IEX reports 14% increase in electricity trade volume in May

The Indian Energy Exchange (IEX) on Wednesday, June 4, said it has recorded a monthly electricity traded volume of 10,946 million units (MU) in May 2025, marking a 14% year-on-year (YoY) increase.

The Real-Time Market (RTM) saw its highest-ever monthly volume, reaching 4,770 MU, 42% more than 3,352 MU in May 2024.

Meanwhile, the Day-Ahead Market (DAM) recorded a traded volume of 3,510 MU in the month under review, reflecting a 20%decline from 4,371 MU in the year-ago period.

The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly and monthly contracts up to three months, posted a volume of 1,684 MU, up 38% from 1,221 MU in May 2024, the exchange informed the bourses in its power market update for the previous month.

Despite the growth in volumes, prices across the board witnessed a sharp decline. The average Market Clearing Price in the DAM stood at ₹4.12 per unit in May 2025, down 22% from the previous year. The RTM price averaged ₹3.43 per unit, down 28% from the previous year.

"Unseasonal rains and the early onset of the monsoon kept temperatures lower than usual, leading to reduced electricity demand. Concurrently, increased hydro, wind, and thermal generation resulted in higher supply liquidity on the exchange platform, which led to a substantial drop in DAM and RTM prices," IEX said.

These price drops created a favourable environment for distribution companies (Discoms) and commercial and industrial (C&I) consumers to procure electricity through exchanges at competitive rates, replacing costlier power sources.

The Green Market, comprising Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), reported a volume of 915 MU in May 2025, up 47% from 622 MU in May 2024. The weighted average price in G-DAM was ₹3.59 per unit.

In the Renewable Energy Certificate (REC) segment, IEX traded a total of 17.43 lakh RECs during sessions held on May 14 and May 28, 2025. The clearing prices were ₹345/REC and ₹349/REC, respectively. The REC volume grew by 65% from the previous year.

According to government data, the country’s total energy consumption in May 2025 stood at 148.7 billion units (BU), a 4% decline from the previous year, influenced by subdued weather conditions and reduced power demand.

Shares of IEX were trading 1.24% lower at ₹198.75 apiece on the BSE at around 10:22 am.

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