New Delhi: The Indian Energy Exchange (IEX), India’s premier electricity trading platform, has marked a significant milestone with its highest-ever monthly electricity trade volume of 11,132 million units (MU) in December 2024. This impressive achievement represents a 29 percent year-on-year (YoY) growth, further cementing IEX’s leadership in the country’s electricity market.
Alongside this achievement, IEX also recorded a substantial surge in its Renewable Energy Certificate (REC) trading. The exchange transacted 16.62 lakh RECs in December 2024, reflecting a 58 percent YoY increase, highlighting the growing interest in renewable energy trading.
Strong Performance in FY’25
For the first nine months of FY’25, IEX’s total electricity trade volume reached 88,981 MU, marking a 19 percent YoY growth. In the third quarter (Q3 FY’25), the platform traded 30,464 MU of electricity, a 16 percent YoY increase. REC trading during Q3 FY’25 stood at 26.52 lakh, reflecting a 31 percent YoY rise.
These milestones come amid a broader rise in India’s energy consumption, which reached 130.40 billion units (BUs) in December 2024, a 6 percent YoY increase. IEX’s robust supply-side growth during this period contributed to moderating power prices, offering cost-effective procurement opportunities for Discoms and Open Access consumers. In December 2024, the Market Clearing Price (MCP) in the Day-Ahead Market (DAM) stood at Rs 3.89 per unit, down by 14 percent YoY, while the Q3 FY’25 average price dropped significantly by 26 percent to Rs 3.71 per unit.
Market Performance Highlights
- Day-Ahead Market (DAM): December 2024 saw a 39 percent YoY increase in DAM volumes, reaching 6,674 MU. For Q3 FY’25, DAM volumes totaled 16,712 MU, up 14 percent YoY.
- Real-Time Market (RTM): RTM recorded a volume of 3,180 MU in December 2024, a 32 percent YoY increase. In Q3 FY’25, RTM volumes reached 9,322 MU, growing by 30 percent YoY.
- Term-Ahead Market (TAM): TAM traded 498 MU in December 2024, marking a 59 percent YoY decline. Q3 FY’25 saw a total volume of 1,960 MU, down by 49 percent YoY.
Surge in Green Market Trading
IEX’s Green Market, comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), experienced exceptional growth in December 2024. G-DAM achieved a volume of 763 MU, a 252 percent YoY increase, while the Green Term-Ahead Market (G-TAM) recorded 18 MU, a 15 percent YoY rise.
For Q3 FY’25, G-DAM registered 2,385 MU, up by 311 percent YoY, while G-TAM saw a 187 percent YoY growth, with 86 MU traded.
Renewable Energy Certificate (REC) Market Growth
The REC market continued its strong performance with the trading of 16.62 lakh RECs in December 2024, reflecting a 58 percent YoY increase. The clearing prices for these RECs ranged between Rs 260 and Rs 316. In Q3 FY’25, total REC trading reached 26.52 lakh, marking a 31 percent YoY growth.
The next REC trading sessions are scheduled for January 8 and January 29, 2025.
Outlook for the Future
IEX’s record-breaking performance in both electricity and renewable energy markets highlights its pivotal role in driving efficiency, liquidity, and sustainability in India’s energy landscape. The exchange’s continued success, especially in green energy trading, aligns with India’s sustainability objectives, positioning IEX as a key player in shaping the future of the country’s energy market.
With sustained growth across multiple market segments, IEX remains well-positioned to contribute to India’s energy transition, ensuring cost-effective and reliable power for consumers while supporting the country’s renewable energy goals.
