Indian Energy Exchange Trades 110 BU of Electricity in FY'24

In FY'24, IEX achieved a milestone by recording 110 billion units (BU) of electricity traded, marking a substantial increase of 13.8 percent compared to the previous fiscal year.

April 05, 2024. By Abha Rustagi

Indian Energy Exchange (IEX), the country's electricity exchange, has reported growth in electricity volumes and trading activities for the fiscal year 2023-24, indicating a robust performance amidst evolving market dynamics.

In FY'24, IEX achieved a milestone by recording 110 billion units (BU) of electricity traded, marking a substantial increase of 13.8 percent compared to the previous fiscal year. The electricity volumes surged by 12 percent year-on-year (YoY), reaching 101.7 BU. Additionally, the exchange witnessed trading of 7,539 million units (MU) of Renewable Energy Certificates (RECs), reflecting a 26 percent increase in REC traded volume compared to the previous fiscal year.

The improved supply scenario in the country, attributed to government measures, strengthened the sell-side liquidity on the exchange. Consequently, the sell liquidity increased by 16.9 percent YoY, resulting in a decline in the Day-Ahead Market (DAM) prices from INR 5.94/unit in FY'23 to INR 5.24/unit in FY'24, representing a 12 percent YoY decrease.

During Q4 FY'24, IEX continued its growth trajectory, achieving a volume of 30.1 BU across all segments, marking a notable increase of 15.7 percent YoY. The increase in volume included contributions from conventional power market segments, green market segments, and RECs, with REC traded volume witnessing a ~98 percent YoY increase.

March'24 also witnessed growth for IEX, with an overall volume of 9.8 BU, marking a 6.2 percent YoY increase. The Market Clearing Price in the Day Ahead Market during March'24 decreased by approximately 28 percent YoY, attributed to increased sell quantum, with sell bids on the exchange (Day Ahead Market plus Real-Time Market) increasing by ~37 percent YoY.

The fiscal year 2024 saw several favorable policy and regulatory interventions aimed at deepening power markets, including General Network Access (GNA) regulation, Indian Electricity Grid Code (IEGC) regulations, and Transmission Charges Sharing regulations. Amendments in the Electricity Late Payment Surcharge Rules of 2024 mandated the sale of Unscheduled Interchange (UI) power on exchanges.

According to government data, the energy requirement for the year stood at 1,626 BU, reflecting a 7.5 percent YoY growth in 2023-24.

Across various market segments, IEX showcased robust performance. The Day-Ahead Market (DAM) and Real-Time Electricity Market (RTM) witnessed significant volume increases, while the Day-Ahead Contingency and Term-Ahead Market (TAM) also experienced notable growth. The Green Market, including Green Day-Ahead and Green Term-Ahead Market segments, contributed to the exchange's overall trading volumes.

Furthermore, the trading of RECs and Energy Saving Certificates (ESCerts) added to the diversity of trading options offered by IEX.

Tags:

Business

Indian Energy Exchange

IEX

Electricity Transmission

Electricity supply

Electricity sector

Renewable Energy Certificates

REC

Day-Ahead Market

Real-Time Market

General Network Access regulation