IEX Sees 24% YoY Growth in Total Monthly Volume for September 2024, REC Prices Hit Record Low

On October 7, 2024, Indian Energy Exchange Limited (IEX) announced its power market update for September 2024. 

In September 2024, IEX achieved a total monthly trading volume of 11,370 Million Units (MU), marking a significant 24% year-on-year (YoY) growth. The electricity volume, including green electricity, reached 10,332 MU, showing a 21% increase compared to the same period in 2023. 

Additionally, the Renewable Energy Certificates (REC) market saw substantial growth, with 1,031 MU traded in September, a 100% YoY increase. The trading session held on September 25, 2024, saw the REC market hitting an all-time low price of ₹110 per certificate, providing an excellent opportunity for Discoms, Captive Power Producers, and voluntary customers to meet their Renewable Purchase Obligations (RPOs) and sustainability goals.

According to government data, India’s total energy consumption in September 2024 remained relatively flat at 141.3 billion units (BUs) compared to the previous year. However, the steady monsoon significantly boosted hydro and wind power generation, resulting in lower prices in the Day-Ahead Market (DAM) and Real-Time Market (RTM). The Market Clearing Price in the DAM during September was ₹4.18/unit, reflecting a 33% YoY decline, while the RTM price dropped 28% YoY to ₹3.98/unit. These lowered prices present an opportunity for Discoms and Open Access consumers to optimise their power procurement costs.

The Day-Ahead Market (DAM) volume rose to 4,610 MU in September 2024, representing a 33% YoY increase. For Q2 FY25, DAM volumes reached 14,332 MU, marking a 27% increase over Q2 FY24. The Real-Time Electricity Market (RTM) recorded its highest-ever monthly volume of 3,913 MU, a 34% YoY increase. RTM’s quarterly volume also reached a record 10,732 MU, showing a 31% YoY growth. However, the Day-Ahead Contingency and Term-Ahead Market (TAM) saw a decline, with 1,086 MU traded in September 2024, representing a 43% YoY decrease.

IEX’s Green Market, consisting of the Green Day-Ahead and Green Term-Ahead Market, achieved 723 MU in September 2024, a remarkable 214% YoY increase. The Green Day-Ahead Market (G-DAM) alone saw a 408% YoY growth, with volumes reaching 712.5 MU. The Green Term-Ahead Market (G-TAM) recorded a volume of 10.4 MU in September 2024.

The REC market saw substantial activity in September 2024, with 1,031 MU traded, a 100% YoY increase. Prices in the REC market dropped to an all-time low of ₹110 per certificate during the trading session on September 25, 2024, marking a significant milestone for IEX. The REC market for Q2 FY25 saw 62.97 lac RECs traded, a 353% YoY increase.

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.