Why DAM (IEX) is highly SURPLUS these days?​

Sell Bid Volume 80% more than Buy Bid Volume in DAM

Though DAM comprises 4% of the total market size, if All-India Demand Curve is superimposed over Sell Bid Volume in DAM (plotted below), the inverse relation between Demand and Market Surplus can be noticed, except during mid-day hours, thereby explaining the correlation.


Day-hour exception can be attributed to the high RE Generation in these hours, forcing Thermal Power Plants to sell in the spot market, as many TPPs go out of 'merit order' during the off-peak morning hours and during high RE generation period.  Given that DAM volume share is only around 4%, such a correlation signifies the importance of DAM for peak management by utilities.

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