AY

23-M

AY

24-M

AY

25-M

AY

26-M

AY

27-M

AY

28-M

AY

29-M

AY

30-M

AY

31-M

AY

The REC Trading Session at IEX on 27th May 2020, saw a total trade of 2.78 lac Renewable Energy Certificates, comprising 2,42,714 Non-solar RECs and 35,793 Solar RECs. There was 48% MoM increase in the cleared volume.

The price for Solar RECs was at ` 2000 per REC, registering a decrease of 16% from a continuing price of ` 2,400 since October 2019. The reason for drop in solar price was the marginal increase in supply and lower participation on the buy side. The price for Non-solar RECs issued after 1st April 2017, was at ` 1,000 per REC.

Renewable Energy Certificate Market: May'20

The electricity market at the Indian Energy Exchange registered a total trade of 6005 MU in May 2020, marking a significant 47% YoY increase, despite the national peak demand recording a 9% YoY decline during the month.

The market demonstrated a significant uptick, mainly owing to the increase in demand and consumption in the month driven by seasonality factor - peaking summers leading to increased consumption across essential services, especially healthcare institutions, and households due to increase in work from home for corporate employees. Moreover, the steady lifting of the COVID-19 preventive lockdown enabled industries and commerce to get back to business, and thus consumption from C&I customers through open access also witnessed a rise.

The Day-ahead Market (DAM) traded 5574 MU, recording a significant 48% YoY increase. The total monthly sell bids were at 10580 MU and buy bids were at 6137 MU. The buy-sell dynamics indicate ample power availability in the market - 1.7 times more sell than buy. The consequent lower prices provided a compelling proposition for the industries as well as the distribution utilities, to meet their short-term demand as well as replace costlier generation with attractively priced power procured through the exchange.

The average market clearing price during the month was at ` 2.57 per unit, registering a 23% decline YoY, over price of ` 3.34 in May 2019. IEX has rendered significant support in improving their financial liquidity during the crisis through greater savings, which is very critical during this time as the sector looks for revival.

The low prices have prompted utilities from Southern, Western and Northern states, such as Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab amongst others, to continue procuring power through Exchange. This has enabled them to save significantly while procuring uninterrupted 24*7 power for all the critical sectors.

The Term-ahead Market (TAM) witnessed an increase of 36% YoY, trading 431 MU volume. The distribution utilities showcased increased preference of TAM contracts.

One Nation One Price prevailed for all 31 days during the month.

Electricity Market: May'20

MCP FOR MAY 2019 & MAY 20204.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

`/U

nit

May 2019 May 2020

May 2019

May 2020

KEY HIGHLIGHTS OF THE TRADING SESSION

Solar RECs Non-solar RECs

Buy Bids 41,415 2,42,714

Sell Bids 93,298 30,17,326

Cleared Volume 35,793 2,42,714

Price (`/REC) 2,000 1,000

Total number of registered participants 4,508

Obligated Entity 3,315

DISCOMs 45

Open Access Consumers 3,074

Captive Consumer 196

Voluntary 36

Eligible Entity (Private Generators) 1,157

www.iexindia.com 12

VOLUME SNAPSHOT 1 MU = 1 Million kWh = 1 GWh

Unconstrained Volume

5,580

180

Cleared Volume

5,574

180

PurchaseBids

6,137

198

Sell Bids

10,580

341

Volume

Average Daily (MU)

Total Volume (MU)

PARTICIPATION

Total Registered Participants

6,700+

Open Access Consumers

4,250+

Private Generators

550+

IEX MARKET DATA: MAY'20

Total Volume (MU)

Max. Price (`/kWh)

Min. Price (`/kWh)

Contracts

27.32 4.10 2.00Day-ahead Contingency

Total TAM Volume 431.37

142.77 2.62 2.49Weekly

5.95 1.40Intraday 56.65

204.64 3.85 2.51Daily

TERM-AHEAD MARKET SNAPSHOT

PRICE SNAPSHOT (`/kWh)

AverageArea Min. Max.

5.001.102.57All India

www.iexindia.com 13

DAY-AHEAD MARKET: MAY 2020

Price for the Month4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00North South (S1) South (S2 & S3) ROI MCP

May 2019 May 2020

Pri

ce (

`/kW

h)

Average Hourly Market Clearing Volume and Price4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

10

9

8

7

6

5

4

3

2

1

0

Hours

Hourly MCV (MUs) Hourly MCP (`/kWh)

Pri

ce (

`/kW

h)

Vo

lum

e (M

U)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

01-

MA

Y

02-

MA

Y

03-

MA

Y

04

-MA

Y

05-

MA

Y

06

-MA

Y

07-

MA

Y

08

-MA

Y

09

-MA

Y

10-M

AY

11-M

AY

12-M

AY

13-M

AY

14-M

AY

15-M

AY

16-M

AY

17-M

AY

18-M

AY

19-M

AY

20-M

AY

21-M

AY

22-M

AY

23-M

AY

24-M

AY

25-M

AY

26-M

AY

27-M

AY

28-M

AY

29-M

AY

30-M

AY

31-M

AY

3.0

2.5

2.0

1.5

1.0

0.5

0.0

450

400

350

300

250

200

150

100

50

0

Daily Trade Details

Pri

ce (

`/kW

h)

Vo

lum

e (M

U)

Buy Sell CV 2020 Avg. Price

3.33

2.57 2.57 2.57 2.57 2.57

3.33 3.35 3.33 3.34

www.iexindia.com 14

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