Indian Energy Exchange: IEX shares in focus after September update 

Shares of Indian Energy Exchange are in focus on Monday morning after the electricity exchange achieved a total monthly volume, including certificates, of 11,370 MU for the month, up 24 per cent year-on-year (YoY). The electricity volume, including green electricity volume, for the month stood at 10,332 MU, up 21 per cent YoY, IEX said in an exchange filing.

"The renewable energy certificates (REC) at 1,031MU, increased 100 per cent YoY. At Rs 110 per certificate, the REC market recorded an all-time low price in the trading session held on 25th September 2024. These prices provide an opportunity to obligated entities (DISCOMS and Captive Power Producers) to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations," IEX said.

According to government data published in September, India's energy consumption reached 141.3 billion units (BUs), remaining flattish compared to the previous year. With a steady monsoon in September, there was a significant rise in hydro and wind power generation, which led to a substantial drop in DAM and RTM prices, resulting in higher trading volumes during the month, IEX said.

"The Market Clearing Price in the Day Ahead Market at Rs 4.18 per unit during September 2024, declined 33 per cent year-on-year. Similarly, the Market clearing price in the Real Time Market at Rs 3.98/unit during September 2024, declined 28 per cent year-on-year. These prices present an opportunity for Discoms and Open Access consumers to optimize their power procurement costs through power exchanges," it said.

IEX said Day-Ahead Market (DAM) volume increased to 4,610 MU in September from 3,467 MU in the year-ago month, registering an increase of 33 per cent YoY. The DAM segment registered total volumes of 14,332 MU during Q2FY25, up 27 per cent YoY.

The Real-Time Electricity Market (RTM) achieved highest ever monthly volume of 3,913 MU in September 2024, from 2,923 MU in September 2023, registering an increase of 34 per cent YoY. The RTM segment registered record volume of 10,732 MU during Q2FY'25, increasing 31 per cent over Q2FY’24.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,086 MU during September, a decline of 43 per cent YoY. The total volume on the segment during the quarter was at 2,684 MU, a decline of 42 per cent YoY.

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 723 MU volume during September compared with 230 MU YoY, registering an increase of 214 per cent YoY. The total volume of the Green Market during the quarter was 2,584 MU, growth of 246 per cent over Q2 FY’24.

The Green Day-Ahead Market (G-DAM) achieved 712.5 MU volume during September with a weighted average price of Rs 4.59 per unit, as compared to 140.2 MU in September’23, registering an increase of 408 per cent YoY. The total volume on the segment during the quarter was 2,534 MU, growth of 394 per cent over Q2 FY24.

The Green Term-Ahead Market (G-TAM) achieved 10.4 MU volume in september’24 with average monthly price of Non-Solar- Rs 8.28/unit. The total volume on the segment during the quarter was 49.7 MU.

A total of 10.31 lakh RECs (equivalent to 1,031 MU), an increase of 100 per cent YoY, were traded in the trading sessions held on September 11 and September 25, at a clearing price of Rs 112 per REC and Rs 110 per REC respectively. A total of 62.97 lakh RECs (equivalent to 6,297MU), an increase of 353 per cent YoY, were traded during Q2FY25.