IEX's trade volume surged nearly 21% in September, reaching 11,370 million units

Trade volume: The Indian Energy Exchange (IEX) reported robust growth in trade volume for September 2024 with total volumes at 11,370 MU which marked a substantial 24 per cent year-over-year growth in the overall volumes of the year so far.

Electricity trading alone accounted for 10,332 MU, registering a 21 per cent jump compared with the same period last year. This was driven by favorable weather -- steady monsoons throughout the period that kept hydro and wind power generation surging -- that has pushed hydro and wind power generation up, leading to a sharp decline in DAM and RTM prices; hence, high trading activity.

The Market Clearing Price in the Day-Ahead Market had averaged Rs 4.18 per unit while registering a decline of 33 per cent as compared to September 2023. The price in the Real-Time Market declined to Rs 3.98 per unit, with a year-on-year fall of 28 per cent.

DAM volume jumped to 4,610 MU in September 2024 compared with the corresponding previous year's volume of 3,467 MU, thereby witnessing a year-over-year growth of 33 per cent. This was also the first-ever record in the monthly volume of RTM. It had increased by 34 per cent from 2,923 MU in September 2023.

In the renewables space, IEX Green Market, a set of G-DAM and G-TAM, rose by a whopping 214 per cent to 723 MU as against the previous September 230 MU. G-DAM saw a jump of 408 per cent, which stood at 712.5 MU with a weighted average price of Rs 4.59 per unit.

It was a milestone for the REC market in terms of trading volume as it doubled year-on-year to 1,031 MU. Prices of RECs also dipped to an all-time low of Rs 110 per certificate during the trading sessions held on September 25, 2024, and therefore, very cheaply obligated entities such as DISCOMS and Captive Power Producers can meet their Renewable Purchase Obligations.

This development marks IEX's strategic contribution toward higher trading of electricity and a shift to renewable sources of power.