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CERC Proposes Market Coupling via Grid India, Aims for Uniform Power Price Under Draft 2026 Regulations

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
21 Apr 2026
~2 min
Source: Indian Express
Key Data:238.35 BU (2024-25 short-term trade)13.03% (of total generation)8.9% CAGR (short-term trade growth)Over 90% (IEX DAM share)May 16, 2026 (feedback deadline)
Bodies:CERCGrid IndiaSEBIAPTELIEXPXILHPX
Practice MCQs from today's news ▸
What This Article Covers

1.CERC issues draft regulations proposing Grid India as the Market Coupling Operator (MCO) to discover a uniform market-clearing price across power exchanges.

2.The reform targets the Day-Ahead Market (DAM) initially and aims to reduce price disparities, with short-term power trade volume growing at 8.9% CAGR (2009-10 to 2024-25).

3.The move faces opposition from dominant exchange IEX, which holds over 90% DAM market share, and follows a SEBI insider trading probe into a prior CERC order.

The Big Picture
Prelims · HighMains · Medium

India's power regulator CERC has proposed 'market coupling' to unify electricity prices across exchanges, moving away from the current decentralized system. This major structural reform, to be operated by Grid India, aims to enhance market efficiency and stability, directly impacting the economy's energy cost structure.

Exam Lens

Quick Exam Facts From News

Draft Regulation NameCERC (Power Market) (Second Amendment) Regulations, 2026
Proposed MCOGrid Controller of India (Grid India)
Stakeholder Feedback DeadlineMay 16, 2026
Short-term Power Trade (2024-25)238.35 Billion Units (13.03% of total generation)
IEX Market Share (DAM)Over 90%

1-Minute Revision

  • ›Draft Regulation Name: CERC (Power Market) (Second Amendment) Regulations, 2026
  • ›Proposed MCO: Grid Controller of India (Grid India)
  • ›Target this Data: Short-term power trade volume was 238.35 BU in 2024-25 (13.03% of total generation).
  • ›Target this Nodal Body: Grid Controller of India (Grid India) is proposed as the Market Coupling Operator (MCO).
  • ›Target this Legal Point: CERC (Power Market) (Second Amendment) Regulations, 2026.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The draft regulations for electricity market coupling in India have been issued by which regulatory body?

Q2Statement-basedHard

Consider the following statements regarding the proposed electricity market coupling in India:

1. It aims to discover a uniform market-clearing price by aggregating bids from all power exchanges.

2. The Grid Controller of India (Grid India) has been proposed as the Market Coupling Operator.

3. The India Energy Exchange (IEX), which dominates the market, has welcomed this proposal.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the volume of short-term transactions of electricity in India in the year 2024-25?

Q4Application/ImpactMedium

What is the primary objective behind the Central Electricity Regulatory Commission's (CERC) proposal for market coupling in electricity trading?

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