The Indian Energy Exchange (IEX), a key platform for power trading in India, announced a 14% year-on-year (YoY) increase in electricity traded volume for May 2025, reaching a total of 10,946 million units (MU). This growth highlights the increasing role of power exchanges in India's energy ecosystem, even as prices saw notable declines.

Record Growth in Real-Time Market

The Real-Time Market (RTM) segment at IEX achieved a record monthly volume of 4,770 MU in May 2025. This represents a sharp 42% increase over 3,352 MU traded in May 2024. The surge in RTM volumes indicates stronger demand for real-time power procurement, which allows distribution companies and large consumers to balance supply and demand on short notice.

Decline in Day-Ahead Market Volume

Contrasting the RTM growth, the Day-Ahead Market (DAM) saw a 20% decline in traded volume, from 4,371 MU in May 2024 to 3,510 MU in May 2025. The Day-Ahead Contingency and Term-Ahead Market (TAM), which covers contingency and contracts up to three months, posted an increased volume of 1,684 MU, up 38% year-on-year from 1,221 MU.

Price Drops Driven by Weather and Supply Conditions

Despite the volume growth, average Market Clearing Prices declined sharply. The DAM price fell 22% to ₹4.12 per unit, and the RTM price dropped 28% to ₹3.43 per unit compared to the previous year.

The IEX attributed this to unseasonal rains and early monsoon onset, which lowered temperatures and reduced overall electricity demand. Additionally, increased hydro, wind, and thermal power generation boosted supply liquidity on the exchange, driving prices down.

Benefits for Discoms and Commercial Consumers

The decline in prices created an opportune environment for distribution companies (Discoms) and commercial and industrial (C&I) consumers to purchase power at competitive rates via the exchange platform. This helped them replace costlier power sources and optimize power procurement expenses.

Growth in Green Market and Renewable Energy Certificates

The Green Market, which includes the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), saw a 47% increase in traded volume to 915 MU in May 2025 from 622 MU a year earlier. The weighted average price in G-DAM was ₹3.59 per unit.

In the Renewable Energy Certificate (REC) segment, IEX traded 17.43 lakh RECs during two sessions in May, with clearing prices of ₹345 and ₹349 per REC respectively. REC volumes grew by 65% year-on-year, underscoring rising interest in renewable energy compliance and trading.

National Energy Consumption Trends

Government data showed India’s total energy consumption for May 2025 stood at 148.7 billion units (BU), marking a 4% decline from the previous year. The drop was influenced by subdued weather conditions and lower power demand, aligning with the trends observed on the IEX platform.

Stock Market Reaction

Shares of Indian Energy Exchange were trading slightly lower, down 1.24% at ₹198.75 on the BSE at around 10:22 am on June 4, 2025, despite the positive volume growth announcement.

Conclusion

The May 2025 performance of Indian Energy Exchange reflects a growing shift toward real-time and green power trading in India. While overall volumes are rising, price declines due to weather and supply conditions benefit Discoms and commercial consumers, encouraging more participation in the power exchange markets.

The strong growth in Green Market and REC trading signals increasing commitment to renewable energy procurement and sustainability goals.

With evolving market dynamics and regulatory support, IEX is poised to continue playing a crucial role in India’s power sector transformation.

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