The Indian Energy Exchange (IEX) announced that its new real-time electricity trading platform had enabled a trading volume of 515.46 million units (MUs) of power in June 2020, its first month of operation.

In its press statement, the IEX also said that it accomplished a single-day trading volume of 36.09 MUs on June 30, 2020, the highest during the month. It added that 110 customers participated in the auction sessions held that day.

Real-time market (RTM) trading platforms are used widely across the world. RTMs are designed as half-hourly markets comprising 48 auction sessions of 15 minutes each. Auction sessions are conducted at even time blocks on the hour, and delivery commences one hour after the trade session is closed.

IEX said the newly launched trading platform saw a total of 237 customers participating in the new market segment during the month. It also said that the average market clearing price in June was ₹2.22 (~$0.029)/kWh, lower than the day-ahead market average price of ₹2.35 (~$0.031)/kWh for the month.

It also noted that the market saw substantial sell-side liquidity at 1,810 MU – over two times the buy volumes at 742 MU.

The company explained that the platform not only enabled the sale of surplus power generated, but it also helped generators fulfill obligations during outages. The power trading exchange noted that – Raipur Power and Raigarh Energy Generation were the first generators to have bought electricity to meet their commitments.

It also said that it worked with distribution companies (DISCOMs), power generators, and commercial and industrial (C&I) consumers to conduct capacity building sessions and provide them with the necessary technology applications and tools to help them use the platform optimally.

“The real-time market is a boon to cashflow constrained DISCOMs to access quality power at economical prices. At the same time, meeting the exigent demand, block-wise by the grid operator, has become painless,” said K.V.N Chakradhar Babu, Chairman, Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL).

Power Exchange India Limited and IEX recently announced that they started their real-time market trading platforms for electricity transactions on June 1, 2020. The real-time market was launched to ensure that buyers and sellers can purchase or sell electricity from anywhere across the country with just an hour’s notice.

Amid the coronavirus (COVID-19) outbreak in India, the Central Electricity Regulatory Commission decided to defer the implementation of the real-time power market until June 1, 2020.

Earlier, Mercom published a report that said that India’s power sector is currently in a transitional phase, shifting from long-term generation contracts to a greater reliance on short-term contracts and electricity spot markets. In this transition, policymakers and regulators face some tough questions around contract regulation, spot market design, requirements and incentives for spot market participation, and potential risks in ensuring competitive markets.