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Power producers are often forced to sell electricity at low prices during periods of weak demand, but cannot make up for those losses when demand rises because of the price ceiling, says the industry body
By Reuters
Updated – May 20, 2026 at 10:48 AM.
|
NEW DELHI
A solar industry group has asked India’s power market regulator to increase the cap on electricity prices on power exchanges, saying the current limit is hurting companies and slowing investment, with demand at record highs.
* The National Solar Energy Federation of India told the Central Electricity Regulatory Commission that the existing cap of 10 Indian rupees ($0.1032) per unit makes it difficult for some players, including energy storage firms, to operate profitably.
* The petition comes as India’s power demand has surged to record levels over the past two days due to heat waves.
* Peak power demand jumped to 260.45 gigawatts on Tuesday, according to the country’s power ministry, surpassing Monday’s record of 257.37 GW.
* A separate market segment created to allow higher prices has not worked well because there are very few buyers willing to purchase power at those levels, the group said in a regulatory filing made public late Tuesday.
* India’s power producers are often forced to sell electricity at low prices during periods of weak demand, but cannot make up for those losses when demand rises because of the price ceiling, the industry body told the regulator.
* Keeping the price cap unchanged is discouraging investment in areas such as energy storage, which could help manage supply and demand swings in the future, the industry body said in the filing.
* The regulator has heard the matter and reserved its order.
Published on May 20, 2026
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