IEX Sets New Record with Highest Ever Volumes in January 2024

Indian Energy Exchange, achieved the highest ever total volumes in January 2024, reaching 10,893 million units (MU) – marking a 26.1 percent year-over-year increase. This volume comprises of 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).

According to government data published in January’24, the country's energy consumption reached 133.8 BUs, representing a 6 percent increase on a year-on-year basis. The Market Clearing Price in Day Ahead Market during January ‘24 was INR 5.83/unit, down approximately 6 percent year-on-year, due to easing supply side constraints. Increased electricity consumption coupled with easing supply side constraints led to an increase in the volumes of electricity traded on the Exchange which is expected to continue going forward.

The Day-Ahead Market (DAM) volume was at 5,540 MU in January ’24, as compared to 4,893 MU in January '23, registering an increase of 13.2 percent YoY.

The Real-Time Electricity Market (RTM) volume increased to 2,380 MU in January ‘24, from 2102 MU in January'23, registering an increase of 13.2 percent YoY. 

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily and weekly and monthly contracts up to 3 months, traded 1,217 MU during January ’24, higher by 34.9 percent on YoY basis. 

The longer duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded 10 BU mark on an annual basis (year-to-date) in FY'24, increasing by more than 600 percent YoY.

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 236 MU volume during January’24. 

The Green Day-Ahead Market (G-DAM) achieved 210 MU volume during the month, with a weighted average price of INR 5.87 per unit. The segment saw participation from 189 market participants during the month. 

The Green Term-Ahead Market (G-TAM) achieved 26 MU volume in January ‘24, with average monthly price of Non-Solar- INR 6.57/unit.

A total of 15.20 lac RECs (equivalent to 1520 MU) were traded in the trading sessions held on January 10, 2024 and January 31, 2024, at a clearing price of INR 360/REC. This is the highest REC volume in the current financial year. REC Price on the exchange has been experiencing a downward trend and is currently at its lowest levels this financial year. This presents an opportunity for obligated consumers (Discoms, Open Access Consumers and Captive Power Producers) to meet their Renewable Purchase Obligations (RPO) at more affordable rates.

The next REC trading sessions at the Exchange are scheduled on February 14, 2024 and February 28, 2024.