Surging Demand Powers Indian Energy Exchange to Remarkable Growth
The Indian Energy Exchange reported a 16.6% increase in electricity trade for April, fueled by heightened demand. While buying bids surged by 31% year-on-year, selling bids climbed by 35%. Renewable energy surplus drove prices to near-zero levels at times, affecting both day-ahead and real-time markets.
The Indian Energy Exchange (IEX) reported a significant increase in electricity trades for April, reaching 12,341 million units, marking a 16.6% year-on-year rise. Strong demand led to a notable spike in buying bids, which rose by 31%, while selling bids also saw a 35% ascent compared to last year.
The heightened demand influenced the average market-clearing price, which climbed to Rs 5.26 per unit, a modest 1% rise from the previous year. Notably, the real-time market prices often fell to near-zero during solar hours, a consequence of surplus renewable energy. Overall, the average RTM market-clearing price reached Rs 4.82 per unit, increasing 5.4% year-on-year.
While renewable energy contributed to this dynamic market landscape, the trade of renewable energy certificates dipped significantly, down 59.4% with 1.18 lakh RECs traded in April. Upcoming trading sessions are lined up for May 13 and 26, underscoring IEX's pivotal role as India's leading electricity exchange.
(With inputs from agencies.)
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