Indian Energy Exchange reports strong growth in electricity trade in November

The Indian Energy Exchange (IEX) recorded a significant rise in electricity traded volumes in November 2024.

According to a regulatory filing, IEX achieved a trading volume of 9,689 million units (MU) during the month, marking a 15.7 per cent year-on-year (YoY) increase.

Despite the rise in electricity volumes, the renewable energy certificate (REC) market witnessed a decline. IEX traded 5.46 lakh RECs in November 2024, a 27.7 per cent YoY drop. Trading sessions were conducted on November 13 and November 27 at clearing prices of Rs 140 per REC and Rs 190 per REC, respectively.

Government data indicated that India's energy consumption reached 125 billion units (BUs) in November 2024, reflecting a 5 per cent YoY growth.

However, the Market Clearing Price in the Day-Ahead Market (DAM) dropped 17.3 per cent YoY to Rs 3.30 per unit, while in the Real-Time Market (RTM), the price fell 13.4 per cent YoY to Rs 3.46 per unit. The lower prices were attributed to high supply-side liquidity and represent the lowest levels recorded this fiscal year.

The Day-Ahead Market (DAM) achieved 5,651MU volume in November'24 as compared to 5,144 MU volume in November'23, an increase of 9.8 per cent YoY.

The Real-Time Electricity Market (RTM) achieved monthly volume of 3,019 MU in November'24, as compared to 2,359 MU in November'23, registering an increase of 28 per cent YoY.

The company noted that day Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily & weekly and monthly contracts up to 3 months, traded 202 MU during November'24, as compared to 679 MU volume in November'23, a decline of 70.3 per cent YoY.

Due to ample availability of sell side liquidity, buyers preferred the DAM and RTM segments this month.

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 818 MU volume during November'24 as compared to 189 MU in November'23, registering an increase of 331.8 per cent YoY.

The Green Day-Ahead Market (G-DAM) achieved 793 MU volume during November'24 with a weighted average price of Rs 3.19 per unit, as compared to 182 MU in November'23, registering an increase of 335.2 per cent YoY.