IEX reported a 14.1% rise in April volumes, while REC prices fell to a record low

08 May 2024

India's leading electricity exchange, the Indian Energy Exchange (IEX), recorded a total volume of 9,044 MU in April 2024, an increase of 14.1% over the previous year. A record low of Rs. 204 per certificate was achieved in the April trading session, representing an increase of 211% year-on-year in the market for renewable energy certificates (REC). This represents an 80% decline year-over-year, which provides opportunities for obligated consumers to meet their renewable purchase obligations and for voluntary customers to meet sustainable targets.

The day-ahead market clearing price was Rs. 5.1/unit, down 6% year-on-year. Sell bids increased by 21% year-over-year in the day-ahead and real-time markets, and DAM prices were 45% lower than those found under bilateral contracts.

According to the government data released in April, India's energy consumption increased by 11% year-on-year to 144 BU. Despite increasing energy demand, favourable policies and regulatory interventions have contributed to improved sales liquidity at IEX. Power ministry measures, including mandating the sale of surplus non-demand electricity on exchanges by thermal generating stations and rescheduling maintenance of thermal power plants to the monsoon season, helped balance supply and demand. The Section 11 instructions for imported coal-based plants have been extended until October 15th, 2024, while gas-based power plants will be operational from May 1 to June 30.