Indian Energy Exchange (IEX) is likely to be in focus on June 4, 2025, after releasing a strong operational update for May 2025, showcasing double-digit growth in electricity trading volumes. Despite a 4% decline in overall national power consumption due to early monsoon and unseasonal weather, IEX reported a 14% year-on-year increase in traded volumes and record participation in the Real-Time Market. This operational momentum has drawn investor attention, with IEX share price rising 5.50% recently and surging 30% over the past 3 months.
Indian Energy Exchange (IEX) reported a total traded electricity volume of 10,946 million units (MU) in May 2025, marking a 14% year-on-year increase. This growth stands out as it came during a month when overall national energy consumption declined by 4%, largely due to early monsoons and unseasonal rainfall.
Despite a softer demand environment, higher availability of hydro, wind and thermal power boosted supply liquidity on the exchange, leading to stronger activity across segments.
The Real-Time Market (RTM) at IEX posted its best monthly performance to date with a volume of 4,770 MU, up 42% from 3,352 MU in May 2024.
RTM has become a critical procurement avenue for distribution companies and industrial users managing short-term or unpredictable power requirements.
The Day-Ahead Market (DAM) traded 3,510 MU in May 2025, lower than the 4,371 MU in May 2024. While volumes declined 20% YoY, the average clearing price dropped to ₹4.12/unit, a 22% fall from the previous year.
In the Real-Time Market, the average price was ₹3.43/unit, down 28% YoY, providing cost-efficient sourcing opportunities to participants.
The Day-Ahead Contingency and Term-Ahead Market (TAM), which includes contracts for daily, weekly, and up to three-month deliveries, registered 1,684 MU in traded volume in May 2025. This reflects a 38% increase over 1,221 MU traded in May 2024.
IEX’s Green Market, consisting of the Green Day-Ahead and Green Term-Ahead segments, traded 915 MU in May 2025, a 47% increase over 622 MU in the same month last year.
The weighted average price in the Green Day-Ahead Market stood at ₹3.59/unit, highlighting the affordability of clean energy procurement through exchange-based trading.
The Renewable Energy Certificate (REC) market also saw increased participation, with 17.43 lakh certificates traded across sessions on May 14 and 28. The clearing prices were ₹345 and ₹349 per REC, respectively.
This reflects a 65% rise in REC volume on a yearly basis, driven by higher demand for compliance instruments under renewable purchase obligations.
IEX share price has been gaining traction, advancing 5.50% in recent sessions and marking an impressive 30% rise over the past three months.
Read More: IEX Announced 22% PAT Growth in FY25 & ₹1.50 Final Dividend!
The significant growth in volumes, coupled with falling prices, made IEX a preferred marketplace for both discoms and commercial consumers seeking to optimise power procurement costs.
With electricity prices remaining competitive and volumes rising across segments, IEX continues to play a central role in enhancing transparency and efficiency in India’s evolving energy market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 4, 2025, 10:18 AM IST
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