IEX May Highlights- Lower Prices, Record Volumes

Indian Energy Exchange (IEX), India’s largest electricity exchange, achieved monthly electricity traded volume of 10,946 MU in May ’25, marking a 14% increase on year-on-year basis. A total of 17.43 lakh Renewable Energy Certificates were traded during the month, marking a 65% year on year increase.

PRICE DROPS

In a month that was marked by the first ever time that green energy prices brushed close to zero, linked to higher availability and lower demand, prices in both the Day Ahead Market (DAM) and Real Time Market dropped significantly.

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. The Market Clearing Price in the Day Ahead Market at Rs 4.12/unit during May 2025, declined 22% year-on-year. Similarly, the Market clearing price in the Real Time Market at Rs 3.43/unit during May 2025, declined 28% year-on-year.

According to government data published in May 2025, the country’s energy consumption stood at 148.7 BUs, marking a 4% decline compared to the previous year.

These prices presented an opportunity for Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges.

ELECTRICITY MARKET: DAY- AHEAD, TERM- AHEAD & REAL-TIME MARKET

The Day-Ahead Market (DAM) achieved 3,510 MU volume in May’25 as compared to 4,371 MU volume in May’24, decline of 20% YoY.

The Real-Time Electricity Market (RTM) reported highest ever monthly traded volume in May’25. The RTM volume increased to 4,770 MU in May‘25, from 3,352 MU in May’24, registering an increase of 42% YoY.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising of contingency, daily & weekly and monthly contracts up to 3 months, traded 1,684 MU in May’25 as compared to 1,221 MU volume in May’24, an increase of 38% YoY.

GREEN MARKET: GREEN DAY-AHEAD & GREEN TERM-AHEAD MARKET

IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 915 MU volume during May’25 as compared to 622 MU in May’24, registering an increase of 47 % YoY. The weighted average price in Green Day-Ahead Market (G-DAM) for May’25 was Rs 3.59/unit.

RENEWABLE ENERGY CERTIFICATE MARKET (REC MARKET)

A total of 17.43 lakh RECs were traded in the trading sessions held on 14^th May’25 and 28^th May’25, at a clearing price of Rs.345/REC and Rs. 349/REC respectively. REC traded volume in May’25 increased by 65% on YoY basis.

The next REC trading sessions at the Exchange are scheduled on 11^th June’25 and 25^th June’25.