The Indian Energy Exchange (IEX), the country’s leading electricity exchange, reported a total monthly volume of 11,370 MU for September 2024, reflecting a notable 24 percent year-on-year (YoY) increase.
As per the exchange’s filing, the total electricity volume, which includes green energy, reached 10,332 MU, marking a 21 percent YoY growth. Additionally, the volume of renewable energy certificates (RECs) surged to 1,031 MU, effectively doubling compared to the same period last year.
The REC market saw a record low price of Rs 110 per certificate during the trading session on September 25, 2024. This price presents a valuable opportunity for obligated entities like DISCOMS and Captive Power Producers to meet their Renewable Purchase Obligations, as well as for voluntary customers aiming to achieve their sustainability targets.
According to government data released in September 2024, India’s energy consumption was recorded at 141.3 billion units (BUs), showing minimal change from the previous year. A consistent monsoon season enhanced hydro and wind power generation, leading to lower prices in both the Day-Ahead Market (DAM) and Real-Time Market (RTM).
In the DAM, the Market Clearing Price decreased by 33 percent YoY to Rs 4.18 per unit, while the RTM price dropped by 28 percent YoY to Rs 3.98 per unit, creating favorable conditions for DISCOMS and Open Access consumers to optimize their power procurement through the exchange.
The DAM experienced robust growth, with volumes rising 33 percent YoY to 4,610 MU in September 2024. Over the quarter, the DAM recorded 14,332 MU, a 27 percent increase compared to Q2 FY24.
Similarly, the Real-Time Electricity Market (RTM) achieved its highest monthly volume ever, reaching 3,913 MU, a 34 percent YoY increase. The quarterly volume for the RTM climbed to 10,732 MU, representing a 31 percent YoY rise.
In contrast, the Day-Ahead Contingency and Term-Ahead Market (TAM) faced a 43 percent YoY decline, trading at 1,086 MU during September 2024 and 2,684 MU for Q2 FY25, a decrease of 42 percent YoY.
IEX’s Green Market, which includes the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), saw an impressive 214 percent YoY increase, trading 723 MU in September 2024. The total for the Green Market during the quarter reached 2,584 MU, showcasing a remarkable 246 percent YoY growth.
The G-DAM segment stood out, with 712.5 MU traded in September 2024 at a weighted average price of Rs 4.59 per unit, a staggering 408 percent YoY increase. Quarterly volumes for G-DAM hit 2,534 MU, growing by 394 percent over Q2 FY24. In contrast, G-TAM traded 10.4 MU in September 2024, with Non-Solar power priced at Rs 8.28 per unit, contributing to a total of 49.7 MU for the quarter.
The REC market achieved a significant milestone in September 2024, with 1,031 MU traded, reflecting a 100 percent YoY increase. The clearing prices during the two trading sessions on September 11 and 25 were Rs 112/REC and Rs 110/REC, respectively—the lowest prices recorded since the market’s inception.
For the quarter, the total volume of the REC market reached 6,297 MU, showcasing an impressive 353 percent YoY growth. The next REC trading sessions are set for October 9 and 30, 2024.
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