 "India’s Energy Market Soars: Prices Plummet Amid Renewable Revolution")
In August 2024, the Indian Energy Exchange (IEX) reported a significant rise in total trade volume, increasing by 35.8% year-on-year to reach 12,040 million units. Electricity trading also grew, with a 17.1% rise to 9,914 million units. The Market Clearing Price in the Day-Ahead Market dropped 38% to Rs 4.28 per unit, while the Real-Time Market saw prices fall 44.8% to Rs 3.59. The surge in renewable energy generation due to the monsoon contributed to these lower prices. The REC Market also flourished, with volumes skyrocketing by 737.4%. Overall, IEX demonstrated strong Market dynamics and adaptability in power trading during this month.
Title: Indian Energy Exchange Reports Significant Growth in August 2024
Date: September 3, 2024 | 10:56 PM IST
August 2024 saw a remarkable increase in trading activity at the Indian Energy Exchange (IEX), highlighting a robust shift in India’s energy Market. The total trade volume climbed by an impressive 35.8 percent year-on-year, reaching 12,040 million units (MU). This surge reflects the growing adoption of renewable energy sources and the increased demand for electricity.
Electricity trading alone experienced a year-on-year growth of 17.1 percent, totaling 9,914 MU for the month. This increase is largely attributed to favorable weather conditions that boosted hydro and wind power generation, subsequently enhancing renewable energy availability in the system.
One noteworthy development was the renewable energy certificates (REC) Market, which saw a staggering rise of 737.4 percent year-on-year. The REC volumes reached 2,116 MU, with Market prices dipping to an all-time low, marking a unique opportunity for power distributors and sustainable customers.
The pricing landscape also changed in August, with the Market Clearing Price for the Day-Ahead Market (DAM) dropping by 38 percent to Rs 4.28 per unit. The Real-Time Market (RTM) prices experienced a similar downward trend, dropping 44.8 percent to Rs 3.59 per unit.
Additionally, the RTM segment achieved record trading volumes, underscoring the Market‘s ability to respond swiftly to changing demands. The Green Market, which includes both Day-Ahead and Term-Ahead segments, reported a significant volume of 871 MU, a remarkable rise of 259.5 percent from last year.
With these developments, the IEX continues to pave the way for a more sustainable and efficient energy sector in India.
Image Caption: The Market Clearing Price in the Day-Ahead Market during August 2024 declined 38 percent year-on-year to Rs 4.28/unit. | Photo: Shutterstock
Tags: Indian Energy Exchange, IEX, Renewable Energy, Electricity Market, Trade Volume, Market Clearing Price, REC, Energy Sector Growth
What is IEX?
IEX stands for Indian Energy Exchange. It is a platform where people can buy and sell electricity.
Why did IEX trade volume increase in August?
The trade volume increased because more people were buying and selling electricity, indicating higher demand.
What does an increase in trade volume mean?
An increase in trade volume means that more transactions are happening, showing a growing Market for electricity.
How much did the trade volume increase?
The trade volume increased by nearly 36%, reaching approximately 12,040 million units in August.
Is this trend expected to continue?
While it’s hard to predict, the increase may continue if electricity demand stays high and more participants join the Market.
