Indian Energy Exchange reports strong growth in trade volume for April

The Indian Energy Exchange (IEX) has recorded 14.1 per cent growth in its overall trade volume for April, reaching 9,044 million units (MU) compared to the same period last year.

In April 2023, the exchange achieved an overall trade volume of 7,928 MU, encompassing green market trade of 280 MU, 1.99 lakh RECs (renewable energy certificates equivalent to 199 MU), and 1.23 lakh ESCerts (energy savings certificates equivalent to 123 MU), according to IEX data.

Notably, RECs increased by 211 per cent year-on-year to 618 MU, with REC prices hitting an all-time low of Rs 204 per certificate during a trading session on April 24, 2024, marking an 80 per cent decline compared to the previous year.

These declining prices present an opportunity for obligated consumers to meet their Renewable Purchase Obligations and for voluntary customers to fulfil their sustainability goals.

The Market Clearing Price in the Day Ahead Market (DAM) for April 2024 stood at Rs 5.1/unit, representing a 6 per cent reduction year-on-year. Sell bids on the exchange, including the Day Ahead Market and Real Time Market, increased by 21 per cent compared to the previous year.

Despite an increase in the country's energy demand, favourable policy and regulatory interventions by the government and regulators have led to an improved sell scenario, enhancing sell liquidity at IEX while maintaining steady prices.

In April 2024, the DAM volume reached 4,116 MU, slightly lower than April 2023's 4,332 MU. Meanwhile, the Real-Time Electricity Market (RTM) continued its growth trajectory, with a volume increase from 2,152 MU in April 2023 to 2,629 MU in April 2024.

Furthermore, the Day Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily & weekly, and monthly contracts up to 3 months, traded 1,276 MU in April 2024, marking a significant 51.7 per cent increase year-on-year.

In the IEX Green Market segment, comprising Green Day-Ahead and Green Term-Ahead Market, a volume of 402 MU was achieved in April 2024.

Additionally, 523 ESCerts were traded on IEX last month, equivalent to 0.5 MU, at a floor price of Rs 2,165 per ESCert.

(With PTI inputs)