Green Energy Trade at IEX Continues to Dip, 189 MU Traded in November

The REC volume witnessed a surge of 103% YoY, with 755,000 RECs traded in the month


The Indian Energy Exchange (IEX) traded 189 million units (MU) of green energy during November 2023, a 46.61% year-over-year (YoY) drop from 354 MU.

Green energy trade has continued to slide throughout 2023, given the considerable drop in renewable generation due to seasonality and increased power demand across the country.

IEX  cited the government data published in November 2023, stating the country’s energy consumption reached 120 billion units, representing an 8.5% increase YoY.

The Green Day-Ahead Market (GDAM) segment recorded trading of 182 MU, a 36.81% YoY drop. The segment saw participation from 182 market participants, achieving a weighted average price of ₹5.05 (~$0.061)/kWh.

The Green Term-Ahead Market (GTAM) achieved 7 MU volume with only non-solar power traded at an average monthly price of ₹6.22 (~$0.075)/kWh. Trading in the GTAM segment was down 89.3% YoY from 66 MU.

The Exchange recorded 9,136 MU of overall volume traded during November, including 755,000 Renewable Energy Certificates (REC), a 17.5% YoY increase. The total electricity trade volume stood at 8,371 MU, surging by 13% YoY.

Prices on the Exchange witnessed a downward trend, with the average monthly prices reaching their lowest levels this financial year, offering distribution companies and industrial consumers an opportunity to optimize their power costs.

Renewable Energy Certificates

A total of 755,000 RECs, equivalent to 755 MU, were traded during the two sessions held on November 8 and November 23. The REC volume was up 103% YoY from 217,000 RECs.

The REC clearing price for both the sessions stood at ₹375 (~$4.50)/REC.

The next trading sessions at the IEX are scheduled for December 13 and December 27.

Energy Saving Certificates

The Energy Saving Certificates (ESCert) trading for PAT Cycle-II concluded on October 30, 2023, with 544 Designated Consumers and 40 successful trading sessions. In all, 1.32 million ESCerts were traded on the IEX.

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

The Day-Ahead Market (DAM) segment saw 5,144 MU volume traded during the month, a YoY increase from 5,087 MU.

The market clearing price at the segment was ₹3.98 (~$0.048)/kWh, a decline of 13% YoY. The price decline was attributed to factors such as lower demand due to the festive season, temperature drop, and much-improved sell-side liquidity on the platform.

The Real-Time Electricity (RTM) market segment recorded a 68% jump from November 2023 to 2,359 MU from 1,407 MU in November 2022.

The Day-Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily/weekly, and monthly contracts for up to three months, traded 679 MU during the month, a 24% YoY increase.

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.

The renewable energy units traded at the IEX in October 2023 dropped to 188 MU, the lowest recorded in 2023, a 53.35% YoY and 18.26% month-on-month drop.