IEX (Indian Energy Exchange), India’s leading energy exchange, has reported notable trading volumes and declining prices for May 2023. The exchange recorded an overall volume of 8,251 MU (million units), which includes green market trade, RECs (Renewable Energy Certificates), and ESCerts (Energy Savings Certificates). Compared to the previous year, the overall volume increased by 8 percent on a year-on-year basis.
The average price in May 2023 on the IEX was Rs 4.74 per unit, representing a 30 percent decline from May 2022. This price decrease can be attributed to an improving supply-side scenario and cooler weather conditions. It resulted in increased liquidity and more competitive prices.
Looking ahead, supply-side liquidity is expected to further improve due to enhanced coal supply, reduced e-auction coal prices, and declining imported coal and gas prices. These factors are anticipated to result in competitive prices and higher clearance for Distribution Companies (Discoms) and Open Access consumers.
According to data published by GRID-INDIA, the country’s energy met during May 2023 showed a marginal one percent increase compared to the previous year. In response to market demands, IEX recently introduced the Tertiary Reserve Ancillary Services (TRAS) Market Segment for Day-Ahead and Real-Time Market Ancillary Services.
In the Day-Ahead Market (DAM), the trading volume increased by 26 percent YoY, reaching 4,066 MU in May 2023. The Real-Time Electricity Market (RTM) achieved its highest-ever monthly volume of 2,424 MU, with a 13 percent MoM and 5 percent YoY growth. The Term-Ahead Market (TAM) experienced an 11 percent YoY decline, trading 1,058 MU.
The IEX Green Market, which integrates renewable energy sources, achieved a total volume of 358 MU in May 2023, marking a 28 percent MoM growth. The Green Day-Ahead Market (G-DAM) traded 199 MU, while the Green Term-Ahead Market (G-TAM) traded 158 MU.
These results highlight the growing acceptance and importance of renewable energy in India’s sustainability goals. With increasing participation from market participants, the IEX continues to play a crucial role in facilitating efficient energy trading and supporting the country’s transition to a greener and more sustainable future.