India’s short-term power market has experienced a 12% growth in fiscal year 2024, reaching 218 billion units (BU), reflecting increased demand for flexible power solutions. Renewable energy contributed significantly, supplying 32.5% of the total grid capacity, a milestone that underscores India’s transition towards greener energy sources. This growth in the short-term market, which includes electricity trading for immediate or near-term delivery, highlights the increasing role of renewables in meeting dynamic power demands and stabilizing the grid.

The growth is attributed to several factors, including an increase in industrial power requirements and higher temperatures that drive electricity usage. The short-term market has seen enhanced participation from both traditional power suppliers and renewable energy producers, indicating a balanced diversification of sources. The Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) have played a significant role in facilitating these transactions, ensuring more accessible and competitive pricing.

Renewables, primarily solar and wind, are increasingly favored in the short-term power market due to their decreasing costs and scalability. This shift aligns with India’s broader commitment to achieving 500 GW of non-fossil fuel capacity by 2030. The market's evolution towards renewable-driven energy is also anticipated to reduce dependence on coal-based power, contributing to lowered carbon emissions and enhancing grid resilience.

With a growing emphasis on efficient grid management and the continued expansion of renewable infrastructure, India’s short-term power market is poised for further growth, setting a strong precedent for sustainable energy integration.