Indian Energy Exchange sees record growth with a boost in the green market

IEX achieves a 25 per cent year-over-year increase in electricity volume, a 20 per cent year-over-year increase in real-time market volume, and a 173 per cent year-over-year growth in green market assets by June 2024.

Indian Energy Exchange (IEX) achieves an electricity volume of 10,185 MU in June 2024, marking a 24.7 per cent year-on-year increase. The total monthly volume, including certificates at 10,677 MU, increased by 19.4 per cent yearly. 

For the first quarter of the fiscal year 2025, IEX achieved an electricity volume of 28,178 MU, an increase of 19 per cent year over year. The total volume for the quarter, including certificates, was 30,354 MU, up 20.8 per cent from Q1 FY 2024. 

According to government data published in June 2024, the country’s energy consumption reached 152.4 BUs, representing an 8.9 per cent increase yearly.

Hot weather conditions led to an unprecedented surge in electricity demand during the first quarter of this financial year. The country’s energy consumption of 452 BUs in Q1 FY 2025 was 11.2 per cent higher compared to Q1 FY 2024. During the quarter, peak demand reached 250 GW, surpassing the previous high of 243 GW recorded in September last year. Proactive measures taken by the government and the regulators, including the sale of surplus requisitioned power on power exchanges, increased fuel supply, and higher availability of generating units, led to increased sell liquidity on the exchanges, keeping the prices under control. Therefore, despite the increase in electricity consumption, the market clearing price in the Day Ahead Market during June ‘24 was ₹ 5.40 per unit, similar to last year; however, it was lower by more than 20 per cent, compared to prices discovered under bilateral contracts. 

Electricity market

The Day-Ahead Market (DAM) volume increased to 4,849 MU in June 2024 from 4,103 MU in June 2023, registering an  18.2 per cent YoY increase. The DAM segment registered total volumes of 13,336 MU during Q1 FY 2025, a marginal increase of 6.7 per cent over Q1 FY 2024.

The Real-Time Electricity Market (RTM) volume increased to 3,213 MU in June 2024 from 2,675 MU in June 2023, registering an increase of 20.1 per cent yearly. The RTM segment registered a volume of 9,193 MU during Q1 FY 2025, increasing 26.8 percent over Q1 FY 2024.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly, and monthly contracts up to 3 months,traded1,378 MU during June

2024, higher by 23.3 per cent on a YoY basis. The total volume in the segment during the quarter was 3,875 MU, a growth of 28.4 per cent over Q1 FY

2024.

Green market

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 744 MU volume during June 2024 as compared to 272 MU in June

2023, registering an increase of 173.4 per cent YoY. During Q1 FY 2025, the segment achieved a volume of 1,768 MU, a growth of 94.3 per cent over Q1 FY 2024.

The Green Day-Ahead Market (G-DAM) achieved a 680 MU volume during June 2024 with a weighted average price of ₹ 4.14 per unit, compared to 166 MU on June 2023, registering an increase of 309.5 per cent YoY. During Q1 FY 2025, the segment achieved a volume of 1,616 MU, a growth of 208.4 per cent over Q1 FY 2024.

The Green Term-Ahead Market (G-TAM) achieved 64 MU on June 24 with an average monthly price of ₹ 8.88 per unit. During Q1 FY 2025, the segment achieved a volume of 152 MU.

Renewable Energy Certificate Market

4.39 lac Renewable Energy Certificate Market (RECs) equivalent to 439 MU were traded in the trading sessions held on June 12 and June 26 at a clearing price of ₹ 150/REC and ₹ 140/REC, respectively. 21.12 lac RECs (equivalent to 2,112 MU) were traded during Q1 FY 2025.

₹ 140/REC is the lowest-ever price discovered for REC in a trading session since its inception. The next REC trading sessions at the exchange are scheduled for July 10 and July 31.

Energy Saving Certificates  

During June 2024, 52,756 Energy Saving Certificates (ESCerts) equivalent to 53 MU were traded on IEX at a floor price of ₹ 2,165 per ESCert. 63,273 ESCerts (equivalent to 63 MU) were traded during Q1 FY 2025.