IEX reports 14.1% increase in April volume, REC prices drop to record low

New Delhi: The Indian Energy Exchange (IEX), India’s leading electricity exchange, reported an overall volume of 9,044 MU in April 2024, marking a 14.1% increase compared to the previous year.

The Renewable Energy Certificate (REC) market saw 618 MU traded, a 211% increase year-over-year, with prices reaching a record low of Rs. 204 per certificate in the April 24 trading session. This represents an 80% decline year-over-year, providing opportunities for obligated consumers to meet their renewable purchase obligations and voluntary customers to fulfill sustainability goals.

The market clearing price in the day-ahead market stood at Rs. 5.1/unit, down 6% year-over-year. Sell bids in the day-ahead and real-time markets increased by 21% YoY, and DAM prices were 45% lower than those discovered under bilateral contracts.

Government data released in April shows India's energy consumption rose to 144 BUs, an 11% increase year-over-year. Favorable policies and regulatory interventions contributed to improved sell liquidity at IEX despite rising energy demand. Measures from the ministry of power, including mandating the sale of surplus un-requisitioned power on exchanges by thermal generating stations and rescheduling maintenance of thermal power plants to the monsoon season, helped balance supply and demand. Section 11 directions for imported coal-based plants have been extended until October 15, 2024, and gas-based power plants are operational from May 1 to June 30.

The day-ahead market saw a volume of 4,116 MU in April 2024, compared to 4,332 MU in April 2023. The real-time market saw a volume of 2,629 MU in April 2024, up from 2,152 MU in April 2023, a 22.1% increase year-over-year. The day-ahead contingency and term-ahead markets, including contingency, daily, weekly, and monthly contracts, traded 1,276 MU in April 2024, a 51.7% increase year-over-year.

The IEX green market, encompassing both green day-ahead and green term-ahead segments, reached 402 MU in April 2024. The green day-ahead market (G-DAM) saw 361 MU, with a weighted average price of Rs 4.10/unit, involving 234 participants. The green term-ahead market (G-TAM) saw 41 MU, with solar averaging Rs 4.12/unit and non-solar Rs 6.19/unit.

In two trading sessions, April 10 and April 24, 6.18 lakh RECs (618 MU) were traded, clearing at Rs. 240/REC and Rs. 204/REC, respectively. The Rs. 204 price is the lowest REC price since inception. The next REC trading sessions are scheduled for May 8 and May 29.

In April, 523 ESCerts (0.5 MU) were traded at a floor price of Rs. 2165 per ESCert.