Electricity Demand Soars in India: IEX’s August ’23 Insights

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The Indian Energy Exchange (IEX), India’s leading energy marketplace, reported a significant increase in electricity volume and prices for the month of August 2023, driven by unprecedented weather conditions and surging electricity demand. In a remarkable achievement, IEX recorded a total electricity volume of 8,469 million units (MU) in August ’23, marking a substantial 21% year-on-year (YoY) growth. The IEX’s overall volume, including green market trades, ancillary market trades, Renewable Energy Certificates (RECs), and Energy Saving Certificates (ESCerts), reached 8,865 MU. This included 242.3 MU in green market trade, 40 MU in ancillary market trade, 2.53 lac RECs equivalent to 253 MU, and 1.03 lac ESCerts equivalent to 103 MU. The overall traded volume for the month soared by 13.3% compared to the same period last year.


The remarkable surge in electricity demand can be attributed to the lowest August rainfall since 1901, resulting in scorching weather conditions across the country. According to data released by Grid-India, the nation’s electricity consumption reached 152 billion units (BU) in August ’23, marking a substantial 16% YoY increase. The month also witnessed an all-time high peak demand of 236 gigawatts (GW) on 31 August ’23, along with a record single-day energy consumption of 5,126 MU. This surge in demand, coupled with supply constraints, pushed electricity prices on the IEX to Rs. 6.89 per unit, reflecting a significant 33% YoY increase.

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Electricity Market Soars Across Categories


In August ’23, the Day-Ahead Market (DAM) volume grew by 7.3% YoY, reaching 3,810 MU, compared to 3,551 MU in August ’22. The average market clearing price during the month was Rs. 6.89 per unit, a substantial 33% increase over the same period last year.

The Real-Time Electricity Market (RTM) achieved 2,738 MU in August ’23, representing a noteworthy 21% YoY increase. On August 24, 2023, IEX achieved its highest-ever single-day volume of 135.28 MU in the RTM segment, emphasizing its role in providing flexibility and efficient optimization of power portfolios on a real-time basis.

Additionally, the Term-Ahead Market (TAM) and the Day Ahead Contingency Market (DAC), which include intra-day, contingency, daily, weekly contracts, and contracts up to 3 months, witnessed a remarkable 131.5% YoY growth, trading a total of 1,673 MU in August ’23.

Green Market Thrives

IEX’s Green Market, encompassing the Green Day-Ahead and Green Term-Ahead Market segments, achieved a total volume of 242.3 MU in August ’23. The Green Day-Ahead Market (G-DAM) accounted for 159.7 MU during the month, with a weighted average price of Rs. 7.16 per unit, attracting participation from 193 market participants. The Green Term-Ahead Market (G-TAM) traded 82.6 MU during August ’23, with average monthly prices of Rs. 5.25 per unit for Solar, Rs. 6.96 per unit for Non-Solar, and Rs. 8.80 per unit for Hydro.

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Renewable Energy and Energy Saving Certificates

A total of 2.53 lac RECs equivalent to 253 MU were cleared in the trading session at IEX on Wednesday, August 30th, at a price of Rs. 575 per REC. The next REC trading session at the Exchange is scheduled for Wednesday, September 27th, ’23.

During August ’23, 1.03 lac ESCerts equivalent to 103 MU were traded on IEX, at the floor price of Rs. 1,840 per ESCert.

The Indian Energy Exchange continues to play a pivotal role in meeting the growing energy demands of the nation while promoting green energy solutions and providing a transparent marketplace for electricity trading.

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