January Power Market- DAM Prices Drift Lower, Green Volumes Up 218% YoY

Indian Energy Exchange, India’s premier electricity exchange, achieved monthly electricity traded volume of 10,910 MU in January’25, marking a 16% increase on year-on-year basis. IEX recorded highest ever monthly trade of RECs in January ’25.  A total of 38.03 lakh Renewable Energy Certificates were traded during the month, marking a 150% year on year increase.

According to government data published in January ’25, the country’s energy consumption reached 137.5 BUs, an increase of 2.7% compared to the previous year. During the month, increased supply side liquidity in the DAM segment contributed to moderating prices on the exchange. The Market Clearing Price in the Day Ahead Market at Rs. 4.43/unit during January’25, declined 24% YoY. These prices presented an opportunity for Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges.  However, the news may not be as good for merchant power suppliers, many of whom will not find any further drops palatable.

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

The Day-Ahead Market (DAM) achieved 6,015 MU volume in January’25 as compared to 5,540 MU volume in January’24, an increase of 9% YoY.

The Real-Time Electricity Market (RTM) volume increased to 3,036 MU in January ‘25, from 2,380 MU in January’24, registering an increase of 28% YoY.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1107 MU during January ’25, lower by 9% 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 752 MU volume during January’25 as compared to 236 MU in January’24, registering an increase of 218 % YoY.

The Green Day-Ahead Market (G-DAM) achieved 702 MU volume during January’25 with a weighted average price of Rs 4.66 per unit, as compared to 210 MU in January’24, registering an increase of 235% YoY.  However, the price is a smart recovery from December levels. The slight premium over the DAM market indicates the relative availability of the two sources as well, while remaining an attractive price point for most off takers.

The Green Term-Ahead Market (G-TAM) achieved 50 MU volume during January’25 with average monthly price of Non-Solar-Rs 4.77/unit, as compared to 27 MU in January’24, registering an increase of 89% YoY.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

IEX recorded highest ever monthly trade of RECs in January ’25. A total of 38.03 lakh RECs were traded in the trading sessions held on 08th January’25 and 29th January’25, at a clearing price of Rs.325 /REC and Rs. 340 /REC respectively. REC traded volume in January’25 increased by 150% on YoY basis.

The next REC trading sessions at the Exchange are scheduled on 12^th February’25 and 26^th February’25.