Renewable Energy Trading at IEX Dipped to 365 MU in December 2021

The Indian Energy Exchange (IEX) traded 365 million units (MU) of renewable energy in December 2021, a 20.13% month-over-month (MoM) decline compared to 457 MU in November.

However, the fourth quarter of the calendar year (CY) 2022 saw 1,194 MU of renewable energy trading, a 158% year-over-year (YoY) growth.

The exchange traded 9.03 BU of energy during the month, with a 24% YoY growth. Energy consumption increased 3.12% YoY to 110.34 BU in the month. Peak power demand in December 2021 reached 183.39 GW, a mere 0.2% YoY growth.

Green Energy: Day-Ahead and Term-Ahead

The green energy market, comprising both the day-ahead and term-ahead contracts, amounted to 365 MU for December.

The Green Day-Ahead Market (GDAM) traded 157 MU of energy volume with the weighted average price of ₹4.09 (~$0.055)/kWh. In all, 105 participants took part in the trading compared to 93 in the previous month.

The Green Term-Ahead Market (GTAM) traded 208 MU during the month with a 131% YoY growth. During the month, 39 distribution companies (DISCOMs) from Delhi, Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, Telangana, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, West Bengal, and Assam participated.

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

In Q4 CY 2022, the Day-Ahead Market traded 16.71 BU volume and registered a 5% YoY increase. In December, the market traded 5.42 BU volume at an average market clearing price of ₹3.54 (~$0.048)/kWh.

IEX said Bhutan commenced trade in the Day-Ahead Market through Druk Green Power Corporation. Besides Nepal and Bhutan, the energy exchange has been working with stakeholders in Bangladesh to facilitate cross-border power trade.

In Q4 CY 2021, the Term-Ahead Market comprising intra-day, contingency, daily, and weekly contracts, traded a total of 878 MU, a 2% YoY decline. In December, the market traded 350 MU, a 15.62% MoM increase.

The Real-Time Electricity Market (RTM) touched 4,822 MU trading in Q4 CY 2022, a 70% YoY growth. The market traded 1,512 MU in December with an average monthly price of ₹3.61 (~$0.048)/kWh.

“During December 2021, 557 participants transacted in the Exchange’s RTM market. The consistent growth in volumes in this market segment has been indicative of the significance of this segment for both distribution utilities and industries in balancing real-time power demand-supply requirements,” IEX said.

Renewable Energy Certificate Market

IEX traded 1.38 million renewable energy certificates (RECs), including 1.13 million non-solar RECs and 255,000 solar RECs, in December. The exchange discovered a price of ₹2,211 (~$29.68) per certificate for solar RECs and ₹1,000 (~$13.42) for non-solar RECs.

The exchange has scheduled the next REC trading session on January 26, 2022.