IEX Power Market Update for November 2023

Indian Energy Exchange (IEX), India’s largest power trading exchange, had a strong November, achieving 9,136 MU overall volume, including 7.55 Lac Renewable Energy Certificates (RECs) (equivalent to 755 MU), marking a 17.5% increase on YoY basis. IEX achieved 8,371 MU total electricity volume in November 2023, registering an increase of 13% on YoY basis. However, the IEX November update continues the downward move in the green markets, with trading continuing to trend lower due to higher prices.

According to government data published in November ’23, the country’s energy consumption reached 120 billion units, representing an 8.5% increase on a year-on-year basis. The Market Clearing Price in Day Ahead Market during November ‘23 was Rs. 3.98/unit, down 13% year-on-year, due to a combination of factors including lower demand due to festive season, temperature drop and much improved sell side liquidity on the Exchange platform.

Even before this IEX November update, Price on the exchange has been experiencing a downward trend and average monthly price is currently at its lowest levels this financial year, offering an opportunity for Discoms and industrial consumers to optimize their power procurement costs.

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

The Day-Ahead Market (DAM) volume was at 5,144 MU in November ’23, as compared to 5,087 MU in November ’22.

The Real-Time Electricity Market (RTM) volume increase to 2,359 MU in November ‘23, from 1,407 MU in November’22, registering an increase of 68% YoY.

The RTM segment enables distribution utilities and industries with greater flexibility and efficient optimisation of portfolios by balancing their power demand-supply on a real-time basis.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 679 MU during November ’23, higher by 24 % on YoY basis.

*PowerX is the price index of Indian Energy Exchange (IEX) and is calculated based on weighted average price of Day-Ahead Market and Real-Time Market discovered for the previous day delivery.

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

In the IEX November update for the Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 189 MU volume during November’23. This was down 46% over the same month last year, reflecting a long term decline of sorts now as higher demand for green power leaves much less for trading on the exchange.

The Green Day-Ahead Market (G-DAM) achieved 182 MU volume during the month versus 288 MW in the same month last year, with a weighted average price of Rs 5.05 per unit versus Rs 4.31 last year. The segment saw participation from 182 market participants during the month.

The Green Term-Ahead Market (G-TAM) achieved 7 MU volume in November ‘23 versus 66 MU last year in November, with average monthly price of Non-Solar- Rs 6.22/unit.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 7.55 lac RECs (equivalent to 755 MU) were traded in the trading sessions held on 08th November ’23 and 29th November’23, at a clearing price of Rs. 375/REC for both the sessions. REC cleared volume in November’23 increased by 103% on YoY basis. Even as volumes rose, clearing prices have slumped versus Rs 1000 achieved last year.

The next REC trading sessions at the Exchange are scheduled on 13th December ’23 and 27th December’23.

ENERGY SAVING CERTIFICATES (ESCerts)

Trading of ESCerts for PAT Cycle-ll officially concluded on October 30, 2023, with a total coverage of 544 DCs and 40 successful trading sessions. A total of 13.2 lakhs ESCerts were traded on IEX in PAT Cycle-ll.