IEX reports robust growth in market volumes

IEX records strong performance in the REC market, with 4.44 lakh RECs traded in sessions on the 9th and 30th of October 2024. Clearing prices are INR 110/REC and INR 120/REC, respectively.

Indian Energy Exchange (IEX), India’s premier electricity trading platform, reported a 4 per cent year-on-year increase in electricity traded volume, achieving 9,642 Million Units (MU) in October 2024. The exchange also saw remarkable growth in its renewable energy trading segment, with 4.44 lakh Renewable Energy Certificates (RECs) traded, a 105 per cent increase from October 2023.

The October 2024 data further highlights a notable decline in power prices across both the Day-Ahead Market (DAM) and Real-Time Market (RTM), providing opportunities for Discoms and Open Access consumers to source more affordable power from exchanges.

In terms of market performance, the Day-Ahead Market (DAM) recorded a volume of 4,388 MU in October 2024, a decrease of 7 per cent from 4,742 MU in the same month the previous year. The Market Clearing Price (MCP) in DAM was INR3.92 per unit, down by 39 per cent compared to October 2023, making it an attractive source of power for utilities.

The Real-Time Market (RTM) saw a significant 30 per cent year-on-year growth, with a total of 3,123 MU traded, compared to 2,402 MU in October 2023. The MCP in RTM was INR3.77 per unit, reflecting a 38 per cent decline year-on-year.

The Term-Ahead Market (TAM), which includes daily, weekly, and monthly contracts, saw a decrease of 34 per cent in volume, with 1,260 MU traded in October 2024, down from 1,911 MU in October 2023.

IEX’s Green Market segments, including the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), reported impressive growth in October 2024. The Green Day-Ahead Market traded 829 MU, a 358 per cent increase from 181 MU in October 2023. The average price in the Green Day-Ahead Market was INR3.60 per unit. Meanwhile, the Green Term-Ahead Market saw a remarkable 498 per cent growth, with 43 MU traded, compared to just 7 MU in October 2023. Prices in G-TAM for solar power were INR3.49/unit, non-solar at INR8.02/unit, and hydro at INR5.03/unit.

In the Renewable Energy Certificate (REC) market, IEX saw a strong performance, with 4.44 lakh RECs traded in two sessions, held on 9th October and 30th October 2024. The clearing prices for the REC market were INR110/REC and INR120/REC, respectively.

According to government data published in October 2024, India’s energy consumption reached 140.4 Billion Units (BU), a marginal 1 per cent increase from the previous year.

IEX’s performance in October 2024 underscores the continued shift towards cleaner energy sources, with a strong uptick in renewable energy trading volumes. The decline in power prices across both DAM and RTM markets presents a significant opportunity for consumers to access more affordable electricity, while the growth in the Green Market signals a positive trend for sustainable energy adoption in India.