IEX trade volume increases by nearly 36% to 12,040 mn units in Aug

Indian Energy Exchange (IEX) total trade volume rose 35.8 per cent year-on-year to 12,040 million units (MU) in August this year.

The electricity volume increased 17.1 per cent year-on-year to 9,914 MU in August, an IEX statement said.

According to the statement, IEX achieved total (trade) volume (including certificates) of 12,040 MU in August 2024, marking a 35.8 per cent year-over-year increase.

The renewable energy certificates (REC) at 2,116 MU, increased 737.4 per cent year-on-year. At Rs 115 per certificate, the REC market recorded an all-time low price in the trading session held on August 28, 2024.

These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their renewable purchase obligations, and voluntary customers to meet their sustainability aspirations.

As the monsoon gained momentum in August, there was a substantial increase in hydro and wind power generation, enhancing the overall availability of renewable energy in the system, according to the statement.

This led to a significant decline in Day-Ahead Market (DAM) prices and Real-Time Market (RTM) prices on the exchange.

The Market Clearing Price in the Day-Ahead Market during August 2024 declined 38 per cent year-on-year to Rs 4.28/unit.

Similarly, the Market Clearing Price in the Real-Time Market slipped 44.8 per cent year-on-year to Rs 3.59/unit.

The Day-Ahead Market (DAM) volume increased to 4,666 MU in August 2024 from 3,810 MU in August 23, registering an increase of 22.5 per cent.

The Real-Time Electricity Market (RTM) achieved highest ever monthly volume of 3,485 MU in August 2024, up from 2,738 MU in August 2023, a rise of 27.3 per cent.

The RTM segment also achieved its highest-ever single-day trade of 156 MU on August 26, demonstrating the market's ability to adapt to dynamic demand-supply scenarios.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly and monthly contracts up to 3 months, traded 886 MU during August 2024.

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 871 MU volume during August 2024 compared to 242.30 MU in August 2023, registering an increase of 259.5 per cent.

The Green Day-Ahead Market (G-DAM) achieved 849.3 MU volume during August 2024 with a weighted average price of Rs 3.69 per unit compared to 159.7 MU in August 2023, a rise of 431.8 per cent.

The Green Term-Ahead Market (G-TAM) achieved 21.7 MU volume in August 2024, with an average monthly price of non-solar Rs 7.89 /unit.

A total of 21.16 lakh RECs (equivalent to 2,116 MU) were traded in the trading sessions held on August 14, 2024, and August 28, 2024, at a clearing price of Rs 118/REC and Rs 115/REC, respectively.