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In April 2024, the Indian Energy Exchange, the leading electricity exchange in India, recorded a total volume of 9,044 million units (MU), marking a significant 14.1% increase compared to the previous year. The renewable energy certificates (REC) reached 618 MU, showing an impressive 211% year-on-year surge. Remarkably, the REC market hit a record low price of Rs. 204 per certificate during the trading session on April 24, 2024. This represents an 80% decline in REC prices compared to the previous year, offering obligated consumers an opportunity to fulfill their Renewable Purchase Obligations, and enabling voluntary customers to align with their sustainability goals.
In April ’24, the Market Clearing Price in the Day Ahead Market dropped to Rs. 5.1 per unit, marking a roughly 6% decrease compared to the previous year. Sell bids on the exchange, including both the Day Ahead Market and Real Time Market, rose by 21% year-on-year. Notably, prices in the Day Ahead Market were nearly 45% lower than those observed under bilateral contracts. Government data released in April ’24 revealed that the country’s energy consumption reached 144 billion units (BUs), indicating an 11% increase compared to the previous year.
Thanks to favorable policy and regulatory interventions from the Government and Regulators, the selling environment has improved, resulting in increased sell liquidity at IEX, despite a rise in the country’s energy demand. This balance between supply and demand has kept exchange prices stable.
A total of 618,000 renewable energy certificates (RECs), equivalent to 618 million units (MU), were traded during the trading sessions held on April 10th and April 24th, 2024, at clearing prices of Rs. 240 per REC and Rs. 204 per REC, respectively. The price of Rs. 204 per REC marks the lowest ever recorded in a trading session since the inception of REC trading. The upcoming REC trading sessions at the Exchange are scheduled for May 8th and May 29th, 2024. |
