IEX records 15.7% YoY growth in electricity traded volumes for Nov 2024

New Delhi: The Indian Energy Exchange (IEX), India's leading electricity trading platform, reported a trading volume of 9,689 million units (MU) of electricity in November 2024, reflecting a 15.7 percent year-on-year (YoY) growth. However, the Renewable Energy Certificates (REC) market witnessed a decline, with 5.46 lakh certificates traded, down 27.7 percent YoY.

Electricity Market Overview

India's energy consumption for November 2024 rose by 5 percent YoY to 125 billion units (BUs), as per government data. Despite increased demand, market prices saw a significant dip. The Day-Ahead Market (DAM) recorded a Market Clearing Price of ₹3.30/unit, down 17.3 percent YoY, while the Real-Time Market (RTM) price was Rs 3.46/unit, a 13.4 percent YoY decrease. This price decline, attributed to robust supply-side liquidity, presented an opportunity for power distribution companies (Discoms) and Open Access consumers to opt for cost-efficient power from the exchange.

The Day-Ahead Market (DAM) traded 5,651 MU in November 2024, reflecting a 9.8 percent YoY increase from 5,144 MU in November 2023. The Real-Time Market (RTM) also performed well, achieving a trading volume of 3,019 MU, a 28 percent YoY increase from 2,359 MU in November 2023. However, the Term-Ahead Market (TAM), comprising Day-Ahead Contingency, daily, weekly, and monthly contracts, recorded 202 MU in November 2024, a sharp 70.3 percent YoY decline from 679 MU in November 2023. This decline was primarily due to buyers shifting preference to the DAM and RTM segments, driven by high liquidity and competitive pricing.

Green Market Growth

The IEX Green Market, which includes the Green Day-Ahead (G-DAM) and Green Term-Ahead Market (G-TAM) segments, showcased remarkable growth by trading 818 MU in November 2024, a 331.8 percent YoY surge from 189 MU in November 2023. The G-DAM segment alone traded 793 MU, registering a 335.2 percent YoY growth, with a weighted average price of Rs 3.19/unit. The G-TAM segment contributed 25 MU, with average prices for Solar at Rs 3.50/unit, Non-Solar at Rs 5.42/unit, and Hydro at Rs 3.68/unit, reflecting a 244.7 percent YoY increase.

Renewable Energy Certificate Market

In November 2024, IEX facilitated the trading of 5.46 lakh RECs during two sessions held on November 13 and 27, at clearing prices of Rs 140/REC and Rs190/REC, respectively. The next REC trading sessions are scheduled for December 11 and December 26.

Key Highlights

The electricity exchange witnessed the lowest monthly market-clearing prices of the fiscal year, underscoring favorable conditions for energy buyers. Meanwhile, the green market's exponential growth signals increasing adoption of renewable energy in India.

The IEX continues to play a pivotal role in enabling cost-effective and efficient energy trading for diverse market participants.

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