Electricity prices in the spot market fell by as much as 45% during the first four days of September, as heavy rains curbed demand and sell bids surged, according to data from the Indian Energy Exchange (IEX).The average price in the Real-Time Market (RTM) dropped 45% to ₹2.01 per unit between September 1–4, compared with ₹3.63 per unit in the same period last year. At the same time, traded volumes jumped 83% to 825 million units.
Prices on the power exchange have been trending lower in recent months, aided by moderate temperatures and higher generation from wind, hydro and solar sources.
Rain-fueled supply surge and competitive pricing
India’s energy consumption in August stood at 150.47 billion units, registering over 4% year-on-year growth. On August 7, the country’s peak demand reached 229 GW, surpassing the previous August record of 216 GW set in 2024.“During the month, sell-side liquidity in the Day-Ahead Market (DAM) on IEX rose by 40% year-on-year, driven by higher wind, hydro and solar generation. This surplus availability of fuel kept power prices competitive on the exchange,” said Rohit Bajaj, joint managing director, Indian Energy Exchange.
In August 2025, the average Day-Ahead Market price stood at ₹4 per unit, nearly 7% lower year-on-year, while the Real-Time Market (RTM) averaged ₹3.38 per unit, down 6%.RTM trading volumes also surged, rising 44% year-on-year to 5,029 million units from 3,485 million units in August 2024. The segment accounted for 36% of total traded volumes last month.
On August 25, heavy rains boosted supply further, driving average RTM prices to near zero. In a single trading block (7:45–8:00 am), the discovered price fell to just ₹0.01/kWh, IEX data showed.“These prices present 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,” Bajaj said.
Strategic opportunity for power consumers
The government had projected peak power demand to exceed 270 GW this year. However, due to persistent rains across the country, peak demand so far has reached only 242 GW—lower than the 250 GW recorded last year. Meanwhile, coal stocks at thermal power plants stood at 51 million tonne as of September 2, about 91% of the normative requirement of 55.7 million tonne, according to official data.