Indian Energy Exchange (IEX), India's premier electricity exchange, has reported a significant increase in its monthly electricity trading volume for November, despite a decline in average electricity prices. This growth underscores the exchange's resilience and the increasing liquidity in the power market.

Key Highlights

Trading Volume Growth

IEX achieved a monthly electricity trading volume of 11,409 MU (Million Units) in November, marking a substantial 17.7% year-on-year increase. This growth demonstrates the exchange's expanding role in facilitating power trading across India.

Real-Time Market Performance

The Real-Time Electricity Market (RTM) segment showed exceptional growth, with volumes surging by 40.2% year-on-year to reach 4,233 MU. This significant increase indicates a growing preference for real-time power procurement among market participants.

Price Dynamics

Despite the volume growth, average electricity prices on the exchange saw a decline:

• The Day-Ahead Market (DAM) price averaged Rs 3.07 per unit, down 6.9% compared to the previous year.
• The Real-Time Market price averaged Rs 3.14 per unit, representing a 9.2% year-on-year decrease.

Factors Influencing Price Decline

The price decline can be attributed to enhanced renewable energy generation, which created higher supply liquidity on the exchange platform. This increased supply has led to more competitive pricing, benefiting both power distributors and commercial/industrial consumers.

Market Implications

The combination of increased trading volumes and lower prices presents a favorable scenario for various stakeholders:

1. Power Distribution Companies (Discoms): Can meet their demand at competitive prices.
2. Commercial and Industrial Consumers: Have the opportunity to replace costlier power sources with more affordable options through the exchange.
3. Renewable Energy Generators: The increased liquidity suggests better integration of renewable energy into the grid.

Conclusion

IEX's November performance reflects a maturing electricity market in India, with growing volumes indicating increased trust in the exchange platform. The decline in prices, driven by enhanced renewable energy generation, signals a shift towards a more sustainable and efficient power sector. As the market continues to evolve, Indian Energy Exchange is well-positioned to play a crucial role in India's energy landscape, facilitating transparent and competitive power trading.

Indian Energy Exchange (IEX), India's premier power trading platform, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in trading volumes and financial metrics.

Key Highlights

• Electricity trading volume reached 35.2 billion units, up 16.1% year-on-year
• Revenue increased by 9.2% to Rs. 183.30 crores
• Profit after tax rose 13.9% to Rs. 123.40 crores
• Real-Time Market (RTM) segment achieved 36% share of volumes, surpassing Day-Ahead Market (DAM) for the first time

Financial Performance

IEX demonstrated strong financial growth in Q2 FY26:

Market Performance

The exchange witnessed significant growth in its electricity trading volumes, which increased by 16.1% year-on-year to reach 35.2 billion units in Q2 FY26. This growth is particularly noteworthy given the flat power demand in the country during this period.

Segment-wise Performance

Real-Time Market (RTM)

• Achieved 36% share of volumes, surpassing the Day-Ahead Market for the first time
• RTM volumes reached nearly 15 billion units, marking a 39% year-on-year growth
• Average price in RTM was Rs. 3.51 per unit, down 16% year-on-year

Day-Ahead Market (DAM)

• Average price in DAM was Rs. 3.93 per unit, down 12.5% year-on-year

Green Market

• Volume rose 17.7% year-on-year to 3 billion units

Renewable Energy Certificates (RECs)

• Nearly 44 lakh RECs were traded, lower than the 63 lakh certificates traded in Q2 FY25

Market Dynamics

The increase in trading volumes can be attributed to several factors:

1. Improved supply liquidity, leading to a substantial drop in prices
2. Sell bids in the Day-Ahead Market increased by 39.3% year-on-year
3. Government mandate for thermal generators to sell un-requisitioned power in DAM and RTM markets

IGX Performance

Indian Gas Exchange (IGX), a subsidiary of IEX, also reported strong growth:

• Gas trading volume reached 16.1 million MMBtu, a 37% year-on-year growth
• Recorded a profit after tax of Rs. 9.60 crores, up 57% from Rs. 6.10 crores in Q2 FY25

Future Outlook

IEX management expects to maintain a 15-20% volume growth. The company is optimistic about long-term growth prospects, driven by India's expanding economy and energy transition initiatives. The exchange is also preparing for upcoming developments in the power sector, including:

1. Implementation of market coupling by January 2026
2. Introduction of carbon credit trading
3. Potential establishment of a coal exchange

As India progresses towards its net-zero goals, energy exchanges like IEX are poised to play an increasingly significant role in shaping the nation's energy ecosystem.

Regulatory Developments

IEX is closely monitoring several regulatory developments that could impact the power trading landscape:

1. Proposed amendments to the Electricity Act
2. Introduction of Virtual Power Purchase Agreements (VPPAs)
3. Potential implementation of a capacity market

These initiatives aim to improve the viability of the power sector and enhance the performance of distribution companies, which could further boost demand for power trading on exchanges.

As the Indian power sector continues to evolve, IEX remains well-positioned to capitalize on emerging opportunities and contribute to the development of a more efficient and sustainable energy market in India.