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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 744 million units (MU) of green energy in June 2024, a 173.4% year-over-year (YoY) <a href="https://www.mercomindia.com/iex-272-mu-green-energy-june-2023" target="_blank" rel="noopener">increase </a>from 272 MU. The segment recorded a volume of 1,768 MU during the first quarter (Q1) of the financial year (FY) 2025, a growth of 94.3 % year-over-year (YoY).
The Exchange achieved an electricity volume of 10,185 MU in June, marking a 24.7% YoY increase. The total monthly volume including certificates, was 10,677 MU, an increase of 19.4% YoY.
In Q1 FY 2025, IEX recorded an electricity trading volume of 28,178 MU, a 19% YoY. Including certificates, the total volume for the quarter reached 30,354 MU, showing a 20.8% YoY.
Government data from June 2024 revealed that the country&#8217;s energy consumption hit 152.4 billion units (BUs), reflecting an 8.9% YoY increase. This surge was driven by hot spells, boosting energy demand significantly. Specifically, energy consumption in Q1 FY 2025 totaled 452 BUs, up 11.2% YoY. Peak demand during the quarter topped 250 GW, surpassing the previous record of 243 GW set in September last year.
To manage this demand surge, the government and regulators implemented proactive measures. These included selling surplus un-requisitioned power on exchanges, increasing fuel supply, and ensuring higher availability of generating units. These actions boosted liquidity on the exchanges and helped maintain control over market prices. Despite increased electricity consumption, the market clearing price in the Day Ahead Market for June remained stable at ₹5.40 (~$0.065)/kWh, unchanged from the previous year. This price was also more than 20% lower than prices observed under bilateral contracts.
Green Market: Green Day-Ahead &amp; Green Term-Ahead Market
In June, the Green Day-Ahead Market (G-DAM) saw a volume of 680 MU with a weighted average price of ₹4.14 (~$0.05)/kWh, marking a 309.5% YoY rise. The G-DAM recorded a volume of 1,616 MU in Q1 FY 2025, reflecting a growth of 208.4% YoY.
The Green Term-Ahead Market (G-TAM) saw a volume of 64 MU with a monthly average price of ₹8.88 (~$0.11)/kWh for non-solar sources. G-TAM achieved a volume of 152 MU during Q1 FY 2025.
Electricity Market: Day- Ahead, Term- Ahead &amp; Real-Time Market
In June, the Day-Ahead Market (DAM) saw its volume rise to 4,849 MU, marking an 18.2% YoY increase. DAM recorded a total volume of 13,336 MU in Q1 FY 2025, a 6.7% YoY increase.
The Real-Time Electricity Market (RTM) also showed growth, reaching 3,213 MU, an increase of 20.1% YoY. RTM volume totaled 9,193 MU in Q1 FY 2025, up 26.8% YoY.
The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts for up to three months, traded 1,378 MU in June, marking a 23.3% increase YoY. Total volume for the quarter in this segment reached 3,875 MU, growing by 28.4% YoY.
Renewable Energy Certificate Market (REC) Market
In the trading sessions held on June 12 and June 26, 2024, 439,000 RECs, equivalent to 439 MU, were traded at clearing prices of ₹150 (~$1.8)/REC and ₹140 (~$1.68)/REC, respectively. Throughout the quarter, 2.11 million RECs, equivalent to 2,112 MU, were traded.
The price of ₹140 (~$1.68)/REC during these sessions marks the lowest ever recorded since the inception of REC trading.
The upcoming REC trading sessions at the Exchange are scheduled for July 10 and July 3, 2024.
Energy Saving Certificates (ESCerts)
In June, 52,756 ESCerts, equivalent to 53 MU, were traded at a floor price of ₹2,165 (~$26)\ESCert. 63,273 ESCerts, equivalent to 63 MU, were traded during the quarter.
The Exchange <a href="https://www.mercomindia.com/rec-trading-on-iex-drops-to-record-low/" target="_blank" rel="noopener">reported</a> a total traded volume of 10,633 MU in May 2024, a 28.9% YoY increase.

Green Energy Trade at IEX Up 173% YoY in June, REC Prices Tumble

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) reported a total traded volume of 10,633 million units (MU) in May 2024, a 28.9% increase from the previous year. A volume of 622.2 MU of green energy was traded on the exchange during the month.
Electricity volumes reached 9,568 MU, up 21% year-over-year (YoY).
Renewable energy certificates (REC) hit 1,055 MU, a 640.3% increase YoY. The REC market recorded an all-time low price of ₹165 (~$1.97) per certificate in the trading session on May 29.
These low prices allow obligated entities (DISCOMS and captive power producers) to meet their renewable purchase obligations and voluntary customers to fulfill their sustainability goals.
Rohit Bajaj, Executive Director of Business Development, Strategy, and Regulatory Affairs at IEX, told Mercom, &#8220;IEX witnessed remarkable growth in trading volumes during May, which was led by the increase in the country&#8217;s electricity consumption. Proactive measures undertaken by the government and regulatory authorities ensured ample supply to meet this heightened demand.&#8221;
Bajaj explained that a significant increase in wind and hydropower generation led to a surge in the supply of green electricity. As a result, the IEX green market achieved a volume of 622 MU in May, a 74% YoY increase.
&#8220;With the IMD predicting higher-than-normal rainfall this year, hydropower generation is expected to increase, potentially bringing more green power onto the exchanges. The influx of renewable energy sources aligns with the nation&#8217;s commitment to sustainable development and reducing its carbon footprint,&#8221; he said.
Government and regulatory measures, such as selling surplus unrequisitioned power on power exchanges, increasing fuel supply, and ensuring higher availability of generating units, increased sell liquidity on the exchanges, helping to keep prices stable.
Consequently, despite higher electricity consumption, the market clearing price in the Day Ahead Market during the month was ₹5.3 (~$0.06)/unit, over 20% lower than prices under bilateral contracts.
According to government data, the country&#8217;s energy consumption reached 156.3 BUs, a 15% YoY increase in May. On May 30, the country experienced an all-time high peak demand of 250 GW and the highest-ever single-day energy consumption of 5,466 MU.
Green Market: Green Day-Ahead &amp; Green Term-Ahead Market
During May, the IEX Green Market, which includes the Green Day-Ahead and Green Term-Ahead Market segments, recorded a volume of 622.2 MU against 357.7 MU in the same month last year.
The Green Day-Ahead Market (G-DAM) achieved a volume of 574.7 MU during the month, with a weighted average price of ₹3.86 (~$0.04) per unit.
The Green Term-Ahead Market (G-TAM) saw a volume of 47.5 MU, with an average monthly price for non-solar at ₹8.06 (~$0.09) per unit.
Electricity Market: Day- Ahead, Term- Ahead &amp; Real-Time Market
The Day-Ahead Market (DAM) volume rose to 4,371 MU in May 2024, up from 4,066 MU last year.
May 2024 also saw the Real-Time Electricity Market (RTM) achieve its highest monthly traded volume. RTM volume reached 3,352 MU, up from 2,424 MU in May 2023, marking a 38.3% YoY increase.
On average, more than 100 MUs were traded daily in the RTM segment during May 2024. This consistent growth in the RTM segment demonstrates the efficient management of power demand and supply by distribution utilities and industries on a real-time basis.
The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts up to three months, traded 1,221 MU, a 15.4% increase from the previous year.
Renewable Energy Certificate Market (REC) Market
A total of 1.05 million renewable energy certificates (REC), equivalent to 1,055 MU, were traded in the trading sessions held on May 8 and 29 at clearing prices of ₹185 (~$2.21) per REC and ₹165 (~$1.97) per REC, respectively.
The price of ₹165 (~$1.97) per REC marks the lowest-ever price discovered for REC in a trading session since its inception.
The next REC trading sessions at the exchange are scheduled for June 12 and June 26, 2024.
Energy Saving Certificates (ESCerts)
In May 2024, 9,994 Energy Savings Certificates (ESCerts), equivalent to approximately 10 MU, were traded on IEX at a floor price of ₹2,165 (~$25.92) per ESCert.
The exchange <a href="https://www.mercomindia.com/green-energy-trade-iex-april/">traded</a> 402 MU of green energy in April 2024, a 44% YoY increase from 280 MU.
IEX <a href="https://www.mercomindia.com/iex-q4-profits">reported</a> a total income of ₹1.49 billion (~$17.85 million), an increase of 15% year-on-year (YoY) in the fourth quarter of the financial year 2024.

REC Trading on IEX Surges 640% YoY as Price Drops to Record Low

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 1.52 million renewable energy certificates (RECs), equivalent to 1,520 million units (MU), in January 2024 at a clearance price of ₹360 (~$4.34) per REC. This is an increase of 285% year-over-year (YoY) and is the highest REC volume in the current financial year.
REC prices on IEX have seen a downward trend and are currently at their lowest level this financial year. This presents an opportunity for obligated consumers like power distribution companies, open access consumers, and captive power producers to meet their renewable purchase obligations at more affordable rates.
The trading sessions were held on January 10 and 31. The next REC trading sessions at the exchange are scheduled for February 14 and 28.
The exchange traded 236 MU of renewable energy during January 2024, a 2% increase from 232 MU <a href="https://www.mercomindia.com/energy-trading-iex-fell-december-23" target="_blank" rel="noopener">traded</a> in December and a 32% YoY decrease <a href="https://www.mercomindia.com/iex-347-mu-green-energy-january-2023" target="_blank" rel="noopener">compared</a> to 347 MU.
The total trading volume during the month was the highest ever at 10,893 MU, a YoY increase of 26%.
According to the company statement, the increased electricity consumption coupled with easing supply-side constraints led to an increase in the volumes of electricity traded, which is expected to continue going forward.
According to government data published in January 2024, the country&#8217;s energy consumption reached 133.8 BUs, representing a 6% increase YoY.
Green Market: Green Day-Ahead &amp; Green Term-Ahead Market
The Green Day-Ahead Market traded 210 MU during January, with a weighted average price of ₹5.87 (~$0.071)/kWh and 189 market participants.
The Green Term-Ahead Market witnessed trading of 26 MU with an average monthly price of ₹6.57 (~$0.079)/kWh for non-solar.
Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market
The Day-Ahead Market traded 5,540 MU in January, a 13% YoY increase compared to 4,893 MU. The Market Clearing Price in Day Ahead Market during January was ₹5.83 (~$0.070)/ kWh, down approximately 6% YoY, due to easing supply side constraints.
The Real-Time Electricity Market (RTM) achieved a volume of 2,380 MU during January, a 13% YoY growth from 2,102 MU.
Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily, weekly, and monthly contracts up to 3 months, traded 1,217 MU during January, up 35% on a YoY basis.
The longer-duration contracts have demonstrated steady growth throughout the year. Notably, with this growth momentum, volumes exceeded 10 BU mark on an annual basis (year-to-date) in FY 2024, increasing by more than 600% YoY.
IEX’s profit after tax <a href="https://www.mercomindia.com/iex-records-19-400-mu-of-green-energy/" target="_blank" rel="noopener">demonstrated</a> an uptrend, with an 18.9% YoY increase, soaring to ₹918 million (~$11 million) in the third quarter of the financial year 2023-24 from ₹772 million (~$9.2 million).

IEX Trades 1.52 Million Renewable Energy Certificates in January, Up 285% YoY

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					</table>Renewable energy trading at the Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) in 2023 so far has seen a considerable drop compared to 2022, with the traded energy reaching its lowest in October 2023 at 188 million units (MU).
Seasonality, floods, and inconsistent renewable energy generation are a few of the many reasons behind the drop in renewable energy trade. The increasing power demand and the drop in renewable generation have forced entities to trade mostly on the conventional electricity market, in turn reducing the buy bids in the green market segments.
The Green Day-Ahead Market and the Green Term-Ahead Market have been trending low with frequent fluctuation in the average trading prices.
The chart below shows the green market trade trend at IEX from January 2022 till October 2023.
<img loading="lazy" decoding="async" class="aligncenter wp-image-60711" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend.png" alt="RE Trade Trend" width="600" height="337" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend.png 2084w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-300x169.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-2000x1124.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-768x432.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-1536x863.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-2048x1151.png 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-650x365.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-844x475.png 844w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-624x351.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/RE-Trade-Trend-600x337.png 600w" sizes="(max-width: 600px) 100vw, 600px" />
Renewable energy trade on exchanges mostly depends on the availability of merchant power with generators. In rare cases, large-scale projects tied up in power purchase agreements (PPA) trade the surplus capacities at the exchanges.
Prabhajit Sarkar, Founder and CEO of <a href="https://amperaenergy.in/" target="_blank" rel="noopener">Ampera Energy</a> and former MD and CEO at the Power Exchange India, said, “In situations of lower generation, most renewable energy projects would seek to fulfill their obligations under the longer-term PPA and thereby have lower capacity as merchant projects to participate in the power markets. The drop in power generation from solar and wind sources this year has translated to reduced supply in the green energy markets, where volumes have come down and prices have increased. The trend of lower RE power traded on the exchanges this year is not surprising.”
The Seasonal Impact
2023 has been a year full of unusual seasonal changes with untimely monsoons, flooding in some parts of the country, and rainfall deficit in others.
According to Sarkar, hydropower generation has a key role in providing the base load capacity, and projects with pondage/storage also help manage peak demand, thereby helping stabilize the electricity prices for consumers at the exchanges.
He said, “With a much lower than expected rainfall, especially during August and September, hydropower availability was limited. This also shows through the constrained supply and high prices during August, when power prices discovered on the exchanges hit the ceiling consistently. Also, in early October 2023, due to the glacial lake outburst flood and associated extreme flooding in Sikkim, the dam of a very large hydropower plant was washed away, and several hydropower plants in the Teesta River basin were adversely affected.”
While hydropower has been at its lowest, wind generation has also taken a hit over the last few months due to a lean season. With solar mostly tied up in long-term PPAs, the market depends on hydropower because of its round-the-clock power generation.
According to a Renewable Energy Trade Expert, the Teesta River basin situation impacted almost 1,700 MW of hydropower generation this year, resulting in a drop in sell bids in the green market, which constitutes solar, wind, and hydropower.
Merchant power project developers have faced a challenge in managing the demand at the exchanges, moving most of the buy bids to the Day-Ahead Market.
Amit Kumar, co-founder at <a href="https://www.altilium.co.in/" target="_blank" rel="noopener">Altilium</a>, a renewable energy consultancy firm, said, “We have seen developers with 9 to 10 MW capacities are now generating 2 to 2.3 MW, which is almost 70% less. Hydropower has dropped because of the flooding situation in Himachal Pradesh, destroying projects in the region, which supply power to consumers in Delhi and Uttar Pradesh and the stream of power to trade at the exchanges. Solar capacity is very minimal when it comes to merchant power projects; it mostly depends on wind, hydro, or biomass-generated power.
Kumar also pointed out the recent emergency provisions <a href="https://www.mercomindia.com/karnataka-procure-power-meet-shortage" target="_blank" rel="noopener">invoked</a> by Karnataka under Section 11 of the Electricity Act, compelling all generating stations, including the private ones, to supply the generated power to the government, as one of the reasons for the drop in renewable energy traded at the Exchange.
He said, “Much of its impact is also coming from Karnataka because of Section 11 implementation; almost 300 MW private renewable energy projects have been diverted to the state, leading to a sudden drop from October 16.”
Lower Liquidity
With the buy-side liquidity declining in the green market segments, generators have turned to the DAM market for most of their trades.
The chart below shows the trend in the GDAM market trade and the corresponding prices from January 2022 until October 2023.
<img loading="lazy" decoding="async" class="aligncenter wp-image-60712" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend.png" alt="GDAM Volume and Price Trend" width="600" height="385" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend.png 2007w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-300x193.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-2000x1284.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-768x493.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-1536x986.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-650x417.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-624x400.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/GDAM-Volume-and-Price-Trend-600x385.png 600w" sizes="(max-width: 600px) 100vw, 600px" />
The GDAM market provides for the waiver of transmission charges of ₹0.50 (~$0.006)/kWh compared to the DAM market. With very few buy bids in the GDAM market, most generators consider foregoing the waiver benefit and trading in the regular power market due to the higher liquidity.
Kumar said, “Ultimately, it is the sale rate realization that matters. RE or non-RE, no one cares. Most of the traders are selling under the DAM market, which has both conventional as well as RE buy bids, not G-DAM or G-TAM. Even with the impact of the transmission charges, the trade makes business sense because the delta difference in DAM is still far better. In GDAM, there was no liquidity, and the sell bids were almost four times the buy bids. So, the clearance ratio and liquidity was very low.”
“It is always better for us, as we cannot store the power, so we must sell it. The Real-Time Electricity Market (RTM) has also helped manage the load. The realization in RTM and DAM is the same if the Market Clearing Price (MCP) is the same. So the liquidity of the DAM segment is always the highest as it is one of the largest and oldest markets at the Exchange,” he added.
The IEX <a href="https://www.mercomindia.com/iex-21-jump-profits-green-energy-trade-drops" target="_blank" rel="noopener">traded</a> 24.07 BU from the conventional power market compared to 747.64 MU from the Green Market segment during the second quarter of the financial year 2023-24.
The power demand in the country this year has been on the rise. The country <a href="https://www.mercomindia.com/dry-august-sparks-demand-across-india" target="_blank" rel="noopener">witnessed</a> a staggering peak demand of 240 GW on September 1 this year and in excess of 200 GW throughout August. The peak power supply stood at 199.50 GW in September 2022. The Central Electricity Authority has <a href="https://www.mercomindia.com/indias-power-demand-rise-sharply-256-gw-2024-25" target="_blank" rel="noopener">forecast</a> an all-India peak power demand of 256.53 GW in the financial year 2024-25, rising sharply from 2023-24.
According to Kumar, most entities at the exchanges are simply looking for cheaper power, green or not. The DAM market segment offers them both, whereas the GDAM segment is often considered as the premium power, which entities consider only once their power requirements are fulfilled.
He said, “Earlier, my rationale for power buying was the cost of procurement plus one rupee, which we were paying for renewable energy certificates (RECs), considered as my replacement cost. In an overall strategy as a buyer, my outflow of capital is much lower if I go in for DAM plus REC. Very rarely do people buy power just because they want to be green. We don’t know anyone, except for a few MNCs in India, who do that today.”
Sarkar concurred with Kumar, adding that price increases in the green markets have been in tandem with what is happening in the larger market.
He said, “Green power has usually drawn a premium over conventional power. We have all seen the substantial increase in demand coupled with intermittent fuel supply side issues leading to substantial increases in the power prices several times during the course of the year. This has also been reflected in the overall increase of the weighted average prices in GTAM and GDAM segments.”
The DISCOM Reluctance
The green market segments and REC trade mostly receive traction from distribution companies (DISCOM) looking to fulfill their Renewable Purchase Obligations (RPO).
The graph below shows the REC trade trend from January 2022 until October 2023.
<img loading="lazy" decoding="async" class="aligncenter wp-image-60725" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend.png" alt="Renewable Energy Certificate Trading Trend" width="600" height="360" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend.png 1650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-300x180.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-768x461.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-1536x922.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-650x390.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-624x374.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Renewable-Energy-Certificate-Trading-Trend-600x360.png 600w" sizes="(max-width: 600px) 100vw, 600px" />
There has been a constant debate about the reluctance most DISCOMs have displayed in paying the price to purchase green attributes and fulfill their RPO targets.
According to the renewable trade expert quoted above, the most important reason for DISCOMs not complying with the RPO targets is the lack of pressure on them from the government and no penalties imposed for non-compliance.
He said, “If the DISCOMs are forced to comply, we might easily see all the REC quantum traded month on month. Considering the buy bids are less, people are even holding on to the RECs, hoping the prices go up in the future and the liquidity increases. Even with the lower prices, the REC trade has not seen much traction, and it is not because everyone has fulfilled their RPO targets; it is because DISCOMs are not under pressure.”
According to Sarkar, the REC prices haven’t been reflective of the drop in the RE generation through the year.
While discussing the DISCOM perspective, Sarkar commented, “In such a scenario where prices of new RE generation capacity was falling rapidly whereas REC prices remained upwards, most DISCOMs were not convinced about buying RECs to fulfill their RPO. Compounding this problem was the lack of enforcement of the RPO guidelines by most State ERCs. Furthermore, with the application of GST on RECs from 2018 onwards, the price disparity has been further accentuated. All these have led to an exceedingly low participation in the REC transactions.”
The increase in power demand and the sequential drop in renewable generation over the last few quarters have deflected most of the entities to the other market segments and physical power purchase agreements.
Sarkar remains hopeful about the Green Market segment gaining back its popularity at the exchanges amidst the increasing power demand.
He said, “Now, with the removal of the floor prices, and with prices in the market truly indicative of the ‘green premium,’ it is hoped that the REC framework would make a lot of sense for participants to fulfill their RPO obligations by ‘greening their purchased power’ rather than everyone trying to ‘purchase green power’ directly. The REC trading also needs to be simplified with greater fungibility between different types of RE sources and a reduction in categories of such RE sources. This mechanism does require a far greater degree of support from the policymakers and regulators across the country so that an otherwise efficient mechanism is not relegated to the wayside.”
With the drop in renewable generation, the government has said it would not shy away from adding coal-based capacity if needed to meet the increasing power demand.
While the stakeholders remain positive about renewable generation picking up in the coming quarters with the addition of new capacities, the green market segment trade might continue to see a downward trend as entities continue prioritizing meeting the power demand over adding green power.
Mercom India’s <a href="https://www.mercomindia.com/product/q2-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 2023 Solar Open Access Market Report</a> provides an in-depth analysis of the Green Market segment and state-wise data on energy traded.

Green Energy Trading Takes a Hit in 2023

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/">IEX</a>) traded 280 million units (MU) of renewable energy in April 2023, a decline of 16% year-over-year (YoY) and <a href="https://www.mercomindia.com/iex-5206-mu-renewable-fy23" target="_blank" rel="noopener">28%</a> month-over-month.
The overall volume during the month was 7,928 MU, higher by 6% on a YoY basis. The price was ₹5.41 (~$0.066)/kWh, declining 46% YoY due to improving supply-side scenario and increased liquidity and cooler weather conditions.
Sell-side liquidity improved due to government initiatives to ensure adequate power supply this summer, including gas-based thermal power made available, IEX said.
The trade has commenced in the High Price DAM segment, with 193 MWh volume traded during the month. The segment allows high-cost generators, such as gas-based power generators, imported coal-based plants, and battery energy storage systems, to sell electricity on the market.
While the increase in power demand is expected in the coming months, supply-side liquidity will likely be maintained due to improved coal supply. This will lead to competitive prices and higher clearance for power distribution companies &amp; open-access consumers.
As per data published by GRID-INDIA, energy supplied in the country during April stood at 130.57 BU, declining 1.1% on a YoY basis due to widespread rains.
Green market: Green Day-Ahead &amp; Green Term-Ahead Market
The Green Day-Ahead Market (G-DAM) achieved 159 MU volume with a weighted average price of ₹5.68 /kWh (~$0.07). The market saw participation from 202 market participants during the month.
The Green Term-Ahead Market (G-TAM) achieved 121 MU volume, with an average monthly price of ₹6.48 (~$0.08)/kWh for non-solar and ₹5.83 (~$0.071)/kWh for hydro.
Electricity market: Day-Ahead, Term- Ahead &amp; Real-Time Market
The Day-Ahead Market (DAM) volume was 4,332 MU in April, an 8.5% growth on YoY basis due to favorable prices. The average market clearing price was ₹5.41 (~$0.066)/kWh during the month, lower by 46% YoY.
The Real-Time Electricity Market (RTM) achieved 2,152 MU, registering a 26% YoY growth. There were 733 participants in this segment during the month. The consistent growth of the RTM segment reflects its increasing acceptance among distribution utilities and industries to efficiently balance their power demand-supply on a real-time basis.
The Term-Ahead Market (TAM), comprising intra-day, contingency, daily &amp; weekly contracts, and contracts up to 3 months, traded 842 MU during April, lower 28% YoY.
Renewable Energy Certificate (REC) Market
A total of 199,000 RECs were cleared during the month at ₹1,000 (~$12.24)/REC. The next REC trading session is scheduled on May 31, 2023.
Energy Saving Certificates (ESCerts)
Nearly 123,000 ESCerts (equivalent to 123 MU) were traded at the floor price of ₹1,840 (~$22.51)/ ESCert. The ESCerts trading under the Perform Achieve and Trade Cycle II <a href="https://www.mercomindia.com/energy-saving-certificates-trading-resume" target="_blank" rel="noopener">resumed</a> on the exchange in February 2023.

IEX Trades 280 MU of Green Energy in April 2023, Down 16% YoY

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 341 million units (MU) of renewable energy in February 2023, a 2% decrease month-over-month (MoM) compared to 347 MU <a href="https://mercomindia.com/iex-347-mu-green-energy-january-2023/" target="_blank" rel="noopener">traded</a> in the previous month and a 25% year-over-year (YoY) decrease.
The average daily trading volume on the exchange increased by 5% MoM. However, the overall trading volume decreased by 5% MoM due to fewer trading days in February.
The electricity trading volume was 7,673 MU, which represented a decline of 6% YoY and a 7% MoM. The total trading volume was 8,200 MU, which marked a decline of 7% YoY.
High input costs continued to impact sell-side liquidity in February. However, there was an increase in demand for power due to several parts of the country experiencing unusually warm temperatures and sustained economic activity.
According to data released by the National Load Dispatch Center, the total energy produced in the country during February was 118 BU, representing a 9% YoY increase.
In the coming months, IEX expects that supply constraints will ease due to favorable policy and regulatory initiatives. These initiatives are expected to increase coal and gas-based generation, leading to higher liquidity on the exchange. This increased liquidity will likely provide cost-optimization opportunities for power distribution companies and open access consumers.
Green Market: Day-Ahead and Term-Ahead
The Green Day-Ahead Market (GDAM) traded 250 MU with a weighted average price of ₹6.57 ($0.080)/ kWh, up 4% MoM. The market saw participation from 203 entities during the month, with the highest number of participants in a single day at 159 on February 22, 2023.
The Green Term-Ahead Market (GTAM) traded 91 MU during the month. The average monthly price for non-solar was ₹8.22 ($0.10)/ kWh ₹10.18 ($0.12)/ kWh for hydropower.
Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market
In February, the DAM volume decreased by 5% MoM to 4,664 MU. The DAM volume was also down 17% YoY due to high prices caused by a constrained supply, which led to continued high spot e-auction coal prices.
The Real-Time Electricity Market achieved 1,714 MU during the month, registering a 10% YoY growth.  There were 722 participants in this segment.
The consistent growth of the real-time electricity market indicates the growing reliance on distribution utilities and industries to achieve the power demand-supply balancing in real-time most efficiently, IEX said.
The TAM, comprising intra-day, contingency, daily, weekly, and long-duration contracts, traded 954 MU during the month, an increase of 81% YoY and 5% MoM.
Renewable Energy Certificate Market
February saw 374,000 renewable energy certificates (REC)s cleared, registering a decrease of 5% MoM. The trading session <a href="https://mercomindia.com/rec-jumps-clearing-price-%e2%82%b91000-new-regulations/" target="_blank" rel="noopener">witnessed</a> a clearing price of ₹1,000 (~$12.24)/REC. The next REC trading session at the exchange is scheduled for March 29, 2023.
Energy saving certificates
After a hiatus of 14 months, IEX resumed trading energy-saving certificates (ESCerts) on February 14, 2023. During the month, nearly 154,000 ESCerts, equivalent to 154 MU, were traded on IEX, representing a 97% market share.
The exchange <a href="https://mercomindia.com/iex-reports-4-yoy-dip-profit-q3-fy23/" target="_blank" rel="noopener">reported</a> a 4.4% YoY decrease in profit after tax from ₹807 million (~$9.94 million) to ₹772 million (~$9.51 million) in the third quarter of the financial year 2023.

IEX Traded 341 MU of Green Energy in February 2023, Down 25% YoY

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 347 million units (MU) of renewable energy in January 2023, an increase of 24% year-over-year (YoY). However, the volume declined by 8% month-over-month (MoM) compared to the 377 MU traded in December 2022.
The green energy traded in the market includes Green Day-Ahead Market (GDAM) and Green Term-Ahead Market (GTAM).
The exchange traded 8,639 MU of energy during the month, including renewable energy certificate (REC) trades equivalent to 395 MU. This was a 0.13% YoY decrease compared to 8,650 MU traded during the same period last year and a 2.2% MoM increase.
The volume traded was the highest recorded during the current fiscal year. This was primarily driven by the improving supply side conditions with gradually increasing coal supply and easing e-auction coal prices.
IEX, in its statement, said that they expect the clearing price at the Exchange to go lower in the coming months, given the government’s initiatives to improve coal inventory at the power plants. This would provide further cost optimization opportunities for power distribution companies (DISCOMs) and open access consumers resulting in higher volumes on the Exchange.
According to the power demand data published by the National Load Dispatch Center, the energy met in the country during January was at 126 BU, increasing 13% on a YoY basis.
Green Market: Day-Ahead and Term-Ahead
During the month, the GDAM trade amounted to 286 MU of energy volume with a weighted average price of ₹6.30 (~$0.076)/kWh, an 18.6% increase MoM. The market saw participation from 208 entities, with the highest number of participants in a single day at 154 on January 25.
The weighted average price also saw a 16% MoM increase in the GDAM from ₹5.24 (~$0.063)/ kWh in December 2022 and a 50% YoY increase.
The GTAM market achieved 61 MU volume with an average monthly price of ₹6.22 (~$0.075)/kWh for non-solar and ₹8.19 (~$0.099)/kWh for hydropower.
The average monthly price for non-solar was up by 12% MoM and 41% MoM for hydropower.
Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market
The volume of energy traded in the Day-Ahead market (DAM) decreased to 4,893 MU in January, a 2% MoM decrease and a 7% YoY decline. The Exchange attributed the reduction to the high prices resulting from a constrained supply scenario, which led to the high spot e-auction coal prices during the month.
The Real-Time Electricity Market achieved 2,102 MU volume registering a 19% MoM and 33% YoY growth. The market saw participation from 707 entities during the month.
The Term-Ahead Market (TAM), which includes intra-day, contingency, daily, and weekly contracts, and contracts up to three months, traded 902 MU during the month, a huge surge of 131% YoY and 10% MoM basis.
The TAM has displayed consistent performance during the last few months compared to the same periods last year.
Renewable Energy Certificate Market
A total of 395,000 RECs were cleared during the trading session on January 27, as compared to 1.13 million RECs traded during the same period last year. The Exchange did not provide a clearing price for RECs traded in the month.
The next REC trading session at the Exchange is scheduled for February 22, 2023.

IEX Traded 347 MU of Green Energy in January 2023, Up 24% YoY

The electricity market at Indian Energy Exchange (IEX) traded a volume of 6769 MU (million units) and registered a 50% year-on-year (YoY) growth in February 2021.
The Green Term-Ahead Market traded a volume of 93.72 MU during the month, comprising 37.5 MU in the solar segment and 56 MU in the non-solar segment.
In December 2020, IEX had <a href="https://mercomindia.com/iex-launches-daily-weekly-contracts/" target="_blank" rel="noopener">launched</a> green daily and green weekly contracts on its green market trading platform. The contracts will be available for both solar and non-solar power and will start trading immediately.
The distribution utilities, renewable generators, and open access consumers leverage the green market to buy-sell green energy and fulfill the Renewable Purchase Obligation (RPO) targets.
The green market has cumulatively traded 735 MU volume since its launch on August 21, 2020.
The overall volume growth indicates that the exchange’s electricity market is the preferred option for distribution utilities and industrial consumers. Both can source electricity to address the demand-supply balance while optimizing the power procurement portfolio a competitive price flexibly and transparently.
According to the data published by the National Load Despatch Center (NLDC), the national peak demand at 188 GW registered 2.17% YoY growth. At the same time, the average daily electricity consumption increased 3.31% YoY in February 2021. One Nation One Price prevailed during all 28 days of the month.
According to Rohit Bajaj, Head-Business Development, IEX, with the revival of industrial and economic activity, there was a visible rise in demand of power across several states. National demand increased by over 3% YoY during the month despite a high base.
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Day-Ahead, Term-Ahead, and Real-Time Electricity Market
The day-ahead market traded 5,124 MU and saw a 19.5% YoY growth in February 2021. The cumulative sell bids at 8,535 MU were 1.7 times of cleared volume, indicating ample power availability in the market.
The average monthly price at ₹3.39 (~$0.047)/kWh during the month saw a 16% YoY increase driven by a sharp increase in demand by several states.
The term-ahead market comprising intra-day, contingency, daily, and weekly contracts traded 432 MU in February 2021, recording a  90.84% YoY increase. The real-time market continued its impressive performance, trading 1118.45 MU in February 2021.
The market crossed the 1BU+ volume milestone for the third consecutive month. The sell-side bids at twice the cleared volume indicate good power availability in the market. The market discovered an average price at ₹3.31(~$0.045)/unit and saw average daily participation from 323 participants in February 2021.
The real-time market (RTM) has supported utilities and open access consumers in balancing the real-time demand with the delivery of power at just a 1.5-hour notice. Since its launch on June 01, 2020, the real-time market has cumulatively traded 8054 MU.
In January 2021, IEX had <a href="https://mercomindia.com/iexs-green-term-ahead-market-january/" target="_blank" rel="noopener">announced</a> that its RTM witnessed a trading volume of 1,233 million units (MU), a 9.2% monthly increase.
Renewable Energy Certificates
The REC trading session scheduled on February 24, 2021, did not occur due to the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations against the CERC <a href="https://mercomindia.com/trading-renewable-energy-certificates-postponed/" target="_blank" rel="noopener">order</a> dated June 2020 regarding revision in the floor and forbearance prices of REC.

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