IEX September Update- Green Market Grows 214% Growth

The Indian Energy Exchange, India’s pre-eminent electricity exchange, achieved total monthly volume (including certificates) of 11,370 MU in September’24, marking a 24% year on year increase. The electricity volume (including green electricity volume) during the month at 10,332 MU, increased 21% YoY. The renewable energy certificates (REC) at 1,031MU, increased 100% YoY. At Rs 110 per certificate, the REC market recorded an all-time low price in the trading session held on 25th September 2024. These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations.

According to government data published in September 2024, the country’s energy consumption reached 141.3 billion units (BUs), virtually the same level as the year before. With a steady monsoon in September, there was a significant rise in hydro and wind power generation, which led to a substantial drop in DAM and RTM prices, resulting in higher trading volumes during the month. The Market Clearing Price in the Day Ahead Market at Rs 4.18/unit during September 2024, declined 33% year-on-year. Similarly, the Market clearing price in the Real Time Market at Rs 3.98/unit during September 2024, declined 28% year-on-year.

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

The Day-Ahead Market (DAM) volume increased to 4,610 MU in September’24, from 3,467 MU in September’23, registering an increase of 33% YoY. The DAM segment registered total volumes of 14,332 MU during Q2FY ’25, increase of 27% over Q2FY’24.

The Real-Time Electricity Market (RTM) achieved highest ever monthly volume of 3,913 MU in September ‘24, from 2,923 MU in September’23, registering an increase of 34% YoY. The RTM segment registered record volume of 10,732 MU during Q2FY’25, increasing 31% over Q2FY’24.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,086 MU during September’24, a decline of 43 % YoY. The total volume on the segment during the quarter was at 2,684 MU, a decline of 42% 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 723 MU volume during September’24 as compared to 230 MU in September’23, registering an increase of 214% YoY. The total volume of the Green Market during the quarter was 2,584 MU, growth of 246% over Q2 FY’24.

The Green Day-Ahead Market (G-DAM) achieved 712.5 MU volume during Septemebr’24 with a weighted average price of Rs 4.59 per unit, as compared to 140.2 MU in September’23, registering an increase of 408% YoY. The total volume on the segment during the quarter was 2,534 MU, growth of 394% over Q2 FY’24.

The Green Term-Ahead Market (G-TAM) achieved 10.4 MU volume in september’24 with average monthly price of Non-Solar- Rs 8.28/unit. The total volume on the segment during the quarter was 49.7 MU.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 10.31 lac RECs (equivalent to 1,031 MU), an increase of 100 % YoY, were traded in the trading sessions held on 11^th September’24 and 25^th September’24, at a clearing price of Rs. 112/REC and Rs. 110/REC respectively.  A total of 62.97 lac RECs (equivalent to 6,297MU), an increase of 353% YoY, were traded during Q2FY’25.

Rs 110/ REC is the lowest ever price discovered of REC in a trading session since inception.

The next REC trading sessions at the Exchange are scheduled on 09^th October’24 and 30^th October’24.