Indian Energy Exchange (IEX) is India's premier technology-led electricity trading platform, operational since 2008 and regulated by the Central Electricity Regulatory Commission (CERC). It offers a nationwide, automated, and transparent marketplace for trading physical electricity, renewables, renewable energy, and energy certificates, supporting India's broader goals of decarbonization and sustainability. IEX is a publicly listed company on both the NSE and BSE.
IEX Business Model
IEX facilitates efficient and transparent electricity trading by providing various market segments, including
Day-Ahead Market (DAM)
Real-Time Market (RTM)
Term-Ahead Market (TAM)
Green Energy markets
It connects buyers and sellers to ensure optimal price discovery and improved efficiency in energy procurement and distribution.
%2Fb2_1_11zon.webp?alt=media&token=3b7e2ab5-74ba-48c8-8be4-8ff64fba976e)
Who Participates on the IEX Platform?
Generators: Both conventional and renewable energy producers like NTPC Limited, Tata Power, and Adani Power.
Discoms: Distribution companies from various states, like Adani Electricity Mumbai Ltd. and KPTCL.
Commercial and Industrial Consumers: Large energy-consuming businesses aiming for cost optimization, like Tata Steel and Larsen & Toubro (L&T).
Renewable Energy Entities: Entities involved in renewable generation and obligated buyers fulfilling renewable purchase obligations, like ReNew Power and Adani Green Energy Ltd.
Cross-Border Entities: Facilitating energy trade across national boundaries, like the Nepal Electricity Authority.
Also Read: How Zaggle is driving business agility through SaaS & FinTec
How the Bidding Process Works
%2F210_3_11zon.webp?alt=media&token=013d24f7-855e-420d-86a7-6d62c9b1c2ca)
Currently, IEX has over 7,900 registered participants, encompassing approximately 65 discoms, over 4,900 commercial and industrial consumers, and 2,100 renewable energy entities.
Revenue Generation
IEX earns revenue primarily from transaction fees charged on the volume of electricity traded across its platform. Additional revenue streams include membership fees from participants, charges related to certificate trading, and value-added services like analytics and customized reports.
While IEX does not publicly disclose the exact per-unit transaction fee, industry reports suggest that the fee is approximately ₹0.04 (4 paise) per kilowatt-hour (kWh) traded.
This fee structure implies that for every megawatt-hour (MWh) of electricity traded, IEX earns about ₹40.
| Financial Metrics | Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|---|---|---|---|
| Sales | 254 | 257 | 317 | 426 | 401 | 449 | 535 |
| Expenses | 51 | 53 | 58 | 60 | 64 | 71 | 80 |
| Operating Profit | 203 | 204 | 259 | 366 | 337 | 379 | 455 |
| OPM % | 80% | 80% | 82% | 86% | 84% | 84% | 85% |
| Other Income | 40 | 40 | 40 | 52 | 73 | 102 | 119 |
IEX Segment-wise Revenue Breakup (Based on traded volumes)
| Segment | FY’24 | Q1 FY’25 |
|---|---|---|
| Day Ahead Market (DAM) | 49% | 44% |
| Real-Time Market (RTM) | 27% | 31% |
| Green Market | 3% | 6% |
| Term Ahead Market (TAM) | 9% | 10% |
| Day Ahead Contingency (DAC) | 4% | 2% |
| Certificates | 8% | 7% |
Growth and Market Position
IEX has achieved significant market dominance, holding approximately 83% of the exchange-based electricity trading market in India as of FY’24. It has demonstrated strong financial performance, with operating revenues and profitability consistently growing year-on-year due to increased market participation, expansion into new market segments, and effective technological advancements.
By continuously innovating and expanding its product offerings and participant base,
IEX remains at the forefront of India's evolving energy sector, leveraging regulatory
changes, increased renewable energy integration, and the country’s broader economic growth.
%2F211_4_11zon.webp?alt=media&token=f1072c1c-0a5f-4e82-b1b8-537f7cd7198d)
%2F212_5_11zon.webp?alt=media&token=b6f5b29a-0b21-4cc9-b15b-fc45410c836a)
Business Diversification
%2F213_6_11zon.webp?alt=media&token=d5d805ca-e595-4a8e-b399-1fe72e4f9ba1)
The evolving energy market
Indian Energy Exchange (IEX) plays a pivotal role in modernizing India’s power market by enabling transparent, efficient, and technology-driven electricity trading. With a strong market share, diverse participant base, and consistent financial performance, IEX continues to evolve in line with regulatory developments and the growing emphasis on renewable energy. As the energy landscape transforms, IEX's diversification into gas and carbon markets positions it well for future opportunities in India's energy ecosystem.
Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
©️ 2025 — Tradejini. All Rights Reserved.
