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 generation in Q1 FY24 was slightly up by 5.8% compared to Q1 FY23and 8.7% compared to Q4 FY23 due to subdued heat wave days.
    • April: Up by 4.0%
    • May: Up by 4.7%
    • June: Up by 8.7%
    • Total Q1 FY24: Up by 5.8%
  • In Q1 FY24, RE generation increased slightly by 2.5% versus the same quarter in the previous fiscal year (Q1 FY23). Coal/lignite-based generation was up by 8.2%, however, hydro decreased by 9.9% for the same period.
  • From an average daily generation perspective, the share of RE and hydro decreased, whereas coal/lignite share increased in Q1 FY24 compared to Q1 FY23.
    • RE: Share slightly down from 12.9% to 12.4%
    • Hydro: Share down from 10.0% to 8.4%
    • RE + Hydro: down from 22.9% to 20.8%
    • Coal/lignite: Share up from 74.3% to 75.0%
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.
  • The overdue amount payable by discoms to power producers reduced by 17% to INR 75,535 crore in June 2023 from INR 91,061 crore in March 2023.
  • From a payment delay standpoint, as of June 2023, Maharashtra, Tamil Nadu, Karnataka, Rajasthan and Jammu & Kashmir were among the states with the highest legacy dues.
Figure 2: Discom payable and receivable days for RE rich states
Source: UDAY portal (based on data disclosed by discoms as of 31 March 2022). *Data not available for these states; values derived from 2019–20/ 2020–21 financial reports.
  • In Q1 FY24, most listed RE stocks and the Sensex trended upwards.
  • The share price of the pure-play RE developer, Adani Green Energy, was up by 7.26% as of June 2023 (vs March 2023). The share price of Borosil Renewables, which holds a near monopoly position in India’s solar panel glass manufacturing, was up by 23.15% as of June 2023 (vs March 2023).
  • The stock prices of wind developer–manufacturers Inox Wind and Suzlon Energy were up by 64.76% and 93.67% in June 2023 (vs March 2023), respectively.
Figure 3: 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 Q1 FY24, two green bonds were issued by RE developers ReNew Power and SAEL limited.
  • In May 2023, India’s leading power financier, REC, undertook an exclusive listing of green bonds worth USD 750 million at the GIFT International Finance Services Center (IFSC) Stock Exchanges in Gandhinagar.
  • Key bond yields, including the 10-year Treasury bond yield and NTPC’s 10-year bond yield, fluctuated throughout the quarter.
Figure 4: 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 FY24
12.4%
Slightly down from 12.9% in Q1 FY23
Capacity auctioned
7.65GW
in Q1 FY24
Amount overdue to power producers as of June 2023
INR 75,535 crore
Reduced by 17% from March 2023
Market concentration for RE auctioned capacity
61%
in Q1 FY24
Author's Name
Ruchita Shah
Programme Associate
Riddhi Mukherjee
Research Analyst
For queries reach out to author
Tags
Clean Energy Investments
Discoms
Energy Storage
Energy Transition
EV
Green Bonds
Power Markets
RE Auctions
RE Developers