Indian Energy Exchange (IEX)

Indian Energy Exchange (IEX) released their power market performance for October 2023. Here are the key points:

1. Electricity Volume and Overall Volume Growth:

• IEX achieved 9,260 million units (MU) of electricity volume in October 2023, which marks a substantial 21% increase compared to the same month in the previous year (YoY).
• The overall volume traded during October, including renewable energy certificates (RECs) and energy saving certificates (ESCerts), also increased significantly, with an 18% YoY growth.

2. Increased Energy Consumption:

• The release mentions that in October 2023, the country’s energy consumption reached 139 billion units, indicating a substantial 22% YoY increase.
• This increase in energy consumption is attributed to a surge in electricity demand, below-average rainfall for the month, and a lower base from the same period the previous year.

3. Day-Ahead Market Prices:

• Due to the surge in power demand, Day-Ahead Market (DAM) prices on IEX increased substantially to Rs. 6.45 per unit, showing a remarkable 68% YoY increase.

4. Market Segments:

• The media release provides details on various market segments:
  • The Day-Ahead Market (DAM) volume increased to 4,742 MU in October 2023, showing an 8.3% YoY growth.
  • The Real-Time Electricity Market (RTM) volume increased to 2,402 MU, reflecting a 6.1% YoY increase.
  • Day Ahead Contingency and Term-Ahead Market (TAM) traded 1,911 MU during October ’23, a notable increase of 207.6% YoY.

5. Green Market:

• The IEX Green Market, including the Green Day-Ahead and Green Term-Ahead Market segments, achieved 188 MU volume during October ’23.
• The Green Day-Ahead Market achieved 180.80 MU volume with a weighted average price of Rs 6.37 per unit and saw participation from 194 market participants.
• The Green Term-Ahead Market achieved 7.23 MU volume in October ’23 with an average monthly price of Non-Solar at Rs 8.40/unit.

6. Renewable Energy Certificates (RECs):

• A total of 2.17 lac RECs (equivalent to 217 MU) were cleared in trading sessions held on 11th and 25th October ’23, at clearing prices of Rs. 380/REC and Rs. 420/REC, respectively.
• Upcoming REC trading sessions are scheduled on 8th November ’23 and 29th November ’23.

7. Energy Saving Certificates (ESCerts):

• In October ’23, 5,814 ESCerts (equivalent to 5.8 MU) were traded on IEX at the floor price of Rs. 1,840 per ESCert.