CERC sets phased timeline for market coupling rollout starting January 2026

The Central Electricity Regulatory Commission (CERC) has passed a suo motu order to begin phased implementation of market coupling under the CERC (Power Market) Regulations, 2021. As per the order dated 23 July 2025 (Petition No. 8/SM/2025), the process will start with coupling the Day-Ahead Market (DAM) of power exchanges by January 2026.

This decision follows a shadow pilot conducted by Grid Controller of India (Grid-India) between December 2024 and March 2025. The pilot aimed to assess the potential of market coupling in optimizing dispatch and improving efficiency. Grid-India’s feedback report showed that DAM coupling led to a ₹38 crore increase in overall welfare and a 0.2 percent increase in traded volumes. RTM coupling showed smaller gains of ₹72 lakh, while RTM-SCED coupling showed ₹1.4 crore in daily savings but also a slight rise in average cost due to reduced demand catered.

CERC has laid out the following phased plan:

Day-Ahead Market (DAM): Market coupling will begin with DAM. Power exchanges will rotate as the Market Coupling Operator (MCO), while Grid-India will act as a backup and support audit functions.

Real-Time Market (RTM) and SCED: Implementation will be deferred. The Commission cited the need for further operational experience and noted complexities in coupling RTM with Security Constrained Economic Dispatch (SCED).

Term-Ahead Market (TAM): Grid-India has been directed to develop software and run a shadow pilot to evaluate coupling feasibility for TAM, including contingency contracts.

The Commission has acknowledged the need to harmonise bid structures and algorithms across exchanges. It will initiate consultations with stakeholders and propose necessary regulatory amendments to support the phased rollout.

Further directions will be issued based on progress and feedback from ongoing pilots.

Read the full order here.

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