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Business Standard
05-08-2025
- Business
- Business Standard
IEX sees record-high volume in July; electricity prices continue to drop
Indian Energy Exchange (IEX), India's premier electricity exchange, witnessed a 25.5 per cent increase in electricity traded volumes in July, reaching 12,664 million units (MU). However, prices continued to decline. The Day-Ahead Market (DAM) registered a 9 per cent rise in volumes to 5,510 MU, while the Real-Time Electricity Market (RTM) saw a sharp 53 per cent increase to 5,109 MU. According to government data published last month, India's energy consumption reached 153.6 billion units (BUs), an increase of 2.6 per cent year-on-year (Y-o-Y). Despite the higher demand, prices on power exchanges were lower than last year due to increased supply-side liquidity. The average market clearing price in the Day-Ahead segment fell 16 per cent Y-o-Y to ₹4.18 per unit, while Real-Time Market prices declined 23 per cent to ₹3.83 per unit. IEX's Green Market — comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market — recorded 1,025 MU last month, up from 990 MU a year earlier. The weighted average price in G-DAM for July was ₹3.91 per unit. In the Renewable Energy Certificate (REC) segment, 1.63 million certificates were traded last month, down 48 per cent Y-o-Y. The IEX stock has fallen over 30 per cent in the past month following negative sentiment around market coupling norms, which continue to weigh on investor sentiment. The Central Electricity Regulatory Commission (CERC) has approved the implementation of market coupling norms for the Day-Ahead Market, in line with the Power Market Regulations of 2021. Under Phase I, coupling of DAM will be implemented by January 2026, where different power exchanges will act as Market Coupling Operators (MCOs) on a round-robin basis. The decision, which goes against a report submitted by Grid India, is viewed as a negative for IEX, as it could weaken its position as the leading platform for price discovery. The introduction of market coupling could shift significant trading volumes to rival exchanges. At present, IEX holds nearly 85 per cent of the spot power market share. A market coupler will collect all buy and sell orders from every exchange and aggregate them to determine a uniform market clearing price across platforms. The CERC staff will also initiate stakeholder consultations on DAM coupling and propose necessary regulatory amendments. Grid India will act as the fourth MCO for backup and audit functions. It will also develop software for Term-Ahead Market coupling, conduct a three-month shadow pilot, and submit feedback upon completion. For the Real-Time Market, coupling will be considered at a later stage after assessing the DAM experience, as further regulatory and operational inputs are needed. Shares of IEX were trading 0.24 per cent higher on Tuesday at ₹134.30.
Zawya
24-07-2025
- Business
- Zawya
India to start market coupling for power exchanges from January
India's power regulator on Wednesday said it had decided to begin implementing market coupling in a phased manner for electricity trading from January. Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges. The regulator's move is aimed at improving price discovery and system efficiency. The Central Electricity Regulatory Commission (CERC) said in an order that the day-ahead market segment of all power exchanges will be coupled using a common system. Under the new system, power exchanges will take turns acting as the market coupling operator. Grid-India will serve as a backup and audit operator. The CERC said it would consider coupling the real-time market and other segments like the term-ahead market at a later stage, after more pilot runs and consultations. All power exchanges have been directed to share data with Grid-India and the CERC to support the rollout, the regulator said. The CERC said it would issue further orders based on the progress of implementation. Currently, the Indian Energy Exchange is the country's most prominent platform for electricity spot price discovery. However, with the introduction of market coupling, other power exchanges will also act as market couplers.
Reuters
24-06-2025
- Business
- Reuters
India's coal stock at power plants hits record high ahead of monsoon, govt says
June 24 (Reuters) - India's coal stock at thermal power plants has reached a record high of 58.25 million tonnes, enough to meet 25 days of consumption, the government said on Tuesday, bolstering energy security ahead of the monsoon season. WHY IT'S IMPORTANT The record stockpile comes as India braces for monsoon rains, which often disrupt coal mining and transportation. CONTEXT India, the world's second-largest coal consumer, has ramped up domestic coal production to meet rising power demand and reduce reliance on imports. The milestone comes amid a broader push to expand coal-fired capacity by 80 GW by 2031–32, even as the country targets 500 GW of non-fossil fuel capacity by 2030. BY THE NUMBERS India's thermal coal imports fell 8% year-on-year in financial year 2024-25 to around 169 million tonnes due to record domestic production and reduced imported coal blending, according to commodities consultancy BigMint. Coal's share in India's power mix dropped to 70.7% in May, down from 74.0% a year earlier and the lowest level since June 2022, according to Grid India data.
Yahoo
09-06-2025
- Business
- Yahoo
India's Power Pivot as Coal Cracks and Renewables Surge
Despite the lowest coal prices in Asia in four years, India's coal power generation dipped in May to the lowest since the Covid lockdowns of 2020, as a lack of heatwaves and soaring renewable energy installations and generation pushed down coal demand in the electricity sector. To be sure, the share of coal in India's power output remains above 70%, but at 70.7% in May, it was the lowest in three years, according to data from federal power grid regulator Grid India reviewed by Reuters. Natural gas-fired generation and its share in the power mix also slumped in May, contributing to the lower fossil fuel powered electricity in the world's second-biggest coal importer and fourth-largest LNG importer. At the same time, power generation from renewable energy sources soared to a record high, as did the share of clean energy in the electricity mix. India's lower coal power generation in May was attributed to weaker demand growth due to a lack of heatwaves compared to May last year and economic headwinds. While coal faltered, renewables picked up the slack as installations soar to records. Coal-fired power generation slumped by 9.5% in May from a year earlier—the steepest fall since the Covid lockdowns of June 2020, per Grid India's data compiled by Reuters. Natural gas saw an even more dramatic plunge of 46.5% last month—marking the worst drop since October 2022, when natural gas prices hit record highs in the wake of the Russian invasion of Ukraine. But renewable energy generation jumped by 17.2% to the highest level ever in May 2025, allowing renewables to grab 15.4% of total power output—the largest share on for its part, saw its share down to 70.7% in May, compared to 74% for the same month last year. Milder weather with no extreme temperatures surely helped India's greener power generation last month. But surging renewable capacity installations suggest that the country is getting increasingly serious about boosting significantly its clean energy to reduce reliance on fossil fuel imports. Still, India isn't giving up on coal. Annual installations of new coal-fired power capacity hit 4 gigawatts (GW) in 2024, flat on the five-year high of 2023 and the highest level since 2019, according to official government figures. India plans to add as much as 90 GW of coal capacity by 2032 as it looks to meet its surging power demand with reliable baseload electricity. However, the country is also accelerating renewable energy installations. In the 2024/2025 financial year ended March 31, 2025, India installed a record high 29.52 GW of renewables capacity, hitting 220.10 GW in total, amid booming solar energy installations. Solar additions jumped to 23.83 GW in FY 2024–25, up from 15.03 GW added in the previous year, government data showed. India also has 169.40 GW of renewable energy projects under construction and 65.06 GW already tendered. The country targets to achieve 500 GW of non-fossil fuel power capacity by 2030. Going forward, India is set to see a surge in power demand and renewable energy build-out in the coming years and decades and could assert itself as a clean energy powerhouse if it boosts investments, U.S.-based clean energy think tank Rocky Mountain Institute (RMI) said in a report last month. 'If the finance catches up, India's transition could save more emissions by midcentury than Europe and North America combined — while charting the way for emerging economies around the world,' the research noted. Finland-based Centre for Research on Energy and Clean Air (CREA) also noted in a May report India's enormous potential to chart a path beyond coal with record renewable energy installations. 'India currently has 234 GW of renewable energy capacity in the pipeline, which will further reduce pressure on thermal resources as solar continues to dominate during peak hours,' CREA analysts said. 'India's power sector stands at a critical juncture, marked by record-high installed capacity and a rapidly evolving energy mix.' By Tsvetana Paraskova for More Top Reads From this article on
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
India coal-fired power output falls at fastest pace in five years in May
Renewable energy output surged to a record high of 24.7 billion kWh in May. (Wiki pic) SINGAPORE : India's coal-fired electricity generation in May fell at the fastest pace in five years, as overall power demand declined for the first time since August and renewable energy generation rose to a record high, a Reuters analysis of government data showed. Increased generation from less polluting power sources including hydro and nuclear also led to a decline in natural gas-fired power output, which fell at the steepest rate in nearly three years, a review of data from the federal power grid regulator Grid India showed. The decline in demand for fossil fuels for electricity generation in India – the second largest importer of coal and the fourth biggest buyer of liquefied natural gas (LNG) – comes at a time when benchmark prices of the fuels are under pressure. 'Demand from the power sector – typically strong during peak season – remained limited. Additionally, economic headwinds have weighed on non-power industries,' Indian coal trader I-Energy said in a note this week. Asian spot LNG prices LNG-AS have declined more than 15% this year, while benchmark prices of thermal coal have plunged to more than 4-year lows due to weak demand from China and India – the top coal importing countries. India's coal-fired power generation fell 9.5% in May on an annual basis to 113.3 billion kilowatt-hours (kWh), a review of data from the federal power grid regulator Grid India showed, marking the sharpest year-on-year decline since June 2020, when the COVID-19 pandemic led to a nationwide lockdown. A sustained slowdown in demand for fossil fuels for power generation could help the world's third largest emitter of greenhouse gases slash emissions after it previously boosted its reliance on coal to power a post-pandemic economic recovery. India has repeatedly cited lower per capita emissions compared with richer nations to defend its high coal use. Utilities in China and India have cut dependence on coal and LNG imports this year also due to record coal stocks and slower growth in power demand. India had forced gas-based power plants to operate last year to meet high power demand as temperatures soared. As power demand is lower and prices are high for gas-fired power to be competitive with other sources such as solar this year, utilities will buy fewer volumes, said Prashant Vashisth, vice president at Moody's affiliate ICRA. Total electricity generation in May fell 5.3% year-on-year to 160.4 billion kWh, the data showed, with the highest peak demand about 8% lower on-year at 231 GW, mainly due to milder temperatures, government officials said. Peak demand – a measure of the maximum electricity requirement over any given time – reached 250 GW during a heatwave in May 2024. Meanwhile, renewable energy output surged to a record high of 24.7 billion kWh in May, up 17.2% from a year earlier, with its share in the overall power mix rising to 15.4% – the highest since records began in 2018. The share of coal in India's power mix dropped to 70.7% in May, down from 74.0% a year earlier and the lowest level since June 2022, according to the Grid India data. Hydropower generation jumped 8.3% to 14.5 billion kWh, accounting for 9.0% of total generation compared to 7.9% in May 2024, the data showed. Natural gas-fired power generation fell 46.5% annually to 2.78 billion kWh in May, the steepest decline since October 2022.
