More than two years since the government started exploring the introduction of market coupling in power exchanges, the Central Electricity Regulatory Commission (CERC), in a late-night order on July 23, approved the move.
Market coupling in the spot market is expected to lead to an overall decrease in the cost of power, primarily by increasing market efficiency and liquidity, and promoting price convergence, government officials told Moneycontrol.
The CERC, in its order, has approved introducing market coupling in a phased manner. It will be first introduced in the day-ahead-market (DAM) of the power exchanges from January 2026. The central regulator said it will take a call on the introduction of market coupling in the real-time-market (RTM) and term-ahead-market (TAM) at a later stage, after further examinations and testing.
