IEX Q2 Electricity Traded Volume Climbs 12.7% Amid Strong Demand

IEX Reports Robust Growth in Electricity Traded Volume Amid Rising Demand

The Indian Energy Exchange (IEX) has showcased impressive growth in electricity trading, reflecting strong demand across the nation.

Strong Demand Fuels Trading Volume Growth

In the second quarter of the fiscal year 2026-27, IEX recorded a notable increase in electricity traded volume, reaching 39.7 billion units (BU). This marks a 12.7% rise compared to the same period last year, underscoring the sustained demand for electricity in India. The overall energy consumption in the country during this quarter was 502 BU, reflecting an 11.5% increase year-on-year, indicating a robust recovery in economic activities and a growing need for power.

Price Dynamics in the Market

The average market clearing price in the Day-Ahead Market (DAM) saw a significant increase of 46% year-on-year, reaching ₹5.7 per unit. Similarly, the Real-Time Market (RTM) experienced a 49% rise in average prices, climbing to ₹5.2 per unit. These price hikes are indicative of the heightened demand pressures in the market, particularly as peak power demand reached 269 gigawatts (GW) on September 10. The surge in prices is also reflected in the DAM, where the average market clearing price more than doubled to ₹7.3 per unit in September.

September Highlights and Market Trends

In September alone, IEX’s electricity traded volume rose by 10.4% year-on-year to 12.2 BU, with RTM volume increasing by 10.6% to 5.3 BU. Notably, the exchange recorded its highest-ever single-day RTM volume of 315 million units (MU) on September 26. This growth trajectory highlights the increasing reliance on the exchange for real-time electricity trading, which is becoming crucial for managing supply and demand fluctuations.

Market Segments and Future Outlook

The DAM, including the High Price Day-Ahead Market, registered a volume of 14,855 MU during Q2 FY27, up 2.2% from last year. The RTM volume for the quarter stood at 16,490 MU, reflecting a year-on-year growth of 10.5%. The Day-Ahead Contingency and Term-Ahead Market segments also saw substantial growth, with volumes up 101.5% year-on-year. However, the green market, which includes renewable energy certificates (RECs), faced challenges, with a significant decline in trading volumes, down 65.5% year-on-year.

Key Highlights

• Electricity traded volume in Q2 FY27 reached 39.7 billion units, a 12.7% increase year-on-year.
• Average DAM price rose 46% to ₹5.7 per unit, while RTM price increased 49% to ₹5.2 per unit.
• Peak power demand hit 269 GW on September 10, with total energy consumption at 162 BU for the month.
• September saw a 10.4% increase in traded volume to 12.2 BU, with RTM volume up 10.6% to 5.3 BU.
• Green market volumes fell significantly, with a 65.5% decline in REC trading during Q2 FY27.

Investor Note: The strong performance of IEX amidst rising electricity demand signals a robust market environment, although the decline in green market activity may warrant attention from investors focused on sustainability and renewable energy initiatives.