Indian Energy Exchange (IEX) has reported a significant surge in electricity demand and trading volumes during October 2023, reflecting the country’s growing appetite for power. According to the latest data, IEX achieved a total electricity volume of 9,260 million units (MU) in October, marking a remarkable 21% increase compared to the same month in the previous year.
The overall volume traded on IEX, including Renewable Energy Certificates (RECs) and Energy Saving Certificates (ESCerts), reached an impressive 9,483 MU, with 2.17 lakh RECs (equivalent to 217 MU) and 5,814 ESCerts (equivalent to 5.8 MU) being a part of this robust performance. This 18% YoY increase in trading volumes is attributed to a combination of factors, including rising electricity consumption, below-average rainfall in October, and a lower base from the same month last year.
Data published by GRID-INDIA reveals that India’s energy consumption surged to 139 billion units in October 2023, marking a substantial 22% year-on-year increase. The surge in power demand prompted Distribution Companies (DISCOMs) to actively purchase power on the exchange to meet the increased demand, which in turn, led to a significant increase in trade volumes on IEX.
The Day-Ahead Market (DAM) was especially impacted, with prices reaching ₹6.45 per unit, representing a remarkable 68% YoY increase compared to the same month last year. The DAM volume also saw a healthy growth of 8.3% YoY, increasing from 4,379 MU in October ’22 to 4,742 MU in October ’23.
Additionally, the Real-Time Electricity Market (RTM) reported an increase in volume, reaching 2,402 MU in October ’23, compared to 2,265 MU in October ’22, registering a 6.1% YoY growth. The RTM segment, which enables distribution utilities and industries to balance their power demand-supply on a real-time basis, continued to play a crucial role in supporting the evolving energy landscape.
IEX also introduced the Day Ahead Contingency and Term-Ahead Market (TAM), which comprises contingency, daily & weekly, and monthly contracts up to 3 months. In October ’23, the TAM traded 1,911 MU, marking a substantial increase of 207.6% on a YoY basis, underscoring the growing demand for flexible power procurement solutions.
In the realm of green energy, IEX Green Market reported a notable performance during October ’23. The Green Day-Ahead Market (G-DAM) achieved a volume of 180.80 MU, with a weighted average price of ₹6.37 per unit. This segment garnered participation from 194 market participants during the month. Additionally, the Green Term-Ahead Market (G-TAM) reported a volume of 7.23 MU in October ’23, with a monthly average price of Non-Solar at ₹8.40 per unit.
Furthermore, IEX witnessed a successful clearance of 2.17 lakh RECs during trading sessions held on 11th and 25th October ’23, with clearing prices of ₹380/REC and ₹420/REC, respectively. The next REC trading sessions at the Exchange are scheduled on 8th and 29th November ’23.
Finally, during October ’23, 5,814 ESCerts were traded on IEX at a floor price of ₹1,840 per ESCert, highlighting the growing interest in energy efficiency and conservation.
