IEX October Power Market Updates- Soft Demand Leads to Lower Prices

Indian Energy Exchange, India’s premier electricity exchange, achieved electricity traded volume of 9,642 MU in October’24, marking a 4% year on year increase. During the month, IEX traded 4.44 lakh renewable energy certificates recording a 105% year on year increase.

According to government data published in October 2024, the country’s energy consumption reached 140.4 BUs, marginal increase of 1% compared to the previous year. The Market Clearing Price in the Day Ahead Market at Rs 3.92/unit during October 2024, declined 39% year-on-year. Similarly, the Market clearing price in the Real Time Market at Rs 3.77/unit during October 2024, declined 38% year-on-year. These prices present an opportunity for Discoms and Open Access consumers to replace costlier power through purchasing through exchanges.

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

The Day-Ahead Market (DAM) achieved 4,388 MU volume in October’24 as compared to 4,742 MU volume in October’23, a decline of 7% YoY and a marginal drop over the 4610 MU from September.

The Real-Time Electricity Market (RTM) achieved monthly volume of 3,123 MU in October‘24, as compared to 2,402 MU in October’23, registering an increase of 30% YoY. However, this was a sharp drop of 25% from the 3913 MU achieved in September.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,260 MU during October’24, as compared to 1,911 MU volume in October’23, a decline of 34% YoY

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

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 872 MU volume during October’24 as compared to 188 MU in October’23, registering an increase of 364% YoY. This was also a 20% jump over September volumes.

The Green Day-Ahead Market (G-DAM) achieved 829 MU volume during October’24 with a weighted average price of Rs 3.60 per unit, as compared to 181 MU in October’23, registering an increase of 358% YoY.

The Green Term-Ahead Market (G-TAM) achieved 43 MU volume during October’24 with a with average monthly price of Solar- Rs 3.49/unit, Non-Solar- Rs 8.02/unit and Hydro – Rs 5.03/unit, as compared to 7 MU in October’23, registering an increase of 498% YoY.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 4.44 lac RECs, were traded in the trading sessions held on 09^th October’24 and 30^th October’24, at a clearing price of Rs. 110/REC and Rs. 120/REC respectively, the same level as September.

The next REC trading sessions at the Exchange are scheduled on 13^th November’24 and 27^th November’24.