Indiа’s Electricity Market Reaches Record High in December Amid Low Prices

The electricity volume traded on the Indian Energy Exchange surged by 29% in December, reaching an all-time high, driven by a significant drop in day-ahead market prices.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

In December, the Indian Energy Exchange (IEX) reported an electricity trading volume of 11.132 billion units, marking a 29% year-over-year increase. This record was achieved against the backdrop of falling prices in the day-ahead market, where the average clearing price was INR 3.89 per unit, down 14% compared to the previous year.

The third quarter of fiscal year 2025 (April to March) also witnessed a notable increase in traded volumes, reaching 30.464 billion units, representing a 16% growth compared to the same period last year. The price decline, coupled with a 57% increase in supply in the day-ahead market, enabled distribution companies and open-access consumers to lower costs by purchasing power through the exchange.

Significant Growth in Green Segments

In December, trading volumes in the green electricity market more than tripled, reaching 781 million units. The green day-ahead market alone accounted for 763 million units, with a weighted average price of INR 3.92 per unit. Although slightly lower than the 793 million units traded in November, this figure remains a strong indicator of renewable energy growth in India.

Renewable energy certificates (RECs) also saw robust activity during the quarter. Nearly 2.65 million certificates were traded, up 31% year-over-year, with prices ranging from INR 140 to INR 316 per certificate depending on the trading sessions.

Energy Demand Outlook

According to government data released in December 2024, the country’s energy consumption reached 130.40 billion units, reflecting an increase of nearly 6% year-over-year. This trend aligns with projections by CRISIL, a subsidiary of S&P Global, which anticipates a 5% to 6% rise in electricity demand for the current fiscal year.

Opportunities in a Dynamic Market

The abundant supply has not only led to a reduction in average prices in the day-ahead market, falling to INR 3.71 per unit for the quarter (-26% year-over-year), but also boosted volumes in the real-time electricity market. The latter saw a 32% year-over-year rise in December, with 3.18 billion units traded, and a 30% increase during the quarter, reaching 9.322 billion units.

The growth dynamics in India’s electricity markets reflect an increase in production capacity and the growing adoption of exchange mechanisms by industry players to optimize costs and secure supply.

Enedis will progressively reorganise off-peak hour time slots from 1 November, impacting 14.5 million customers by 2027, under new rules set by the Energy Regulatory Commission.
A report highlights the financial burden of fossil imports during the energy crisis and points to electrification as key to European energy security.
Prime Minister Sébastien Lecornu announced a review of public funding for renewable energy, without changing national targets, to avoid rent-seeking effects and better regulate the use of public funds.
The 2025 edition of the Renewable Electricity System Observatory warns of the widening gap between French energy ambitions and industrial reality, requiring immediate acceleration of investments in solar, wind and associated infrastructure.
Kogi State Electricity Distribution Limited reported a ₦1.3bn ($882,011) loss due to power fraud, threatening its operational viability in Kogi State.
More than 40 developers will gather in Livingstone from 26 to 28 November to turn Southern Africa’s energy commitments into bankable and interconnected projects.
Citepa projections confirm a marked slowdown in France's climate trajectory, with emissions reductions well below targets set in the national low-carbon strategy.
The United States has threatened economic sanctions against International Maritime Organization members who approve a global carbon tax on international shipping emissions.
Global progress on electricity access slowed in 2024, with only 11 million new connections, despite targeted efforts in parts of Africa and Asia.
A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.