IEX trades up 285% YoY
ECONOMY & POLICY

IEX trades up 285% YoY

The Indian Energy Exchange (IEX) traded 1.52 million renewable energy certificates (RECs), equivalent to 1,520 million units (MU), in January 2024 at a clearance price of Rs 360 (~$4.34) per REC. This is an increase of 285% year-over-year (YoY) and is the highest REC volume in the current financial year.

REC prices on IEX have seen a downward trend and are currently at their lowest level this financial year. This presents an opportunity for obligated consumers like power distribution companies, open access consumers, and captive power producers to meet their renewable purchase obligations at more affordable rates.

The trading sessions were held on January 10 and 31. The next REC trading sessions at the exchange are scheduled for February 14 and 28.

The exchange traded 236 MU of renewable energy during January 2024, a 2% increase from 232 MU traded in December and a 32% YoY decrease compared to 347 MU.

The total trading volume during the month was the highest ever at 10,893 MU, a YoY increase of 26%.

According to the company statement, the increased electricity consumption coupled with easing supply-side constraints led to an increase in the volumes of electricity traded, which is expected to continue going forward.

According to government data published in January 2024, the country?s energy consumption reached 133.8 BUs, representing a 6% increase YoY.

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

The Green Day-Ahead Market traded 210 MU during January, with a weighted average price of ?5.87 (~$0.071)/kWh and 189 market participants.

The Green Term-Ahead Market witnessed trading of 26 MU with an average monthly price of ?6.57 (~$0.079)/kWh for non-solar.

The Day-Ahead Market traded 5,540 MU in January, a 13% YoY increase compared to 4,893 MU. The Market Clearing Price in Day Ahead Market during January was ?5.83 (~$0.070)/ kWh, down approximately 6% YoY, due to easing supply side constraints.

The Real-Time Electricity Market (RTM) achieved a volume of 2,380 MU during January, a 13% YoY growth from 2,102 MU.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly, and monthly contracts up to 3 months, traded 1,217 MU during January, up 35% on a YoY basis.

The longer-duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded 10 BU mark on an annual basis (year-to-date) in FY 2024, increasing by more than 600% YoY.

IEX?s profit after tax demonstrated an uptrend, with an 18.9% YoY increase, soaring to ?918 million (~$11 million) in the third quarter of the financial year 2023-24 from ?772 million (~$9.2 million).

The Indian Energy Exchange (IEX) traded 1.52 million renewable energy certificates (RECs), equivalent to 1,520 million units (MU), in January 2024 at a clearance price of Rs 360 (~$4.34) per REC. This is an increase of 285% year-over-year (YoY) and is the highest REC volume in the current financial year. REC prices on IEX have seen a downward trend and are currently at their lowest level this financial year. This presents an opportunity for obligated consumers like power distribution companies, open access consumers, and captive power producers to meet their renewable purchase obligations at more affordable rates. The trading sessions were held on January 10 and 31. The next REC trading sessions at the exchange are scheduled for February 14 and 28. The exchange traded 236 MU of renewable energy during January 2024, a 2% increase from 232 MU traded in December and a 32% YoY decrease compared to 347 MU. The total trading volume during the month was the highest ever at 10,893 MU, a YoY increase of 26%. According to the company statement, the increased electricity consumption coupled with easing supply-side constraints led to an increase in the volumes of electricity traded, which is expected to continue going forward. According to government data published in January 2024, the country?s energy consumption reached 133.8 BUs, representing a 6% increase YoY. Green Market: Green Day-Ahead & Green Term-Ahead Market The Green Day-Ahead Market traded 210 MU during January, with a weighted average price of ?5.87 (~$0.071)/kWh and 189 market participants. The Green Term-Ahead Market witnessed trading of 26 MU with an average monthly price of ?6.57 (~$0.079)/kWh for non-solar. The Day-Ahead Market traded 5,540 MU in January, a 13% YoY increase compared to 4,893 MU. The Market Clearing Price in Day Ahead Market during January was ?5.83 (~$0.070)/ kWh, down approximately 6% YoY, due to easing supply side constraints. The Real-Time Electricity Market (RTM) achieved a volume of 2,380 MU during January, a 13% YoY growth from 2,102 MU. Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly, and monthly contracts up to 3 months, traded 1,217 MU during January, up 35% on a YoY basis. The longer-duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded 10 BU mark on an annual basis (year-to-date) in FY 2024, increasing by more than 600% YoY. IEX?s profit after tax demonstrated an uptrend, with an 18.9% YoY increase, soaring to ?918 million (~$11 million) in the third quarter of the financial year 2023-24 from ?772 million (~$9.2 million).

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