Renewable Trading on IEX Declined by 49% YoY in September 2023

The exchange traded a total volume of 9,147 MU during the month, up 13% YoY


The Indian Energy Exchange (IEX) traded 230 million units (MU) of renewable energy in September 2023, a year-over-year (YoY) decline of 49.3% from 454 MU and a 5% drop from 242.3 MU traded in August.

During September, the total traded volume reached 9,147 MU, indicating a YoY increase of 13%. The total volume comprised green energy trade, renewable energy certificates (515 MU), and energy saving certificates (106 MU).

The strong demand observed in August persisted into September when the nation’s electricity usage surged to 140 BU, a YoY growth of 10% from 127 BU.

Grid-India reported that on September 1, the country reached an unprecedented peak demand of 240 GW, and on September 2, it achieved its highest-ever daily energy consumption, reaching 5,224 MU.

The IEX Green Market, which encompasses both the Green Day-Ahead Market (GDAM) and Green Term-Ahead Market (GTAM) segments, reported a total volume of 230 MU for September. In the second quarter (Q2) of FY24, the segment recorded a higher volume of 748 MU.

Specifically, the GDAM achieved a volume of 140 MU for the month, with a weighted average price of ₹6.47 (~$0.078)/kWh. Notably, 192 market participants were active in this segment during September. In Q2 FY24, the GDAM recorded a volume of 513 MU.

On the other hand, the GTAM segment saw a volume of 90 MU in September, with average monthly prices of ₹5.69 (~$0.068)/kWh for solar, ₹6.74 (~$0.078)/kWh for non-solar, and ₹6.43 (~$0.077)/kWh for hydro. Over the course of Q2 FY24, the GTAM segment achieved a total volume of 235 MU.

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

In September 2023, the Day-Ahead Market (DAM) recorded a total volume of 3,467 MU. The average market clearing price for September was ₹6.23 (~$0.075)/kWh, an 11% YoY increase.

For Q2 FY24, the DAM segment reported a cumulative volume of 11,253 MU, up 1.4% YoY.

Meanwhile, the Real-Time Electricity Market (RTM) performed exceptionally well in September 2023, achieving a total volume of 2,923 MU, which marked a substantial 33% YoY increase.

It’s worth highlighting that IEX achieved its highest single-day volume ever in the RTM segment on September 4, 2023, with a total of 134 MU. For Q2 FY24, the RTM segment reported a total volume of 8201 MU, reflecting a robust 24% YoY increase.

The RTM segment empowers distribution utilities and industries to enhance flexibility and optimize their portfolios more efficiently by balancing power demand and supply in real time.

The Term-Ahead Market (TAM) and the Day-Ahead Contingency Market (DAC), which include various contract types such as intra-day, contingency, daily, weekly, and contracts for up to three months, saw a significant increase in trading activity in September.

They collectively traded 1,895 MU during the month, representing a remarkable 115% YoY growth. Moreover, the cumulative volume for this segment during Q2 FY24 amounted to 4,605 MU, marking an impressive 125% YoY expansion.

 Renewable Energy Certificate Market

 In the trading session conducted by IEX on September 27, a total of 515 MU were successfully cleared at a rate of ₹500 (~$6.01)/REC. The cumulative trading volume for Q2 FY24 amounted to 1,391 MU. The next REC trading session at the exchange is slated for October 25.

Energy Saving Certificates

During September, 106 MU of ESCerts were traded on IEX at the floor price of ₹1,840 (~$22.09)/ESCert. A total of 280 MU ESCerts were traded in Q2 FY24.

Recently, 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.