IEX Trades 358 MU of Green Energy in May 2023, a 44% YoY Drop

The Real-Time Electricity Market achieved the highest-ever monthly volume of 2,424 MU


The Indian Energy Exchange (IEX) traded 358 million units (MU) of renewable energy during May 2023, a 28% increase from 280 MU traded in April and a 44% year-over-year (YoY) decrease.

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

The total trading volume was 8,251 MU, representing an 8% YoY increase.

The trading price during May dropped by 30% YoY from ₹6.76 (~$0.082)/kWh to ₹4.74 (~$0.057)/kWh, due to the cooler weather conditions and improving supply side scenario leading to increased liquidity.

The supply-side liquidity is expected to improve further as the power demand trends upwards, leading to enhanced coal supply, reduced e-auction coal prices, and declining imported coal and gas prices, IEX said.

The improvement would help achieve competitive prices and higher clearance for DISCOMs and Open Access consumers.

According to GRID-India, energy met in the country during the month was 136.5 BU, a marginal 1% YoY increase.

Green Market: Day-Ahead and Term-Ahead

The Exchange traded 199 MU in the GDAM during May 2023, with a weighted average price of ₹5.20 (~$0.063)/kWh and 181 market participants.

The GTAM traded 158 MU with an average monthly price of ₹3.47 (~$0.042)/kWh for solar, ₹5.43 (~$0.066)/kWh for non-solar, and ₹5.14 (~$0.062)/kWh for hydro.

The solar and non-solar prices dropped considerably by 46% and 34% YoY, respectively.

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

The Day-Ahead Market traded 4,066 MU in May, a 26% YoY increase from 3,224 MU. The average market clearing price during the month was ₹4.74 (~$0.057)/kWh, a 30% YoY drop.

The Real-Time Electricity Market (RTM) achieved the highest-ever monthly volume of 2,424 MU during May, a 13% MoM, and 5% YoY growth, with 719 participants.

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

The Term-Ahead Market, which includes intra-day, contingency, daily, and weekly contracts and contracts up to three months, traded 1,058 MU during the month, an 11% YoY drop.

Renewable Energy Certificate Market

The month of May saw 142,000 renewable energy certificates (RECs), equivalent to 142 MU traded with a clearance price of ₹899 (~$10.88) per REC.

The next REC trading session is scheduled on June 28, 2023.

Energy Saving Certificates

A total of 202,000 Energy Saving Certificates (ESCerts), equivalent to 202 MU, were traded at the IEX during the month. The floor price stood at ₹1,840 (~$22.28) per ESCert.

The exchange also introduced the Tertiary Reserve Ancillary Services (TRAS) Market Segment starting June 1, 2023, for the Day Ahead Market Ancillary Services and Real Time Market Ancillary Services.

In May, the Central Electricity Regulatory Commission approved the introduction of the TRAS market segment on all three power exchanges.

IEX reported a profit after tax of ₹883 million (~$10.7 million), a slight decrease of 0.1% YoY in the fourth quarter of the financial year 2023.