IEX FY24 and March Update- Overall Volumes Up, Green Market Volumes Slump

Indian Energy Exchange (IEX), India’s premier electricity exchange, achieved 110 BU in FY’24, registering an increase of 13.8% on YoY basis. Electricity volumes at 101.7BU increased 12% YoY. Additionally, 75.39 lac RECs (equivalent to 7,539 MU) were traded during FY’24. REC traded volume in FY’24 increased 26% on YoY basis. The Government undertook several measures which led to a better supply scenario in the country, as a result of which the sell side liquidity improved on the Exchange. During the year, the sell liquidity on the exchange increased by 16.9% YoY, which led to a decline in the DAM prices from Rs 5.94/unit in FY’23 to Rs 5.24/unit in FY’24, i.e a decline of 12% YoY.

Perhaps the only crimp on performance was the numbers from the GDAM and GTAM markets, where green energy volumes fell significantly.

During Q4 FY’24, IEX achieved 30.1 BU volume across all segments, registering an increase of 15.7% on YoY basis. This volume comprises 25.9 BU from the conventional power market segment, 1 BU from the green market segment, and 32.48 lac Renewable Energy Certificates (RECs) (equivalent to 3.2 BU). REC traded volume in Q4FY’24 increased by ~98% on YoY basis. The DAM prices on the exchange reduced from Rs 6.08/unit in Q4 FY’23 to Rs 4.89/unit in Q4 FY’24, a decline of 20% YoY.

For the month of March’24, IEX achieved 9.8 BU overall volume, marking a 6.2 % year-over-year increase. The Market Clearing Price in Day Ahead Market during March‘24 was Rs. 3.91/unit, down approximately 28% year-on-year, due to increased sell quantum. The sell bids on the exchange (Day Ahead Market plus Real Time Market) during the month increased by ~37% on YoY basis.

The fiscal year 2024 witnessed several favourable policy and regulatory interventions that further deepened power markets. Notable among these were the General Network Access (GNA) regulation, the Indian Electricity Grid Code (IEGC) regulations, and Transmission Charges Sharing regulations. Further, there were amendments in the Electricity Late Payment Surcharge Rules of 2024, which require the sale of URS power on exchanges.

According to government data, for the year, the energy requirement at 1,626 BU grew by 7.5% YoY in 2023-24.

ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET

The Day-Ahead Market (DAM) volume was at 4,653 MU in March’24, as compared to 4,745MU in March’23. The DAM segment registered 14,916 MU during Q4FY’24, as compared to 14,301 MU in Q4FY’23, registering an increase of 4.3% on YoY basis. The segment achieved 53,353 MU for the cumulative FY’24, as compared to 51,151 MU in FY’23, registering an increase of 4.3% on YoY basis.

The Real-Time Electricity Market (RTM) volume increased to 2,786 MU in March’24, from 2,098 MU in March’23, registering an increase of 32.8% on YoY basis. The RTM segment registered volume of 7,505 MU during Q4FY’24, as compared to 5,914 MU during Q4FY’23, registering an increase of 26.9 % on YoY basis. The segment achieved 30,125 MU for the cumulative FY’24, as against 24,174 MU in FY’23, registering an increase of 24.6% on YoY basis.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 806 MU during March’24. The total volume on the segment during the quarter was 3,511 MU, growth of 19.3% over Q4 FY’23. For the FY’24, the segment achieved 14,944 MU, registering a growth of 48% on YoY basis.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 426 MU volume during March’24, 960 MU in Q4 FY’24 and 3,227MU in FY’24.

The Green Day-Ahead Market (G-DAM) achieved 410 MU volume with a weighted average price of Rs 3.81 per unit. The market saw participation from 244 market participants during the month.

The G-DAM segment achieved 885 MU during Q4 FY’24 and 2,502 MU in FY 24, down 52% over 3814 MU in FY23.

The Green Term-Ahead Market (G-TAM) achieved 16 MU volume in March’24. The G-TAM segment achieved 75 MU during Q4 FY’24 and 725 MU  for FY’24, a drop of over 92% over the 1392 MU in FY23.

 

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 11.14 lac RECs (equivalent to 1114 MU) were traded in the trading sessions held on 13th March’24 and 27th March’24, at a clearing price of Rs. 300/REC and Rs. 270/REC respectively. REC traded volume in March’24 increased by ~28% on YoY basis.

32.48 lac RECs (equivalent to 3248 MU) were traded during Q4FY’24. REC traded volume in Q4FY’24 increased by ~98% on YoY basis.

75.39 lac RECs (equivalent to 7539 MU) were traded during FY’24. REC traded volume in FY’24 increased by ~26% on YoY basis.

The next REC trading sessions at the Exchange are scheduled on 10^th April’24 and 24^th April’24.

ENERGY SAVING CERTIFICATES (ESCerts)

During FY’24, 8.55 lac ESCerts (equivalent to 855 MU) were traded on IEX, at the floor price of Rs. 1840 per ESCert.

Trading of Energy Saving Certificates Market (ESCerts) under PAT Cycle III is scheduled to start from April 09, 2024.