Indian Energy Exchange records strong 19% rise in July trade volume

The Indian Energy Exchange (IEX) has reported a robust 19 per cent year-on-year increase in its total trade volume for July, reaching 8,522 million units (MU).

This performance marks a notable upturn from the 7,151 MU trade volume achieved in July 2022. The growth is attributed to a mix of factors, including green market trades of 275 MU, 6.24 lakh Renewable Energy Certificates (RECs) equivalent to 624 MU, and 70,222 Energy Savings Certificates (ESCerts) equivalent to 70 MU, as stated in an official release from IEX.

The supply landscape saw improvements during the month due to enhanced coal production, reduced prices of e-auction coal, and a decline in imported fuel prices. The upcoming months are anticipated to witness higher liquidity, fostering more competitive pricing on exchanges, and subsequently providing optimisation prospects for distribution companies (discoms) and Open Access consumers.

DAM and RTE markets showcase significant improvements

In the Day-Ahead Market (DAM), trade volume surged to 3,976 MU in July 2023, marking a 12 per cent year-on-year growth from 3,547 MU in July 2022. The average market clearing price for the month settled at Rs 4.55 per unit, reflecting a 16 per cent decrease compared to the corresponding month last year.

The Real-Time Electricity Market (RTM) showcased a commendable performance, achieving 2,540 MU in July 2023, and registering a 19 per cent year-on-year growth. This segment attracted participation from 757 entities during the month.

Furthermore, the Term-Ahead Market (TAM), encompassing various contracts including intra-day, contingency, daily, weekly, and up to three-month contracts, exhibited a remarkable surge of 136 per cent year-on-year, trading 1,036 MU last month.

The data underscores IEX's pivotal role in facilitating energy trading, while also reflecting the dynamism of India's energy market.

(With PTI inputs)