IEX Reports 25.5% Volume Growth in July Despite Price Decline and Market Coupling Concerns
Indian Energy Exchange (IEX) saw a 25.5% year-on-year increase in electricity traded volumes for July, reaching 12,664 million units. The Day-Ahead Market volumes rose 9% to 5,510 MU, while the Real-Time Electricity Market volumes surged 53% to 5,109 MU. Despite volume growth, prices declined with Day-Ahead Market clearing prices falling 16% to ₹4.18 per unit and Real-Time Market prices dropping 23% to ₹3.83 per unit. The Green Market segment traded 1,025 MU, showing 4% growth. However, Renewable Energy Certificates saw a 48% decrease. IEX faces potential challenges from the upcoming implementation of Market Coupling norms by January 2026, which could impact its dominant market position.

*this image is generated using AI for illustrative purposes only.
Indian Energy Exchange (IEX) reported a 25.5% year-on-year increase in electricity traded volumes for July, reaching 12,664 million units. This marks a significant milestone in the country's energy market, showcasing the exchange's robust performance.
Market Segment Performance
The Day-Ahead Market (DAM) volumes rose 9% to 5,510 MU, while the Real-Time Electricity Market (RTM) volumes surged an impressive 53% to 5,109 MU. The RTM segment emerged as a standout performer, setting a new benchmark with the highest single-day volume of 204.6 MU recorded on July 27.
Pricing Trends
Despite the volume growth, prices declined significantly:
- Day-Ahead Market clearing prices fell 16% to ₹4.18 per unit
- Real-Time Market prices dropped 23% to ₹3.83 per unit
The lower prices were attributed to higher supply-side liquidity on the exchange platform, presenting opportunities for Discoms and Commercial & Industrial consumers.
Green Energy Initiatives
The Green Market segment, comprising Green Day-Ahead and Green Term-Ahead Market segments, traded 1,025 MU in July, showing a 4% growth. However, Renewable Energy Certificates (RECs) saw a 48% decrease, with 16.26 lakh certificates cleared at ₹360.00 per certificate.
Market Coupling Concerns
IEX stock has declined over 30% in the past month following the Central Electricity Regulatory Commission's (CERC) approval of Market Coupling norms implementation. Under these regulations:
- Coupling of the Day-Ahead Market will be implemented by January 2026
- Different power exchanges will act as Market Coupling Operators on a round-robin basis
- The market coupling system will aggregate buy and sell orders from all exchanges to discover uniform clearing prices across platforms
This development threatens IEX's dominant position as the preferred price discovery platform and could potentially impact its current 85% spot market share by shifting volumes to competitive exchanges.
Stock Performance
Despite the concerns, IEX shares traded 0.24% higher at ₹134.30 on the day of reporting.
As IEX continues to facilitate efficient price discovery and enhance the accessibility and transparency of India's energy market, the company faces both opportunities for growth and challenges from regulatory changes. The coming months will be crucial in determining how IEX adapts to the evolving landscape of India's power trading sector.
Historical Stock Returns for Indian Energy Exchange
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.77% | -3.06% | -34.20% | -28.03% | -33.71% | +114.38% |