IEX December Market Update- Green Market Slide Continues with 60% Drop

Indian Energy Exchange,(IEX) India’s premier energy exchange, achieved 9,707 MU overall volume in December’23, including 10.52 Lac Renewable Energy Certificates (RECs) (equivalent to 1052 MU), marking a 14.9% increase on YoY basis. IEX achieved 8,655 MU total electricity volume in December 2023, registering an increase of 8.7% on YoY basis.

For the third quarter of the fiscal year 2024, IEX achieved 28,326 MU overall volume, registering an increase of 16.9% YoY basis.

According to government data published in December ’23, the country’s energy consumption remained flattish at 119.07 BUs.

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The Market Clearing Price in the Day Ahead Market for the month was Rs. 4.54/unit, marking a 13% YoY decrease. With favourable Policy and Regulatory interventions, the sell bids on the exchange (Day Ahead Market plus Real Time Market) during the month increased by 18% on YoY. Going forward, the sell liquidity is expected to further improve, leading to a decline in power prices on the Exchanges. This will present an opportunity for Discoms and Industrial consumers to optimize their power procurement costs.

ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET

The Day-Ahead Market (DAM) volume was at 4,798 MU in December ’23, as compared to 5,001 MU in December ’22. The DAM segment registered total volumes of 14,684 MU during Q3 FY ’24, a marginal increase of 1.5% over Q3 FY ’23.

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The Real-Time Electricity Market (RTM) volume increased to 2,405 MU in December ‘23, from 1,763 MU in December’22, registering an increase of 36.4 % YoY. The RTM segment registered volume of 7,166 MU during Q3 FY ’24, increasing 31.9% over Q3 FY ’23.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,220 MU during December ’23, higher by 48.4% on YoY basis. The total volume on the segment during the quarter was 3,810 MU, growth of 91.4% over Q3 FY’23.

*PowerX is the price index of Indian Energy Exchange (IEX) and is calculated based on weighted average price of Day-Ahead Market and Real-Time Market discovered for the previous day delivery.

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GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 232 MU volume during December’23, a 62.5% drop over the 377 MU achieved in December 2022. During Q3FY24, the segment achieved volume of 609 MU, a drop of over 46% over 2022.

The Green Day-Ahead Market (G-DAM) achieved 216.6 MU volume during the month, with a weighted average price of Rs 4.86 per unit. The segment saw participation from 187 market participants during the month. During Q3FY24, the segment achieved volume of 579.6 MU. The price is lower as compared to the price of Rs 5.24 in 2022.

The Green Term-Ahead Market (G-TAM) achieved 15.4 MU volume in December ‘23, with average monthly price of Non-Solar- Rs 6.08/unit. During Q3FY24, the segment achieved volume of 29.9 MU.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 10.52 lac RECs (equivalent to 1052 MU) were traded in the trading sessions held on 13th December ’23 and 27th December’23, at a clearing price of Rs. 370/REC and Rs. 360/REC respectively. REC traded volume in December’23 increased by 115.9% on YoY basis. A total of 20.24 lac RECs (equivalent to 2,024 MU) were traded during Q3 FY’24.