The Indian Energy Exchange (IEX), India’s leading electricity trading platform, announced a total electricity trading volume of 9,689 Million Units (MU) in November 2024, reflecting a 15.7% year-on-year (YoY) increase.
Despite the growth in electricity trading, the Renewable Energy Certificate (REC) market witnessed a decline, with 5.46 lakh RECs traded during the month, marking a 27.7% YoY decrease.
According to government data, India’s energy consumption for November 2024 reached 125 Billion Units (BUs), a 5% YoY increase. However, the Market Clearing Price (MCP) in the Day-Ahead Market (DAM) dropped to ₹3.30/unit, a 17.3% YoY decline. Similarly, the MCP in the Real-Time Market (RTM) was ₹3.46/unit, a 13.4% YoY decline.
The reduction in prices, attributed to increased liquidity on the supply side, marks the lowest monthly prices in the current fiscal year. These favourable rates present an opportunity for Distribution Companies (Discoms) and Open Access consumers to optimise their energy procurement by leveraging the exchange.
Day-Ahead Market (DAM): The DAM recorded a trading volume of 5,651 MU in November 2024, representing a 9.8% YoY growth from 5,144 MU in November 2023.
Real-Time Market (RTM): The RTM experienced a notable 28% YoY increase, with a total volume of 3,019 MU compared to 2,359 MU in November 2023.
Term-Ahead Market (TAM): TAM, including Day-Ahead Contingency, daily, weekly, and monthly contracts, traded 202 MU, down by 70.3% YoY from 679 MU in November 2023. Buyers gravitated towards the DAM and RTM segments due to robust sell-side liquidity.
The Green Market, encompassing the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), surged with a total traded volume of 818 MU, a 331.8% YoY increase from 189 MU in November 2023.
Green Day-Ahead Market (G-DAM): Achieved a trading volume of 793 MU in November 2024 at a weighted average price of ₹3.19/unit, up 335.2% YoY from 182 MU in November 2023.
Green Term-Ahead Market (G-TAM): Traded 25 MU in November 2024, with solar, non-solar, and hydro prices averaging ₹3.50/unit, ₹5.42/unit, and ₹3.68/unit respectively. This represented a 244.7% YoY growth from 7 MU in November 2023.
In the REC market, trading sessions held on November 13 and 27 saw a total of 5.46 lakh RECs exchanged at clearing prices of ₹140/REC and ₹190/REC, respectively.
The next REC trading sessions are scheduled for December 11 and December 26, 2024.
The IEX’s performance in November 2024 reflects a strong demand for energy and increasing adoption of renewable energy trading, supported by competitive pricing and robust market liquidity.
