IEX Total Volume Up 56% YoY to 13,250 MU in July; Stocks Trade Flat

3 minutes of reading Last updated: August 5, 2024 | 10:44 AM IST

IEX in the spotlight: Shares of Indian Energy Exchange (IEX) recovered 4.50 per cent from the intraday low to touch an intraday high of Rs 197.25 per share.

However, at 10:25 am, the stock was trading flat at Rs 195.50 per share. In comparison, the BSE Sensex was trading 1.80 per cent lower at 79,524.34.

The positive move in stock prices came on the back of strong energy data in July.

In July 2024, the Indian Energy Exchange (IEX) set a new record with the highest total trading volume, including certificates, reaching 13,250 MU. This figure represents an increase of around 56 per cent year-on-year.

The electricity volume itself was 10,093 MU, reflecting a growth of 29% year-on-year. The green electricity segment recorded a remarkable growth of 259% year-on-year, reaching 1 BU.

Renewable Energy Certificates (RECs) also saw solid growth with 3,150 MU sold, a staggering 405% increase compared to the previous year.

On July 31, 2024, REC prices fell to a record low of Rs 120 per certificate. This decline creates an opportunity for obligated entities such as DISCOMs and Captive Power Producers to meet their renewable energy purchase obligations and for voluntary buyers to meet their sustainability goals, IEX said in a statement.

Government data from July 2024 shows that domestic energy consumption rose to 145.4 BU, up about 4 percent year-on-year.

Electricity market

The volume on the Day-Ahead Market (DAM) increased to 5,056 MU in July 2024 from 3,976 MU in July 2023, representing an increase of 27% YoY.

Real-time electricity market (RTM) trading volume increased to 3,334 MU in July 2024 from 2,540 MU in July 2023, representing a 31% increase year-on-year.

Green Market

The total trading volume on the Green Day-Ahead and Green Term-Ahead market in July 2024 amounted to 989.6 MU, which means an increase of as much as 259% compared to 275.4 MU in July 2023.

The Green Day-Ahead Market (G-DAM) weighted average price was Rs 4.34 per unit. Notably, G-DAM crossed a record volume of 50 MU on July 28, 2024.

Renewable Energy Certificate (REC)

A total of 31.50 lakh RECs, equivalent to 3,150 MUs, were exchanged on July 10 and July 31, 2024, at prices of Rs 128/REC and Rs 120/REC, respectively.

The next REC trading sessions are scheduled for August 14 and 28, 2024.

Indian Energy Exchange (IEX) is an electronic power exchange in India, regulated by the Central Electricity Regulatory Commission (CERC).

Founded on June 27, 2008, IEX has played a key role in the development of energy trading in the country. It provides a digital platform for various energy market participants, including State Electricity Boards, Power Producers (Gencos), Energy Traders and Open Access Consumers (both industrial and commercial).

As one of the two operating power exchanges in India, IEX has maintained a significant market share since its inception.

The exchange operates a day-ahead market using closed auctions with bilateral bidding and uniform pricing mechanisms. IEX currently serves over 3,800 registered customers, facilitates transactions for over 300 private generators, and supports the needs of over 3,300 industrial electricity customers.

First published: August 5, 2024 | 10:44 AM IST