IEX volume up 24 per cent in September 2024

Indian Energy Exchange (IEX) achieved a total monthly volume of 11,370 MU in September 2024, marking a 24 per cent year-on-year increase.

IEX reported a total volume of 11,370 MU, marking a 24 per cent yearly increase. The platform also achieved its highest-ever monthly volume in the Real-Time Market (RTM), reaching 3,913 MU, up 34 per cent compared to the previous year.

The DAM price for September was ₹ 4.18 per unit, reflecting a 33 per cent decline year-over-year. Additionally, the Green Market experienced significant growth, soaring 214 per cent year-over-year.

Indian Energy Exchange, India’s premier electricity exchange, achieved a total monthly volume (including certificates) of 11,370 MU in September’24, marking a 24 per cent year-on-year increase. The electricity volume (including green electricity volume) during the month at 10,332 MU, increased 21 per cent YoY. The renewable energy certificates (REC) at 1,031MU, increased 100 per cent YoY. At ₹ 110 per certificate, the REC market recorded an all-time low price in the trading session held on 25th September 2024. These prices provide an opportunity for obligated entities (DISCOMS and Captive Power Produce₹) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations.

According to government data published in September 2024, the country’s energy consumption reached 141.3 billion units (BUs), remaining flattish compared to the previous year. With a steady monsoon in September, there was a significant rise in hydro and wind power generation, which led to a substantial drop in DAM and RTM prices, resulting in higher trading volumes during the month. The Market Clearing Price in the Day Ahead Market at ₹ 4.18/unit during September 2024, declined 33 per cent year-on-year. Similarly, the Market clearing price in the Real-Time Market at ₹ 3.98/unit during September 2024, declined 28 per cent year-on-year. These prices present an opportunity for Discoms and Open Access consumers to optimise their power procurement costs through power exchanges. 

Electricity market: day-ahead, term- ahead & real-time market

The Day-Ahead Market (DAM) volume increased to 4,610 MU in September’24, from 3,467 MU in September’23, registering an increase of 33 per cent YoY. The DAM segment registered total volumes of 14,332 MU during Q2FY ’25, an increase of 27 per cent over Q2FY’24.

The Real-Time Electricity Market (RTM) achieved the highest-ever monthly volume of 3,913 MU in September ‘24, from 2,923 MU in September’23, registering an increase of 34 per cent YoY. The RTM segment registered a record volume of 10,732 MU during Q2FY’25, increasing 31 per cent over Q2FY’24.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,086 MU during September’24, a decline of 43  per cent YoY. The total volume in the segment during the quarter was at 2,684 MU, a decline of 42 per cent YoY.

Green market: green day-ahead & green term-ahead market

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 723 MU volume during September’24 as compared to 230 MU in September’23, registering an increase of 214 per cent YoY. The total volume of the Green Market during the quarter was 2,584 MU, a growth of 246 per cent over Q2 FY’24.

The Green Day-Ahead Market (G-DAM) achieved 712.5 MU volume during Septemebr’24 with a weighted average price of ₹ 4.59 per unit, as compared to 140.2 MU in September’23, registering an increase of 408 per cent YoY. The total volume in the segment during the quarter was 2,534 MU, a growth of 394 per cent over Q2 FY’24.

The Green Term-Ahead Market (G-TAM) achieved 10.4 MU volume in September ’24 with an average monthly price of Non-Solar- ₹ 8.28/unit. The total volume of the segment during the quarter was 49.7 MU.

Renewable energy certificate market (rec market)

A total of 10.31 lac RECs (equivalent to 1,031 MU), an increase of 100  per cent YoY, were traded in the trading sessions held on 11th September’24 and 25th September’24, at a clearing price of ₹. 112/REC and ₹. 110/REC respectively.  A total of 62.97 lac RECs (equivalent to 6,297MU), an increase of 353 per cent YoY, were traded during Q2FY’25.

₹ 110/ REC is the lowest-ever price discovered of REC in a trading session since inception.

The next REC trading sessions at the Exchange are scheduled on 09th October’24 and 30th October’24.