New Delhi, March 05, 2024 : The Indian Energy Exchange (IEX), the country’s premier electricity trading platform, reported a 15.4 per cent increase in overall trading volume, reaching 9,462 million units (MU) in February 2024, compared to the same period last year.
The increase in volume comes as the Market Clearing Price in the Day Ahead Market dropped by approximately 26 per cent year-on-year to Rs. 4.93 per unit, influenced by a 47 per cent rise in sell bids on the exchange, which includes the Day Ahead Market and Real Time Market.
This growth in trading activity coincides with an 8.5 per cent rise in the country’s energy consumption, which hit 127.8 billion units (BUs) in February 2024, as per the latest government data.
Following recent regulatory changes, the ministry of power has introduced amendments to the electricity late payment surcharge rules in 2024, aiming to enhance sell side liquidity on the exchange platform and facilitate competitive price discovery. These amendments include mandatory sale of URS power on exchanges and impose penalties on Generation Companies (GENCOs) for failing to offer URS power in the market.
The IEX detailed its performance across various market segments for February 2024. The Day-Ahead Market (DAM) saw a slight increase in volume to 4,722 MU from 4,664 MU in February 2023. The Real-Time Electricity Market (RTM) experienced a substantial year-on-year increase of 36.5 per cent, with volumes reaching 2,340 MU. The Day Ahead Contingency and Term-Ahead Market (TAM), which includes a variety of contract durations, reported a 55.9 per cent increase in traded volume, amounting to 1,487 MU.
In the green energy sector, the IEX Green Market, encompassing Green Day-Ahead and Green Term-Ahead Market segments, recorded a trading volume of 298 MU in February 2024. The Green Day-Ahead Market alone contributed 266 MU at a weighted average price of Rs 5.5 per unit, witnessing participation from 214 market participants according to the reports published in energy.economictimes.indiatimes.com .
The Renewable Energy Certificate (REC) Market saw a total of 6.14 lakh RECs traded in February 2024, equivalent to 614 MU, with clearing prices of Rs. 360/REC and Rs. 347/REC in its trading sessions held on 14th and 28th February, respectively. Future REC trading sessions are scheduled for 13 March 2024 and 27 March 2024
