The Indian Energy Exchange (IEX) anticipates a significant double-digit increase in trading volumes for the fiscal year 2025-26. This optimistic outlook is attributed to enhanced supply-side liquidity and the introduction of innovative products such as green Real-Time Market (RTM) and long-duration contracts (LDCs).
Increase in Electricity Trading Volumes
In FY 2024-25, IEX achieved an all-time high electricity trading volume of 121 billion units (BUs) with a 18.7% year-over-year growth according to analysts due to higher participation and introduction of new trading products.
The next financial year can look forward to an addition of 11 GW of thermal capacity and up to 40 GW of renewable energy capacity. This increase is expected to assist supply-side liquidity, hence improving price discovery in large segments of trading such as the Day Ahead Market and RTM.
Introduction of Long-Duration Contracts
IEX has petitioned the Central Electricity Regulatory Commission (CERC) for obtaining its approval for 11-month LDCs. The contracts aim to offer more flexibility to the market players, especially the distribution firms, as they enable the longer-term power purchase. Analysts suggest that LDCs could shift a portion of the 40 BU volume from the DEEP platform to exchanges, with price discovery expected to be approximately 25% lower than on the DEEP platform for similar durations.
Growth in Green Real-Time Market
Green RTM launch is likely to benefit resellers to earn a premium price for conventional power. At the same time, it allows customers to honor their promise of purchasing renewables by utilizing green electricity. It is likely to boost trade volumes further and spur India’s dream of renewable power.
Diversification into Other Commodity Exchanges
In addition to electricity trading, IEX is also seeing growth in other commodity markets. Indian Gas Exchange (IGX) witnessed year-over-year 47% volume growth of traded gas to 60 million MMBtu in FY25. Additionally, IEX has initiated operations in the carbon exchange and is collaborating with the coal ministry to establish India’s first coal exchange by FY27.
Financial Performance and Future Outlook
In FY25, IEX reported a consolidated net profit of ₹429.16 crore, up from ₹350.78 crore in the previous year. Total income also rose to ₹657.36 crore from ₹550.84 crore in FY24. With the anticipated approval of new products and continued diversification, IEX is well-positioned to sustain its growth trajectory in the coming fiscal year.
