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Power Market Overhaul: CERC Draft Sparks Debate
20 Apr
Summary
- CERC drafts new power market regulations including market coupling.
- Grid India will act as market operator determining uniform prices.
- Public feedback invited until May 16, 2026, detailed procedures in six months.
The Central Electricity Regulatory Commission (CERC) has unveiled a draft of new power market regulations, aiming to implement a formal framework for market coupling. This proposed system designates Grid India as the market coupling operator (MCO), tasked with aggregating bids from all power exchanges and determining a single, uniform market clearing price for the entire system.
Under this draft, while power exchanges will continue to collect bids, they will relinquish price determination responsibilities post-coupling. The market coupling mechanism is slated to apply to various segments, including the Day-Ahead and Real-Time markets. The CERC has opened a public consultation period, accepting feedback until May 16, 2026. Further detailed procedures for market coupling are anticipated to be released within the next six months.
This development follows a previous directive from the CERC in July 2025 regarding market coupling, which had led to a substantial drop in Indian Energy Exchange (IEX) Ltd. shares. The Appellate Tribunal for Electricity (APTEL) had previously dismissed a petition by IEX against this directive, allowing the framework to proceed. Despite past challenges, IEX shares have shown a recovery, gaining 12.2% over the last month.
