The decline in prices was attributed to a surge in renewable energy generation, particularly hydro and wind power, supported by favourable monsoon conditions. Improved fuel availability and government-led initiatives to increase sell liquidity on exchange platforms were also significant factors in stabilising prices.

The minimum prices in both markets saw a sharp decline. In the DAM, the minimum price for October-November 2024 plunged by 67 per cent to Rs 0.49 per unit, compared to Rs 1.50 per unit in the same period last year. The RTM minimum price also decreased by 14 per cent, falling to Rs 3.41 per unit from Rs 3.98 per unit. The maximum price in the DAM remained unchanged at Rs 10 per unit, while in the RTM, the peak price dropped by 38 per cent year-on-year to Rs 3.77 per unit from Rs 6.10 per unit.

The downward trend in prices accelerated during the third quarter of FY25, compared to the first half of the fiscal year. Between April and September, DAM prices had fallen by 12 per cent, and RTM prices by 13 per cent, indicating a sharper correction in Q3.

The price reduction was mainly credited to higher renewable energy generation, as favourable weather conditions increased hydro and wind power output, which boosted supply on the exchanges. Furthermore, sell liquidity on the platforms rose by 41 per cent year-on-year in the first half of FY25. This increase was driven by measures like selling surplus un-requisitioned power, better fuel availability, and improved operational efficiency of generating units.

These efforts, along with regulatory and policy interventions, helped maintain a competitive price environment on the exchanges.