IEX trade volume jumps 24% YoY to 11,370 MU in September

Indian Energy Exchange (IEX) reported a 24% year-on-year (YoY) increase in its total monthly volume, reaching 11,370 million units (MU) in September 2024, IEX says. “The electricity volume (including green electricity volume) during the month at 10,332 MU, increased 21% YoY.”

Amid this development, IEX shares dropped as much as 5.17% to reach an intra day low of ₹197.10 apiece on the BSE today.

At the time of reporting, IEX shares were trading 4.38% lower at ₹198.75, with a market cap of ₹17,861.06 crore. The stock opened higher today at ₹209.00, in contrast with the weak broader market, against the previous close price of ₹207.85. Over the past month, the stock has dipped 6.33%, gained 37.46% in the last six months, and surged 19.05% year-to-date (YTD).

IEX informed the exchanges that the Renewable Energy Certificates (REC) traded totalled 1,031 MU, reflecting a 100% YoY growth. The REC market experienced a historic low price of ₹110 per certificate during the trading session held on September 25, 2024. These low prices offer a beneficial opportunity for obligated entities, such as DISCOMS and captive power producers, to fulfil their renewable purchase obligations, while also assisting voluntary customers in achieving their sustainability goals.

The country's energy consumption reached 141.3 billion units (BUs), showing little change from the previous year, according to government data released in September 2024.

There was a rise in hydro and wind power generation, supported by steady monsoon conditions in September, which resulted in a notable decrease in prices in both the Day-Ahead Market (DAM) and Real-Time Market (RTM). Consequently, trading volumes increased for the month, as per IEX.

The Market Clearing Price for the DAM fell to ₹4.18 per unit in September 2024, representing a 33% YoY decline. Similarly, the Market Clearing Price in the RTM dropped to ₹3.98 per unit, down 28% YoY, it states.

In terms of trading volumes, the DAM recorded 4,610 MU in September 2024, up from 3,467 MU in September 2023, marking a 33% increase. The RTM Market achieved its highest monthly volume ever at 3,913 MU in September 2024, compared to 2,923 MU in September 2023, indicating a 34% rise, it notes.

The company states that the IEX Green Market, which includes the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), saw a total volume of 723 MU in September 2024, a substantial 214% increase from 230 MU in the same month last year. The G-DAM recorded 712.5 MU, with a weighted average price of ₹4.59 per unit, up from 140.2 MU in September 2023, reflecting a huge growth of 408%. The Green Term-Ahead Market achieved 10.4 MU in volume in September 2024, with an average monthly price of ₹8.28 per unit for non-solar sources, totaling 49.7 MU for the quarter.

During the trading sessions on September 11 and 25, a total of 10.31 lakh RECs (equivalent to 1,031 MU) were traded at clearing prices of ₹112 and ₹110 per REC, respectively, marking a 100% YoY increase, it adds.