- The Indian Energy Exchange (IEX) reported a record 29% increase in electricity trading volume for December, reaching 11.132 billion units.
- The green electricity market grew significantly, with December trading volumes tripling to 781 million units, highlighting the rise in renewable energy.
- Renewable energy certificates (RECs) saw a 31% year-over-year increase, with nearly 2.65 million certificates traded during the quarter.
The Indian Energy Exchange (IEX) reported a 29% surge in electricity trading volume for December, reaching 11.132 billion units. This increase was driven by the significant drop in day-ahead market prices, which fell 14% year-over-year to an average of INR 3.89 per unit.
In the third quarter of the fiscal year 2025, from April to March, traded volumes grew by 16% compared to last year, totalling 30.464 billion units. The price decline and a 57% rise in supply allowed distribution companies and open-access consumers to reduce costs by purchasing power through the exchange.
The green electricity market saw significant growth in December, with trading volumes more than tripling to 781 million units. The green day-ahead market alone accounted for 763 million units, with a weighted average price of INR 3.92 per unit. Although this figure was slightly lower than November’s 793 million units, it remains a strong indicator of renewable energy’s growth in India.
Renewable energy certificates (RECs) also saw a sharp increase in activity. Nearly 2.65 million certificates traded during the quarter, marking a 31% rise from last year. Depending on the session, REC prices ranged from INR 140 to INR 316.
Government data released in December 2024 showed that India’s energy consumption reached 130.40 billion units, reflecting a nearly 6% year-over-year increase. This rise in demand aligns with CRISIL’s forecast, predicting a 5% to 6% increase in electricity demand for the current fiscal year.
The increased supply in the day-ahead market lowered average prices to INR 3.71 per unit for the quarter, marking a 26% drop compared to the previous year. The abundant supply also led to a 32% year-over-year increase in the real-time electricity market. December saw 3.18 billion units traded in real-time, while the quarter ended with 9.322 billion units, a 30% rise from last year.
This growth in electricity trading volumes highlights the strengthening of India’s energy markets. Increased production capacity and the rising adoption of exchange-based trading mechanisms are key to reducing consumers’ costs and ensuring a steady power supply.
The surge in trading volumes underscores the effectiveness of market-based pricing mechanisms in India’s energy landscape. As the market continues to evolve, the combination of price drops and higher supply benefits buyers and sellers, encouraging more participation in the exchange. This, in turn, drives the growth of the renewable energy market and contributes to India’s broader energy transition goals.
With renewable energy continuing to progress, the green market remains a key focus for future growth. The rising volume of RECs traded reflects India’s commitment to meeting its renewable energy targets. As the country expands its clean energy capacity, the role of the IEX in facilitating transparent, market-driven transactions will likely grow, contributing to long-term sustainability in the energy sector.