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
[email protected]
Tags
Clean Energy Investments
Discoms
Energy Storage
Energy Transition
EV
Green Bonds
Power Markets
RE Auctions
RE Developers