• The energy transition goals set by the Government of India (GoI) are driving the country towards a renewable future. India’s renewable energy (RE) capacity is projected to witness significant growth over the current decade, with the combined share of renewable and hydro generation in the all-India electricity generation expected to exceed 35% by 2030. This transition is accompanied by evolving models for power sale in the RE sector.
• Short-term electricity trading is gaining momentum, with growing volumes in Real-Time Market (RTM) and Term-Ahead Market (TAM) segments. Although spot tariffs moderated in FY2026, they remain high during peak hours, especially during evening hours. Leading power producers are increasingly targeting merchant market expansion to capitalise on these dynamics.

Exhibit 1: Trends in installed renewable power generation capacity and its share in overall power generation capacity

Source: ICRA Research, Central Electricity Authority (CEA)