The Indian Energy Exchange (IEX), India’s leading energy exchange, has reported substantial increases in its electricity trading volumes for October ’23. According to the latest data released by IEX, the exchange achieved a total electricity volume of 9,260 million units (MU) during the month, marking a remarkable 21% year-on-year (YoY) growth. The overall traded volume on IEX, which includes 2.17 lac Renewable Energy Certificates (RECs) equivalent to 217 MU and 5,814 Energy Saving Certificates (ESCerts) equivalent to 5.8 MU, reached 9,483 MU, demonstrating an 18% YoY increase.
The surge in electricity demand in the country played a pivotal role in driving the remarkable growth of IEX. According to data published by GRID-INDIA, India’s energy consumption in October ’23 reached 139 billion units, indicating a substantial 22% YoY increase. Several factors contributed to this surge, including increased electricity consumption, below-average rainfall for the month, and a lower base from the same month in the previous year. In response to the heightened demand, distribution companies (DISCOMs) actively engaged in power purchases on the exchange, leading to a significant boost in trade volumes on IEX.
As a result of this increased demand, the Day-Ahead Market (DAM) prices on IEX climbed to Rs. 6.45 per unit in October ’23, representing a remarkable 68% YoY increase from the previous year’s lower base price.
Electricity Market Performance
In the Day-Ahead Market (DAM), the volume of electricity traded surged to 4,742 MU in October ’23, from 4,379 MU in October ’22, indicating an 8.3% YoY growth. The Real-Time Electricity Market (RTM) also experienced an uptick, with a volume of 2,402 MU traded in October ’23, up 6.1% compared to the previous year. The RTM segment is designed to provide distribution utilities and industries with enhanced flexibility and efficient portfolio optimization by allowing real-time power demand-supply balancing.
Additionally, the Day-Ahead Contingency and Term-Ahead Market (TAM) segments, which include contingency, daily, weekly, and monthly contracts up to 3 months, reported significant growth, with a trading volume of 1,911 MU in October ’23, reflecting an impressive increase of 207.6% YoY.
Green Market and Renewable Energy Certificates (REC) Market
The IEX Green Market, consisting of the Green Day-Ahead and Green Term-Ahead Market segments, achieved a volume of 188 MU in October ’23. The Green Day-Ahead Market (G-DAM) accounted for 180.80 MU of this volume, with a weighted average price of Rs. 6.37 per unit. A total of 194 market participants actively participated in the G-DAM segment during the month. Meanwhile, the Green Term-Ahead Market (G-TAM) recorded a volume of 7.23 MU in October ’23, with an average monthly price for non-solar REC at Rs. 8.40 per unit.
In the REC market, a total of 2.17 lac RECs (equivalent to 217 MU) were cleared in trading sessions held on October 11, 2023, and October 25, 2023, at clearing prices of Rs. 380/REC and Rs. 420/REC, respectively. The next REC trading sessions at the Exchange are scheduled for November 8, 2023, and November 29, 2023.
Energy Saving Certificates (ESCerts)
During October ’23, 5,814 ESCerts (equivalent to 5.8 MU) were traded on IEX at the floor price of Rs. 1,840 per ESCert.