Market evolution defines Power market trends India in FY26
FY2025-26 presented a mixed picture for India's electricity sector. Spot-market prices remained affordable, grid congestion stayed minimal and renewable capacity expanded rapidly. At the same time, the market remained concentrated and heavily influenced by coal-based generation. These developments collectively define current Power market trends India.
Only 17.7% of India's total electricity supply was traded through short-term mechanisms during the year, highlighting the continued dominance of long-term contracts. Power exchanges accounted for the largest share of traded electricity, followed by bilateral transactions and deviation settlement mechanisms.
One of the most significant Power market trends India is the overwhelming dominance of IEX within exchange-based trading. The platform handled the vast majority of day-ahead and real-time transactions, reinforcing its position as the primary venue for electricity price discovery.
From a pricing perspective, buyers benefited from lower costs. Real-Time Market transactions averaged Rs3.30 per unit while Day-Ahead Market prices averaged Rs3.74 per unit. However, coal generation remained the strongest statistical influence on market-clearing prices, indicating that thermal assets continue to shape electricity economics.
The renewable-energy story was equally important. Non-fossil capacity exceeded 53% of installed generation capacity, yet Renewable energy trading India represented only a small fraction of exchange volumes. This suggests generation capacity is expanding faster than market participation.
EnergylineIndia.com observes that Power market trends India increasingly reflect a dual transition involving both market development and clean-energy growth. As Electricity trading market India expands, Power market trends India and Power market trends India will remain important indicators of sector transformation.