Surge in Indian Energy Exchange Trading Volumes Fueled by Green Shift and Monsoon Boost

Indian Energy Exchange (IEX) witnessed a significant 24% rise in its total trade volume in September 2024, spurred by increased hydro and wind power output due to a strong monsoon. Renewable Energy Certificates doubled in volume, with the Renewable Market seeing substantial price declines that benefited obligated entities and voluntary customers.

The Indian Energy Exchange (IEX) experienced a substantial boost in its total trade volume, rising 24% year-on-year in September 2024, according to a recent statement. The increase highlighted a marked improvement in the electricity volume, which saw a 21% surge, reaching 10,332 million units for the month.

Contributing to this growth was a sharp rise in Renewable Energy Certificates (REC) trading, which doubled to 1,031 million units. The REC market recorded historically low prices, allowing obligated entities to meet their Renewable Purchase Obligations efficiently, while also enabling voluntary customers to align with their sustainability objectives.

A prevalent steady monsoon enhanced hydro and wind power generation, contributing to a decline in Day-Ahead Market and Real-Time Market prices. This resulted in higher trading volumes, with a notable decline in the Market Clearing Prices for both markets. The Day-Ahead Market reached 4,610 MU, and the Real-Time Market set a new high at 3,913 MU for the month.

(With inputs from agencies.)