IEX Trades 3.2 BU of Renewable Energy During FY 2024, Down 38%

Nearly 7.54 million RECs were traded during the financial year


The Indian Energy Exchange (IEX) traded 3,227 million units (MU) of renewable energy during the financial year (FY) 2024, a 38% year-over-year (YoY) decrease compared to 5,206 MU.

The Exchange traded 426 MU of renewable energy in March 2024, an increase of 9% YoY compared to 391 MU. The green energy trade also saw a rise of 42% month-over-month compared to 298 MU traded in February 2024.

The renewable energy traded during the fourth quarter (Q4) of FY24 stood at 960 MU, a drop of 11.11% YoY from 1,080 MU.

During FY24, IEX reported a total energy transaction volume of 110 BU across all its segments, marking a 13.8% YoY increase. Specifically, electricity transactions reached 101.7 BU, up by 12% YoY.

The government implemented several initiatives that enhanced the country’s supply situation, thereby improving sell-side liquidity on the Exchange. This improvement was quantified as a 16.9% YoY increase in sell liquidity, contributing to a 12% YoY reduction in the Day-Ahead Market (DAM) prices, from ₹5.94 (~$0.071)/ kWh in FY23 to ₹5.24 (~$0.063)/ kWh in FY24.

In Q4 FY24, IEX saw a total trading volume of 30.1 BU across all segments, marking an increase of 15.7% compared to last year. This volume breakdown included 25.9 BU from the conventional power market segment.

Meanwhile, the Market Clearing Price in the Day Ahead Market for March 2024 stood at ₹3.91 (~$0.047)/ kWh, showing a significant decrease of about 28% compared to the previous year, attributed to increased sell bids. During the same month, sell bids on the Exchange, combining the Day Ahead Market and Real-Time Market, rose by approximately 37% YoY.

Throughout fiscal year 2024, several beneficial policy and regulatory interventions were implemented, further enhancing the power markets. Key initiatives included the General Network Access regulation, updates to the Indian Electricity Grid Code regulations, and revisions to the Transmission Charges Sharing regulations. Amendments to the Electricity Late Payment Surcharge Rules of 2024 also mandated the sale of un-requisitioned surplus power on exchanges.

Government data for the year revealed that the energy demand reached 1,626 BU, reflecting a 7.5% YoY growth in FY24.

The green energy traded in the market includes the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM).

Green Market: Day-Ahead and Term-Ahead

The G-DAM achieved 410 MU volume with a weighted average price of ₹3.81 (~$0.046)/ kWh. The market saw participation from 244 market participants during the month.

The G-DAM segment achieved 885 MU during Q4 FY24 and 2,502 MU during FY24.

The G-TAM achieved 16 MU volume in March ’24. The segment traded 75 MU during Q4 FY24 and 725 MU for FY24.Top of Form

REC Market

A total of 1.11 million RECs (equivalent to 1,114 MU) were traded in the trading sessions held on March 13 and March 27 at a clearing price of ₹300 (~$3.59)/REC and ₹270 (~$3.24)/REC respectively. REC traded volume in March increased by 28% on a YoY basis.

A total of 3.25 million RECs (equivalent to 3,248 MU) were traded during Q4 FY24, increasing by 98% YoY.

Nearly 7.54 million RECs (equivalent to 7,539 MU) were traded during FY’24, up by 26% YoY.

The next REC trading sessions at the Exchange are scheduled for April 10 and April 24.

Energy Saving Certificates (ESCerts)

During FY’24, 855,000 ESCerts (equivalent to 855 MU) were traded on IEX at the floor price of ₹1,840 (~$22)/ ESCert.

Trading of Energy Saving Certificates Market (ESCerts) under PAT Cycle III is scheduled to start on April 09, 2024.

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

The Day-Ahead Market (DAM) volume was 4,653 MU in March, compared to 4,745 MU YoY. The DAM segment registered 14,916 MU during Q4 FY24, as compared to 14,301 MU in Q4 FY23, registering an increase of 4.3% YoY.

The segment achieved 53,353 MU in FY24, compared to 51,151 MU in FY23, registering a rise of 4.3% YoY.

The Real-Time Electricity Market (RTM) volume increased to 2,786 MU in March, from 2,098 MU in YoY, registering an increase of 32.8% YoY. The RTM segment registered a volume of 7,505 MU during Q4 FY24, compared to 5,914 MU during Q4 FY23, registering an increase of 26.9% YoY. The segment achieved 30,125 MU in FY24, as against 24,174 MU in FY23, registering an increase of 24.6% YoY.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily, weekly, and monthly contracts for up to 3 months, traded 806 MU during March. The total volume in the segment during the quarter was 3,511 MU, a growth of 19.3% YoY. For the FY’24, the segment achieved 14,944 MU, registering an increase of 48% YoY.