Indian Energy Exchange (IEX) witnessed a year-on-year growth of nearly 25 per cent in volume of electricity trade during June 2024.
In a release, IEX said that electricity trading volume in June 2024 touched 10,185 MU, marking a growth of 24.7 per cent over the comparable volume in June 2023. Total monthly volume, including certificates (RECs and ESCerts) was 10677 MU, registering a 19.4 per cent year-on-year growth in June 2024.
In Q1 (April to June) of FY25, IEX achieved electricity volume of 28,178 MU, which was 19 per cent higher than that in Q1FY24. Total volume in Q1FY25 was up 20.8 per cent year-on-year, reaching 30354 MU.
According to government data published in June 2024, the country’s energy consumption reached 152.4 BU, representing an 8.9 per cent increase year-on-year, the IEX release said.
Hot weather conditions led to an unprecedented surge in electricity demand during the first quarter of this financial year. The country’s energy consumption of 452 BU in Q1FY25 was 11.2 per cent higher compared to Q1FY24.
During the quarter, the country’s peak demand reached 250 GW, surpassing the previous high of 243 GW recorded in September last year.Proactive measures taken by the government and the regulators, including the sale of surplus un-requisitioned power on power exchanges, increased fuel supply and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges which kept the prices under control on exchanges. Therefore, despite the increase in the electricity consumption, the market clearing price in Day Ahead Market during June 2024 was Rs.5.40 per kwh, similar as last year, however it was lower by more than 20 per cent as compared to prices discovered under bilateral contracts.
REC trading
A total of 4.39 lakh RECs (equivalent to 439MU) were traded in the trading sessions held on June 12, 2024 and June 26, 2024, at a clearing price of Rs.150 per REC and Rs.140 per REC, respectively. A total of 21.12 lakh RECs (equivalent to 2,112 MU) were traded during Q1FY25.
The IEX release also observed that the price of Rs.140 per REC discovered on June 26, 2024 was the lowest on IEX since its inception.
The next REC trading sessions on IEX are scheduled on July 10, 2024 and July 31, 2024.
Also read: IEX Sees Highest-Ever Monthly Volume In RTM Segment
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