The April to June peak power demand months this year witnessed high activity in Power Exchanges as States and Discoms prepared for the summer months, which broke all past records as searing temperatures and high humidity pushed up demand for cooling.
At the Indian Energy Exchange (IEX), the Q1 FY27 period achieved an electricity traded volume of 37,534 million units (MU), marking an almost 16 per cent year-on-year (y-o-y) increase.
In line with this, the market clearing price in (MCP) in the Day-Ahead Market (DAM) hit ₹5.1 per unit, a growth of around 16 per cent y-o-y. Similarly, the MCP in the real-time market (RTM) stood at ₹4.5 per unit during the period, increasing around 14 per cent y-o-y.
“During the first quarter of this financial year, India experienced hotter-than-normal summers marked by persistent heatwaves and above-normal temperatures and India’s peak power demand surged to an all-time high of 270.8 GW in May 2026. Consequently, the country’s energy consumption touched 485.4 billion units (BUs) in Q1 FY27, registering a y-o-y growth of about 9 per cent,” the country’s largest power exchange said.
Sources said that the relatively higher MCP in April 2026 was primarily driven by stronger purchase-side interest compared to the subsequent months, resulting in higher price discovery.
During May to June, electricity demand increased due to peak summer conditions. Higher electricity consumption by States to meet this demand resulted in lower volumes of electricity being sold in the market, said one of the sources.
In June 2026, IEX said that it achieved a monthly electricity traded volume of 12,210 MU, a 12.5 per cent y-o-y growth. India’s energy consumption reached 166.5 BUs, reflecting an almost 12 per cent y-o-y growth due to heat waves and the late onset of monsoon.
India witnessed its driest June in over a decade, with the Southwest monsoon rainfall ending the month nearly 40 per cent below the long-period average. In fact, during June the rainfall was the fifth lowest since 1901.
The surge in power demand pushed prices higher in the DAM and RTM segments. The MCP in the DAM at ₹5.2 per unit during June 2026, rising 32.4 per cent y-o-y. Similarly, the MCP in the Real Time Market (RTM) at ₹4.4 a unit, a 17 per cent growth on an annual basis.
Crisil Intelligence in a June 18th commentary said that power demand is expected to increase 6-7 per cent on-year in FY27 to 1,810-1,830 BU, driven by higher temperatures and lower rainfall due to the expected El-Nino effect from July 2026, resulting in a rise in cooling demand.