The Indian Energy Exchange (IEX) reported strong growth in electricity trading for the third quarter of FY26 (October–December 2025), with total trade volumes rising nearly 12% YoY to 34.08 billion units (BU). This increase reflects steady engagement in India’s power markets, driven by rising demand, dynamic trading activity, and evolving market segments. The growth underscores the continued importance of IEX as a platform for efficient electricity distribution and price discovery.
The day-ahead market (DAM), where electricity is traded for delivery the next day, saw a slight dip in volumes. Trade fell about 2.8%, from 16,712 million units (MU) last year to 16,250 MU this quarter. This decline suggests that while the DAM remains a core component of electricity trading, buyers and sellers are increasingly leveraging more flexible mechanisms for last-minute adjustments and real-time requirements.
In contrast, the real-time market (RTM) recorded significant growth. Volumes in RTM surged 35.7% YoY, reaching 12,650 MU in December 2025, up from 9,322 MU in the same period last year. This sharp increase indicates stronger demand for electricity that can be traded and delivered immediately, reflecting the market’s response to variable demand patterns, renewable energy integration, and operational flexibility needs. The RTM’s growth highlights how power traders and distribution companies are relying more on real-time mechanisms to balance supply and demand efficiently.
The IEX Green Market, which covers green day-ahead and term-ahead trades, also expanded, albeit at a more moderate pace. Trade volumes rose 7.2% to 2,647 MU, compared with 2,470 MU a year earlier. The Green Market’s growth demonstrates continued investor interest in sustainable and renewable energy products, as India ramps up efforts to transition to cleaner power generation. Even as total electricity demand grows, the Green Market helps meet corporate renewable procurement goals and supports India’s decarbonization targets.
Renewable Energy Certificates (RECs) trading, however, experienced a notable decline. IEX traded 18.63 lakh RECs in the quarter, down 29.8% YoY. Two REC trading sessions were held on December 10 and 25, with clearing prices at ₹359 and ₹345 per REC, respectively. The drop in REC trades points to softer demand in the renewable certification segment, possibly due to compliance cycles or market participants adjusting their renewable procurement strategies. The next REC trading sessions are scheduled for January 14 and 28, 2026, providing fresh opportunities for market activity.
Overall, the quarterly report highlights several key trends in India’s electricity markets. Total trade volume growth of nearly 12% demonstrates strong market engagement, while the real-time market segment emerges as the primary driver of this expansion. The slight decline in the day-ahead market reflects shifting trading patterns, with participants increasingly relying on real-time flexibility to manage supply-demand mismatches. The growth of the Green Market indicates continued investor and corporate focus on renewable energy, though REC demand shows signs of moderation in the short term.
Experts note that these trends reflect broader developments in India’s power sector, including higher renewable energy penetration, increasing industrial electricity demand, and the need for dynamic market instruments that allow for flexible power management. Platforms like IEX play a crucial role in enabling efficient electricity allocation, transparent price discovery, and market stability.
In summary, the Q3 FY26 results for IEX reveal a vibrant and evolving electricity trading ecosystem in India. With total volumes up nearly 12%, strong real-time market growth, and steady gains in the Green Market, the exchange continues to support the country’s power distribution and sustainability goals. While REC trading dipped, overall activity suggests that India’s electricity markets are maturing, becoming more dynamic and responsive to changing demand and supply conditions. These developments highlight the growing importance of IEX in shaping India’s power landscape and promoting efficient, market-driven electricity management.