IEX Achieves Record Growth in August 2024: Surge in Renewable Energy Trading

India’s premier electricity marketplace, the Indian Energy Exchange (IEX), reported a total trade volume of 12,040 million units (MU) in August 2024, reflecting a year-on-year (YoY) growth of 35.8%. This includes electricity and renewable energy certificates (RECs). The electricity volume alone reached 9,914 MU, marking a 17.1% YoY increase. Notably, REC trading surged by 737.4% YoY to 2,116 MU, with RECs trading at an all-time low price of ₹115 per certificate during the session on 28th August 2024.

The lower prices present an opportunity for obligated entities, including DISCOMS and captive power producers, to fulfill their Renewable Purchase Obligations (RPOs), while also enabling voluntary buyers to align with their sustainability goals.

Decline in National Energy Consumption Amid Strong Monsoon Season

Government data for August 2024 shows that the country’s energy consumption dropped to 144.2 billion units (BUs), representing a 5% YoY decline. The decrease is attributed to an increase in hydro and wind power generation driven by an active monsoon season, which improved the overall availability of renewable energy.

The boost in renewable energy supply led to a significant decline in prices on the exchange, with the Market Clearing Price (MCP) in the Day-Ahead Market (DAM) falling by 38% YoY to ₹4.28 per unit. Similarly, Real-Time Market (RTM) prices dropped by 44.8% YoY to ₹3.59 per unit.

Record Trading in Electricity and Renewable Energy Markets

The Day-Ahead Market (DAM) saw a volume increase of 22.5% YoY, reaching 4,666 MU in August 2024. The Real-Time Electricity Market (RTM) hit a record high monthly volume of 3,485 MU, a 27.3% YoY growth. On 26th August, the RTM recorded its highest-ever single-day trade of 156 MU, highlighting the exchange’s ability to handle fluctuations in demand.

Additionally, the Day Ahead Contingency and Term-Ahead Market (TAM), which includes various short-term contracts, traded 886 MU in August 2024.

Strong Growth in Green Market Segments

IEX’s Green Market, which comprises the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), recorded a volume of 871 MU in August 2024, representing a 259.5% YoY increase. The G-DAM contributed 849.3 MU, a 431.8% YoY jump, with a weighted average price of ₹3.69 per unit. G-TAM volumes stood at 21.7 MU, with non-solar prices averaging ₹7.89 per unit.

Renewable Energy Certificate Market Hits Milestone

The REC market saw robust activity, with 21.16 lakh RECs (equivalent to 2,116 MU) traded during two sessions in August, at clearing prices of ₹118 and ₹115 per certificate. The next REC trading sessions are scheduled for 11th and 25th September 2024.

ICX Designated as Local Issuer for I-REC(E)

ICX, a wholly-owned subsidiary of IEX, has been appointed as the local issuer for International Renewable Energy Certificates (I-REC(E)) in India by the I-TRACK Foundation Board. This designation makes ICX responsible for new project registrations and the issuance of I-REC(E) certificates in India.