January Power Market- IEX Reports Highest Ever Volumes, Green Power Slides

Indian Energy Exchange (IEX), India’s leading electricity exchange, achieved the highest-ever total volumes in January 2024, reaching 10,893 million units (MU) – marking a 26.1% year-over-year increase.

This volume comprises 9,137 MU from the conventional power market segment, 236 MU from the green market segment, and 15.20 lakh Renewable Energy Certificates (RECs) (equivalent to 1,520 MU).

According to government data published in January’24, the country’s energy consumption reached 133.8 BUs, representing a 6 % increase on a year-on-year basis. The Market Clearing Price in Day Ahead Market during January ‘24 was Rs. 5.83/unit, down approximately 6% year-on-year, due to easing supply side constraints. Increased electricity consumption coupled with easing supply-side constraints led to an increase in the volumes of electricity traded on the Exchange, which is expected to continue going forward.

 

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

The Day-Ahead Market (DAM) volume was at 5,540 MU in January ’24, as compared to 4,893 MU in January ’23, registering an increase of 13.2% YoY.

The Real-Time Electricity Market (RTM) volume increased to 2,380 MU in January ‘24, from 2102 MU in January’23, registering an increase of 13.2 % YoY.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,217 MU during January ’24, higher by 34.9% on YoY basis.

The longer-duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded 10 BU mark on an annual basis (year-to-date) in FY’24, increasing by more than 600% YoY.

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

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 236 MU volume during January’24. This continues a slide seen in recent months, with the numbers comparing poorly to the 347 MW trade in January last year, or a 35% drop

The Green Day-Ahead Market (G-DAM) achieved 210 MU volume during the month (down 26% YoY), with a weighted average price of Rs 5.87 per unit. The segment saw participation from 189 market participants (down from 208 during the same month last year).

The Green Term-Ahead Market (G-TAM) achieved 26 MU volume in January ‘24 down 57% over 61 MU in January 2023, with an average monthly price of Non-Solar- Rs 6.57/unit, a slight increase over the price of Rs 6.57 last year.

A total of 15.20 lac RECs (equivalent to 1520 MU) were traded in the trading sessions held on 10^th January ’24 and 31^st January’24 at a clearing price of Rs. 360/REC. This is the highest REC volume in the current financial year.

REC Price on the exchange has been experiencing a downward trend and is currently at its lowest level this financial year. This presents an opportunity for obligated consumers (Discoms, Open Access Consumers and Captive Power Producers) to meet their Renewable Purchase Obligations (RPO) at more affordable rates.

The next REC trading sessions at the Exchange are scheduled on 14^th February’24 and 28^th February’24.