Renewable Energy Trading Up by 91% MoM at IEX in May 2022
A total of 275,000 RECs, including 103,000 solar RECs, were traded during the month
June 7, 2022
The Indian Energy Exchange (IEX) traded 642 million units (MU) of renewable energy in May 2022, a 91% month-over-month (MoM) increase compared to 336 MU traded in the previous month.
The exchange traded 7.59 billion units (BU) of energy during the month. The day-ahead power market saw prices dropping from ₹10.06 (~$0.13)/kWh in April to ₹6.76 (~$0.087)/kWh. The price correction was attributed to measures taken by the government to address supply-side constraints. The 44% year-over-year (YoY) increase in renewable energy generation and an 8% YoY increase in hydropower generation also contributed to the price correction.
Energy consumption increased 23% YoY to 136 BU in the month. The peak power demand stood at 204.45 GW, a 21% YoY increase.
Green Market: Day-Ahead and Term-Ahead
IEX Green Market comprising the day-ahead and term-ahead market segments, traded 642 MU during May.
The Green Day-Ahead Market (GDAM) traded 493 MU with the weighted average price of ₹5.91 (~$0.076)/kWh. In May, 172 entities took part in the trading.
The Green Term-Ahead Market (GTAM) traded 148 MU during the month with a record participation of 23 entities. The average monthly price of solar energy stood at ₹6.41 (~$0.082)/kWh and non-solar energy at ₹8.21 (~$0.11)/kWh during the month.
Distribution companies (DISCOMs) from Delhi, Haryana, Telangana, Karnataka, Maharashtra, Punjab, Daman & Diu, Gujarat, and Uttar Pradesh and several industrial consumers participated in the trading.
Electricity Market: Day-Ahead, Term-Ahead, Real-Time
In May 2022, the Day-Ahead Market traded 3.17 BU of energy. The average market clearing price increased 27% YoY to ₹6.76 (~$0.087)/kWh but saw a decline of 33% MoM. The average monthly price was ₹10.06 (~$0.13)/ kWh in April.
The Real-Time Electricity Market (RTM) traded 2.31 BU with a 61% MoM growth and an average monthly price of ₹5.88 (~$0.13)/kWh. The market achieved the highest single-day volume of 104.39 MU on May 19. In all, 592 participants transacted in the exchange’s RTM market.
The Term-Ahead Market comprising intra-day, contingency, daily, and weekly contracts, traded a total of 1.18 BU, a YoY growth of 211%.
Renewable Energy Certificate Market
IEX traded 275,000 renewable energy certificates (RECs) in May, including 171,000 non-solar RECs and 103,000 solar RECs. The exchange discovered a price of ₹2,201 (~$28) per certificate for solar RECs and ₹1,000 (~$12) per certificate for non-solar RECs.
The exchange has scheduled the next REC trading session for June 29, 2022.
IEX recently announced financial results for the fiscal year (FY) 2021-22 and the fourth quarter of FY22. It reported a 50% YoY increase in profit after tax from ₹2.054 billion (~$26.88 million) to ₹3.09 billion (~$40.43 million) in FY22.