Archive · 23 Sep 2025
India Introduces Market Coupling to Reshape Electricity Trading
Imagine buying and selling electricity like you trade toys with your friends, but on a much bigger scale.
Instead of each exchange having its own auction, all the bids go into a central system.
This new system, called market coupling, helps make sure electricity goes to the people who need it most and at a fair price.
It’s like having a super-smart organizer for electricity.
This change could make things better for consumers and the economy, but might change how electricity exchanges make money, leading to some challenges.
CERC approved market coupling for day-ahead electricity trading.
Market coupling aggregates bids centrally to maximize social welfare.
Globally, market coupling has succeeded in the EU and Southeast Asia.
This reform could increase transparency, and facilitate better grid management.
IEX shares fell after news of the approval.
- Who
- Central Electricity Regulatory Commission (CERC) and Electricity Exchanges
- What
- Approved market coupling for day-ahead electricity trading.
- When
- September 23, 2025
- Where
- India
- Why
- To increase efficiency, price transparency, and optimal resource utilization.
- Initiative
- Market Coupling in Day-Ahead Electricity Trading
- Regulatory Body
- Central Electricity Regulatory Commission (CERC)
- Expected Outcomes
- Increased efficiency, price transparency, and resource utilization
- Key Players
- Indian Energy Exchange (IEX), Power Exchange India Ltd (PXIL), Hindustan Power Exchange (HPX)
- Date of Article
- September 23, 2025