CERC proposes Grid India as market coupling operator
Author: PPD Team Date: April 19, 2026
The Central Electricity Regulatory Commission (CERC) has issued draft amendments to its Power Market Regulations proposing to designate Grid Controller of India Limited (Grid India) as the sole Market Coupling Operator (MCO), shifting electricity price discovery from individual power exchanges to a centralised mechanism.
The Draft Central Electricity Regulatory Commission (Power Market) (Second Amendment) Regulations, 2026, published on April 17, 2026, amend the 2021 Principal Regulations. The draft introduces definitions for “Grid India” and the “Power Market Coupling Procedure (PMCP),” which will govern operational aspects of market coupling.
Under the proposed changes, Grid India will be responsible for operating and managing market coupling and will be required to establish a dedicated internal cell. Regulation 5 is proposed to be amended to shift price discovery to the MCO, with implementation from a date to be notified separately. Until then, power exchanges will continue existing price discovery functions.
The draft specifies that market coupling will initially apply to the Day-Ahead Market and the Real-Time Market, with scope for phased extension to other segments. Different implementation dates may be notified for each segment.
Operational provisions are set out through new Regulations 39A to 39D. Power exchanges will collect bids in a standardised format and transmit them securely to the MCO within defined timelines. The MCO will aggregate bids and determine prices by maximising economic surplus. A uniform market clearing price will apply in unconstrained conditions, while market splitting will address transmission congestion.
Grid India is required to frame the PMCP within six months of notification, subject to CERC approval. The procedure will define roles, bid formats including encryption standards, price discovery algorithm features, and processes for handling operational constraints.
The draft also extends governance, compliance, and reporting obligations, currently applicable to power exchanges, to the MCO. CERC has invited stakeholder comments and objections by May 16, 2026.
The featured photograph is for representation only.
