TRADE RESULTS OF ESCERTS FOR WEEK 8

The eighth trading session of ESCerts took place today.

 

In total, there was a demand for 12,241 ESCerts, an increase of  of 6.25% from last week. This demand was against a total supply of 3,19,810 ESCerts (decrease of 26.7% since last week).  Market clearing price was determined at Rs 200/ ESCert (compared to Rs 350 last week), with 12,125 ESCerts sold (value traded reduced by 33%; the total traded value was Rs 0.24 crore).  The price of ESCerts has reduced to nearly 1/6th from where it started.

 
Source: IEX
A circular has been released by the Bureau of Energy Efficiency (BEE) instructing all the Designated Consumers (DCs) which had not achieved their energy saving targets to comply to their obligations as per PAT cycle-1 through purchase of ESCerts. The circular also mentions the penalty for non compliance as maximum Rs 10 lakh and the additional penalty to be incurred.

TRADE RESULTS OF ESCERTS FOR WEEK 7

The seventh trading session of ESCerts took place today.

In total, there was a demand for 11,521 ESCerts, a decrease of 45.23% from last week. This demand was against a total supply of 4,36,394 ESCerts (increase of 13.83% since last week).  Market clearing price was determined at Rs350/ ESCert (compared to Rs 500 last week), with 10,351 ESCerts sold (value traded reduced by 62%; the total traded value  was Rs 0.36 crore).  The price of ESCerts has reduced to nearly 1/4th from where it started.

 

 

 

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 6

The sixth trading session of ESCerts took place today.

 

In total, there was a demand for 21,037 ESCerts, a decrease of 50.23% from last week. This demand was against a total supply of 3,83,379 ESCerts (increase of 9.60% since last week).  Market clearing price was determined at Rs 500/ ESCert (compared to Rs 600 last week), with 19,359 ESCerts sold (value traded reduced by 61.08%; the total traded value  was Rs 0.97 crore).

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 5

The fifth trading session of ESCerts took place today.

In total, there was a demand for 42,271 ESCerts, a decrease of4.28% from last week. This demand was against a total supply of 3,49,806 ESCerts (increase of 8.29% since last week).  Market clearing price was determined at Rs 600/ ESCert (compared to Rs 800 last week), with 41,455 ESCerts sold (volume traded increased by a paltry 2.2%; the total traded value was Rs 2.48 crore – a reduction of 22.5%).

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 4

The fourth trading session of ESCerts took place today.

 

In total, there was a demand for 40,538 ESCerts, a decrease of 37.11% from last week. This demand was against a total supply of 3,81,443 ESCerts (increase of 9% since last week). Market clearing price was determined at Rs 800/ ESCert (compared to Rs 1,000 last week), with 40,148 ESCerts sold (volume traded reduced by 25% ; the total traded value was Rs 3.21 crore).

 
In today’s trade, the total demand was for 40,538 while total cleared volume was 40138 ESCerts. Only 0.97% demand was below the MCP. At Rs 800/ ESCert, the market seems to have found an equilibrium price, at least for the short term.

TRADE RESULTS OF ESCERTS FOR WEEK 3

The third trading session of ESCerts took place today.

In total, there was a demand for 64,459 ESCerts, an increase of 24.14% from last week. This demand was against a total supply of 3,48,587 ESCerts. Market clearing price was determined at Rs 1,000/ ESCert (compared to Rs 1,200 last week), with 43,078 ESCerts sold (almost twice the volume was cleared; the total traded value was Rs 4.30 crore).

TRADE RESULTS OF ESCERTS FOR WEEK 2

The second trading session of ESCerts took place today.

 

In total, there was a demand for 51,925 ESCerts which was higher than the demand last week by 2.01%. This demand was against a total supply of 2,36,031 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with 23,295 ESCerts sold (more than twice the volume was cleared; the total traded value was Rs 2.79 crore).

 
Source: IEX analysis

Since a price benchmark was set during the first trading session last week, a lot more supply was bid at a lower price point. As a result, although the overall demand and supply remained the similar, the cleared volume was nearly double that of last week.

INDIA WITNESSES FIRST EVER TRADE OF ESCERTS

The first ever trading of energy saving certificates (ESerts) took place today.

 

The demand of ESCerts in this trading session was expected to be much lower than the supply because of the following reasons: 1) All sectors except one have overachieved on their energy savings targets resulting in an overall excess supply situation in the market; and 2) DCs were likely to wait and review the discovered price.

 

This week’s trading took place only on IEX. In total, there was a demand for 50,904 ESCerts, against a total supply of 2,39,644 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with only 10,904 ESCerts sold (the total traded value was Rs 1.31 crore).

 
The IEXs trading report can be accessed here.

IEX’S ELECTRICITY PRICE IN DAY AHEAD MARKET REACHES NEW HIGH THIS MONTH

In the Day Ahead Market trading held by IEX (Indian Energy Exchange), the average tariff of electricity has been between Rs 3 to Rs 4 per unit. But within 12 days of September, the average tariff has gone up to Rs 8.7 per unit.

This increase in prices is majorly attributed to the reduction in generation from wind and hydro power plants, though the demand has remained stable as compared to last year.

 
As per the graph, it is clear that the prices for this month have been much higher as compared to the price in the previous months for the reasons mentioned above.
The article can be accessed here.

CERC REJECTS IEX’S PROPOSAL FOR GDAM

The Indian Energy Exchange (IEX), so as to provide the obligated entities more number of ways to fulfill their RPO compliance, had proposed to the CERC to allow the existing renewable energy generators to trade RE on IEX.

 

For the same, it had proposed that the following contracts including Green Day Ahead Market (G-DAM) which includes Solar and non-solar day ahead market be introduced. If the bid made in the G-DAM is not cleared or cleared partially, they can bid in DAM. Also, in lieu of the bid cleared in DAM, the seller will get equal number of RECs.

This order was rejected by the CERC and the following reasons were given for the same:

  • As per CERC, the status regarding the availability of surplus power is not clear. Also, based on the experiences in the past, it can be established that such trade will not lead to addition of new RE capacity.

  • The IEX has supposed that there are no discrepancies in the forecasting and scheduling for RE generators which is not the case. Therefore, their suggestions of remove the need for revision flexibility during the day is not valid.

  • Based on the suggestions of IEX which mentioned that in case if the bid made in the G-DAM is not cleared or cleared partially, they can bid in DAM, it can be assumed that the situation will lead to registration of RE sellers for FIT route as well as REC mechanism. This will demand that a system be established where there is proper accreditation, registration, accounting of RE generation and settlement mechanism.

  • The G-DAM market may dissuade the buyers from entering into long term contracts which provide comfort to RE investors.

  • The guidelines related to the timelines for scheduling of power traded will have to be amended as per IEX which the commission felt will be an unnecessary step right now.

  • IEXs recommendations assume that the the green power traded in G-DAM will follow the same scheduling procedure as that followed by conventional power. Therefore, the commission feels that there is no need to introduce a separate segment for trading.

The order can be accessed here.

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