Indian Energy Exchange records historic volumes surpassing 10,893 MU in January 2024

The market clearing price in the day-ahead market during January 2024 was ₹5.83/unit, down approximately 6 percent year-on-year, due to easing supply-side constraints.

In January 2024, the Indian Energy Exchange, the country’s premier electricity exchange, achieved its highest-ever total volumes, reaching 10,893 million units (MU), marking a 26.1 percent year-over-year increase. This volume comprises 9,137 MU from the conventional power market segment, 236 MU from the green market segment, and 15.20 lakh Renewable Energy Certificates (RECs), equivalent to 1,520 MU.

According to government data published in January 2024, the country’s energy consumption reached 133.8 BUs, representing a 6 percent increase year-on-year. The Market Clearing Price in the Day-Ahead Market during January 2024 was ₹ 5.83/unit, down approximately 6 percent year-on-year, due to easing supply-side constraints. Increased electricity consumption, coupled with easing supply-side constraints, led to an increase in the volumes of electricity traded on the Exchange, which is expected to continue going forward.

The Day-Ahead Market (DAM) volume was 5,540 MU in January 2024, compared to 4,893 MU in January 2023, registering a 13.2 percent year-on-year increase. The Real-Time Electricity Market (RTM) volume increased to 2,380 MU in January 2024, from 2,102 MU in January 2023, registering a 13.2 percent year-on-year increase. The Day Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily & weekly, and monthly contracts up to 3 months, traded 1,217 MU during January 2024, higher by 34.9 percent year-on-year.

The longer duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded the 10 BU mark on an annual basis (year-to-date) in FY 2024, increasing by more than 600% year-on-year.

The Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved a volume of 236 MU during January 2024. The Green Day-Ahead Market (G-DAM) achieved a volume of 210 MU during the month, with a weighted average price of ₹ 5.87 per unit. The segment saw participation from 189 market participants during the month. The Green Term-Ahead Market (G-TAM) achieved a volume of 26 MU in January 2024, with an average monthly price of Non-Solar- ₹ 6.57/unit.

A total of 15.20 lac RECs (equivalent to 1520 MU) were traded in the trading sessions held on 10th January 2024 and 31st January 2024, at a clearing price of ₹ 360/REC. This is the highest REC volume in the current financial year. The REC Price on the exchange has been experiencing a downward trend and is currently at its lowest levels this financial year. This presents an opportunity for obligated consumers (Discoms, Open Access Consumers, and Captive Power Producers) to meet their Renewable Purchase Obligations (RPO) at more affordable rates.