IEX Records Remarkable 9260 MU Electricity Volume, Marking a 21% YoY Surge
Indian Energy Exchange (IEX), the prominent energy exchange in India, accomplished a total electricity volume of 9260 MU in October 2023, exhibiting a 21% rise compared to the previous year. In the same month, the overall volume traded on IEX reached 9,483 MU, encompassing 2.17 Lac Renewable Energy Certificates (RECs) (equivalent to 217 MU) and 5,814 Energy Saving Certificates (ESCerts) (equivalent to 5.8 MU). This represented an 18% increase in trade volumes on a year-on-year basis.
GRID-INDIA’s recent data publication revealed that the country’s energy consumption hit 139 billion units in October 2023, signifying a substantial 22% year-on-year increase. Factors contributing to this surge include heightened electricity demand, below-average rainfall, and a lower comparative base from the same period last year. Consequently, DISCOMs actively engaged in power procurement on the exchange to cater to the amplified demand, leading to a significant boost in trade volumes on IEX.
The surge in demand led to a substantial escalation in Day-Ahead Market (DAM) prices on the Indian Energy Exchange (IEX) to Rs. 6.45 per unit, representing a notable 68% year-on-year increase based on the lower base price from the corresponding period last year.
ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET
In October 2023, the Day-Ahead Market (DAM) volume rose to 4,742 MU from 4,379 MU in October 2022, reflecting an 8.3% year-on-year growth.
During the same period, the Real-Time Electricity Market (RTM) volume increased to 2,402 MU from 2,265 MU in October 2022, marking a 6.1% year-on-year increase.
The RTM segment provides distribution utilities and industries with enhanced flexibility and efficient portfolio optimization by balancing their power demand and supply in real time.
In October 2023, the Day Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts for up to 3 months, traded 1,911 MU, exhibiting a substantial 207.6% year-on-year increase.
GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET
In October 2023, the IEX Green Market, which includes the Green Day-Ahead and Green Term-Ahead Market segments, recorded a volume of 188 MU.
The Green Day-Ahead Market (G-DAM) attained a volume of 180.80 MU during the month, with a weighted average price of Rs 6.37 per unit. This segment attracted participation from 194 market participants in the same period.
The Green Term-Ahead Market (G-TAM) witnessed a volume of 7.23 MU in October 2023, with an average monthly price for Non-Solar at Rs 8.40 per unit.
RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)
A total of 2.17 lac RECs (equivalent to 217 MU) were cleared in the trading sessions held on 11th October’23 and 25th October’23, at a clearing price of Rs. 380/REC and Rs. 420/REC respectively.
The next REC trading sessions at the Exchange are scheduled on 08th November ’23 and 29th November’23.
ENERGY SAVING CERTIFICATES (ESCerts)
During October’23, 5,814 ESCerts (equivalent to 5.8MU) were traded on IEX, at the floor price of Rs. 1,840 per ESCert.
