The Indian Energy Exchange (IEX) traded an all-time high volume of 726 MU of renewable energy in July 2021, a 76% month-over-month (MoM) increase compared to 412 MU in the previous month. The volume of green energy traded during the month accounts for about 10% of the total power volume traded at the Exchange.

A total of 7.32 BU of power was traded during the month, resulting in a 37% year-over-year (YoY) growth due to increased overall power demand. Energy consumption increased 10.6% YoY to 125.5 BU in the month. In addition, peak power demand on July 7, 2021, also reached an all-time high of over 200 GW, with a 17.6% YoY growth.

Green Term-Ahead Market

The Green Term-Ahead Market traded the highest-ever single-day volume of 153.1 MU on July 16, 2021.

In July 2021, 51 distribution utilities took part in the power trading, including West Bengal, Bihar, Haryana, Telangana, Karnataka, Uttar Pradesh, Goa, Maharashtra, Punjab, Daman & Diu, Assam, and Tamil Nadu, among others, as key participants. The number of participants was 49 in the previous month. This is the highest ever participation of distribution companies in the month.

The market is encouraging distribution utilities to sell excess energy for other deficit states to buy since the beginning of wind season in April-May. In July 2021, average wind energy generation was recorded at 349 MU daily, a 64.5% increase compared to 212 MU daily in 2020.

Rohit Bajaj, Head and Senior Vice President, IEX, said, “The market recorded 76% MoM growth, wherein solar energy accounted for 27%, and non-solar accounted for 73% of the volume cleared. One of the key reasons behind the spectacular performance is the availability of a fully functional market at the peak of the wind season. In fact, since the onset of the wind season in May, the distribution utilities have been leveraging the platform to sell their excess energy, and deficit entities have been benefitted by buying green energy at market-driven competitive prices, thereby meeting energy requirements and renewable purchase obligation.”

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

In July 2021, the day-ahead market traded 4.23 BU volume at an average monthly price of ₹2.95 (~$0.040)/kW, compared to 4.31 BU with an average monthly price of ₹3.06 (~$0.041)/kW in the previous month.

IEX said the cross-border electricity trade (CBET) increased 68.4% MoM to 72 MU in July 2021. Nepal is the only participating country in the CBET market, while Bhutan and Bangladesh are expected to join the market shortly, IEX added.

The term-ahead market comprising contingency, intra-day, daily, and weekly contracts traded 716 MU during July 2021 and recorded an 11.70% MoM increase compared to 641 MU in June 2021.

Meanwhile, the real-time electricity market traded 1.59 BU at an average monthly price of ₹2.77 (~$0.037)/kW in July 2021. The trade witnessed a 103% YoY growth and 8.4% MoM decline compared to 1.73 BU in June 2021.

According to IEX, the sell-bids at 2X of the cleared volume during July 2021 ensured adequate power availability and helped discover competitive prices to provide robust opportunities to the distribution utilities.

Renewable Energy Certificates 

The Renewable Energy Certificates trading session scheduled on July 28, 2021, was canceled due to a stay order from Appellate Tribunal for Electricity in response to the petitions filed by the Green Energy Association.