Renewable Energy Trading on IEX Fell 38% YoY in December to 232 MU

The green energy segment traded 609 MU in Q3 FY24, a 46% YoY drop


The Indian Energy Exchange (IEX) traded 232 million units (MU) of green energy in December 2023, a 38% year-over-year (YoY) drop from 377 MU. The segment achieved a volume of 609 MU during the third quarter (Q3) of the financial year (FY) 2023-24, a 46% YoY drop from 1,130 MU.

The Green Day-Ahead Market (GDAM) segment recorded trading of 216.6 MU, a 10% YoY drop compared to 241 MU. The segment saw participation from 187 market participants, achieving a weighted average price of ₹4.86 (~$0.058)/kWh.

The GDAM segment achieved a volume of 579.6 MU during Q3 FY24.

The Green Term-Ahead Market (GTAM) saw 15.4 MU traded with only non-solar power at an average monthly price of ₹6.08 (~$0.073)/kWh. Trading in the GTAM segment was down 89% YoY from 137 MU.

The GTAM segment achieved a volume of 29.9 MU during Q3 FY24.

Renewable Energy Certificates

A total of 1.05 million RECs (equivalent to 1052 MU) were traded on December 13 and 27, 2023, at a clearing price of ₹370 (~$4.45)/REC and ₹360 (~$4.33)/REC, respectively. The REC traded volume in December 2023 increased by 115.9% YoY. A total of 2.02 million RECs (equivalent to 2,024 MU) were traded during Q3 FY2024.

The next REC trading sessions will be held on January 10 and 24.

Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market

The Day-Ahead Market (DAM) volume was at 4,798 MU, as compared to 5,001 MU in December 2023. The DAM segment traded 14,684 MU during Q3, a marginal increase of 1.5% YoY.

The Real-Time Electricity Market (RTM) volume increased to 2,405 MU from 1,763 MU in December 2023, registering an increase of 36.4 % YoY. The RTM segment registered volume of 7,166 MU during Q3, increasing 31.9% YoY.

The Day-Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily, weekly, and monthly contracts up to 3 months, traded 1,220 MU during December 2023, higher by 48.4% YoY. The total volume in the segment during the quarter was 3,810 MU, a growth of 91.4% YoY.

According to government data published in December 2023, the country’s energy consumption remained flat at 119.07 BU.

Mercom recently reported on the factors influencing the drop in green energy trade in 2023 at the IEX. Seasonality, floods, and inconsistent renewable energy generation were a few of the many reasons identified to be behind the drop in renewable energy trade. The increasing power demand and the drop in renewable generation have forced entities to trade mostly on the conventional electricity market, in turn reducing the buy bids in the green market segments.

IEX traded 189 MU of green energy during November 2023, a 46.61% YoY drop from 354 MU.