IEX Power Market Update October 2023

Indian Energy Exchange, India’s premier energy exchange, achieved 9260 MU total electricity volume in October 2023, registering an increase of 21% on YoY basis.  IEX achieved 9,483 MU overall volume, including 2.17 Lac Renewable Energy Certificates (RECs) (equivalent to 217 MU) and 5,814 Energy Saving Certificates (ESCerts) (equivalent to 5.8 MU). The overall volume traded during October increased 18% on YoY basis.

According to data published by GRID-INDIA, in October '23, the country's energy consumption reached 139 billion units, marking a substantial 22% year-on-year increase due to a surge in electricity demand owing to increase in electricity consumption, below-average rainfall in October, and a lower base from the same month last year. This upsurge in power demand prompted DISCOMs to actively purchase power on the exchange to meet the increased demand, thereby leading to a significant increase in trade volumes on IEX.

This surge in demand pushed Day-Ahead Market (DAM) prices on the Indian Energy Exchange (IEX) to Rs. 6.45 per unit, representing a substantial 68% year-on-year increase on a lower base price from the same month last year.

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ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET

The Day-Ahead Market (DAM) volume increased to 4,742 MU in October ’23, from 4,379 MU in October '22, growing 8.3 % YoY.

The Real-Time Electricity Market (RTM) volume increase to 2,402 MU in October ‘23, from 2,265 MU in October '22, registering an increase of 6.1% YoY.

The RTM segment enables distribution utilities and industries with greater flexibility and efficient optimisation of portfolios by balancing their power demand-supply on a real-time basis. 

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,911 MU during October ‘23, higher by 207.6 % on YoY basis.

*PowerX is the price index of Indian Energy Exchange (IEX) and is calculated based on weighted average price of Day-Ahead Market and Real-Time Market discovered for the previous day delivery.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 188 MU volume during Ocotber’23

The Green Day-Ahead Market (G-DAM) achieved 180.80 MU volume during the month, with a weighted average price of Rs 6.37 per unit. The segment saw participation from 194 market participants during the month.

The Green Term-Ahead Market (G-TAM) achieved 7.23 MU volume in October ‘23, with average monthly price of Non-Solar- Rs 8.40/unit

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 2.17 lac RECs (equivalent to 217 MU) were cleared in the trading sessions held on 11^th October’23 and 25^th October’23, at a clearing price of Rs. 380/REC and Rs. 420/REC respectively.

The next REC trading sessions at the Exchange are scheduled on 08^th November ’23 and 29^th November’23.

ENERGY SAVING CERTIFICATES (ESCerts)

During October'23, 5,814 ESCerts (equivalent to 5.8MU) were traded on IEX, at the floor price of Rs. 1,840 per ESCert.