IEX, a leading electricity exchange platform, said spot prices declined substantially in May. (Image used for representation)
| Photo Credit: Reuters

Indian Energy Exchange (IEX), a leading electricity exchange platform, said spot prices declined substantially in May, amid reduced electricity demand driven by unseasonal rains and the early onset of the monsoon

The Market Clearing Price in the Day Ahead Market (DAM) at ₹4.12/unit during May 2025, declined 22% year-on-year. Similarly, the Market Clearing Price in the Real Time Market (RTM) at ₹3.43/unit during May 2025, declined 28% year-on-year, IEX said in a statement.

According to government data published in May 2025, the country’s energy consumption stood at 148.7 billion units (BUs), marking a 4% decline compared to the previous year, it said.

Also Read | Heatwaves drove 1/3rd of rise in India’s power demand during 2024 summer: Report

Unseasonal rains and the early onset of the monsoon kept temperatures lower than usual, leading to reduced electricity demand. Concurrently, increased hydro, wind, and thermal generation resulted in higher supply liquidity on the exchange platform which led to a substantial drop in DAM and RTM prices, IEX said.

These prices presented an opportunity for Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges, it said.

DAM volumes declined 20% to 3,510 million units (MU) in May 2025 from 4,371 MU in May 2024, while RTM reported the highest ever monthly traded volume.

RTM volumes increased 42% to 4,770 MU in May 2025 from 3,352 MU in May 2024.

Spot power prices in India dropped to zero on May 25 from 8AM to 1PM for the first time on May 25, amid weak demand, IIFL Capital said in a recent report

Only 7% of India’s electricity generation is traded through three power exchanges.