India’s premier electricity trading platform, the Indian Energy Exchange (IEX), reported a robust 14% year-on-year increase in power trade volumes for May 2025, reaching 10,946 million units (MU). This growth was driven by record activity in the Real-Time Market and a surge in green energy trading. Renewable Energy Certificates (RECs) also saw a 65% spike in trading volumes. Despite rising volume, market clearing prices fell sharply across most segments, reflecting increased supply and improved grid efficiency. IEX’s performance underscores shifting market dynamics and the accelerating integration of renewable energy in India’s power ecosystem.
Strong Growth in Overall Electricity Volumes
In May 2025, the Indian Energy Exchange recorded a total trade volume of 10,946 MU, reflecting a 14.4% increase from 9,568 MU in the same month last year. This uptick signals growing demand for short-term electricity contracts amid rising industrial consumption and an evolving regulatory environment supporting market-based electricity procurement.
The surge in volume comes amid increasing competition among generators and more efficient load dispatch, contributing to overall price moderation despite higher consumption.
Real-Time Market Hits Record High
The Real-Time Electricity Market (RTM) emerged as a standout performer, posting its highest-ever monthly traded volume at 4,770 MU, up 42% from 3,352 MU in May 2024. This milestone highlights a growing trend of utilities leveraging real-time transactions to meet unexpected demand fluctuations and optimize energy procurement strategies.
The average market clearing price in this segment dropped significantly to Rs. 3.43 per unit, a 28% decline year-on-year, pointing to improved liquidity and availability of surplus power.
Diverging Trends in Day-Ahead Market
Conversely, the Day-Ahead Market (DAM) saw a notable contraction in volumes, trading 3,510 MU in May 2025—down 20% from 4,371 MU a year earlier. Despite the fall in volume, the segment continues to serve as a crucial benchmark for price discovery in India's short-term power market.
The average market clearing price in the DAM stood at Rs. 4.12 per unit, marking a 22% reduction year-on-year. This downward shift is indicative of better grid planning and an increase in generation availability, particularly from renewable sources.
Green Market and REC Trading Gain Momentum
The green energy segments of IEX also witnessed a substantial upswing. The Green Day-Ahead and Green Term-Ahead Market collectively traded 915 MU in May 2025, up from 622 MU in the same month last year, reflecting a 47% year-on-year increase.
The weighted average price in the Green Day-Ahead Market (G-DAM) was Rs. 3.59 per unit, underscoring cost competitiveness and growing demand for cleaner energy alternatives.
Simultaneously, the market for Renewable Energy Certificates experienced a 65% surge in trading, with 17.43 lakh RECs exchanged in May, signaling heightened compliance activity by obligated entities and increased voluntary participation from corporates aiming to meet sustainability goals.
Term-Ahead and Contingency Contracts See Stable Uptake
The Term-Ahead Market (TAM), including day-ahead contingency, daily, weekly, and monthly contracts, clocked in at 1,684 MU in May 2025, a 38% increase from 1,221 MU the previous year. This growth reflects continued interest in hedging short-term power price risks and securing flexible delivery commitments.
These contracts serve as essential tools for distribution companies (DISCOMs) and open access consumers, enabling better demand forecasting and procurement planning.
Conclusion: A Dynamic Market in Transition
IEX's May 2025 performance underscores the rapid evolution of India’s power trading landscape, characterized by deeper market participation, falling prices, and the mainstreaming of renewable energy. The surge in RTM and green energy trading suggests a shift toward greater flexibility and sustainability in power procurement. With the integration of more intermittent renewable capacity and growing digitalization of grid operations, market players are expected to increasingly rely on real-time and green products to balance cost, reliability, and environmental mandates.
India’s electricity exchange ecosystem is not only expanding in size but also in sophistication—marking a critical step toward a more resilient, competitive, and green energy future.
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