IEX declines despite logging 24% surge in total volume in September 2024

The company’s electricity volume including green electricity was up 21% YoY to 10,332 MU. Further, the renewable energy certificates (REC) surged 100% YoY to 1,031 MU. IEX reported that the REC market saw an all-time low price of ₹110 per certificate on 25 September. Low prices are beneficial for entities to achieve their renewable purchase obligations.

IEX cited government data which stated that energy consumption in September remained mostly unchanged in comparison to the previous year at 141.3 billion units (BU). Hydro and wind power generation saw significant growth during the month. As a result, the day-ahead market (DAM) and real-time market (RAM) prices dropped with a rise in trading volumes.

The market clearing DAM price was down 33% YoY to ₹4.18 per unit while the market clearing RTM price fell by 28% YoY to ₹3.98 units.

However, the lower prices resulted in higher trading volumes with the DAM volume clocking in volume growth of 33% YoY to 4,610 MU. Meanwhile, the RTM market hit its highest-ever monthly volume as it jumped 34% YoY to 10,732 MU.

IEX also saw strong growth in the green market with volumes surging 214% YoY to 723 MU. The G-DAM volumes skyrocketed 408% YoY to 712.5 MU while the Green Term-Ahead Market (G-TAM) recorded volumes of 49.7 MU.

The REC market witnessed a growth of 353% YoY with a total of 62.97 lakh RECs being traded in Q2FY25.

IEX reported that the next REC trading sessions are scheduled on October 9 and 30, 2024.

Shares of the company have risen by nearly 25% since the beginning of the year. The stock has gained over 60% in the past year.