The Indian Energy Exchange (IEX) traded 272 million units (MU) of renewable energy during June 2023, a 24% decrease from 358 MU traded in May and a 49% year-over-year (YoY) decrease.

The total trading volume during the month was 8,946 MU, representing a YoY increase of 8%.

IEX achieved 25,125 MU volume across all segments during the first quarter (Q1) of the financial year 2024, growing 8% YoY.

The trading price during June dropped by 17% YoY to ₹5.37 (~$0.065)/kWh, while the average market clearing price during Q1 was ₹5.17 (~$0.063)/kWh, a decline of 33% YoY.

The dip in price was due to the improvement due to enhanced coal supply, reduction in e-auction coal prices, and consistently declining imported coal and gas prices, leading to increased liquidity.

The increased liquidity led to a sharp price correction, resulting in optimization opportunities and higher clearance for power distribution companies and open access consumers.

According to GRID-India, the energy met in the country during the month was 140 BU, a 4.3% YoY increase.

Green Market: Day-Ahead and Term-Ahead

The exchange traded 910 MU green energy during the April-June period.

The Green Day-Ahead Market traded 166 MU during June 2023, with a weighted average price of ₹4.95 (~$0.060)/kWh and 177 market participants. The segment traded 524 MU during the quarter.

The Green Term-Ahead Market witnessed trading of 106 MU with an average monthly price of ₹3.24 (~$0.039)/kWh for solar, ₹5.76 (~$0.070)/kWh for non-solar, and ₹6.28 (~$0.076)/kWh for hydro. The segment traded 386 MU during Q1.

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

The Day-Ahead Market traded 4,103 MU in June, a marginal 1% YoY increase. The average market clearing price during the month was ₹5.37 (~$0.065)/kWh, a 17% YoY drop.

The segment registered 12,501 MU during Q1, with 11% YoY growth due to improved prices.

The Real-Time Electricity Market (RTM) achieved the highest-ever monthly volume of 2,675 MU during March, a 21% YoY growth, with 765 participants. In June, RTM trade volume saw more than 100 MU trade for nine days.

The segment registered a volume of 7,252 MU during Q1, increasing 16% YoY.

The RTM segment’s consistent growth is driven by the increasing acceptance amongst distribution utilities and industries to balance the power-demand supply on a real-time basis efficiently.

The Term-Ahead Market, which includes intra-day, contingency, daily, and weekly contracts and contracts up to three months, traded 1,118 MU during the month, a 47% YoY jump. The total volume on the segment during the quarter was 3017 MU, a marginal decline of 3% YoY.

Renewable Energy Certificate Market

June saw 533,000 renewable energy certificates (RECs), equivalent to 533 MU traded with a clearance price of ₹745 (~$9) per REC. A total of 875,000 RECs, equivalent to 872 MU, were traded during the quarter.

The next REC trading session is scheduled on July 26, 2023.

Energy Saving Certificates

Nearly 244,000 Energy Saving Certificates (ESCerts), equivalent to 244 MU, were traded at the IEX during the month. The floor price stood at ₹1,840 (~$22.38) per ESCert.

A total of 569,000 ESCerts were traded in Q1.

The IEX reported a profit after tax of ₹883 million (~$10.7 million), a slight decrease of 0.1% YoY in Q4 FY 2023. The high input costs impacted the sell-side liquidity as the government attempted to meet the rising power demand by increasing the coal supply during the quarter.