Power prices plummet by 45% during early September due to abundant rainfall and an oversupply of energy
Electricity Spot Market in India Experiences Significant Price Drop and Increased Trading Volumes
In a recent turn of events, India's electricity spot market has witnessed a notable price drop and increased trading volumes. According to data, RTM trading volumes in August 2025 rose 44% year-on-year to 5,029 million units.
The average price in the Real-Time Market (RTM) dropped to ₹2.01 per unit between September 1-4, marking a significant decrease compared to the same period last year when the average price was ₹3.63 per unit. This price drop was also observed in the Day-Ahead Market (DAM) where the average price stood at ₹4 per unit, a 7% decrease year-on-year.
The surplus availability of fuel, particularly from higher wind, hydro, and solar generation, has kept power prices competitive on the exchange. As of September 2, coal stocks at thermal power plants stood at 51 million tonne, about 91% of the normative requirement of 55.7 million tonne.
The RTM segment accounted for 36% of total traded volumes in August 2025. In a single trading block (7:45-8:00 am) on August 25, the discovered price fell to just ₹0.01/kWh.
Peak demand in August reached 229 GW, surpassing the previous August record of 216 GW set in 2024. Despite the increased demand, India's energy consumption in August stood at 150.47 billion units, registering over 4% year-on-year growth.
Traded volumes in the electricity spot market jumped 83% to 825 million units. Sell-side liquidity in the Day-Ahead Market (DAM) on IEX rose by 40% year-on-year in August, driven by the increased generation from renewable sources.
Sandeep Tandon, a prominent figure in the industry, stated that the current phase is a difficult one in the bull run. Rohit Bajaj, joint managing director of Indian Energy Exchange, attributed the surge in sell-side liquidity in the Day-Ahead Market (DAM) to the higher wind, hydro, and solar generation.
However, prices on the power exchange have been trending lower in recent months, and there is no available information about the person who quoted the average price of 4 rupees per unit in the day-ahead market on the Indian Energy Exchange in August 2025.
Heavy rains on August 25 caused average RTM prices to near zero. Despite these fluctuations, the electricity spot market in India continues to adapt and grow, reflecting the country's commitment to a sustainable and efficient energy future.
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