Indian Energy Exchange Achieves Record Green Electricity Volume, Reflecting 259% Year-Over-Year Growth

Indian Energy Exchange (IEX), India’s leading electricity exchange, achieved a record total volume of 13,250 million units (MU) in July 2024, marking a remarkable ~56% increase year-over-year. The total electricity volume reached 10,093 MU, up 29% from the previous year. Notably, the volume of green electricity surged to 1 billion units (BU), representing a 259% increase year-over-year. Renewable energy certificates (REC) saw a substantial rise of 405%, totaling 3,150 MU.

The REC market saw a historic low price of Rs. 120 per certificate on July 31, 2024, providing an advantageous opportunity for obligated entities such as DISCOMS and Captive Power Producers to meet their Renewable Purchase Obligations, as well as for voluntary customers aiming to achieve their sustainability goals.

According to government data released in July 2024, India’s total energy consumption reached 145.4 billion units (BUs), reflecting a ~4% increase year-over-year.

Electricity Market Performance:

• Day-Ahead Market (DAM): Volume increased to 5,056 MU in July 2024, up 27% from 3,976 MU in July 2023.
• Real-Time Electricity Market (RTM): Volume rose to 3,334 MU, a 31% increase from 2,540 MU in the same period last year.
• Day-Ahead Contingency and Term-Ahead Market (TAM): This market, covering contingency, daily, weekly, and monthly contracts up to three months, traded 712 MU in July 2024.

Green Market Insights:

• Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market: The IEX Green Market, including G-DAM and Green Term-Ahead segments, achieved a total volume of 989.6 MU, compared to 275.4 MU in July 2023, marking a 259% increase year-over-year. The weighted average price in the G-DAM market was Rs. 4.34 per unit, with an all-time high volume of 50 MU cleared on July 28.

Renewable Energy Certificate (REC) Market:

• A total of 31.50 lakh RECs (equivalent to 3,150 MU) were traded in sessions held on July 10 and July 31, at clearing prices of Rs. 128/REC and Rs. 120/REC, respectively. Upcoming REC trading sessions are scheduled for August 14 and August 28, 2024.

Energy Saving Certificates (ESCERTS):

• In July 2024, 7,000 ESCerts (equivalent to 7 MU) were traded at a floor price of Rs. 2,165 per ESCert on the IEX.

The record-breaking figures and significant year-over-year growth highlight IEX’s pivotal role in India’s energy market, especially in advancing green and renewable energy initiatives.