Renewable Energy Trading on IEX Declines by 16.5% MoM in June

A total of 673,000 RECs were cleared in June, registering a growth of 145% MoM


The Indian Energy Exchange (IEX) traded 536 million units (MU) of renewable energy in June 2022, a 16.5% decrease month-over-month (MoM) compared to 642 MU traded in the previous month.

The exchange traded 8,267 MU of energy during the month. The traded energy comprised 7,058 MU in the conventional power market, 536 MU in the green power market, and 673 MU in the renewable energy certificate (REC) market, registering 17% YoY growth across all segments.

Green Market: Day-Ahead and Term-Ahead

The Green Market comprising the Green Day-Ahead Market (GDAM) and Green Term-Ahead Market (GTAM) traded 536 MU volume during the month, registering a YoY growth of 30%.

The GDAM traded 362 MU with a weighted average price of ₹5.94 (~$0.075)/kWh. In all, 148 entities participated in the process. The highest number of participants in a single day was 110 on June 23, 2022.

GTAM traded 173 MU volume during the month and saw participation from 24 entities. The average monthly price for solar was ₹3.83 (~$0.048)/kWh, while the average monthly price for non-solar was ₹8.13 (~$0.103)/kWh, and the average monthly price for hydro was ₹6.75 (~$0.085)/kWh.

Distribution utilities from Haryana, Telangana, Karnataka, Uttar Pradesh, and several industrial entities participated in the trading process in June.

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

In June 2022, the Day-Ahead Market (DAM) traded 4.085 BU of energy, registering a decline of 5% YoY and a growth of 29% MoM during June. The average market clearing price in June was ₹6.49 (~$0.082)/kWh.

The Term-Ahead Market (TAM) comprising intra-day, contingency, daily, and weekly contracts traded 759 MU, registering 18% YoY growth.

The Real-Time Electricity Market traded 2.214 BU, registering a growth of 28% YoY. The highest single-day volume of 96.43 MU was on June 14, 2022.

Renewable Energy Certificate Market

 June saw a total of 673,000 RECs cleared, registering a growth of 145% MoM. The volume comprised 459,000 non-solar RECs with a clearing price of ₹1,000 (~$12.67) per REC and 214,000 solar RECs with a clearing price of ₹1,500 (~$19.03). The next REC trading session is scheduled for July 27, 2022.

 Recently, the Central Electricity Regulatory Commission approved the introduction of additional Term-Ahead and Green Term-Ahead contracts beyond T+11 days (T indicating zero-day of trading) on power exchanges. Earlier, exchanges were allowed to sell contracts for up to 11 days. With the introduction of longer-duration contracts, they will now be able to facilitate trade contracts comprising daily, weekly, and monthly contracts for up to three months.

Earlier, CERC issued ‘Terms and Conditions for RECs for Renewable Energy Generation Regulations, 2022.’ According to these 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.