In a notable development for the energy sector, the Indian Energy Exchange (IEX), recognized as India’s leading energy market platform, recorded a 21% year-on-year growth in total electricity volume for October 2023, achieving 9260 million units (MU). The surge in electricity consumption, attributed to lower-than-average rainfall and a substantial increase in power demand, played a crucial role in this upward trend.

Renewable Energy Certificates and ESCerts Contribute to Volume Increase

IEX’s overall volume, which encompasses renewable energy certificates (RECs) equivalent to 217 MU and energy-saving certificates (ESCerts) equivalent to 5.8 MU, witnessed an 18% increase on a year-on-year basis. The integration of renewable and energy-saving credentials underlines the exchange’s commitment to sustainable energy trading practices.

Power Demand Surge Elevates Day-Ahead Market Prices

The country’s energy consumption, as reported by GRID-INDIA, saw an impressive 22% year-on-year increase, totaling 139 billion units in October 2023. Active power procurement by DISCOMs from IEX was instrumental in managing the heightened demand, leading to an escalated Day-Ahead Market (DAM) price of Rs. 6.45 per unit, a significant 68% year-on-year increment.

Steady Growth Across Market Segments

The Day-Ahead Market (DAM) and Real-Time Electricity Market (RTM) experienced substantial growth, with DAM volumes up by 8.3% YoY and RTM volumes increasing by 6.1% YoY. These market segments are essential for DISCOMs and industries to balance their electricity demand and supply effectively.

Exceptional Performance in Term-Ahead Markets

The Term-Ahead Market (TAM), which includes various contract durations, showed an extraordinary increase of 207.6% YoY, with 1,911 MU traded in October 2023, emphasizing the market’s adaptability in meeting short-term power demands.

The PowerX Index as a Price Indicator

PowerX, the price index of IEX, continues to serve as a critical indicator for the energy sector, offering insights into market trends and price dynamics by reflecting the weighted average price of Day-Ahead and Real-Time Markets.

  India, Indian Energy Exchange