The Indian Energy Exchange (IEX) reports its highest-ever yearly trade in Renewable Energy Certificates (RECs) during the fiscal year 2025. A total of 178 lakh RECs are traded, marking a significant 136% year-on-year (YoY) growth. The IEX Green Market, which includes the Green Day-Ahead and Green Term-Ahead Market segments, also demonstrates substantial growth, achieving a 171% YoY increase in traded volume. This performance underscores the increasing momentum in India’s renewable energy sector and the role of the IEX platform in facilitating the trading of green energy attributes. The overall electricity traded volume on the IEX in FY25 reaches 121 Billion Units, a 19% YoY increase, with the fourth quarter of FY25 recording the highest ever quarterly electricity traded volume of 31,747 MU, up by 18% YoY.
Key Insights:
The primary focus of the news is the exceptional growth in REC trading and the overall strong performance of the IEX Green Market. The key event is the achievement of the highest-ever yearly REC trade volume, indicating a significant rise in demand and supply of renewable energy attributes in the Indian power market. The 136% YoY growth in REC trading and the 171% YoY growth in the Green Market highlight the increasing participation of obligated entities and voluntary buyers in the renewable energy space. This surge can be attributed to factors such as regulatory mandates promoting renewable energy consumption, growing environmental awareness, and the cost-competitiveness of renewable energy sources. The overall increase in electricity traded volume on the IEX also points to a robust power demand in the country.
Investment Implications:
The substantial growth in REC trading and the Green Market have positive implications for investors interested in India’s renewable energy sector. Companies involved in renewable energy generation stand to benefit from this increased trading activity as it provides them with an avenue to monetize the environmental attributes of their generation. The strong performance of IEX itself, as the leading platform for this trading, suggests potential for growth in its revenue and profitability. Investors should closely monitor policy developments related to renewable energy mandates and incentives, as these directly influence the demand for RECs. The increasing trade volumes on the IEX also reflect the overall health and activity in the Indian power market, which can impact investments in power generation, transmission, and distribution companies.
