Total trade volume on the Indian Energy Exchange fell by 18% in August to 7,805 million units

6 Sep 2022 , 11:58 AM

The total trade volume of Indian Energy Exchange (IEX) registered an 18% annual decline in August to 7,805 MU (million units). According to a statement from the IEX, the overall trade volume in August 2021 was 9,538 MU.

On a month-over-month basis, though, IEX saw a 9% gain in August. The total volume of power traded in July 2021 was 7,151 MU.

According to the statement, out of the 7,805 MU total trade volume in August 2022, 6,517 MU came from the conventional power market, 437 MU from the green power market, and 851 MU (8.51 lakh Certificates) from the REC market.

In the Day-Ahead market, the average clearance price increased 2% YoY (year over year), from Rs5.06 per unit in August 21 to Rs5.17 in August 22.

The high cost of imported coal, the scarcity of fuel, and rising e-auction prices, it claimed, all contributed to the supply-side limitations continuing.

At 3,529 MU, the Day-Ahead Market volume showed flat growth from month to month.

Even though the cost of imported coal remained high, growing hydro and renewable energy production caused the market clearing price to fall by 5% month over month to Rs5.17 per unit.

The Real-Time electricity market recorded 2,265 MU volume throughout the month, representing a rise of 6% from month to month and 22% YoY.

The Term-Ahead Market, which consists of intra-day, contingency, daily, and weekly contracts, traded 723 MU in August, representing a rise of 17% year over year and 64% month over month.

RECs (renewable energy certificates) of 8.51 lacs were cleared during the IEX trading session on Tuesday, August 30, 2022, an increase of 79% MoM.

It added that a larger supply of solar RECs caused the clearance price to approach floor-level at Rs1,000 per REC throughout the month, with 4.32 lacs solar RECs exchanged.

Due to a stay order issued by the Appellate Tribunal of Electricity on July 20, 2020, there were no REC trading sessions during the same period last year.

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