IEX’s August Power Market Update

The Indian Energy Exchange (IEX), the dominant power exchange in the country, has released its market update for August.

IEX achieved a total volume (including certificates) of 12,040 MU in August 2024, marking a 35.8% year-over-year increase. The electricity volume at 9,914 MU, increased 17.1% YoY. The renewable energy certificates (REC) at 2,116 MU, increased 737.4% YoY. At Rs 115 per certificate, REC prices continued to drop, recording an all-time low price in the trading session held on 28th August 2024.

According to government data, the country’s energy consumption reached 144.2 BUs, representing ~5% decrease year-on-year, thanks mainly to cooler temperatures due to a vigorous monsoon.

There was a substantial increase in hydro and wind power generation, enhancing the overall availability of renewable energy in the system. This led to a significant decline in Day-Ahead Market (DAM) prices and Real-Time Market (RTM) prices on the exchange. The Market Clearing Price in the Day-Ahead Market during August 2024 at Rs 4.28/unit, reduced ~38% year-on-year. Similarly, the Market Clearing Price in the Real Time Market at Rs 3.59/unit during August 2024, declined 44.8% year-on-year.

ICX, the wholly owned subsidiary of IEX, has been designated by the I-TRACK Foundation Board as the local I-REC(E) Issuer in India. The International Renewable Energy Certificate (I‑REC) for Electricity is referred to as an I-REC(E) and is an exchangeable Energy Attribute Certificate (EAC). As the Local Issuer for I-REC(E) in India, all new Project Registrations for I-REC(E) and the issuance of I-REC(E) Certificates will be done by ICX for the entities based in India.

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

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 871 MU volume during August’24 as compared to 242.30 MU in August’23, registering an increase of 259.5% YoY.

The Green Day-Ahead Market (G-DAM) achieved 849.3MU volume during August’24 with a weighted average price of Rs 3.69 per unit, as compared to 159.7 MU in August’23, registering an increase of 431.8% YoY.

The Green Term-Ahead Market (G-TAM) achieved 21.7 MU volume in August ’24 with average monthly price of Non-Solar- Rs 7.89 /unit.

 

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

The Day-Ahead Market (DAM) volume increased to 4,666 MU in August’24, from 3,810 MU in August’23, registering an increase of 22.5% YoY.

The Real-Time Electricity Market (RTM) achieved highest ever monthly volume of 3,485 MU in August ‘24, up from 2,738 MU in August’23, registering an increase of 27.3% YoY.

RTM segment also achieved its highest-ever single-day trade of 156 MU on 26th August, demonstrating the market’s ability to adapt to dynamic demand-supply scenarios.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 886 MU during August’24.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 21.16 lac RECs (equivalent to 2,116 MU) were traded in the trading sessions held on 14^th August’24 and 28^th August’24, at a clearing price of Rs 118/REC and Rs 115/REC respectively.

The next REC trading sessions at the Exchange are scheduled on 11^th September’24 and 25^th September’ 24.