Green Energy Trade at IEX Up by 44% in April, REC Prices Plummet by 80%

The Indian Energy Exchange (IEX) traded 402 million units (MU) of green energy in April 2024, a 44% year-over-year (YoY) increase from 280 MU.

The Exchange, in total, traded 9,044 MU of power in the month, marking a 14% YoY increase.

During April, the Market Clearing Price in the Day Ahead Market decreased by approximately 6% compared to the previous year, reaching ₹5.1 (~$0.061)/kWh. Sell bids on the Exchange, including both the Day Ahead Market and Real-Time Market, saw a notable 21% YoY increase for the month.

Day Ahead Market prices were nearly 45% lower than those discovered under bilateral contracts.

Government data released in April indicated a significant 11% YoY rise in the country’s energy consumption, reaching 144 BUs.

Government and regulatory interventions contributed to an improved selling scenario, enhancing sell liquidity at IEX despite the surge in energy demand. This equilibrium between supply and demand has maintained stable prices on the Exchange.

In anticipation of the summer, the Ministry of Power has introduced several measures. These include requiring thermal generating stations to sell surplus un-requisitioned power on power exchanges and rescheduling planned maintenance of thermal power plants to the monsoon season. The operationalization period for imported coal-based plants under section 11 directions was also extended until October 15, 2024.

Furthermore, the Government has mandated all gas-based power generating stations to operate their plants from May 1 to June 30 to meet the increased electricity demand.

Green Market: Green Day-Ahead & Green Term-Ahead Market

The IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 402 MU volume during April.

The Green Day-Ahead Market achieved 361 MU volume during the month, with a weighted average price of ₹4.1 (~$0.049)/kWh. The segment saw participation from 234 market participants during the month.

The Green Term-Ahead Market achieved 41 MU volume in April with an average monthly price of solar ₹4.12 (~$0.049)/kWh and non-solar ₹6.19 (~$0.074)/kWh.

Electricity Market: Day- Ahead, Term- Ahead &Real-Time Market

The Day-Ahead Market volume was 4,116 MU in April, down 5% YoY compared to 4,332 MU YoY.

The Real-Time Electricity Market continued its growth trajectory in April. The RTM volume increased to 2,629 MU in April from 2,152 MU a year ago, registering an increase of 22% YoY.

Day Ahead Contingency and Term-Ahead Market, comprising of contingency, daily & weekly, and monthly contracts up to 3 months, traded 1,276 MU during April, up 52% YoY.

Renewable Energy Certificate Market (REC) Market

A total of 618,000 RECs (equivalent to 618 MU) were traded in the trading sessions held on April 10 and April 24 at a clearing price of ₹240 (~$2.88)/REC and ₹204 (~$2.45)/REC, respectively.

At ₹204 (~$)/ certificate, the REC market recorded an all-time low price in the trading session held on April 24, 2024. The REC prices have declined by 80% YoY. These prices allow obligated consumers to meet their renewable purchase obligations and voluntary customers to meet their sustainability aspirations.

The next REC trading sessions at the Exchange are scheduled for May 8 and May 29.

Energy Saving Certificates (ESCerts)

During April, 523 ESCerts (equivalent to 0.5 MU) were traded on IEX at the floor price of ₹2,165 (~$26)/ ESCert.


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