IEX records electricity traded volume of 121 billion units in FY25 on higher demand

The electricity traded on the Indian Energy Exchange (IEX) reached a record high last fiscal as demand for power rose in the country.

IEX’s electricity traded volume rose 19% year-on-year to 121 billion units (BU) in FY25, according to its statement on Friday. India’s power consumption rose 4.4% during the fiscal.

Monthly trade volumes also reached a record 11,215 million units (MU) in March, marking a 29% year-on-year increase. The traded volumes increased as temperatures went up last month and commercial demand rose with businesses trying to close orders before the fiscal ended.

Also Read: Discoms gear up as Delhi’s peak power demand set to hit 9,000MW this summer

Citing government data, the statement said, in March India’s energy consumption reached 148 billion units, up 7% from a year earlier. On 11 March 2025, peak demand reached 235 GW, surpassing the maximum peak demand of 222 GW recorded in March 2024.

According to the exchange, despite the increase in power demand, the average market clearing price in the day ahead market (DAM) in March was ₹4.47 per unit due to increased supply.

DAM is a physical electricity trading market which allows market participants to buy and sell electricity for the next day.

Policy support

Amid surging power demand in the past few years, the ministry of power took proactive measures throughout the last fiscal to enhance supply. These include extending the directive for imported coal-based power plants to operate at full capacity, the sale of surplus un-requisitioned power on power exchanges, ensuring the availability of gas-based plants and higher availability of generating units to meet peak demand.

Also Read: Govt confident of meeting 277 GW peak power demand in FY26: Shripad Naik

These measures, along with ample coal inventory around 21 days and no loss of generation in the fiscal year 2025, ensured sufficient supply liquidity in the system, said IEX.

"During the year, the sell liquidity in the DAM segment increased by 36% on a year-on-year basis, thereby keeping power prices competitive on the exchange. For FY25, the market clearing price in the Day Ahead Market was at ₹4.47/unit, as compared to ₹5.24/unit in FY24, marking a decline of 15% YoY," it said.

Demand spike fuels REC surge

The peak power demand in FY25 was a record 250 GW, reached on 31 May. With the peak demand projected to touch a new high of 270 GW in the upcoming summers, robust trading of electricity on the exchanges is likely to continue this fiscal.

IEX said that during FY25, the bourse traded 178 lakh renewable energy certificates, marking a 136% year-on-year increase. One REC is equivalent to one megawatt-hour (MWh) of electricity generated from a renewable energy source such as solar, wind, or hydro.

Also Read: India must brace for 9-10% power demand surge in 2025 amid rising temperatures, warn experts

RECs are an essential part of developing the renewable energy market, allowing companies and organizations to offset their carbon footprint by purchasing certificates without directly generating renewable energy themselves.

In March, 13 lakh RECs were traded, marking an 18% year-on-year increase.