Renewable Energy Trading on IEX Down 35% MoM in August

The month saw a total of 851,000 RECs cleared, registering a growth of 79% MoM


The Indian Energy Exchange (IEX) traded 437 million units (MU) of renewable energy in August 2022, registering a 6% year-over-year (YoY) growth. The volume traded declined by 35% compared to the 589 MU in July 2022.

The power exchange traded a total of 7,805 MU of energy during the month, registering a 9% month-over-month (MoM) growth. The traded volume comprised 6,517 MU in the conventional power market, 437 MU in the green power market, and 851 MU in the renewable energy certificate (REC) market, registering a drop of 18% YoY across all segments.

According to the power demand data published by the National Load Dispatch Center, the energy consumption was at 130.4 BU during August. The national peak demand was 195 GW.

Green Market: Day-Ahead and Term-Ahead

The Green Market comprising the Green Day-Ahead Market (GDAM) and Green Term-Ahead Market (GTAM), traded 437 MU volume during the month.

The GDAM traded 321 MU with a weighted average price of ₹5.20 (~$0.065)/kWh. In all, 157 entities participated in the process. The highest number of participants in a single day was 114 on August 10, 2022.

The GTAM traded 117 MU volume during the month. The average monthly price for solar was ₹3.57 (~$0.045)/kWh, while the average monthly price for non-solar was ₹6.15 (~$0.077)/kWh, and the average monthly price for hydro was ₹5.47 (~$0.069)/kWh.

Distribution utilities from Uttar Pradesh, Gujarat, Haryana, Karnataka, Delhi, Telangana, Daman & Diu, Dadra & Nagar Haveli, and industrial consumers participated in the trading process in August.

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

In August 2022, the Day-Ahead Market (DAM) traded 3,529 MU of energy, registering a flat growth on an MoM basis. Even though the imported coal prices remained high, increased hydro and renewable generation resulted in the market clearing price lowering by 5% on an MoM basis at ₹5.17 (~$0.065)/kWh.

The Real-Time Electricity Market traded 2,265 MU, registering a growth of 22% YoY. The highest single-day volume of 104 MU was on August 16, 2022.

The Term-Ahead Market (TAM), comprising intra-day, contingency, daily & weekly contracts, traded 723 MU during the month, registering 17% YoY growth and 64% MoM growth.

Renewable Energy Certificate Market

August saw 851,000 RECs cleared, registering a growth of 79% MoM. The volume comprised 418,000 non-solar RECs with a clearing price of ₹1,000 (~$12.53) per REC. Increased inventory of solar RECs saw the clearing price reaching floor-level of ₹1,000 (~$12.53) per REC with 432,000 solar RECs traded. In the previous month, 167,000 solar RECs were traded at a clearing price of ₹1,100 (~$13.95). The next REC trading session is scheduled for September 28, 2022.

In May this year, the Central Electricity Regulatory Commission (CERC) issued ‘Terms and Conditions for RECs for Renewable Energy Generation Regulations, 2022.’ According to the new regulations, renewable energy generating stations, captive generating stations based on renewable energy sources, distribution licensees, and open access consumers are now eligible to issue RECs.

Earlier, CERC had directed the power exchanges to redesign their bidding software so that members could submit their buy bids at the maximum price of ₹12 (~$0.16)/kWh for Day-Ahead Market and Real-Time Market.