Indian Energy Exchange (IEX) achieved total monthly volume (including certificates) of 11,370 MU in September 2024, marking a 24 per cent year-on-year increase.
In a release, IEX said that electricity volume (including green electricity volume) during the month at 10,332 MU, increased 21 per cent year-on-year. Trading volume in renewable energy certificates (REC) at 1,031 MU doubled year-on-year in September 2024.
At Rs.110 per certificate, the REC market recorded an all-time low price in the trading session held on September 25, 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, the release said.
According to government data published in September 2024, the country’s energy consumption reached 141.3 billion units (BU), remaining flattish compared to the previous year. With a steady monsoon in September 2024, there was a significant rise in hydro and wind power generation, which led to a substantial drop in DAM and RTM prices, resulting in higher trading volumes during the month.
The Market Clearing Price in the Day Ahead Market (DAM) at Rs.4.18 per unit during September 2024 declined 33 per cent year-on-year. Similarly, the market clearing price in the Real Time Market (RTM) at Rs 3.98 per unit during September 2024 declined 28 per cent year-on-year. These prices present an opportunity for discoms and Open Access (OA) consumers to optimize their power procurement costs through power exchanges.
A total of 10.31 lakh RECs (equivalent to 1,031 MU), were traded in the trading sessions held on September 11, 2024 and September 25, 2024, at a clearing price of Rs.112 per REC and Rs.110 per REC, respectively. The REC trading price discovered on September 25, 2024 was the lowest ever on IEX since inception. [1 REC = 1,000 units or 1,000 kwh]
The next REC trading sessions on IEX are scheduled for October 9, 2024 and October 30, 2024.
Also read: IEX reports 35.8 per cent increase in August 2024 trading volume
