IEX Sees 24 Percent YoY Growth in September 2024

Indian Energy Exchange achieved 11,370 MU total volume in September 2024, with REC trading rising 100 percent year-on-year. REC prices hit an all-time low at INR 110 per certificate, providing an opportunity for obligated entities to meet Renewable Purchase Obligations affordably.

October 08, 2024. By EI News Network

Indian Energy Exchange (IEX) recorded significant growth in September 2024, with a total monthly trading volume of 11,370 MU, reflecting a 24 percent year-on-year increase.

As per the exchange filing, the total electricity volumes, including green electricity, reached 10,332 MU in September 2024, reflecting a 21 percent year-on-year increase. Renewable Energy Certificates (RECs) saw significant growth, with 1,031 MU traded, marking a 100 percent rise. REC prices reached an all-time low of INR 110 per certificate in the September 25 trading session, offering a strategic advantage for Distribution Companies (DISCOMS), Captive Power Producers, and voluntary customers to meet their Renewable Purchase Obligations and sustainability goals at reduced costs.

Further, government data published in September 2024 reveals that the country’s energy consumption remained stable at 141.3 billion units (BUs), showing little change compared to the previous year. A steady monsoon contributed to increased hydro and wind power generation, which, in turn, caused a significant drop in prices in the Day-Ahead Market (DAM) and Real Time Market (RTM), leading to higher trading volumes. The market clearing price in the Day-Ahead Market fell 33 percent year-on-year to INR 4.18 per unit, while the Real Time Market price dropped by 28 percent to INR 3.98 per unit. These lower prices provide an opportunity for Discoms and Open Access consumers to optimise their power procurement costs through the power exchanges.

IEX's Green Market saw an exceptional performance in September 2024, with the Green Day-Ahead and Green Term-Ahead Market segments achieving a combined volume of 723 MU, a 214 percent year-on-year increase. The Green Day-Ahead Market alone recorded 712.5 MU, a remarkable 408 percent growth compared to September 2023, with an average price of INR 4.59 per unit. On the Green Term-Ahead Market, 10.4 MU was traded in September 2024, with non-solar prices averaging INR 8.28 per unit.

In the Renewable Energy Certificate (REC) market, a total of 10.31 lakh RECs were traded in September 2024, representing a 100 percent year-on-year increase. REC prices in the trading sessions held on September 11 and September 25, 2024, were INR 112 and INR110 per certificate, respectively, marking the lowest prices ever recorded in REC trading history. These prices enable obligated entities to meet their renewable energy commitments affordably. The next REC trading sessions are scheduled for October 9 and October 30, 2024.

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