The Indian Energy Exchange (IEX) traded 372.4 million units (MU) of renewable energy in October 2021, a 31% month-over-month (MoM) decline compared to 543 MU in September.

The exchange saw a trading volume of 9.16 billion units (BU) of energy during the month, with a 36% year-over-year (YoY) growth. Energy consumption increased 3% to 114 BU in the month. Peak power demand in October 2021 reached 175 GW, with a 3 % YoY growth.

Green Market: Term-ahead and Day-ahead

 The Green Term now comprises both the day-ahead and term-ahead contracts.

The Green Term-Ahead Market (GTAM) traded 347.7 MU of energy volume, a 67% YoY growth. In October 2021, 46 distribution companies (DISCOMs) from Bihar, Haryana, Telangana, Karnataka, Uttar Pradesh, Maharashtra, Punjab, Madhya Pradesh, and Tamil Nadu participated in the trading.

In September 2021, GTAM traded 543 MU of renewable energy, a 555% YoY growth. The traded volume increased 248% in September 2021 compared to 147 MU traded in August.

The Green Day-Ahead Market (GDAM) traded 24.8 MU in the first six days since trading commenced on October 26, 2021. The market discovered a weighted average price of ₹3.8 (~$0.051)/unit. In all, there were 56 participants.

Rohit Bajaj, Head and Senior Vice President- Business Development at IEX, said, “We are very optimistic about the growing potential of the green market and have achieved a cumulative trade volume of around 3.5 BU to date. The GTAM commenced in August 2020, and it has been doing well.”

“The GDAM has just become operational in October 2021, and we hope this market will also do exceptionally well. Our focus is on capacity building, and we are working closely with our buyers and sellers and other stakeholders to generate further liquidity in the market. The green market has today emerged as a critical avenue with more and more utilities and commercial and industrial consumers participating to meet their energy and renewable purchase obligation (RPO) requirements in an integrated, flexible, and competitive manner,” he said.

Day-Ahead, Term-Ahead, and Real-Time Electricity Market

In October 2021, the day-ahead market traded 6.56 BU volume at an average monthly price of ₹8 (~$0.11)/kWh, compared to 6.41 BU with an average monthly price of ₹4.4 (~$0.059)/kWh in the previous month.

IEX said the average price was ₹12 (~$0.16)/kWh in the first fortnight of October 2021. However, the price corrected to ₹4.1 (~$0.055)/kWh in the second fortnight due to the government’s supply-side interventions like improved domestic coal availability and railways’ initiative to supply coal to power generating stations. In the last week of the month, the price was further corrected to ₹3.4 (~$0.046)/kWh.

The term-ahead market comprising contingency, intra-day, daily, and weekly contracts traded 225 MU during October 2021 and recorded a 16.58% month-over-month increase compared to 193 MU in September.

The real-time electricity market traded 1.99 BU at an average monthly price of ₹6.91(~$0.093)/kW. The trade witnessed a 145% YoY growth and an 8.15% MoM increase compared to 1.84 BU in September 2021.

Energy Saving Certificates

IEX commenced trade in Energy Saving Certificates (ESCerts) on October 26, 201. In the first trade, it traded 43,409 ESCerts. The trade is expected to take place every Tuesday.

Renewable Energy Certificates

The Renewable Energy Certificates trading session was canceled due to a stay order from the Appellate Tribunal for Electricity in response to petitions filed by the Green Energy Association.