The Central Electricity Regulatory Commission (CERC) has issued a staff paper on capacity market for electricity in India. The commission has circulated the staff paper to commence discussions on the proposals to address issues encountered in implementation of the capacity market in upcoming years.
India’s current PPA-led framework secures installed capacity, but it does not always guarantee the required generation capacity during system stress, especially for scenarios where renewable penetration is rising and peak demand is becoming more challenging to meet.
In this regard, the staff paper on capacity market for electricity in India discusses options for contracting capacity in India in the form of three aspects viz. capacity market for resource adequacy/capacity obligation, reserve capacity market and secondary/short-term capacity market. The commission has invited stakeholder comments and suggestions on the proposals outlined in the staff paper till 27th May 2026.