Indian Energy Exchange (IEX), the leading electricity exchange in India, witnessed a remarkable surge in total trading volumes in January 2024, reaching a new high of 10,893 million units (MU), marking a significant 26.1% year-over-year increase. This milestone encompassed 9,137 MU from the conventional power market segment, 236 MU from the green market segment, and 15.20 lakh Renewable Energy Certificates (RECs), equivalent to 1,520 MU.
Government data released in January 2024 revealed a notable 6% year-on-year increase in the country's energy consumption, totaling 133.8 billion units (BUs). Despite this rise, the Market Clearing Price in the Day Ahead Market for January 2024 decreased to Rs. 5.83/unit, attributed to the easing supply side constraints. The combination of heightened electricity consumption and improved supply conditions contributed to the surge in trading volumes on the Exchange, expected to continue in the foreseeable future.
Electricity Market Overview:
- The Day-Ahead Market (DAM) volume saw a robust increase to 5,540 MU in January 2024, up from 4,893 MU in January 2023, marking a 13.2% year-on-year rise.
- The Real-Time Electricity Market (RTM) volume also experienced a significant surge, reaching 2,380 MU in January 2024, compared to 2,102 MU in January 2023, reflecting a 13.2% year-on-year increase.
- Day Ahead Contingency and Term-Ahead Market (TAM) traded 1,217 MU during January 2024, showcasing a substantial 34.9% year-on-year increase.
Green Market Insights:
- The Green Day-Ahead Market (G-DAM) achieved a volume of 210 MU in January 2024, with a weighted average price of Rs 5.87 per unit, attracting participation from 189 market participants.
- The Green Term-Ahead Market (G-TAM) recorded a volume of 26 MU in January 2024, with an average monthly price for Non-Solar at Rs 6.57/unit.
Renewable Energy Certificate Market (REC Market):
- A total of 15.20 lac RECs (equivalent to 1,520 MU) were traded in the trading sessions held on 10th January 2024 and 31st January 2024, at a clearing price of Rs. 360/REC, marking the highest REC volume in the current financial year.
- The REC Price on the exchange observed a downward trend, currently at its lowest levels this financial year, providing an opportunity for obligated consumers to fulfill their Renewable Purchase Obligations (RPO) at more affordable rates.
- The next REC trading sessions at the Exchange are scheduled on 14th February 2024 and 28th February 2024.
