IEX achieves record monthly electricity trade volume of 11,132 MU in Dec 2024

New Delhi: The Indian Energy Exchange (IEX), India’s premier electricity trading platform, marked a milestone by achieving its highest-ever monthly electricity trade volume of 11,132 million units (MU) in December 2024. This represents a robust 29 percent year-on-year (YoY) growth. The platform also recorded substantial progress in its Renewable Energy Certificate (REC) trading, with 16.62 lakh RECs transacted, a 58 percent YoY increase.

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Strong Performance Across Fiscal Year 2025

For the first nine months of FY’25, IEX’s electricity trade volume reached 88,981 MU, reflecting a 19 percent YoY growth. In the third quarter (Q3 FY’25), the Exchange traded 30,464 MU of electricity, an increase of 16 percent YoY. Additionally, REC trading for Q3 FY’25 reached 26.52 lakh, up by 31 percent YoY.

According to government data released in December 2024, India’s energy consumption rose to 130.40 billion units (BUs), a 6 percent YoY increase. The supply-side growth at IEX during this period contributed to a moderation in power prices, offering opportunities for cost-effective procurement for Discoms and Open Access consumers. The Market Clearing Price in the Day Ahead Market (DAM) for December 2024 stood at Rs 3.89 per unit, a 14 percent YoY decline, while the Q3 FY’25 average price was Rs 3.71 per unit, a significant 26 percent YoY reduction.

Market Highlights: Day-Ahead, Real-Time, and Term-Ahead Markets

The Day-Ahead Market (DAM) achieved a volume of 6,674 MU in December 2024, marking a 39 percent YoY increase from 4,798 MU in December 2023. During Q3 FY’25, the DAM segment registered total volumes of 16,712 MU, reflecting a 14 percent growth compared to Q3 FY’24.

The Real-Time Market (RTM) recorded a volume of 3,180 MU in December 2024, up by 32 percent YoY from 2,405 MU in December 2023. For Q3 FY’25, the RTM segment reached a volume of 9,322 MU, an increase of 30 percent over Q3 FY’24.

The Term-Ahead Market (TAM), which includes day-ahead contingency, daily, weekly, and monthly contracts up to three months, traded 498 MU in December 2024, a decline of 59 percent YoY. For Q3 FY’25, TAM recorded a total volume of 1,960 MU, down by 49 percent YoY.

Surge in Green Market Trading

IEX’s Green Market, which encompasses the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), showcased remarkable growth. In December 2024, the Green Market achieved a volume of 781 MU, registering a 236 percent YoY increase from 232 MU in December 2023. For Q3 FY’25, the Green Market recorded a total volume of 2,470 MU, a 305 percent YoY surge.

The Green Day-Ahead Market (G-DAM) achieved a volume of 763 MU in December 2024 with a weighted average price of Rs 3.92 per unit, compared to 217 MU in December 2023, reflecting a 252 percent YoY growth. During Q3 FY’25, G-DAM recorded a volume of 2,385 MU, up by 311 percent YoY.

The Green Term-Ahead Market (G-TAM) recorded a volume of 18 MU in December 2024 at an average price of Rs 5.88 per unit for non-solar power, an increase of 15 percent YoY from 15.4 MU in December 2023. For Q3 FY’25, G-TAM achieved a volume of 86 MU, representing a 187 percent YoY growth.

Renewable Energy Certificate (REC) Market

In the REC market, IEX recorded the trading of 16.62 lakh RECs during December 2024, a 58 percent YoY increase. These were traded at clearing prices of Rs 260 per REC and Rs 316 per REC in the sessions held on December 11 and December 26, 2024, respectively. For Q3 FY’25, REC trading volumes reached 26.52 lakh, reflecting a 31 percent YoY increase.

The next REC trading sessions are scheduled for January 8 and January 29, 2025.

Outlook

With record-breaking trade volumes and significant price moderation, IEX continues to drive efficiency and liquidity in India’s electricity markets. The growth in green and renewable energy trading further aligns with the nation’s sustainability goals, underscoring IEX’s pivotal role in shaping India’s energy landscape.

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