Archive · 3 Aug 2025
Industry Voices Concerns on India's Power Market Coupling Plan
Imagine the government wants to make electricity prices the same across different markets.
This is done through market coupling, but some experts worry it might not work well.
They are concerned about how the technology will be set up, and if it will make prices better.
Studies suggest that it might not significantly improve things.
The plan could also make investors unsure about putting money into the electricity sector, which might slow down progress.
Industry players express concerns about implementing market coupling in power exchanges.
Concerns involve technology sourcing, infrastructure readiness, and inter-exchange settlement.
A source notes negligible social welfare and savings after initial simulations.
CERC approved market coupling implementation, starting January 2026 for the Day-Ahead Market.
Industry experts believe market coupling introduces regulatory uncertainty.
- Who
- Central Electricity Regulatory Commission (CERC) and industry players.
- What
- Implementation of market coupling in power exchanges.
- When
- Approved by CERC, planned implementation starting January 2026.
- Where
- India's power market.
- Why
- To create a uniform pricing mechanism across power exchanges.
- Regulatory Body
- Central Electricity Regulatory Commission (CERC)
- Implementation Start
- January 2026
- Affected Market Segment
- Day-Ahead Market initially
- Industry Concerns
- Technology, Infrastructure, and Pricing Impact
- Earlier Simulation Findings
- Negligible social welfare and savings