Indian energy exchange reports 24% YoY growth in September 2024
The Indian Energy Exchange (IEX), India’s leading electricity trading platform, recorded a total monthly volume of 11,370 million units (MU) in September 2024, reflecting a 24% year-on-year (YoY) growth.
According to the exchange filing, electricity volume, including green electricity, reached 10,332 MU, showing a 21% increase from the previous year. Renewable energy certificates (REC) saw a substantial rise, with 1,031 MU traded, doubling the volume from the same period last year.
In the REC market, trading on September 25, 2024, reached a record low price of Rs 110 per certificate, creating a favorable environment for obligated entities, including DISCOMS and Captive Power Producers, to meet their Renewable Purchase Obligations. Voluntary customers also benefited by achieving their sustainability goals.
Government data released in September 2024 showed that India’s energy consumption stood at 141.3 billion units (BUs), maintaining a steady pace from the previous year. A strong monsoon contributed to higher hydro and wind power generation, leading to a decrease in prices in both the Day-Ahead Market (DAM) and Real-Time Market (RTM).
The Market Clearing Price in the DAM dropped 33% YoY to Rs 4.18 per unit, while the RTM price declined 28% YoY to Rs 3.98 per unit. This created a favorable situation for Discoms and Open Access consumers, allowing them to optimize power procurement through the exchange.
The Day-Ahead Market (DAM) posted strong growth, with volumes rising 33% YoY to 4,610 MU in September 2024. Over the quarter, DAM recorded 14,332 MU, a 27% increase compared to Q2FY24.
The Real-Time Electricity Market (RTM) reached its highest-ever monthly volume of 3,913 MU, up 34% YoY. The RTM’s quarterly volume hit 10,732 MU, a 31% YoY increase.
The Day-Ahead Contingency and Term-Ahead Market (TAM) experienced a 43% YoY decline, trading 1,086 MU in September 2024, and 2,684 MU during Q2FY25, down by 42% YoY.
IEX’s Green Market, which includes the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), showed an extraordinary 214% YoY rise, trading 723 MU in September 2024. The quarterly total for the Green Market reached 2,584 MU, a 246% YoY growth.
The G-DAM segment performed notably well, with 712.5 MU traded in September 2024 at a weighted average price of Rs 4.59 per unit, marking a 408% YoY increase. Quarterly volumes reached 2,534 MU, reflecting a 394% YoY rise. G-TAM traded 10.4 MU in September 2024, with Non-Solar power priced at Rs 8.28 per unit, contributing to a quarterly total of 49.7 MU.
The REC market hit a milestone in September 2024, with 1,031 MU traded, showing a 100% YoY increase. Clearing prices for the two trading sessions on 11th and 25th September were Rs 112/REC and Rs 110/REC, respectively, marking the lowest price since the market began. The quarterly total for the REC market reached 6,297 MU, a 353% YoY increase. The next REC trading sessions are scheduled for 9th and 30th October 2024. (ANI)
