Electricity prices in the spot market declined by as much as 50% during the first five days of May as unseasonal rains, particularly in the North, reduced power demand while sell bids increased substantially, according to data from the Indian Energy Exchange.
According to the data by IEX, electricity consumption during May 1-May 5 stood at 23.5 billion units, a reduction of 6% from the same period last year. The average price in the Real-Time Market, declined by 50% from last year at Rs 2.71/unit.
During the period, the lowest recorded price for a single block was Rs 0.11/unit. For the same period, the average market clearing price in the Day-Ahead Market was Rs 4.02/unit, down 29% from the same period a year ago.
“Unseasonal rain and thunderstorms across several regions, including Delhi, Himachal Pradesh, Rajasthan, Gujarat, Kolkata, and Bengaluru, kept temperatures low and reduced electricity demand in the first five days of May 2025,” said Rohit Bajaj, Joint Managing Director, Indian Energy Exchange, adding that fuel supply remained stable, while power exchanges saw increased sell-side liquidity.
On IEX, sell-side liquidity increased by 43% year-on-year during this period. As per the exchange, the combination of reduced demand and higher sell bids led to lower prices in both DAM and RTM.
“These prices present an opportunity for discoms and Commercial & Industrial consumers to meet their demand at a competitive price,” Bajaj said.
The country’s energy consumption reached 147.5 billion units, an increase of 2.2% compared to the previous year in April, as per official data. The peak demand for power reached 235 gigawatt (GW) on April 25, surpassing the maximum peak demand of 224 GW recorded in April 2024.
Despite the increase in power demand, the average market clearing price in the Day Ahead Market during April remained competitive at Rs. 5.20/unit, similar to last year, due to increased supply.
Looking ahead to FY26, peak power demand is expected to exceed 270 GW. In response to this rising demand, the government has implemented necessary measures, including the mandatory operation of imported coal-based plants, gas-based plants, and better availability of coal. “These measures will also enhance sell liquidity on the power exchanges,” IEX has said.
The country’s coal based power plants are also ramping up coal stocks to meet the expected surge in the demand for power. Coal stocks at the country’s thermal power plants stood at 79% of the normative level as on May 5 at 56.9 million tonnes, data from the Central Electricity Authority showed.