IEX Reports Robust Growth in November 2023 Trade Volume

IEX disclosed that the overall volume included an impressive 7.55 lakh RECs, equivalent to 755 MU, contributing to the substantial YoY increase.

December 05, 2023. By Abha Rustagi

The Indian Energy Exchange (IEX) revealed a remarkable 17.5 percent growth in its overall trade volume for November 2023 compared to the same period last year. According to IEX data, the exchange recorded a total trade volume of 9,136 million units (MU).

In a statement, IEX disclosed that the overall volume included an impressive 7.55 lakh Renewable Energy Certificates (RECs), equivalent to 755 MU, contributing to the substantial year-on-year increase (YoY). The exchange achieved a total electricity volume of 8,371 MU in November 2023, reflecting a notable 13 percent growth.

One key highlight was the market clearing price in the Day Ahead Market (DAM) during November 2023, which stood at INR 3.98 per unit, representing a 13 percent decrease from the previous year. Factors contributing to this decline included lower demand during the festive season, a drop in temperature, and improved liquidity on the sell side of the exchange.

The declining trend in prices continued, with the average monthly price hitting its lowest level in the current financial year. This presents an opportune moment for distribution companies (discoms) and industrial consumers to optimize their power procurement costs, as explained by IEX.

Breaking down the figures, the DAM volume reached 5,144 MU in November 2023, compared to 5,087 MU in November 2022.

The Real-Time Electricity Market (RTM) saw a substantial increase, reaching 2,359 MU in November 2023, up from 1,407 MU in the same month the previous year. This 68 percent YoY growth emphasizes the importance of the RTM segment, offering distribution utilities and industries greater flexibility and efficient portfolio optimization in real time.

Further diversifying the market, the Day Ahead Contingency and Term-Ahead Market (TAM), encompassing contingency, daily & weekly, and monthly contracts up to 3 months, traded 679 MU in November 2023, marking a significant 24 percent increase compared to the previous year.

In the domain of green energy, the IEX Green Market, including Green Day-Ahead and Green Term-Ahead Market segments, achieved a volume of 189 MU during November 2023, contributing to the exchange's commitment to sustainable and environmentally friendly energy solutions.

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Business

IEX

Indian Energy Exchange

Renewable Energy Certificates