IEX Trades 280 MU of Green Energy in April 2023, Down 16% YoY

Nearly 123,000 ESCerts, equivalent to 123 MU, were sold during the month


The Indian Energy Exchange (IEX) traded 280 million units (MU) of renewable energy in April 2023, a decline of 16% year-over-year (YoY) and 28% month-over-month.

The overall volume during the month was 7,928 MU, higher by 6% on a YoY basis. The price was ₹5.41 (~$0.066)/kWh, declining 46% YoY due to improving supply-side scenario and increased liquidity and cooler weather conditions.

Sell-side liquidity improved due to government initiatives to ensure adequate power supply this summer, including gas-based thermal power made available, IEX said.

The trade has commenced in the High Price DAM segment, with 193 MWh volume traded during the month. The segment allows high-cost generators, such as gas-based power generators, imported coal-based plants, and battery energy storage systems, to sell electricity on the market.

While the increase in power demand is expected in the coming months, supply-side liquidity will likely be maintained due to improved coal supply. This will lead to competitive prices and higher clearance for power distribution companies & open-access consumers.

As per data published by GRID-INDIA, energy supplied in the country during April stood at 130.57 BU, declining 1.1% on a YoY basis due to widespread rains.

Green market: Green Day-Ahead & Green Term-Ahead Market

The Green Day-Ahead Market (G-DAM) achieved 159 MU volume with a weighted average price of ₹5.68 /kWh (~$0.07). The market saw participation from 202 market participants during the month.

The Green Term-Ahead Market (G-TAM) achieved 121 MU volume, with an average monthly price of ₹6.48 (~$0.08)/kWh for non-solar and ₹5.83 (~$0.071)/kWh for hydro.

Electricity market: Day-Ahead, Term- Ahead & Real-Time Market

The Day-Ahead Market (DAM) volume was 4,332 MU in April, an 8.5% growth on YoY basis due to favorable prices. The average market clearing price was ₹5.41 (~$0.066)/kWh during the month, lower by 46% YoY.

The Real-Time Electricity Market (RTM) achieved 2,152 MU, registering a 26% YoY growth. There were 733 participants in this segment during the month. The consistent growth of the RTM segment reflects its increasing acceptance among distribution utilities and industries to efficiently balance their power demand-supply on a real-time basis.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, and contracts up to 3 months, traded 842 MU during April, lower 28% YoY.

Renewable Energy Certificate (REC) Market

A total of 199,000 RECs were cleared during the month at ₹1,000 (~$12.24)/REC. The next REC trading session is scheduled on May 31, 2023.

Energy Saving Certificates (ESCerts)

Nearly 123,000 ESCerts (equivalent to 123 MU) were traded at the floor price of ₹1,840 (~$22.51)/ ESCert. The ESCerts trading under the Perform Achieve and Trade Cycle II resumed on the exchange in February 2023.