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
  • The total power generation slightly increased by 1.0% in Q2 FY25 (469 billion kWh) compared to Q2 FY24 (464 billion kWh) and reduced by 4.4% in comparison to Q1 FY25 (490 billion kWh).
    • July: Up by 7.9%
    • August: Down by 4.7%
    • September: Up by 0.2%
    • Total Q2 FY25: Up by 1.0%
  • In Q2 FY25, RE generation increased by 5.8% versus the same quarter in the previous fiscal year (Q2 FY24). Coal/lignite-based generation was slightly down by 1.1%; however, hydro increased by 6.2% for the same period.
  • From an average daily generation perspective ,the share of RE and hydro increased slightly and the share of coal/lignite decreased slightly, in Q2 FY25 compared to Q2 FY24.
    • RE: Share slightly up from 13.2% to 13.9%
    • Hydro: Share slightly up from 13.4% to 14.1%
    • RE + Hydro: Share slightly up from 26.6% to 27.9%
    • Coal/lignite: Share slightly down from 68.6% to 67.2%
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 FY25, most listed RE stocks and the Sensex trended upwards.
  • The share price of RE developer Adani Green Energy was marginally up by 6%; however, that of Sterling and Wilson was down by 14% as of September 2024 (vs June 2024).
  • All the wind developer – manufacturers recorded upward trends throughout Q2 FY25. The share price of wind developer–manufacturers Inox Wind was up by 67%, whereas Suzlon Energy’s share price was up by 51% at the end of September 2024 (vs June 2024).
  • The share price of Borosil Renewables, which holds a near-monopoly position in India’s solar panel glass manufacturing, was marginally down by 2% at the end of September 2024 (vs June 2024).
  • NYSE-listed solar project developer Azure Power recorded a downward trend, falling by 51% in September 2024 (vs June 2024).
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 August 2024 Reserve Bank of India (RBI) conducted a sovereign green bond (SGrB) auction worth INR 6,000 crore for a 20-year bond. The offering’s coupon rate was yield-based which after auctions came out to be 6.9%. A partial amount of INR 1,697 crore has been accepted for the offering. In September 2024 RBI announced four SGrB issuances of INR 5,000 crore each in its issuance calendar for the second half of FY25.
  • The repo rate, reverse repo rate and SBI MCLR (1 year) remained pegged at 6.50%, 3.35% and 8.65% in this quarter.
  • SAEL Group’s maiden green bond issuance raised USD 305 million in July 2024. The bond was issued at a yield of 7.8% for a tenure of 7 years. This was the first renewable energy bond issuance to include waste-to-energy assets. It was jointly issued by SAEL and its five fully wholly-owned subsidiaries, and was oversubscribed ~6 times.
  • The repo rate and reverse repo rate remained pegged at 6.50% and 3.35% in this quarter. The SBI MCLR (1 year) rate was increased to 8.95% in August 2024, and remained constant since.
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 FY25
13.9%
Slightly down from 13.2% in Q1 FY24
Capacity auctioned
14.7 GW
in Q2 FY25
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
76%
in Q2 FY25
Author's Name
Riddhi Mukherjee
Research Analyst
Dishant Rathee
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