The Indian Energy Exchange (IEX), India’s leading electricity trading platform, reported a strong performance in the third quarter of FY26, delivering double-digit growth in electricity volumes even as market conditions began to tighten toward the end of the quarter. The exchange recorded total electricity traded volume of 34.08 billion units (BU) during Q3 FY26, registering an increase of 11.9 percent year-on-year. In parallel, the renewable segment remained active, with 18.63 lakh Renewable Energy Certificates (RECs) traded during the quarter.
The quarter was marked by improved supply liquidity, supported by higher generation from hydroelectric and wind sources along with steady coal-based output. This supply-side strength resulted in a buyer-friendly market for much of the quarter, with prices remaining under pressure. The Day-Ahead Market (DAM) cleared at an average price of INR 3.22 per unit, reflecting a year-on-year decline of 13.2 percent, while the Real-Time Market (RTM) price averaged INR 3.26 per unit, down 11.6 percent. These trends provided cost-effective procurement opportunities for distribution companies and large consumers.
However, market dynamics shifted notably in December 2025. During the month, IEX recorded electricity trading volumes of 11.44 BU, a modest 2.8 percent year-on-year increase, indicating a slowdown from the strong growth seen earlier in the quarter. REC trading in December stood at 7.7 lakh, while overall REC volumes for the quarter declined 29.8 percent year-on-year, with December alone witnessing a sharp 53.7 percent drop. The Green Market, which had grown 7.2 percent during Q3 FY26 to 2,647 million units (MU), also softened by month-end, with December volumes recorded at 777 MU.
Prices reversed course in December amid rising demand and tightening supply conditions. DAM prices increased to INR 3.92 per unit, up 0.7 percent year-on-year, while RTM prices rose to INR 3.93 per unit. Government data showed that India’s electricity consumption increased by 7 percent year-on-year in December to 138.39 BU, contributing to upward pressure on prices.
The quarter also reflected a structural shift in trading behaviour. While DAM volumes contracted, activity in the Term-Ahead Market (TAM) increased significantly, as buyers sought to secure supply through weekly and monthly contracts to manage price volatility. Overall, Q3 FY26 underscored a transition in the power market from surplus-driven conditions to a more balanced and tightening environment as the fiscal year progresses.
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