CERC approves standardised TAM time slots for power exchanges
The Central Electricity Regulatory Commission (CERC) has approved pre-specified time slots for contracts traded in the Term Ahead Market (TAM), Green Term Ahead Market (G-TAM), and High Price Term Ahead Market (HP-TAM) on power exchanges.
The Commission has adopted a national-level framework based on solar and non-solar hours instead of region-specific peak and off-peak slots. The order was issued on May 21, 2026.
Background
The decision follows petitions filed by Indian Energy Exchange Limited (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX) pursuant to CERC’s suo motu order dated April 28, 2025.
In the earlier order, the Commission had directed exchanges to discontinue user-defined and hourly slots in TAM, G-TAM and HP-TAM contracts and move towards standardised pre-specified slots. CERC had also directed the National Load Despatch Centre (Grid India) to notify solar and non-solar hours periodically.
Exchange proposals
The three exchanges proposed different slot structures after consultations with stakeholders. IEX proposed seven categories covering Peak, Night, Morning, Day, Solar, Non-solar and Round-the-Clock (RTC) contracts. PXIL proposed separate morning and evening peak slots along with day off-peak, night off-peak and RTC contracts. HPX suggested two-hourly delivery slots across categories including solar, non-solar, RTC and peak periods.
Several stakeholders, including distribution companies and state utilities, supported region-specific or seasonal peak slots and sought continuation of some flexibility in contract design.
Grid India recommendation
Grid India informed the Commission that a uniform national peak slot was not feasible because demand peaks vary across states and regions.
It also pointed out that Regional Load Despatch Centres (RLDCs) declare peak and off-peak hours only one month in advance, whereas TAM contracts are traded for longer durations, including proposals extending up to 11 months.
Grid India recommended that contracts be structured around solar and non-solar hours, observing that market price pressure is more closely aligned with national non-solar periods than regional peak demand patterns.
Commission order
CERC accepted Grid India’s recommendation and held that region-wise or multiple sub-slots would fragment market liquidity, weaken price discovery and reduce market depth.
The Commission approved RTC contracts for 00–24 hours, Solar contracts for 06–18 hours, Morning contracts for 06–09 hours, Day contracts for 09–18 hours, Non-Solar contracts for 18–06 hours, Evening contracts for 18–24 hours, and Night contracts for 00–06 hours.
Grid India has been directed to issue a detailed procedure for notifying solar and non-solar hours on a national basis while considering regional variations as far as possible. Once such timings are notified, the corresponding contracts will automatically align with the revised solar and non-solar periods.
Renewable energy contracts
For G-TAM contracts involving renewable energy sources other than hydro, CERC has allowed renewable energy generators to create profiles using different technologies within the approved slots.
However, the Commission directed Grid India to examine whether profile-based bidding flexibility should continue and ensure it is not used for customised bidding strategies beyond operational requirements. Grid India has been asked to submit its report within two months.
Implementation
Power exchanges have been directed to implement the approved slot structure within one week of the order. They have also been instructed to amend their business rules, bye-laws and operational procedures and submit compliance reports to the Commission. Contracts already traded or entered into before the order date will remain valid.
The petitions numbered 674/RC/2025, 754/RC/2025 and 753/RC/2025 have been disposed of.
The featured photograph is for representation only.
