IEX’s Real-Time Market (RTM) – Revolutionising Power Procurement in India

Since its launch in June 2020, the Real-Time Market (RTM) by the Indian Energy Exchange (IEX) has reshaped India’s power sector. Designed as a dynamic, responsive platform, RTM enables participants to manage their energy procurement in real-time, addressing sudden fluctuations in demand or generation. This transformative model enhances grid reliability, optimises costs, and supports India’s transition to a more agile energy ecosystem.
 
The RTM platform provides unmatched flexibility in balancing supply and demand with speed and precision. Unlike the Day-Ahead Market (DAM), where transactions are pre-scheduled, RTM allows for instantaneous adjustments based on real-time conditions. With 48 auctions conducted daily, market participants—ranging from industrial consumers to DISCOMs—can seamlessly adapt to changing energy requirements.
 
This adaptability is crucial in a country like India, where energy demand can be influenced by unpredictable factors such as weather conditions, seasonal changes, and grid imbalances. As a result, the RTM has become an invaluable tool for short-term energy management, empowering stakeholders with reliable, cost-effective procurement options.
 

 

In 9MFY25, RTM volumes surged to 29,246 MU, marking a 29 percent year-on-year growth. Simultaneously, prices dropped by 17 percent, from INR 5.13per unit in 9M FY24 to INR 4.26 per unit in 9MFY25. These statistics underscore RTM’s growing popularity and its effectiveness in providing cost savings while ensuring energy accessibility.
 
Sanjay Sharma, Chief Electrical Inspector & OSD, J&K Power Development Department says, “RTM is a groundbreaking solution that strengthens grid resilience by enabling stakeholders to respond instantaneously to fluctuations in demand and supply. Its real-time bidding and price discovery processes are tailored to address challenges such as unexpected generation outages, sudden spikes in demand, or variations due to weather conditions.  The ability to conduct 48 auctions daily ensures that energy procurement is both agile and efficient, fostering greater stability within India’s power grid. By offering near-instantaneous solutions, RTM mitigates risks associated with grid imbalances, preventing potential disruptions while optimising resource utilisation. For a country transitioning to a renewable energy-dominated ecosystem, RTM is a vital tool for maintaining reliability and harmony in power distribution.”
 
One of RTM’s standout features is its ability to strengthen grid stability, especially as renewable energy sources like solar and wind form a larger share of the energy mix. These sources, while sustainable, are inherently intermittent and can fluctuate based on weather patterns. RTM addresses this challenge by enabling real-time adjustments, ensuring a stable balance between supply and demand.
 
For instance, the favorable monsoon season in H1 FY25 saw increased hydro and wind power generation. This, combined with a rise in thermal generation, contributed to grid stability while driving down prices. RTM’s ability to conduct auctions 48 times a day ensures almost instantaneous response to such variations, creating a harmonious blend of traditional and renewable energy sources.
 
As India integrates more green energy into its grid, RTM plays a pivotal role in facilitating this transition, making the grid more resilient and adaptive to the evolving energy landscape.
 
RTM’s success is built on a foundation of cutting-edge technology and automation. Its seamless integration with the National Load Despatch Centre (NLDC) through API-based connections ensures efficient communication and coordination across the grid. From price discovery to corridor allocation and final clearance, the entire process is completed within a 30-minute window, making RTM one of the most responsive energy markets in the world.
 
With 99.99 percent operational reliability, RTM showcases IEX’s commitment to excellence. This level of reliability is critical in a market where even minor delays could lead to grid instability or increased procurement costs. Through continuous innovation, IEX ensures that RTM remains a robust solution for managing India’s complex energy demands.
 
S.S Khandelwal, Company Secretary, Shree Cement Limited says, "RTM is setting new benchmarks for cost-efficient power procurement in India. By allowing market participants to align their energy requirements with real-time market conditions, it significantly reduces dependency on higher-cost alternatives. This cost advantage is particularly beneficial for DISCOMs, which can optimise their energy procurement strategies during peak demand periods without incurring prohibitive costs. Industrial consumers, too, gain the flexibility to manage their operations effectively, leveraging RTM’s transparent pricing to maximise savings. RTM is not merely a trading platform—it is a financial enabler, providing stakeholders with innovative tools to reduce costs, enhance operational efficiency, and thrive in a competitive energy landscape."
 
RTM has proven to be a cost-effective solution for DISCOMs and industrial consumers. Its near-instantaneous bidding and price discovery process allow participants to avoid the higher costs associated with traditional pre-scheduled procurement methods. This flexibility is particularly beneficial during periods of peak demand or unexpected generation shortfalls.
 
The year-on-year price reduction—such as the 13 percent decrease in H1 FY25—demonstrates the competitiveness of RTM as a procurement option. For DISCOMs, this translates into substantial cost savings, while open-access consumers benefit from transparent pricing and the ability to optimise their procurement strategies based on real-time market conditions.
 
Kamal Sharma, Director (Finance), Uttarakhand Power Corporation Limited shares, "RTM is a catalyst for India’s renewable energy revolution. As the share of solar and wind power grows, the need for a dynamic platform to manage their intermittency becomes imperative. RTM addresses this challenge by offering unmatched adaptability in balancing renewable generation with grid demands. By creating a responsive, tech-driven marketplace, RTM empowers stakeholders to embrace renewables without compromising grid stability, ensuring a smoother and more sustainable energy transition. IEX’s RTM is more than an operational innovation—it is a step towards achieving India’s net-zero ambitions."
 
Looking ahead, IEX is committed to enhancing RTM to align with India’s ambitious renewable energy targets, including achieving 500 GW of renewable energy capacity by 2030. A major milestone in this journey is the proposed Green RTM, a platform designed for real-time trading of renewable energy.
 
By enabling stakeholders to efficiently balance renewable energy generation with demand, Green RTM will play a critical role in stabilising the grid while supporting the nation’s transition to a sustainable energy future. This innovative product underscores IEX’s vision to empower stakeholders with solutions that drive cost efficiency, grid reliability, and environmental sustainability.
 
The Real-Time Market by IEX has emerged as a game-changer in India’s power sector. With its ability to provide agile, cost-effective, and reliable power procurement solutions, RTM is transforming how energy is traded and consumed. As India’s energy landscape continues to evolve, innovations like RTM are not just enabling the integration of renewables but also paving the way for a greener, more resilient future.
 
Through its focus on technological excellence, market efficiency, and sustainability, IEX remains at the forefront of driving India’s energy transition. The success of RTM is a testament to its vision and commitment to empowering stakeholders with solutions that meet the demands of a dynamic energy ecosystem.

- Indian Energy Exchange (IEX)