Archive · 27 Jul 2026
India's Power Market Coupling Faces Delays
India's plan to couple its power exchanges is facing delays.
Grid India has raised concerns about the plan's scope, software reliability, and potential risks.
The Indian Energy Exchange (IEX) believes that even if the plan is implemented, it won't lose much market share due to its strong customer relationships.
The Real-Time Market (RTM) is growing quickly, and IEX is also looking into battery storage.
The Supreme Court is currently reviewing the case, and the final regulations are still awaited.
IEX's financial performance is strong, with significant growth in electricity volumes.
India's peak power demand has reached a record high, and the country is expanding its renewable energy capacity.
Grid India has raised concerns about the scope, software robustness, and potential risks of power market coupling.
IEX does not expect significant market share loss even if market coupling is implemented.
The Real-Time Market (RTM) is growing rapidly, with volumes increasing by 41% in FY26 and 23.5% in Q1FY27.
IEX's financial performance is strong, with total income rising 11.4% to ₹1.56 billion in Q1FY27.
India's peak power demand reached a record 270.8 GW in May, with installed capacity at 533 GW, including 275 GW of renewables.
- Who
- Grid India, Indian Energy Exchange (IEX), CERC, APTEL, Supreme Court
- What
- Delays in the implementation of power market coupling in India
- When
- Pending before the Supreme Court, with potential implementation years away
- Where
- India
- Why
- Unresolved concerns over scope, software robustness, settlement, cost allocation, and the risk of a single point of failure
Proponents of Market Coupling
Critics of Market Coupling
Implementation Timeline
Proponents of Market Coupling
Proponents argue that market coupling will streamline price discovery and improve market efficiency.
Critics of Market Coupling
Critics highlight unresolved concerns over scope, software robustness, and potential risks like a single point of failure.
Operational Viability
Proponents of Market Coupling
Supporters believe market coupling will enhance market integration and reduce price disparities.
Critics of Market Coupling
Opponents argue that implementing market coupling in the Real-Time Market (RTM) may not be operationally viable, especially with potential reductions in gate-closure periods.
- Current Status
- Pending before the Supreme Court
- Expected Implementation
- Potentially years away
- Key Concerns
- Scope, software robustness, settlement, cost allocation, single point of failure
- IEX Market Share
- 18-year customer relationships and API stickiness
- RTM Growth
- 41% in FY26 and 23.5% in Q1FY27
- IEX Financial Performance
- Q1FY27 total income ₹1.56 billion, EBITDA ₹1.30 billion, profit after tax ₹1.27 billion
- India's Peak Demand
- 270.8 GW in May
- Installed Capacity
- 533 GW, including 275 GW of renewables