IEX achieves record 21 percent rise in August electricity volume amid demand surge

IEX’s report highlights the overall record trading volume of 8865 MU electricity, in the green energy segmentit achieved a commendable volume of 242.3 MU

The Indian Energy Exchange, achieved a significant milestone by recording a total electricity volume of 8,469 MU, marking a substantial YoY increase of 21 percent. When factoring in additional market segments, including green market trades of 242.3 MU, ancillary market trades of 40 MU, 2.53 Lac Renewable Energy Certificates (RECs) equivalent to 253 MU, and 1.03 Lac Energy Saving Certificates (ESCerts) equivalent to 103 MU, the overall trading volume for the month reached an impressive 13.3percentYoY growth, totaling 8,865 MU.

The noteworthy surge in electricity demand during August 2023 can be attributed to the country’s unusually hot weather conditions, exacerbated by the lowest August rainfall since 1901. As per Grid-India’s data, the electricity consumption in the country reached 152 BU during the month, marking a substantial 16 percentYoY increase. Notably, August 31, 2023, saw a historic peak demand of 236 GW, alongside a record-breaking single-day energy consumption of 5,126 MU. This surge in demand, coupled with supply constraints, resulted in a 33 percentYoY increase in market clearing prices on IEX, reaching ₹ 6.89/unit.

In the realm of green energy, IEX’s Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved a commendable volume of 242.3 MU. The Green Day-Ahead Market (G-DAM) contributed 159.7 MU to this volume, with a weighted average price of ₹ 7.16 per unit, boasting participation from 193 market participants. Additionally, the Green Term-Ahead Market (G-TAM) achieved a volume of 82.6 MU, featuring average monthly prices of ₹ 5.25/unit for Solar, ₹ 6.96/unit for Non-Solar, and ₹8.80/unit for Hydro.