Indian Energy Exchange (IEX) Achieves Record-Breaking Volumes in July 2024

India’s premier electricity exchange, the Indian Energy Exchange (IEX), set new benchmarks in July 2024, with a total volume (including certificates) surging to an unprecedented 13,250 Million Units (MU), marking a substantial 56% year-on-year growth. The core electricity market volume also witnessed robust growth, climbing 29% to 10,093 MU. Notably, the green electricity segment experienced a phenomenal 259% year-on-year increase, reaching 1 MU.

REC Prices at Historic Low

The Renewable Energy Certificates (REC) market witnessed an even more dramatic upsurge, with volumes soaring 405% to 3,150 MU. The trading session on July 31st, 2024, marked a historic low for REC prices at ₹120 per certificate. This development presents a lucrative opportunity for obligated entities such as Distribution Companies (DISCOMs) and Captive Power Producers to fulfill their Renewable Purchase Obligations (RPOs), as well as for voluntary customers seeking to enhance their sustainability profiles.

Increased Energy Consumption

Government data for July 2024 indicates a 4% year-on-year rise in the country’s overall energy consumption to 145.4 Billion Units (BUs), aligning with the growing demand met by IEX’s expanded offerings.

The Day-Ahead Market (DAM) and Real-Time Electricity Market (RTM) demonstrated commendable growth, registering increases of 27% and 31% year-on-year, respectively. The Day-Ahead Contingency and Term-Ahead Market (TAM) contributed 712 MU to the overall volume.

IEX’s Green Market, encompassing the Green Day-Ahead and Green Term-Ahead Market segments, showcased exceptional performance with a staggering 259% year-on-year growth, reaching 989.6 MU. The Green Day-Ahead Market (G-DAM) achieved a weighted average price of ₹4.34 per unit and recorded an all-time high cleared volume of 50 MU on July 28th.