In December 2022, the Indian Energy Exchange, India’s leading energy exchange, recorded a total volume of 8452 MU, including 377 MU of Green Power trade and the equivalent of 487 MU in the form of 4.87 lac RECs.
In December 2022, the total electricity volume traded on the Exchange was 7964 MU, representing an 8% month-over-month and 4% year-over-year increase. Overall volume on the Exchange in December 2022 increased by 9% compared to the previous month, but decreased by 7% compared to the same period in the previous year due to the high volume of 13.85 lacs in RECs traded in the previous year.
During the third quarter of the fiscal year 2023, the IEX recorded a volume of 24.2 BU and experienced a 5% quarter-over-quarter growth across all its market segments.
The average clearing price in the Day-ahead market reached ₹ 5.23 in December due to continuing high spot e-auction coal prices and supply side constraints. This represented a 14% month-over-month and 48% year-over-year increase.
It is anticipated that a reduction in the clearing price on the Exchange due to an improvement in coal inventory at power plants will provide further cost optimization opportunities for Discoms and Open Access consumers, leading to higher volumes on the Exchange.
In December, the IEX reaffirmed its commitment to the country’s sustainability goals by establishing a wholly-owned subsidiary company, International Carbon Exchange Private Limited (ICX), to explore business opportunities in the voluntary Carbon Market. The IEX also became India’s first carbon-neutral Power Exchange, using market-based tradable instruments to offset its carbon emissions.
According to power demand data published by the National Load Dispatch Center, energy demand reached 121 BU in December 2022, representing a 10% year-over-year increase.
In December 2022, the Day-Ahead Market saw a volume of 5001 MU, a 2% month-over-month decrease from 5087 MU in November 2022. On a year-over-year basis, the Day-Ahead Market’s volume was down 8% due to high prices caused by a constrained supply situation. During the third quarter of the fiscal year 2023, the Day-Ahead Market had a cumulative trade of 14.4 BU, representing a robust 30% quarter-over-quarter growth. However, on a year-over-year basis, the market declined by 13%.
The Real-Time Electricity Market had a volume of 1763 MU in December, representing a 25% month-over-month and 17% year-over-year increase. There were 670 participants in this segment during the month. The sustained growth of the real-time electricity market demonstrates the growing reliance of distribution utilities and industries on real-time power demand-supply balancing through the most efficient means. During the third quarter of the fiscal year 2023, the Real-Time Electricity Market recorded a cumulative trade of 5435 MU, a 13% year-over-year increase.
The Term-Ahead Market (TAM), which includes intra-day, contingency, daily and weekly contracts, and LDCs, traded 822 MU in December, a 50% month-over-month and 135% year-over-year increase. During the third quarter of the fiscal year 2023, the TAM segment had a robust volume of 1991 MU, representing a 127% year-over-year growth.
In December 2022, the IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, had a volume of 377 MU, representing a 2% year-over-year increase. During the third quarter of the fiscal year 2023, the market had a volume of 1130 MU, representing a 6% year-over-year decline.
The Green Day-Ahead Market saw a volume of 241 MU with a weighted average price of ₹ 5.24 per unit. There were 212 market participants in this segment during the month, with the highest number of participants on a single day at 153 on December 21, 2022.
The Green Term-Ahead Market recorded a volume of 137 MU with an average monthly price of ₹5.20 per unit for solar, ₹ 5.54 per unit for non-solar, and ₹ 5.81 per unit for hydro.
On Wednesday, December 28, 2022, 4.87 lac RECs were cleared in the trading session at the IEX, compared to 13.85 lac RECs in the same period the previous year. The next REC trading session at the Exchange is scheduled for Wednesday, January 25, 2023.
Shares of Indian Energy Exchange Limited were last traded on the BSE at ₹ 142.30, compared to the previous close of ₹ 140.00. During the day, a total of 3,61,606 shares were traded in over 6,611 trades.
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