The Indian Energy Exchange (IEX) recorded significant growth in electricity trading volumes for November 2024, highlighting its position as a critical platform in India’s energy market. The trading volumes increased by 15.7% year-on-year (YoY), reaching 9,689 million units (MU), supported by strong supply-side liquidity. However, market prices declined, presenting opportunities for cost savings for power consumers.

Key Market Segments Performance

1. Day-Ahead Market (DAM):
   The DAM saw 5,651 MU traded, marking a 9.8% YoY increase from 5,144 MU in November 2023. Prices dropped by 17.3% YoY, with the market clearing price (MCP) at ₹3.30/unit, reflecting abundant liquidity and efficient market operations.

2. Real-Time Market (RTM):
   A notable growth of 28% YoY was recorded in the RTM, with trading volumes reaching 3,019 MU, compared to 2,359 MU last year. The RTM MCP decreased by 13.4% YoY to ₹3.46/unit, the lowest monthly price this fiscal year.

3. Green Market:
   IEX's green trading market achieved remarkable growth, with 818 MU traded, reflecting a 331.8% YoY increase from 189 MU in November 2023. The green day-ahead market (G-DAM) contributed significantly with 793 MU traded at an average price of ₹3.19/unit, marking a 335.2% YoY surge.

4. Term-Ahead Market (TAM):
   TAM experienced a significant decline in trading volumes, which fell by 70.3% YoY to 202 MU, highlighting reduced activity in daily, weekly, and monthly contracts.

5. Renewable Energy Certificates (RECs):
   REC trading dropped by 27.7% YoY, with 5.46 lakh RECs traded. The clearing prices were ₹140/REC and ₹190/REC during trading sessions held on November 13 and November 27.

Opportunities for Consumers

The reduced market prices offer a chance for power distribution companies (discoms) and open access consumers to optimize costs by replacing higher-cost power sources with exchange purchases. IEX noted that abundant liquidity and efficient price discovery contributed to this trend, benefiting all market participants.

Stock Market Impact

Shares of Indian Energy Exchange Ltd closed at ₹178.10 on the Bombay Stock Exchange (BSE), reflecting a minor decline of ₹0.10 or 0.056%, amidst positive trading volume news.

Executive Commentary

IEX's performance in November underscores its vital role in advancing energy market efficiency and promoting renewable energy adoption. By leveraging lower prices and higher liquidity, the platform continues to drive value for stakeholders.

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