IEX Volumes Rise Amid Record-Low Spot Prices on Renewable-Driven Oversupply

The Indian Energy Exchange (IEX) recorded 11,233 million units of electricity traded in October—up 16.5% YoY—even as spot prices plunged due to a supply glut. The Day-Ahead Market (DAM) price fell 32% to ₹2.67/unit, while Real-Time Market (RTM) prices dropped 27.8% to ₹2.73/unit, driven by robust hydro, wind, and solar generation alongside steady coal-based supply. Despite a 6% drop in national power consumption to 132 billion units, trading activity surged, with RTM volumes up 46.8% YoY and DAM rising 6.7%. RTM and DAM together accounted for over 75% of total trades, highlighting growing reliance on short-term markets. The Green Market also gained traction, with renewable energy volumes up 21% YoY to 1,055 million units, and Renewable Energy Certificates (RECs) trading up 39.4% to 6.19 lakh certificates at ₹307 each. Lower prices created cost-saving opportunities for discoms and C&I consumers, enabling them to replace expensive power contracts with cheaper exchange purchases. However, persistently low prices signal tightening margins for generators and underscore the need for flexible operations in an increasingly renewables-dominated grid. IEX’s performance reflects India’s evolving power market dynamics—higher liquidity, falling costs, and accelerating integration of green energy into mainstream procurement.