Indian Energy Exchange achieves 9,462 MU overall volume in Feb’24 marking a 15.4 percent YoY increase

Increased sell bids drive market liquidity, while government amendments aim to enhance competitive dynamics.

Indian Energy Exchange, India’s premier electricity exchange, achieved 9,462 MU overall volume, in February’24, marking a 15.4 percent year-over-year increase. The Market Clearing Price in Day Ahead Market during February ‘24 was ₹ 4.93/unit, down approximately 26 percent year-on-year, due to increased sell liquidity. The sell bids on the exchange (Day Ahead Market plus Real Time Market) during the month increased by 47 percent on YoY basis.

According to government data published in February’24, the country’s energy consumption reached 127.8BUs, representing an 8.5 percent increase on a year-on-year basis. Ministry Of Power issued amendments in the electricity late payment surcharge rules, 2024, requiring sale of URS power on exchanges. These rules also provide for penalty in terms of reduced fixed charges to GENCOS if they fail to offer URS power in the market. This will improve sell side liquidity on exchange platform and lead to competitive price discovery.

In the realm of electricity markets, the Day-Ahead Market (DAM) recorded a volume of 4,722 MU in February ’24, marginally higher than the previous year’s figures. Meanwhile, the Real-Time Electricity Market (RTM) experienced a substantial 36.5 percent year-on-year surge, reaching a volume of 2,340 MU. Additionally, the Day Ahead Contingency and Term-Ahead Market (TAM), inclusive of contingency, daily, weekly, and monthly contracts up to three months, traded 1,487 MU during February ’24, reflecting a robust 55.9 percent increase on a year-on-year basis.

In the Green Market segment, comprising the Green Day-Ahead and Green Term-Ahead Market segments, a volume of 298 MU was achieved in February ’24. The Green Day-Ahead Market (G-DAM) accounted for 266 MU of this volume, with a weighted average price of ₹ 5.5 per unit and participation from 214 market participants. Moreover, the Green Term-Ahead Market (G-TAM) witnessed a volume of 32 MU during the same period.

Turning to the Renewable Energy Certificate (REC) Market, a total of 6.14 lakh RECs, equivalent to 614 MU, were traded in the trading sessions held on February 14th and February 28th, 2024. These sessions yielded clearing prices of ₹ 360/REC and ₹ 347/REC, respectively. The forthcoming REC trading sessions at the Exchange are slated for March 13th and March 27th, 2024.