Indian Energy Exchange Achieves Record Volumes in January 2024: Insights into Electricity and Renewable Markets

Indian Energy Exchange (IEX), the leading electricity exchange in India, achieved record-breaking total volumes in January 2024, reaching 10,893 million units (MU), marking a notable 26.1% year-over-year increase. This volume encompasses 9,137 MU from the conventional power market segment, 236 MU from the green market segment, and 15.20 lakh Renewable Energy Certificates (RECs), equivalent to 1,520 MU.

According to government data released in January 2024, the country’s energy consumption surged to 133.8 billion units (BUs), reflecting a 6% increase year-on-year. The Market Clearing Price in the Day Ahead Market during January 2024 stood at Rs. 5.83/unit, witnessing a decrease of approximately 6% year-on-year, attributed to the easing supply side constraints. The heightened electricity consumption, coupled with the alleviated supply side challenges, contributed to the increased volumes of electricity traded on the Exchange, expected to persist in the future.

Electricity Market Overview:

• The Day-Ahead Market (DAM) volume reached 5,540 MU in January 2024, up from 4,893 MU in January 2023, marking a 13.2% year-on-year increase.
• The Real-Time Electricity Market (RTM) volume surged to 2,380 MU in January 2024, compared to 2,102 MU in January 2023, registering a 13.2% year-on-year increase.
• Day Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily, weekly, and monthly contracts up to 3 months, traded 1,217 MU during January 2024, reflecting a 34.9% year-on-year increase.

Green Market Insights:

• The Green Day-Ahead Market (G-DAM) achieved a volume of 210 MU in January 2024, with a weighted average price of Rs 5.87 per unit, witnessing participation from 189 market participants.
• The Green Term-Ahead Market (G-TAM) recorded a volume of 26 MU in January 2024, with an average monthly price for Non-Solar at Rs 6.57/unit.

Renewable Energy Certificate Market (REC Market):

• A total of 15.20 lac RECs (equivalent to 1,520 MU) were traded in the trading sessions held on 10th January 2024 and 31st January 2024, at a clearing price of Rs. 360/REC, marking the highest REC volume in the current financial year.
• The REC Price on the exchange witnessed a downward trend, currently at its lowest levels this financial year, presenting an opportunity for obligated consumers to fulfill their Renewable Purchase Obligations (RPO) at more affordable rates.

The next REC trading sessions at the Exchange are scheduled on 14th February 2024 and 28th February 2024