Indian Energy Exchange, India’s premier electricity exchange, achieved 9,044 MU overall volume, in April’24, marking a 14.1% year-over-year increase. The renewable energy certificates (REC) at 618 MU, increased 211% YoY. At Rs. 204 per certificate, the REC market recorded an all-time low price in the trading session held on 24th April 2024. The REC prices have declined by 80% on YoY basis. These prices provide an opportunity to obligated consumers to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations.
The Market Clearing Price in Day Ahead Market during April ‘24 at Rs. 5.1/unit reduced approximately 6% year-on-year. The sell bids on the exchange (Day Ahead Market plus Real Time Market) during the month increased by 21% on YoY basis. The DAM prices were lower by almost 45% as compared to prices discovered under bilateral contracts.
According to government data published in April’24, the country’s energy consumption reached 144 BUs, representing an 11% increase on a year-on-year basis.
Favourable policy and regulatory interventions by the Government and Regulators led to an improved sell scenario, leading to increased sell liquidity at IEX, despite an increase in the country’s energy demand. As a result of this balance between supply and demand, the prices on the exchange have remained steadfast. In preparation for the summer months, the Ministry of Power has announced several measures, such as mandating the sale of surplus un-requisitioned power on power exchanges by all thermal generating stations and rescheduling of planned maintenance of thermal power plants to the monsoon season. Additionally, section 11 directions for operationalization of imported coal based plants are extended till 15 October 2024. Further, the Government has directed all gas-based power generating stations to operationalise their plants from May 1 to June 30 in view of rise in electricity demand.
