RTM prices drop 19% in May amid unseasonal rains and rising green power
According to IEX data average RTM prices between May 1–21 stood at ₹3.75/unit compared to ₹4.63/unit in the same period last year.
New Delhi: Unpredictable weather and a surge in wind and hydro generation have sent electricity prices tumbling in India’s real-time power market (RTM), with prices falling 19 per cent year-on-year in May 2025. According to IEX data, average RTM prices between May 1–21 stood at ₹3.75/unit compared to ₹4.63/unit in the same period last year.The price correction coincides with a 2 per cent decline in daily electricity consumption, which averaged 4,843 million units (MU) as against 4,944 MU in the same period last year. Peak power demand stood at 231 GW till May 21—below the projected 270 GW and marginally lower than 234 GW in May 2024.A rise in renewable energy output has further softened the market. Average daily wind generation rose by 24 per cent year-on-year to 217 MU, up from 175 MU last May. Hydro power also increased by 5 per cent to 429 MU, compared to 408 MU last year.The data indicates a trend where discoms and commercial and industrial users are shifting part of their procurement strategy to the RTM platform, which allows them to respond quickly to real-time supply and demand conditions instead of locking in costlier long-term contracts.In April 2025 as well, similar trends were observed. Peak demand rose 5 per cent year-on-year to 235 GW, but RTM prices fell by 6 per cent to ₹4.58/unit from ₹4.88/unit in April 2024. Wind and hydro generation also rose by 34 per cent and 19 per cent respectively during April.Sector experts say that the RTM’s flexibility makes it a critical tool in a power market increasingly shaped by weather patterns and renewable integration. Unlike fixed PPAs, the RTM allows stakeholders to leverage excess supply, especially during periods of high wind or hydro output, and avoid price spikes during demand surges.With erratic weather conditions becoming more frequent and renewable capacity expanding, real-time power trading is expected to play an increasingly important role in India’s electricity market.The data highlights the evolving dynamics of energy procurement in India, where power buyers are now factoring in meteorological conditions, renewable output, and price volatility to optimize cost and ensure supply reliability.
