NSE welcomes CERC nod for market coupling in power sector

The National Stock Exchange of India Limited (NSE) has welcomed the Central Electricity Regulatory Commission’s (CERC) notification of 17 April 2026 on the Power Market (Draft Second Amendment) Regulations, 2026, paving the way for market coupling.

Under the proposed amendment, Grid India will—with the Commission’s approval—formulate the Power Market Coupling Procedure within six months.

NSE described market coupling as a significant reform that will boost transparency, operational efficiency, and uniform price discovery in India’s power markets.

Aligned with the “One Nation, One Grid, One Price” vision, it promises to deepen the market and establish a robust benchmark for participants.

Once implemented, Grid India—as the Market Coupling Operator—will aggregate bids from all three spot power exchanges and set a single market-clearing price, allowing uniform trade settlements across exchanges.

NSE noted that this mirrors global best practices and resembles the volume-weighted methodology used for its monthly electricity futures settlements.

Since electricity futures launched in July 2025, spot prices across exchanges have fallen by about 14 per cent, enhancing efficiency and societal surplus.

NSE expects market coupling to further promote fair pricing and narrow exchange disparities.

NSE MD & CEO Ashishkumar Chauhan said: “This amendment and the consequent implementation of market coupling represent a constructive step towards greater transparency and efficiency in power markets.

An expeditious rollout will yield a uniform pricing benchmark for all three spot exchanges and two financial exchanges.”