Indian Energy Exchange (IEX) has recorded a 15 per cent year-on-year growth in overall trading volumes during the second quarter (Q2: July-September) of FY24.
During Q2 of FY24, IEX recorded a trading volume of 26.53 BU, an increase from 23.12 BU in Q2 of FY’23, marking a growth of 15 per cent. This volume includes 24.07 BU from the conventional power market and 747.64 MU from the Green Market segment. The Exchange also traded 13.91 lakh Renewable Energy Certificates (REC), equivalent to 1,391 MU, and 2.79 lakh ESCerts, equivalent to 279 MU, a release by IEX said.
Power demand
Power demand was higher than anticipated for the monsoon months, with peak power demand reaching nearly 240 GW in the first week of September 2023. States like Maharashtra, Uttar Pradesh, Gujarat, and Tamil Nadu witnessed soaring demand this quarter.
Meanwhile, electricity consumption in India for Q2 FY24 stood at 435.8 BU, a growth of 13 per cent year-on-year.
Coal scenario
On the fuel side, India’s coal production increased by a robust 16.2 per cent to reach 205 million tonnes in Q2 of FY24. E-auction coal premium continued its decline since the beginning of this financial year. This improved supply side scenario resulted in increased sell liquidity but an unexpected surge in power demand kept prices higher on IEX in Q2 of FY24.
Price trends
The average market clearing price in the DAM segment during Q2 FY24 period was Rs.5.88 per kwh compared with Rs.5.40 per kwh in the same quarter last year, higher by nearly 9 per cent.
Also read: IEX Sees Positive Impact Of CERC Regulation On ISTS Charges
Installed Capacity
By end of September 2023, India’s total installed power generation capacity stood at 425 GW, out of which 179 GW was contributed by renewables. India remains on track to attain its target of achieving 50 per cent of energy consumption from non-fossil fuel sources by 2030, the IEX release said.
