Renewable Energy Trading up by 91% MoM at IEX in May 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.