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
  • Total electricity generation was up by 10.4% in FY24 compared to FY23. Contributing factors included lower-than-expected rainfall in August 2023 and October 2023, hot weather conditions and above normal temperatures in November 2023, and severe cold days with below-normal temperatures during the winter months in North India.
    • Q1: Up by 5.8%
    • Q2: Up by 14.7%
    • Q3: Up by 13.5%
    • Q4: Up by 7.8%
    • Total FY24: Up by 10.4%
  • Overall RE generation in FY24 increased by 9.5%, large hydro generation sharply fell by 16.3%, whereas coal/lignite generation grew significantly by 14.0% (versus FY23).
  • From an average daily generation perspective, coal/lignite share increased, whereas RE and hydro share declined in FY24 compared to FY23.
    • RE: Share down from 11.8% to 11.7%
    • Hydro: Share down from 11.0% to 8.3%
    • RE + Hydro: Share down from 22.8% to 20.0%
    • Coal/lignite: Share up from 73.1% to 75.4%
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.
  • As of January 2024, legacy dues# of discoms to generating companies reduced to INR 49,451 crore from INR 91,061 crore in 2022. All current dues of generating companies are up-to-date as of 31 January, 2024.
  • Under the RDSS scheme, 10.67 million prepaid smart consumer meters, 0.03 million smart DT meters and 0.01 million smart feeder meters have been installed across 28 states/UTs.
  • As per the performance of the power utilities report 2022-23, pan-India AT&C losses stood at 15.4% vs 16.5% in 2021-22. 12 utilities (out of 53) received A+ grading in FY23.
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 the second half of FY24, Reserve Bank of India (RBI) concluded four sovereign green bond (SGrB) auctions worth INR 20,000 crore. The SGrB offerings were (a) 5-year (New SGrB 2028), (b) 10-year (New SGrB 2033) and (c) 30-year (New SGrB 2054 and 7.37% SGrB 2054). Apart from the 7.37% GOI SGrB 2054, all other offerings’ coupon rates were yield-based which after auctions came out to be 7.25%, 7.24% and 7.37%, respectively. All the SGrB offerings were oversubscribed.
  • In January 2024, State Bank of India raised USD 250 million through the issuance of green bonds. This floating rate green bond, issued under SBI’s USD 10 billion medium-term note programme, will mature on 29 December, 2028.
  • In FY24, the repo rate remained pegged at 6.5%. The SBI MCLR (1-year) rate was increased by 50 basis points twice in FY24, from 8.5% April 2024 to 8.65% in March 2024.
  • Key bond yields, including the 10-year treasury and Adani Green’s 5-year bond yields, fluctuated throughout the year and remained on a downward trend since October 2023.
Figure 3: Bond yields* and key financial rates
Source: Reserve Bank of India, State Bank of India, Trading Economics, Money Control, and BondEvalue. *Current yield.
Note: Bond prices are the last traded value in each month.

Key Indicators
Share of RE in FY24
down from 11.8% in FY23
Capacity auctioned
40.56 GW
in FY24
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
in FY24
Author's Name
Riddhi Mukherjee
Research Analyst
Ruchita Shah
Programme Associate
For queries reach out to author
Clean Energy Investments
Energy Storage
Energy Transition
Green Bonds
Power Markets
RE Auctions
RE Developers