 "IEX power trade volume up 10% to 23 bn units in Q1 as consumption rises")
The trade volume on the Indian Energy Exchange (IEX) grew 10 per cent to 23.4 billion units in June quarter mainly due to rise in power consumption in the country during the period.
The trade volume in the quarter comprised 20.64 billion units (BU) in the conventional power market, 1.52 BU in the green market segment and 11.97 lakh certificates in Renewable Energy Certificates (REC) market, which is equivalent to 1.2 BU.
"During the quarter (April-June 2022), electricity volumes on the exchange grew by 10 per cent YoY (year on year) with 23.4 BU volumes traded versus 21.3 BU in Q1 FY'22 ," an IEX statement said.
The growth in volumes was driven by substantial increase in electricity consumption as well as the preference by distribution utilities to meet their short-term supply requirements in a competitive and flexible manner through IEX, it stated.
Buy bids increased 1.5 times in DAM (day-ahead market) over last year but clearance was lower due to supply side constraints.
Electricity sell quantum was low as imported coal and gas prices were at record high and domestic coal e-auction prices were also on the higher side, it stated.
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However, it said the coal stock position is showing an increasing trend now due to various measures taken by the government and this is helping increase the sell quantum at the platform.
In June quarter, the IEX launched the web-based bidding platform to provide round-the-clock access to the trading system.
The IEX also launched its web-based financial reconciliation system to enable online settlement of exchange-based transactions for customers.
On June 27 2022, the IEX launched the much-awaited longer duration contracts of up to 90 days which will help bolster its presence in the short-term market.
The IEX is now gearing up to make foray into new segments such as ancillary markets, capacity markets, and gross bidding contracts, and is confident about commencing them at the earliest, it stated.
On the gas market front, the Indian Gas Exchange (IGX) traded 4.7 million MMBTU in terms of cumulative volume.
The total number of participants at the gas exchange has increased to 30 with the addition of four new members namely OPAL, HPCL, SHELL and GSPC.
The IGX also received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) to commence domestic gas trading on its platform.
This development will help IGX fulfill its commitment to increase the sell side liquidity, along with creating more opportunities for the sale of domestic gas and the discovery of a unique price.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)