Aug '25 Power Trading Update: Supply Liquidity Keeps Prices Low as Demand Finally Rises 4.4%

Indian Energy Exchange, India's top electricity exchange, achieved a monthly electricity traded volume (inclusive of TRAS) of 11,803 MU in August '25, marking an 18.9% increase on a year-on-year (YoY) basis. A total of 21.68 lakh renewable energy certificates were traded during the month.

In August '25, the country's energy consumption reached 150.47 BUs, an increase of 4.4% compared to the previous year. The report explained that despite the increase in demand, prices on power exchanges were lower than the previous year, owing to higher supply-side liquidity on the exchange platform. In short, it remained a buyers market, as sellers struggled to find enough buyers. IEX reports a decline in the market-clearing price in the Day Ahead Market, which fell 7% YoY to Rs. 4.00/unit in August '25. Similarly, the price in the Real Time Market declined 6% YoY to Rs. 3.38/unit in August '25. Readers will also recall reports of green power prices falling to Rs 0.01 during solar hours.

These prices presented an opportunity for discoms and commercial and industrial (C&I) consumers to meet their demand at competitive rates and replace costlier power by procuring it through exchanges, the IEX report said.

Electricity Market: A Brief Comparison

Sharing a brief comparison of growth in the day-ahead, term-ahead, and real-time markets, the latest IEX report stated, “The Day-Ahead Contingency and Term-Ahead Market (TAM), comprising HPTAM, contingency, daily & weekly, and monthly contracts up to 3 months, traded 835 MU in August '25 compared to 893 MU in August '24, a decline of 6.4% YoY.”

The report added, “The Day-Ahead Market (DAM), including HPDAM, achieved 4,797 MU in August '25 compared to 4,666 MU in August '24, an increase of 3% YoY. The DAM segment accounted for 34% of the total traded volumes in August '25. Meanwhile, the Real-Time Electricity Market (RTM) volume increased to 5,029 MU in August '25, from 3,485 MU in August '24, registering an increase of 44% YoY. The RTM segment accounted for 36% of the total traded volumes in August '25.”

IEX Green Market Sees 7% increase YoY

The IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 930 MU in August '25 compared to 871 MU in August '24, registering an increase of 7% YoY. The weighted average price in the Green Day-Ahead Market (G-DAM) for August '25 was Rs. 3.73/unit.

The renewable energy certificate (REC) market traded a total of 21.68 lakh RECs in the sessions held on August 13 and August 28, 2025, at a clearing price of Rs. 360/REC. This marked a 2.5% YoY increase in REC trading volume for August '25. The next REC trading sessions at the Exchange are scheduled for September 10 and September 24, 2025.