IEX total volume rises 56% YoY to 13,250 MU in July; stock trades flat

In July 2024, the Indian Energy Exchange (IEX) set a new record with the highest total trading volume, including certificates, reaching 13,250 MU. The figure marks an approximately 56% increase Y-o-Y.

IEX in focus: Shares of Indian Energy Exchange (IEX) recovered 4.50 per cent from day’s low to hit an intraday high of Rs 197.25 per share. 

However, at 10:25 AM, shares were trading flat at Rs 195.50 per share. In comparison, BSE Sensex was trading 1.80 per cent lower at 79,524.34 levels. 

The positive movement in the stock price came on the back of strong power market figures in July.

In July 2024, the Indian Energy Exchange (IEX) set a new record with the highest total trading volume, including certificates, reaching 13,250 MU. The figure marks an approximately 56 per cent increase year-over-year. 

The electricity volume alone was 10,093 MU, reflecting a 29 per cent Y-o-Y growth. The green electricity segment saw a remarkable 259 per cent increase Y-o-Y, reaching 1 BU.

Renewable Energy Certificates (RECs) also saw solid growth, with 3,150 MU traded, a staggering 405 per cent increase compared to the previous year. 

On July 31, 2024, REC prices fell to an all-time low of Rs 120 per certificate. This drop presents an opportunity for obligated entities, such as DISCOMs and Captive Power Producers, to meet their Renewable Purchase Obligations, and for voluntary buyers to advance their sustainability goals, IEX said in a statement.

Government data from July 2024 indicated that national energy consumption rose to 145.4 BUs, marking an approximately 4 per cent increase year-over-year.

Electricity market 

The Day-Ahead Market (DAM) volume increased to 5,056 MU in July 2024 from 3,976 MU in July 2023, up 27 per cent Y-o-Y.

The Real-Time Electricity Market (RTM) Volume grew to 3,334 MU in July 2024 from 2,540 MU in July 2023, a 31 per cent Y-o-Y increase. 

Green Market 

The Green Day-Ahead and Green Term-Ahead Market saw a total volume of 989.6 MU in July 2024, a whopping 259 per cent increase from 275.4 MU in July 2023. 

The weighted average price for the Green Day-Ahead Market (G-DAM) was Rs 4.34 per unit. Notably, the G-DAM cleared a record volume of 50 MU on July 28, 2024.

Renewable Energy Certificate (REC) 

A total of 31.50 lac RECs, equivalent to 3,150 MU, were traded on July 10 and July 31, 2024, at prices of Rs. 128/REC and Rs 120/REC, respectively. 

The next REC trading sessions are scheduled for August 14 and August 28, 2024.

The Indian Energy Exchange (IEX) is an electronic power trading exchange in India regulated by the Central Electricity Regulatory Commission (CERC). 

Established on June 27, 2008, IEX has been instrumental in advancing power trading within the country. It provides a digital platform for various participants in the power market, including State Electricity Boards, power producers (Gencos), power traders, and Open Access Consumers (both Industrial & Commercial).

As one of the two operational Power Exchanges in India, IEX has consistently maintained a significant market share since its inception. 

The exchange operates a day-ahead market using closed auctions with double-sided bidding and uniform pricing mechanisms. Currently, IEX serves more than 3,800 registered clients, facilitates transactions for over 300 private generators, and supports the needs of more than 3,300 industrial electricity consumers.