Renewable Energy Trading Dips 53% YoY at the IEX in July 2023

The exchange traded a total volume of 8,522 MU during the month, up 19% YoY


The Indian Energy Exchange (IEX) traded 275 million units (MU) of renewable energy in July 2023, a year-over-year (YoY) decline of 53.3% from 589 MU and marginally increasing from 272 MU in June.

By the end of July, the total traded volume reached 8,522 MU, indicating a year-over-year (YoY) increase of 19%.

During July, the trading price settled at ₹4.55 (~$0.055)/kWh,  a 16% reduction from the previous year. Enhanced liquidity on the sell-side of the exchange platform led to the decline.

The decreased supply situation persisted throughout the month due to strong coal production, decreased costs of e-auctioned coal, and lower imported fuel prices.

IEX anticipates heightened liquidity to yield more competitive pricing, offering additional chances for optimization to distribution companies and consumers with open access.

According to the data published by GRID-India, the energy met in the country during July 2023 stood at 139 BU, an increase of 9% YoY.

Green Market: Day-Ahead and Term-Ahead

In July, the IEX Green Market, encompassing both the Green Day-Ahead and Green Term-Ahead Market segments, traded 275 MU.

Specifically, the Green Day-Ahead Market conducted trades for a volume of 213 MU over the month, achieving a weighted average price of ₹4.95 (~$0.060)/kWh. This segment attracted participation from 200 market players.

The Green Term-Ahead Market traded 62 MU. The average monthly prices for this segment were ₹3.10 (~$0.037)/kWh for solar energy, ₹4.99 (~$0.060)/kWh for non-solar sources, and ₹4.45 (~$0.054)/kWh for hydroelectric energy.

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

In July, the Day-Ahead Market saw trading activity amounting to 3,976 MUrepresenting a 12% YoY upswing. The average market clearing price stood at ₹4.55 (~$0.055)/kWh, a 16% decrease over the corresponding period last year.

The Real-Time Electricity Market traded 2,540 MU, a YoY expansion of 19%.  The segment attracted the participation of 757 entities during the month. The Real-Time Market division empowers distribution utilities and industries with heightened flexibility and improved portfolio optimization by maintaining a real-time equilibrium between power demand and supply.

The Term-Ahead Market, which encompasses contracts such as intraday, contingency, daily, weekly, and contracts spanning up to three months, traded 1,036 MU in July, a YoY surge of 136%.

Renewable Energy Certificate Market

During the July 26, 2023 trading session, 624,000 renewable energy certificates (RECs), corresponding to 624 MU, were transacted at a price of ₹650 (~$7.86)/REC. The next REC trading session will be held on August 30, 2023.

Energy Saving Certificates 

In the month of July, a total of 70,222 energy-saving certificates (ESCerts), amounting to 70 MU, were exchanged on the platform at a base price of ₹1,840 (~$22.25) per ESCert.

IEX reported a profit after tax of ₹758.2 million (~$9.2 million), an increase of 10% YoY in the first quarter of the financial year 2024. Electricity volumes witnessed a 6.9% YoY growth during April-June, with 23.7 BU traded. The conventional power market accounted for 22.8 BU, while the green market segment saw 910 MU traded.