Renewable Energy Trading at IEX Dips 12% in November, Weighted Average Price Rebounds

A total of 372,000 RECs cleared during the month, up 7.52% MoM


The Indian Energy Exchange (IEX) traded 354 million units (MU) of renewable energy in November 2022, a 12.2% decrease compared to the 403 MU traded the month before.

The exchange traded 7,764 MU of energy during the month, including Renewable Energy Certificates (REC) worth 372 MU. The total volume on the exchange in November was lower by 2.6% on a month-over-month (MoM) basis.

The overall volume dipped by 16% on a year-over-year (YoY) basis because the corresponding month in 2021 had high REC volumes amounting to 2.4 million, which were needed to fulfill the pent-up demand caused by a 16-month gap of trading

The total electricity volume traded on the exchange was 7,392 MU, an increase of 9% YoY.

The exchange said that improving coal inventory and the onset of winter will reduce the price further, which is expected to provide cost optimization opportunities to power distribution companies and Open Access consumers.

Green Market: Day-Ahead (DGAM) and Term-Ahead (GTAM)

The GDAM traded 288 MU volume with a weighted average price of ₹4.31 ($0.053)/ kWh, up 7.2% MoM. The market saw participation from 178 entities during the month, with the highest number of participants in a single day at 125.

The GTAM traded 66 MU volume during the month. The average monthly price for solar was ₹5.01 ($0.061)/ kWh, up 33%; for non-solar, it stood at ₹5.66 ($0.069)/kWh, up 3.9% MoM.

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

During November 2022, the Day Ahead Market (DAM) clearing price was ₹4.60 ($0.056)/kWh as against ₹3.08 ($0.038)/kWh YoY due to supply constraints caused by geopolitical factors.

Despite the increased price, DAM volume increased 8% YoY and 18% MoM, reaching 5,084 MU in November 2022.

The Real-Time Electricity Market achieved 1,407 MU volume during the month, registering 7% YoY growth.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily, weekly contracts, and long-duration contracts, traded 547 MU during the month, a jump of 81% YoY.

Renewable Energy Certificate Market 

The month saw 372,000 RECs cleared, registering an increase of 7.5% MoM. It comprised 68,000 non-solar RECs with a clearing price of ₹1,000 ($12.21)/REC.

Increased inventory of solar RECs saw the clearing price reaching at ₹1,000 ($12.21)/REC, with 303,000 solar RECs traded during the month.

The next REC trading session is scheduled for December 28, 2022.

IEX recently reported an 8% YoY decrease in profit after tax from ₹774 million ($9.4 million) to ₹712 million ($8.7 million) in the second quarter of the financial year 2022-23.