On September 3, 2024, the Indian Energy Exchange (IEX), the leading electricity exchange in India, reported a total volume of 12,040 million units (MU) in August 2024, including certificates. This reflects a 35.8% increase compared to the same period last year.
The electricity volume alone reached 9,914 MU, up 17.1% year over year. Notably, the renewable energy certificates (REC) volume surged to 2,116 MU, marking a remarkable 737.4% increase compared to the previous year.
During the August 28, 2024 trading session, the REC market saw an all-time low price of ₹115 per certificate. This drop in prices offers a favourable opportunity for obligated entities, such as DISCOMS and Captive Power Producers, to fulfil their Renewable Purchase Obligations, as well as for voluntary customers aiming to meet their sustainability goals.
In August 2024, government data revealed that India’s energy consumption stood at 144.2 billion units (BUs), reflecting a decrease of around 5% year-on-year. The increase in hydro and wind power generation, driven by a strong monsoon, improved the availability of renewable energy in the system. This led to a significant drop in prices on the exchange, with the Market Clearing Price in the Day-Ahead Market falling by approximately 38% year-over-year to ₹4.28 per unit. Similarly, the Real-Time Market Clearing Price declined by 44.8% year-over-year to ₹3.59 per unit.
In August 2024, the Day-Ahead Market (DAM) saw its volume rise to 4,666 million units (MU), up from 3,810 MU in August 2023, marking a 22.5% year-over-year increase. The Real-Time Electricity Market (RTM) reached a record-high monthly volume of 3,485 MU in August 2024, compared to 2,738 MU in August 2023, reflecting a 27.3% year-over-year growth.
On August 26, 2024, the RTM segment recorded its highest-ever single-day trade of 156 MU, showcasing the market’s ability to respond to changing demand and supply conditions. The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts for up to 3 months, traded 886 MU during August 2024.
The IEX Green Market, which consists of the Green Day-Ahead and Green Term-Ahead Market segments, achieved a total volume of 871 MU in August 2024, a significant increase from 242.30 MU in August 2023, representing a 259.5% year-over-year growth.
The Green Day-Ahead Market (G-DAM) alone reached a volume of 849.3 MU in August 2024, with a weighted average price of ₹3.69 per unit, compared to 159.7 MU in August 2023, showing an impressive 431.8% year-over-year increase. The Green Term-Ahead Market (G-TAM) traded 21.7 MU in August 2024, with an average monthly price of ₹7.89 per unit for non-solar energy.
A total of 2.116 million Renewable Energy Certificates (RECs), equivalent to 2,116 MU, were traded in the sessions held on August 14 and August 28, 2024, with clearing prices of ₹118 per REC and ₹115 per REC, respectively. The next REC trading sessions at the Exchange are scheduled for September 11 and September 25, 2024.
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.
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