IEX DAM Prices Drop Nearly 18% YoY Despite Rising Demand

Power prices on India’s electricity exchanges declined sharply in February 2026 despite a rise in overall electricity demand, supported by higher supply liquidity on the trading platform.

According to data released by Indian Energy Exchange (IEX), the market clearing price in the Day-Ahead Market (DAM) averaged ₹3.58 per unit in February 2026, marking a decline of 18.3 percent year-on-year (YoY). Similarly, the Real-Time Market (RTM) recorded an average price of ₹3.59 per unit, down 18.7 percent YoY.

Power Consumption Rose 

The price decline came even as India’s electricity consumption continued to rise. Government data showed that the country’s energy consumption reached 133 billion units (BU) in February 2026, representing a 1.9 percent increase compared to the previous year.

Higher supply availability on the exchange platform helped moderate prices, creating an opportunity for distribution companies (discoms) and commercial and industrial (C&I) consumers to procure electricity at competitive rates. Market participants were also able to replace costlier sources of power with electricity purchased through the exchange.

Power Trading Surges 

During the month, the exchange recorded 12,550 million units (MU) of electricity traded, registering a 30.4 percent YoY growth. The platform also achieved its highest daily average traded electricity volume of 448 MU.

Among various market segments, the Real-Time Market (RTM) recorded strong growth, with traded volume rising to 4,379 MU in February 2026, compared to 2,887 MU in February 2025, marking a 51.7 percent YoY increase.

Meanwhile, the Day-Ahead Market (DAM) traded 6,588 MU during the month, up 22.7 percent YoY from 5,369 MU in February last year.

In the renewable segment, the green power market on the exchange recorded 808 MU of traded volume, representing a 46.3 percent YoY increase. The weighted average price in the Green Day-Ahead Market (G-DAM) stood at ₹3.43 per unit, down 25.3 percent YoY.

REC Trading

The Renewable Energy Certificate (REC) market also witnessed increased activity. A total of 18.86 lakh RECs were traded during the sessions held on February 11 and February 25, marking a 15.2 percent YoY increase, with clearing prices at ₹333 per REC and ₹337 per REC, respectively.

Indian Energy Exchange is India’s leading electricity trading platform, providing a transparent and competitive marketplace for generators, distribution companies, and large consumers to buy and sell electricity.

Established in 2008, the exchange operates multiple market segments including the Day-Ahead Market (DAM), Real-Time Market (RTM), Term-Ahead Market (TAM), Green Power Market, and Renewable Energy Certificate (REC) trading. These platforms facilitate efficient price discovery and support the integration of renewable energy into India’s power system.