Indian Energy Exchange, India’s premier electricity exchange, achieved monthly overall volume of 10,633 MU, in May’24, marking a 28.9% year-over-year increase. The electricity volumes at 9,568 MU, increased 21% YoY. The renewable energy certificates (REC) at 1,055 MU, increased 640.3% YoY. At Rs. 165 per certificate, the REC market recorded an all-time low price in the trading session held on 29th May 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.
Proactive measures taken by the government and the regulators, including the sale of surplus un-requisitioned power on power exchanges, increased fuel supply and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges which kept the prices under control on exchanges. Therefore, despite the increase in the electricity consumption the market clearing price in Day Ahead Market during May ‘24 was Rs. 5.3/unit, lower by more than 20% as compared to prices discovered under bilateral contracts.
According to government data published in May’24, the country’s energy consumption reached 156.3 BUs, representing 15% increase on a year-on-year basis. Notably, on May 30, 2024, the country witnessed an all-time high peak demand of 250 GW along with the highest ever single day energy consumption of 5,466 MU.
ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET
The Day-Ahead Market (DAM) volume increased to 4,371 MU in May’24, from 4,066 MU in May’23, registering an increase of 7.5% YoY.
The Real-Time Electricity Market (RTM) reported highest ever monthly traded volume in May’24. The RTM volume increased to 3,352 MU in May ‘24, from 2,424 MU in May’23, registering an increase of 38.3% YoY. On an average more than 100 MUs were traded daily in the RTM segment in May’24. Consistent growth of the RTM segment is a testimony that distribution utilities and industries are efficiently balancing their power demand-supply on a real-time basis.
