IEX Reports 35.8% Volume Growth in August 2024

Indian Energy Exchange, India’s premier electricity exchange, achieved total volume (including certificates) of 12,040 MU in August 2024, marking a 35.8% year-over-year increase. The electricity volume at 9,914 MU, increased 17.1% YoY. The renewable energy certificates (REC) at 2,116 MU, increased 737.4% YoY. At Rs 115 per certificate, the REC market recorded an all-time low price in the trading session held on 28th August 2024. These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations.

According to government data published in August 2024, the country's energy consumption reached 144.2 BUs, representing ~5% decrease year-on-year.

As the monsoon gained momentum in August, there was a substantial increase in hydro and wind power generation, enhancing the overall availability of renewable energy in the system. This led to a significant decline in Day-Ahead Market (DAM) prices and Real-Time Market (RTM) prices on the exchange. The Market Clearing Price in the Day-Ahead Market during August 2024 at Rs 4.28/unit, reduced ~38% year-on-year. Similarly, the Market Clearing Price in the Real Time Market at Rs 3.59/unit during August 2024, declined 44.8% year-on-year.

ICX, the wholly owned subsidiary of IEX, has been designated by the I-TRACK Foundation Board as the local I-REC(E) Issuer in India. The International Renewable Energy Certificate (I‑REC) for Electricity is referred to as an I-REC(E) and is an exchangeable Energy Attribute Certificate (EAC). As the Local Issuer for I-REC(E) in India, all new Project Registrations for I-REC(E) and the issuance of I-REC(E) Certificates will be done by ICX for the entities based in India.

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

The Day-Ahead Market (DAM) volume increased to 4,666 MU in August’24, from 3,810 MU in August’23, registering an increase of 22.5% YoY.

The Real-Time Electricity Market (RTM) achieved highest ever monthly volume of 3,485 MU in August ‘24, up from 2,738 MU in August'23, registering an increase of 27.3% YoY.

RTM segment also achieved its highest-ever single-day trade of 156 MU on 26th August, demonstrating the market's ability to adapt to dynamic demand-supply scenarios.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 886 MU during August’24.

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

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 871 MU volume during August’24 as compared to 242.30 MU in August’23, registering an increase of 259.5% YoY.

The Green Day-Ahead Market (G-DAM) achieved 849.3MU volume during August’24 with a weighted average price of Rs 3.69 per unit, as compared to 159.7 MU in August’23, registering an increase of 431.8% YoY.

The Green Term-Ahead Market (G-TAM) achieved 21.7 MU volume in August ’24 with average monthly price of Non-Solar- Rs 7.89 /unit.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 21.16 lac RECs (equivalent to 2,116 MU) were traded in the trading sessions held on 14th August’24 and 28th August’24, at a clearing price of Rs 118/REC and Rs 115/REC respectively.

The next REC trading sessions at the Exchange are scheduled on 11th September’24 and 25th September’ 24.