Indian Energy Exchange (IEX), India's leading electricity exchange, posted a total monthly volume of 11,370 MU in September 2024, marking a significant 24 per cent year-on-year (YoY) growth.
According to an exchange filing, the electricity volume, which includes green electricity, reached 10,332 MU, reflecting a 21 per cent YoY increase, while renewable energy certificates (REC) surged to 1,031 MU, doubling the volume from the same period last year.
The REC market witnessed a record low price of ₹110 per certificate during the trading session on 25th September 2024. This price offers a golden opportunity for obligated entities such as DISCOMS and Captive Power Producers to meet their Renewable Purchase Obligations, as well as for voluntary customers to fulfil their sustainability goals.
According to government data released in September 2024, India's energy consumption stood at 141.3 billion units (BUs), showing little change from the previous year. A steady monsoon boosted hydro and wind power generation, leading to a reduction in prices in the Day-Ahead Market (DAM) and Real-Time Market (RTM).
The Market Clearing Price in the DAM dropped 33 per cent YoY to ₹4.18 per unit, while the RTM price fell 28 per cent YoY to ₹3.98 per unit, creating favourable conditions for Discoms and Open Access consumers to optimise power procurement through the exchange.
The Day-Ahead Market (DAM) saw robust growth, with volumes increasing 33 per cent YoY to 4,610 MU in September 2024.
Over the quarter, DAM registered 14,332 MU, a 27 per cent increase compared to Q2 FY24.
Similarly, the Real-Time Electricity Market (RTM) achieved its highest-ever monthly volume of 3,913 MU, a 34 per cent YoY rise.
RTM's quarterly volume reached 10,732 MU, up 31 per cent YoY. In contrast, the Day-Ahead Contingency and Term-Ahead Market (TAM) experienced a 43 per cent YoY decline, trading 1,086 MU during September 2024, and 2,684 MU during Q2 FY25, down by 42 per cent YoY.
IEX's Green Market, comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), recorded an extraordinary 214 per cent YoY increase, trading 723 MU in September 2024. The quarterly total for the Green Market stood at 2,584 MU, a massive 246 per cent YoY growth.
The G-DAM segment was the standout performer, with 712.5 MU traded in September 2024 at a weighted average price of ₹4.59 per unit, a 408 per cent YoY surge. Quarterly volumes hit 2,534 MU, growing by 394 per cent over Q2FY24. On the other hand, G-TAM traded 10.4 MU in September 2024, with Non-Solar power priced at ₹8.28 per unit, contributing to a total of 49.7 MU for the quarter.
The REC market reached a milestone in September 2024, with 1,031 MU traded, a 100 per cent YoY increase. The clearing prices for the two trading sessions on September 11 and September 25 were ₹112/REC and ₹110/REC, respectively, the lowest-ever price since the market's inception. The REC market's quarterly total volume reached 6,297 MU, a remarkable 353 per cent YoY growth.
The next REC trading sessions are scheduled for 9th and 30th October 2024.