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 Q2 FY24 was significantly up by 15.0% compared to Q2 FY23 and by 5.6% compared to Q1 FY24 owing to lower-than-expected rainfall in August 2023.
    • July: Up by 12.0%
    • August: Up by 19.3%
    • September: Up by 13.5%
    • Total Q2 FY24: Up by 15.0%
  • In Q2 FY24, RE generation increased significantly by 18.2% versus the same quarter in the previous fiscal year (Q2 FY23). Coal/lignite-based generation was up by 19.7%; however, hydro decreased by 11.2% for the same period.
  • From an average daily generation perspective, the RE and coal/lignite share increased in Q2 FY24 compared to Q2 FY23, whereas the hydro share decreased.
    • RE: Share up from 12.9% to 13.2%
    • Hydro: Share down from 17.3% to 13.4%
    • RE + Hydro: down from 30.2% to 26.6%
    • Coal/lignite: Share up from 65.8% to 68.6%
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 Q2 FY24, most listed RE stocks and the Sensex recorded a similar trend observed in Q1 FY24.
  • The share price of RE developer Adani Green Energy was up by 4.36%, while Sterling and Wilson recorded an upward trend of 24.62% as of September 2023 (vs June 2023).
  • The share price of wind developer–manufacturers Borosil Renewables was down by 15.26% at the end of September 2023 (vs June 2023).
  • The share price of solar panel glass manufacturer, Borosil Renewables was down by 15.26% at the end of September 2023 (vs June 2023).
  • NYSE–listed solar project developer Azure Power recorded a downward trend, falling by 61.58% in September 2023 (vs June 2023).
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 Q2 FY24, no new green and sustainability-linked bonds (SLB)** by RE developers were issued.
  • In September 2023, Government of India disclosed its intention to issue additional Sovereign Green Bonds (SGrBs) worth INR 20,000 crores in the second half of FY24.
  • In July 2023, the SBI MCLR (1-year) rate was increased slightly to 8.55% after remaining constant at 8.50% since February 2023.
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 Q2 FY24
13.2%
Up from 12.9% in Q2 FY23
Capacity auctioned
5.41 GW
in Q2 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
74%
in Q2 FY24
Author's Name
Riddhi Mukherjee
Research Analyst
Ruchita Shah
Programme Associate
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