IEX Achieves 15.7% YoY Growth in Electricity Traded Volume During November 2024

In November 2024, the Indian Energy Exchange (NSE: IEX) traded a total of 9,689 MU of electricity, marking a 15.7% increase compared to the same month last year. This growth reflects strong demand in the electricity market, despite fluctuations in prices and volumes across various market segments.

REC Trade Volume Declines

During the same period, IEX traded 5.46 lakh Renewable Energy Certificates (RECs), experiencing a 27.7% year-on-year decrease. The drop in REC volume indicates reduced activity in this segment, despite growing interest in renewable energy sources.

According to government data released in November 2024, India’s energy consumption reached 125 billion units (BU), marking a 5% increase compared to the previous year. This rise in demand coincides with increased electricity trading activity on IEX.

Declining Market Clearing Prices Due to High Liquidity

Despite the rise in energy consumption, the Market Clearing Price (MCP) in both the Day-Ahead Market (DAM) and Real-Time Market (RTM) saw significant year-on-year declines. In the DAM, the MCP fell 17.3% to ₹3.30/unit, while in the RTM, it dropped 13.4% to ₹3.46/unit. These declines were primarily due to high supply-side liquidity, leading to lower prices. These lower prices present a cost-saving opportunity for Discoms and Open Access consumers.

Market Segment Performance: DAM, RTM, and TAM

• Day-Ahead Market (DAM): The DAM traded 5,651 MU in November 2024, an increase of 9.8% YoY compared to 5,144 MU in November 2023.
• Real-Time Market (RTM): The RTM recorded 3,019 MU in November 2024, a notable 28% increase from 2,359 MU in November 2023.
• Term-Ahead Market (TAM): The TAM segment saw a significant decline of 70.3% YoY, with 202 MU traded compared to 679 MU in November 2023. This drop was attributed to the ample availability of sell-side liquidity, leading buyers to prefer DAM and RTM segments.

Green Market Sees Exceptional Growth

IEX’s Green Market, including both the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), registered impressive growth in November 2024. The Green Market achieved 818 MU in volume, a massive 331.8% increase YoY.

• Green Day-Ahead Market (G-DAM): G-DAM traded 793 MU, with a weighted average price of Rs 3.19/unit, marking a 335.2% YoY increase.
• Green Term-Ahead Market (G-TAM): G-TAM traded 25 MU, registering a 244.7% increase YoY. The average prices for solar, non-solar, and hydro were ₹3.50/unit, ₹5.42/unit, and ₹3.68/unit, respectively.

REC Market Activity

IEX held two REC trading sessions in November 2024, on the 13th and 27th, trading a total of 5.46 lakh RECs. The clearing prices for these sessions were ₹140/REC and ₹190/REC, respectively. The next scheduled REC trading sessions are set for December 11th and 26th, 2024.

On December 4, 2024, IEX shares opened at ₹183.00 and touched the day low of ₹177.15 at 10:30 AM

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.