Indian Energy Exchange Achieves Record Growth in September 2024
The Indian Energy Exchange (IEX), a leading electricity exchange in India, reported a significant increase in its monthly trading volume for September 2024. The total volume reached 11,370 million units (MU), marking a 24% year-on-year (YoY) growth.
Electricity and Renewable Energy Growth
The electricity volume, including green electricity, was 10,332 MU, a 21% YoY increase. Renewable Energy Certificates (REC) saw a remarkable rise, doubling to 1,031 MU compared to the previous year. The REC market recorded a low price of Rs 110 per certificate on September 25, 2024, providing a cost-effective opportunity for entities to meet their Renewable Purchase Obligations.
Market Trends and Prices
India’s energy consumption in September 2024 was 141.3 billion units, similar to the previous year. Favorable monsoon conditions boosted hydro and wind power, reducing prices in the Day-Ahead Market (DAM) and Real-Time Market (RTM). The DAM price dropped 33% YoY to Rs 4.18 per unit, while the RTM price fell 28% YoY to Rs 3.98 per unit.
Market Performance
The DAM experienced a 33% YoY growth, reaching 4,610 MU in September 2024. The RTM achieved its highest-ever monthly volume of 3,913 MU, a 34% YoY increase. However, the Day-Ahead Contingency and Term-Ahead Market (TAM) saw a 43% YoY decline.
Green Market Success
IEX’s Green Market, including the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), recorded a 214% YoY increase, trading 723 MU in September 2024. The G-DAM segment was particularly successful, with a 408% YoY surge in traded volume.
REC Market Milestone
The REC market reached a milestone with 1,031 MU traded, a 100% YoY increase. The clearing prices were the lowest ever, at Rs 112 and Rs 110 per REC. The next REC trading sessions are scheduled for October 9 and 30, 2024.
Doubts Revealed
Indian Energy Exchange (IEX) -: The Indian Energy Exchange is a platform where electricity is bought and sold. It’s like a big online market for electricity in India.
Trading volume -: Trading volume refers to the amount of electricity that was bought and sold on the exchange. It’s like counting how many toys were sold in a toy shop.
Renewable Energy Certificates (REC) -: These are like special certificates that show electricity was made using renewable sources like wind or solar. It’s a way to encourage using clean energy.
Monsoon -: Monsoon is a season in India when it rains a lot. This rain can help produce more electricity from water, which can lower prices.
Day-Ahead and Real-Time Markets -: These are types of markets where electricity is bought and sold for the next day or immediately. It’s like planning to buy a snack for tomorrow or buying it right now.
Green Market -: The Green Market is a part of the exchange where only clean or renewable energy is traded. It’s like a special section in a shop for eco-friendly products.
Green Day-Ahead Market -: This is a market where people buy and sell green energy for the next day. It’s like planning to use only eco-friendly products tomorrow.