Green Energy Trade at IEX Up 173% YoY in June, REC Prices Tumble

The Indian Energy Exchange (IEX) traded 744 million units (MU) of green energy in June 2024, a 173.4% year-over-year (YoY) increase from 272 MU. The segment recorded a volume of 1,768 MU during the first quarter (Q1) of the financial year (FY) 2025, a growth of 94.3 % year-over-year (YoY).

The Exchange achieved an electricity volume of 10,185 MU in June, marking a 24.7% YoY increase. The total monthly volume including certificates, was 10,677 MU, an increase of 19.4% YoY.

In Q1 FY 2025, IEX recorded an electricity trading volume of 28,178 MU, a 19% YoY. Including certificates, the total volume for the quarter reached 30,354 MU, showing a 20.8% YoY.

Government data from June 2024 revealed that the country’s energy consumption hit 152.4 billion units (BUs), reflecting an 8.9% YoY increase. This surge was driven by hot spells, boosting energy demand significantly. Specifically, energy consumption in Q1 FY 2025 totaled 452 BUs, up 11.2% YoY. Peak demand during the quarter topped 250 GW, surpassing the previous record of 243 GW set in September last year.

To manage this demand surge, the government and regulators implemented proactive measures. These included selling surplus un-requisitioned power on exchanges, increasing fuel supply, and ensuring higher availability of generating units. These actions boosted liquidity on the exchanges and helped maintain control over market prices. Despite increased electricity consumption, the market clearing price in the Day Ahead Market for June remained stable at ₹5.40 (~$0.065)/kWh, unchanged from the previous year. This price was also more than 20% lower than prices observed under bilateral contracts.

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

In June, the Green Day-Ahead Market (G-DAM) saw a volume of 680 MU with a weighted average price of ₹4.14 (~$0.05)/kWh, marking a 309.5% YoY rise. The G-DAM recorded a volume of 1,616 MU in Q1 FY 2025, reflecting a growth of 208.4% YoY.

The Green Term-Ahead Market (G-TAM) saw a volume of 64 MU with a monthly average price of ₹8.88 (~$0.11)/kWh for non-solar sources. G-TAM achieved a volume of 152 MU during Q1 FY 2025.

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

In June, the Day-Ahead Market (DAM) saw its volume rise to 4,849 MU, marking an 18.2% YoY increase. DAM recorded a total volume of 13,336 MU in Q1 FY 2025, a 6.7% YoY increase.

The Real-Time Electricity Market (RTM) also showed growth, reaching 3,213 MU, an increase of 20.1% YoY. RTM volume totaled 9,193 MU in Q1 FY 2025, up 26.8% YoY.

The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts for up to three months, traded 1,378 MU in June, marking a 23.3% increase YoY. Total volume for the quarter in this segment reached 3,875 MU, growing by 28.4% YoY.

Renewable Energy Certificate Market (REC) Market

In the trading sessions held on June 12 and June 26, 2024, 439,000 RECs, equivalent to 439 MU, were traded at clearing prices of ₹150 (~$1.8)/REC and ₹140 (~$1.68)/REC, respectively. Throughout the quarter, 2.11 million RECs, equivalent to 2,112 MU, were traded.

The price of ₹140 (~$1.68)/REC during these sessions marks the lowest ever recorded since the inception of REC trading.

The upcoming REC trading sessions at the Exchange are scheduled for July 10 and July 3, 2024.

Energy Saving Certificates (ESCerts)

In June, 52,756 ESCerts, equivalent to 53 MU, were traded at a floor price of ₹2,165 (~$26)ESCert. 63,273 ESCerts, equivalent to 63 MU, were traded during the quarter.

The Exchange reported a total traded volume of 10,633 MU in May 2024, a 28.9% YoY increase.

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