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 increased by 11.6% in Q1 FY25 (490 billion kWh) compared to Q1 FY24 (440 billion kWh) and by 12.6% in comparison to Q4 FY24 (435 billion kWh) owing to prolonged extreme heat-wave days in various parts of the country in Q1 FY25.
    • April: Up by 10.4%
    • May: Up by 15.4%
    • June: Up by 9.0%
    • Total Q1 FY25: Up by 11.6%
  • In Q1 FY25, RE generation increased by 11.3% versus the same quarter in the previous fiscal year (Q1 FY24). Coal/lignite-based generation was up by 10.9%; however, hydro increased slightly by 0.8% for the same period.
  • From an average daily generation perspective, the RE, hydro and coal/lignite share decreased slightly, in Q1 FY25 compared to Q1 FY24.
    • RE: Share slightly down from 12.4% to 12.3%
    • Hydro: Share down from 8.4% to 7.6%
    • RE + Hydro: Share slightly down from 20.8% to 19.9%
    • Coal/lignite: Share slightly down from 75.0% to 74.6%
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 Q1 FY25, most listed RE stocks and the Sensex trended upwards.
  • The share price of RE developer Adani Green Energy was marginally down by 3%; however, that of Sterling and Wilson was up by 36% as of June 2024 (vs March 2024).
  • All the wind developer – manufacturers recorded upward trends throughout Q1 FY25. The share price of wind developer–manufacturers Inox Wind was up by 9%, whereas Suzlon Energy’s share price was up by 31% at the end of June 2024 (vs March 2024). In April 2024, Inox Wind issued 3 bonus shares to every unit of equity held in the company.
  • The share price of Borosil Renewables, which holds a near-monopoly position in India’s solar panel glass manufacturing, was marginally down by 1% at the end of June 2024 (vs March 2024).
  • NYSE-listed solar project developer Azure Power recorded a slight downward trend, falling by 7% in June 2024 (vs March 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.
  • As per RBI’s issuance calendar dated March 27, 2024, Government of India planned on raising INR 12,000 crore through two 10-year sovereign green bonds of INR 6,000 crore each, in the first half of Q1 FY25. However, in an auction for the notified amount of INR 6,000 crore held in May 2024, none of the 99 bids amounting to INR 12,677 crore were accepted in this quarter.
  • The repo rate, reverse repo rate and SBI MCLR (1 year) remained pegged at 6.50%, 3.35% and 8.65% in this quarter.
  • In March 2024, Adani Green Energy issued an 18-year USD 409 million green bond to refinance the dollar denominated green bonds issued in 2019 (6.25%, 5-year). The 2019 issuance was slated to mature in June 2024. The 18-year BBB- rated (Moody’s) senior secured notes listed on the India International Exchange IFSC Limited were oversubscribed 7 times and would bear interest of 6.7%.
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 Q1 FY25
12.3%
Slightly down from 12.4% in Q1 FY24
Capacity auctioned
6.2 GW
in Q1 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
76%
in Q1 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