IEX Achieves 24.7% YoY Growth in June 2024 Electricity Volumes

Indian Energy Exchange (IEX), India’s leading electricity exchange, reported a significant milestone in June 2024, it achieved an electricity volume of 10,185 MU, marking a 24.7% year-on-year increase. Including certificates, the total monthly volume reached 10,677 MU, a 19.4% rise compared to the previous year. This robust performance reflects the dynamic nature of India’s energy market and IEX’s pivotal role in facilitating efficient energy trade.

For the first quarter of the fiscal year 2025, IEX achieved an electricity volume of 28,178 MU, up 19% year-on-year. The total volume for the quarter, including certificates, was 30,354 MU, reflecting a 20.8% increase from Q1 FY24. This growth aligns with government data published in June 2024, which showed the country’s energy consumption reached 152.4 BUs, representing an 8.9% year-on-year increase.

The company stated that the hot weather conditions during the first quarter drove an unprecedented surge in electricity demand, with the country’s energy consumption rising 11.2% to 452 BUs compared to Q1 FY24. The peak demand reached 250 GW, surpassing the previous high of 243 GW recorded in September of the previous year.

Proactive measures by the government and regulators, such as selling surplus un-requisitioned power on power exchanges, increasing fuel supply, and ensuring higher availability of generating units, significantly boosted sell liquidity on the exchanges. These actions helped keep prices stable, with the market clearing price in the Day-Ahead Market (DAM) in June 2024 remaining at ₹5.40/unit, similar to the previous year, and more than 20% lower than prices discovered under bilateral contracts.

Electricity Market Segments

The DAM recorded a volume increase to 4,849 MU in June 2024 from 4,103 MU in June 2023, an 18.2% year-on-year growth. For Q1 FY25, the DAM segment’s total volume was 13,336 MU, a 6.7% increase over Q1 FY24. The Real-Time Electricity Market (RTM) saw its volume rise to 3,213 MU in June 2024 from 2,675 MU in June 2023, a 20.1% increase year-on-year. The RTM segment achieved a volume of 9,193 MU in Q1 FY25, a 26.8% increase over Q1 FY24.

The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts for up to three months, traded 1,378 MU in June 2024, a 23.3% year-on-year increase. The total volume for this segment during the quarter was 3,875 MU, marking a 28.4% growth over Q1 FY24.

Green Market Segments

IEX’s Green Market, encompassing the Green Day-Ahead and Green Term-Ahead Market segments, achieved a volume of 744 MU in June 2024, compared to 272 MU in June 2023, a remarkable 173.4% year-on-year increase. In Q1 FY25, the Green Market segment reached 1,768 MU, a 94.3% growth over Q1 FY24.

The Green Day-Ahead Market (G-DAM) recorded a volume of 680 MU in June 2024 at a weighted average price of ₹4.14 per unit, a 309.5% increase year-on-year. During Q1 FY25, the G-DAM segment achieved a volume of 1,616 MU, a 208.4% increase over Q1 FY24.

The Green Term-Ahead Market (G-TAM) achieved a volume of 64 MU in June 2024, with an average monthly price of ₹8.88/unit for Non-Solar. During Q1 FY25, G-TAM reached a volume of 152 MU.

Renewable Energy Certificate Market (REC Market)

In June 2024, 4.39 lakh RECs (equivalent to 439 MU) were traded, with clearing prices of ₹150/REC and ₹140/REC, respectively. During Q1 FY25, 21.12 lakh RECs (equivalent to 2,112 MU) were traded. Notably, ₹140/ REC was the lowest price ever discovered since the REC market’s inception. The company added that the upcoming REC trading sessions are scheduled for July 10 and July 31, 2024.

Energy Saving Certificates (ESCerts)

In June 2024, 52,756 ESCerts (equivalent to 53 MU) were traded on IEX at a floor price of ₹2,165 per ESCert. For Q1 FY25, a total of 63,273 ESCerts (equivalent to 63 MU) were traded, reflecting the ongoing commitment to energy efficiency.

These figures highlight IEX’s crucial role in driving the efficiency and stability of India’s electricity market, while fostering the growth of green and renewable energy initiatives.

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.