Spot electricity prices declined substantially in May, amid reduced demand: Indian Energy Exchange
Indian Energy Exchange (IEX), a leading electricity exchange platform, said spot prices declined substantially in May, amid reduced electricity demand driven by unseasonal rains and the early onset of the monsoon
The Market Clearing Price in the Day Ahead Market (DAM) at ₹4.12/unit during May 2025, declined 22% year-on-year. Similarly, the Market Clearing Price in the Real Time Market (RTM) at ₹3.43/unit during May 2025, declined 28% year-on-year, IEX said in a statement.
According to government data published in May 2025, the country's energy consumption stood at 148.7 billion units (BUs), marking a 4% decline compared to the previous year, it said.
Also Read | Heatwaves drove 1/3rd of rise in India's power demand during 2024 summer: Report
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, IEX said.
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, it said.
DAM volumes declined 20% to 3,510 million units (MU) in May 2025 from 4,371 MU in May 2024, while RTM reported the highest ever monthly traded volume.
RTM volumes increased 42% to 4,770 MU in May 2025 from 3,352 MU in May 2024.
Spot power prices in India dropped to zero on May 25 from 8AM to 1PM for the first time on May 25, amid weak demand, IIFL Capital said in a recent report
Only 7% of India's electricity generation is traded through three power exchanges.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 days ago
- Time of India
India adds 1.1 GW solar open access capacity in Q1 2025, down 48% from previous quarter
New Delhi: India added 1.1 gigawatts (GW) of solar open access capacity in the first quarter (Q1) of calendar year (CY) 2025, a decline of nearly 48 per cent from 2.1 GW recorded in the preceding quarter (Q4 2024), according to the Q1 2025 edition of Mercom India's Solar Open Access Market Report. Year-on-year, installations were down by 47 per cent compared to over 2 GW in Q1 2024. The report attributed the slowdown to module shortages caused by the year-end commissioning rush driven by the close of the financial year, a lack of transmission infrastructure, delays in the connectivity approval process, and uncertainty around the Inter-State Transmission System (ISTS) waiver. "The open access solar market is beset by new challenges but the demand for clean energy has not only increased but expanded to encompass solar, wind, and energy storage. Many states are joining the green energy open access route owing to the demand their businesses operating in the state. But ISTS charges waiver would be integral to greater adoption by industries keen on wheeling power from renewable energy resource rich states," said Priya Sanjay, Managing Director at Mercom India. Solar open access projects accounted for 19.8 per cent of the total large-scale solar installations in Q1 2025. Of the open access projects installed during the quarter, 67.4 per cent were standalone solar, 32 per cent were wind-solar hybrid projects, and 0.6 per cent were floating solar installations. Maharashtra led in quarterly solar open access capacity additions, contributing nearly 29 per cent of the installations. The top five states accounted for over 89 per cent of total installations during the quarter. As of March 2025, India's cumulative installed solar open access capacity stood at 21.5 GW. Karnataka remained the leading state in terms of cumulative capacity, accounting for around 24 per cent of total installations. Maharashtra and Tamil Nadu followed, contributing nearly 17 per cent and over 12 per cent respectively. The pipeline of solar open access projects under development or in pre-construction stages was over 31 GW as of March 2025. The top five states comprised nearly 87 per cent of these pipeline projects. In Q4 2024, Adani Green was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for over 41 per cent of the electricity sold. Maharashtra was the top procurer, accounting for 17 per cent of the electricity purchased through G-DAM. The cleared volume of Renewable Energy Certificates (RECs) traded on the Indian Energy Exchange (IEX) rose by 155 per cent quarter-over-quarter (QoQ), while trading in the Green Term Ahead Market (G-TAM) increased by around 72 per cent QoQ. The Q1 2025 Solar Open Access report also offers detailed insights into retail electricity tariffs, power purchase agreement (PPA) prices, and open access-related charges and costs across 15 states.
Business Standard
2 days ago
- Business Standard
IEX electricity volume climbs 14% YoY to 10,946 MU in May'25
Indian Energy Exchange (IEX) informed that it has achieved monthly electricity volume of 10,946 million units (MU) in May 2025, registering a growth of 14% YoY basis. During the month, the company has traded 17.43 lakh renewable energy certificates, recording a 55% YoY increase. According to government data published in May 2025, the country's energy consumption reached 148.7 billion units, marking a 4% decline compared to the previous year. The Day-Ahead Market (DAM) volume achieved 3,510 MU volume in May25 as compared to 4,371 MU volume in May24, decline of 20% YoY. The Real-Time Electricity Market (RTM) reported highest ever monthly traded volume in May25. The RTM volume increased to 4,770 MU in May25, from 3,352 MU in May'24, registering an increase of 42% YoY. The Day Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts up to three months, traded 1,684 million units (MU) in May25, up 42% YoY. IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 915 MU volumes during May25 as compared to 622 MU in May24, registering an increase of 47 % YoY. The weighted average price in Green Day-Ahead Market (G-DAM) for May25 was Rs 3.59/unit. A total of 17.43 lakh RECs were traded in the trading sessions held on 14th May25 and 28th May25, at a clearing price of Rs.345/REC and Rs. 349/REC respectively. REC traded volume in May25 increased by 65% on YoY basis. The next REC trading sessions at the Exchange are scheduled on 11th June25 and 25th June25. IEX is India's premier electricity exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The company's consolidated net profit rose 21.12% to Rs 117.11 crore on 17.29% increase in net sales to Rs 142.25 crore in Q4 March 2025 over Q4 March 2024. Shares of Indian Energy Exchange (IEX) rose 0.27% to Rs 201.80 on the BSE.
The Hindu
2 days ago
- The Hindu
Spot electricity prices declined substantially in May, amid reduced demand: Indian Energy Exchange
Indian Energy Exchange (IEX), a leading electricity exchange platform, said spot prices declined substantially in May, amid reduced electricity demand driven by unseasonal rains and the early onset of the monsoon The Market Clearing Price in the Day Ahead Market (DAM) at ₹4.12/unit during May 2025, declined 22% year-on-year. Similarly, the Market Clearing Price in the Real Time Market (RTM) at ₹3.43/unit during May 2025, declined 28% year-on-year, IEX said in a statement. According to government data published in May 2025, the country's energy consumption stood at 148.7 billion units (BUs), marking a 4% decline compared to the previous year, it said. Also Read | Heatwaves drove 1/3rd of rise in India's power demand during 2024 summer: Report 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, IEX said. 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, it said. DAM volumes declined 20% to 3,510 million units (MU) in May 2025 from 4,371 MU in May 2024, while RTM reported the highest ever monthly traded volume. RTM volumes increased 42% to 4,770 MU in May 2025 from 3,352 MU in May 2024. Spot power prices in India dropped to zero on May 25 from 8AM to 1PM for the first time on May 25, amid weak demand, IIFL Capital said in a recent report Only 7% of India's electricity generation is traded through three power exchanges.
