India is undergoing an energy transition from fossil-based to clean energy. Our quarterly Market Handbook helps identify and analyse trends, present data-backed evidence and connect the dots to present a short-term market outlook.
Key Findings
  • The total power generation slightly increased by 3.2% in Q3 FY25 (429 billion kWh) compared to Q3 FY24 (416 billion kWh) and reduced by 8.5% in comparison to Q2 FY25 (469 billion kWh).
    • October: Up by 0.8%
    • November: Up by 3.8%
    • December: Up by 5.3%
    • Total Q3 FY25: Up by 3.2%
  • In Q3 FY25, RE generation reduced by 2.2% versus the same quarter in the previous fiscal year (Q3 FY24). Coal/lignite-based generation was slightly up by 0.04%; however, hydro generation increased by 27.4% for the same period.
  • From an average daily generation perspective, the share of hydro increased and the share of coal/lignite and RE decreased slightly, in Q3 FY25 compared to Q3 FY24.
    • RE: Share slightly down from 11.6% to 11%.
    • Hydro: Share slightly up from 6.4% to 7.9%
    • RE + Hydro: Share slightly up from 18% to 18.9%
    • Coal/lignite: Share slightly down from 78.9% to 76.5%
Figure 1: Source-wise daily generation
Source: POSOCO. Note: RE technologies include solar, wind, biomass, waste-to-energy, and small hydro and do not include rooftop solar and large hydro (>25 MW) generation.
  • In Q3 FY25, most listed RE stocks and the Sensex trended downwards.
  • The share price of RE developer Adani Green Energy was down by 45%; however, that of Sterling and Wilson was down by 26% as of December 2024 (vs September 2024).
  • All the wind developer – manufacturers recorded downward trends throughout Q3 FY25. The share price of wind developer–manufacturers Inox Wind was down by 24%, whereas 3 Suzlon Energy’s share price was down by 22% at the end of December 2024 (vs September 2024).
  • The share price of Borosil Renewables, which holds a near-monopoly position in India’s solar panel glass manufacturing, was up by 14% at the end of December 2024 (vs September 2024).
  • NYSE-listed solar project developer Azure Power recorded a downward trend, falling by 47% in December 2024 (vs September 2024).
Figure 2: Change in key renewable energy stock prices (indexed to 100)
Source: Money Control.
Note: Share prices are the last traded value in each month.
  • In November 2024 Reserve Bank of India (RBI) conducted a sovereign green bond (SGrB) auction worth INR 5,000 crore for a 10-year bond. The offering’s coupon rate was yield-based which after auctions came out to be 6.79%. In December 2024 RBI announced a SGrB auction of INR 5,000 crore for a 30-year bond, with yield-based coupon rate offering of 6.98%.
  • In December 2024, NHAI raised INR 775 crores from its maiden green bond, which was also the first of its kind in the roads and highways sector. The bond was issued at a yield of 7.23% per annum, with its end uses earmarked to implement green measures in the Delhi – Mumbai expressway project. It was issued by DMEDL, a wholly owned subsidiary of NHAI, and had a base issue size of INR 500 crores, with a green-shoe option to retain oversubscription up to INR 275 crores.
  • The repo rate and reverse repo rate remained pegged at 6.50% and 3.35% in this quarter. The SBI MCLR (1 year) rate was increased to 9% in November 2024, from its earlier revision to 8.95% in August 2024.
Figure 3: Bond yields* and key financial rates
Source: Reserve Bank of India, State Bank of India, Trading Economics, Money Control and BondEvalue.
Note: Bond prices are the last traded value in each month; * Current yield.

Key Indicators
Share of RE in Q3 FY25
11%
Down from 13.9% in Q2 FY25
Capacity auctioned
14.8 GW
in Q3 FY25
Legacy dues overdue to power producers as of January 2024
INR 49,451 crore
Down by 46% from March 2023
Market concentration for RE auctioned capacity
41%
in Q3 FY25
Author's Name
Riddhi Mukherjee
Research Analyst
Dishant Rathee
Research Analyst
For queries reach out to author
[email protected]
Tags
Clean Energy Investments
Discoms
Energy Storage
Energy Transition
EV
Green Bonds
Power Markets
RE Auctions
RE Developers