IEX Trades 298 MU Green Energy in February, REC Volume Falls 60% MoM

The Exchange achieved an overall trade volume of 9,462 MU in February


The Indian Energy Exchange (IEX) traded 298 million units (MU) of green energy during February 2024, a 12.61% year-over-year (YoY) drop from 341 MU.

The green energy trade was up by 26.27% from 236 MU traded in January 2024.

The Green Day-Ahead Market (G-DAM) achieved 266 MU, up by 6.4% YoY and 26.67% month-over-month (MoM). The weighted average price discovered in the segment was ₹5.5 (~$0.066)/kWh, with participation from 214 market entities during the month.

The Green Term-Ahead Market (G-TAM) traded 32 MU in February, down by 64.84% YoY and up by 23.08% MoM.

During the two Renewable Energy Certificate (REC) trading sessions on February 14 and 28, the Exchange traded a total of 614,000 RECs, equivalent to 614 MU, a 64.17% YoY increase and a 59.61% MoM decline. January 2024 witnessed the highest volume of RECs traded in the current financial year at 1.52 million RECs.

The clearing prices achieved during the two sessions were ₹360 (~$4.35)/REC and ₹347 (~$4.19)/REC.

The power exchanges have started scheduling two REC trading sessions every month, following the Central Electricity Regulatory Commission’s order in October 2023, to implement it on an experimental basis and enhance the REC trading volume.

The next REC trading sessions are scheduled for March 13 and March 27, 2024.

The Exchange achieved an overall trade volume of 9,462 MUs in February, a 15.4% YoY increase.

The country’s energy consumption reached 127.8 BUs, increasing 8.5% YoY, according to the company statement. The recent Ministry of Power amendments to the electricity late payment surcharge rules 2024 mandate the sale of un-requisitioned surplus power on exchanges, failing which the generating companies will receive reduced fixed charges as a penalty. The amendments are expected to improve the sell-side liquidity on the Exchange and provide competitive price discovery.

The Day-Ahead Market (DAM) segment achieved a volume of 4,722 MU in February 2024, as compared to 4,664 MU a year ago. The Market Clearing Price in DAM during the month was ₹4.93 (~$0.060)/kWh, down approximately 26% year-on-year, due to increased sell liquidity.

The Real-Time Electricity Market (RTM) volume surged by 36.5% to 2,340 MU from 1,714 MU during the same month last year.

The sell bids on the exchange Day Ahead Market plus Real-Time Market during the month increased by 47% YoY.

The Day-Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly, and monthly contracts up to three months, traded 1,487 MU during the month, higher by 55.9% YoY.

In a recent suo motu order, the CERC ordered a comprehensive audit of all three power exchanges in the next six months and the elimination of manual entries of bids and cancellation/modification of bids outside of trading hours, citing multiple violations.