IEX Sees Surge in Electricity Trade Volumes Despite REC Market Dip

In November 2024, the Indian Energy Exchange (IEX) experienced a 15.7% YoY increase in electricity trade volumes, with 9,689 million units transacted. Despite this, the renewable energy certificate market dropped by 27.7% YoY. Lower market clearing prices were registered, attributed to high supply-side liquidity, benefiting buyers on DAM and RTM.

The Indian Energy Exchange (IEX) witnessed a considerable rise in the volume of electricity traded in November 2024. According to a regulatory disclosure, IEX reported a trading volume of 9,689 million units, reflecting a robust 15.7% year-on-year increase.

Nonetheless, the renewable energy certificate (REC) market showed a downturn. IEX's REC trading fell by 27.7% YoY, with 5.46 lakh RECs changing hands. Trading occurred on November 13 and 27, at Rs 140 and Rs 190 per REC, respectively. Government figures reveal India's energy consumption climbed by 5% YoY to 125 billion units in November 2024.

The Market Clearing Price for the Day-Ahead Market (DAM) decreased by 17.3% YoY to Rs 3.30 per unit, while the Real-Time Market (RTM) saw a 13.4% YoY decline to Rs 3.46 per unit. These reductions, due to ample supply-side liquidity, marked the lowest price points for this fiscal year. DAM volumes rose to 5,651 million units, up 9.8% YoY, while RTM volumes hit 3,019 million units, representing a notable 28% YoY surge. However, the Day Ahead Contingency and Term-Ahead Market plunged 70.3% YoY to 202 million units.

Buyers favored the DAM and RTM segments owing to the abundant sell-side liquidity. The IEX Green Market, split between the Green Day-Ahead and Green Term-Ahead segments, recorded an impressive 818 million units, skyrocketing by 331.8% YoY. The Green Day-Ahead Market alone leaped to 793 million units at a weighted average price of Rs 3.19 per unit, a dramatic 335.2% YoY increase.

(With inputs from agencies.)