JSA Prism | Electricity and Power | August 2026

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Central Electricity Regulatory Commission approves pre-specified time slots for Term Ahead Market contracts based on national solar and non-solar hours

The Central Electricity Regulatory Commission (“Commission”), vide Order dated May 21, 2026 (“Order”), has approved the pre-specified time slots for contracts in the Term Ahead Market (“TAM”), Green Term Ahead Market (“G-TAM”), and High Price Term Ahead Market (“HP-TAM”) on the power exchange platforms operated by Indian Energy Exchange Limited (“IEX”), Power Exchange India Limited (“PXIL”), and Hindustan Power Exchange Limited (“HPX”). The Order was passed in compliance with the earlier directions issued by the Commission in its Suo Motu Order dated April 28, 2025 (“Suo Motu Order”), which had directed power exchanges to discontinue user-defined time slots and consult stakeholders on the selection of pre-specified slots.

The Order establishes a national-level solar and non-solar hours framework for TAM contract design, departing from the peak/off-peak hours approach previously proposed by the power exchanges. The Commission has directed all power exchanges to offer only the approved pre-specified time slots and directed Grid Controller of India Limited (“Grid India”) to issue a detailed procedure for notifying solar and non-solar hours on a national basis.

Salient features of the Order

• Background and regulatory context: The Commission had issued the Suo Motu Order, which inter alia directed power exchanges to discontinue user-defined time slots (including hourly slots) in TAM, G-TAM, and HP-TAM within 1 (one) week and to allow only established pre-specified slots on their platforms. For TAM and HP-TAM, the Commission directed consultation with market participants on selection of pre-specified time slots from within Round The Clock (“RTC”), peak/off-peak hour, solar/non-solar hour, Day/Night, and to approach the Commission for approval within 1 (one) month. For G-TAM, the Commission directed similar consultation based on the generation profile of different technologies. The Commission also directed NLDC to declare timings of solar/non-solar hours at regular intervals. Prior to the Suo Motu Order, time slot structures had been approved under the Commission’s earlier orders dated June 7, 2022, and September 21, 2023. The prevailing regime permitted considerable flexibility to market participants in selecting delivery durations including user-defined hourly slots.
• Proposals by power exchanges: In compliance with the consultation directions, all 3 (three) power exchanges submitted slot structure proposals primarily based on peak/off-peak hours and demand-price patterns. IEX proposed 7 (seven) slots; PXIL proposed 4 (four) RTC-based slots; and HPX proposed multiple delivery sub-slots within Day, Night/Morning, and peak categories, along with 2 (two) hourly slots across segments.
• Grid India’s inputs and recommendation: Grid India recommended structuring TAM contracts based on solar and non-solar hours rather than peak and off-peak hours, on the grounds that:
  • no common national 4 (four) hour peak slot can be defined for bidding on power exchanges because each state reaches peak demand at a different time;
  • peak hours declared by RLDCs vary region to region depending on weather, geography, and demand patterns, and are announced only monthly; (c) TAM contracts provide for trading up to 90 (ninety) days in advance (with proposals to extend to 11 (eleven) months) but peak/off-peak visibility is only 1 (one) month ahead, making participation impractical;
  • the DAM Market Clearing Price follows all-India net demand curve, and pressure on prices occurs during non-solar hours nationally rather than regionally; and
  • region-wise peak slots in TAM would lead to liquidity fragmentation. Grid India further stated that contracts executed under G-TAM are national contracts and should therefore be based on national solar and non-solar hours.
• Commission’s decision: The Commission found merit in Grid India’s suggestion and held that the TAM contract design should be structured on national-level solar and non-solar hours as declared by Grid India. The Commission observed that:
  • allowing region-wise or multiple sub-slots would fragment liquidity, reduce market depth in each slot, impair price discovery, and reintroduce the very complexity the Suo Motu Order sought to eliminate;
  • regional peak and off-peak hours vary month-to-month, and visibility over the full trading horizon (up to 90 (ninety) days, with proposals to extend to 11 (eleven) months) is not feasible; and
  • a single uniform ‘all-India peak’ slot would not accurately reflect the demand profile of all states.
• The following pre-specified time slots have been approved for TAM/HP-TAM/G-TAM (Hydro):
  

  S. No.	Particulars of the Contracts	Time slots
  1.	RTC contracts	00:00-24:00 hours
  2.	Solar contracts
  	Morning contracts	06:00-09:00 hours
  	Day contracts	09:00-18:00 hours
  3.	Non-solar contracts
  	Evening contracts	18:00-24:00 hours
  	Night contracts	00:00-06:00 hours

  These time slots are based on the prevailing national solar and non-solar hours. The framework yields 3 (three) broad contract types: RTC, solar, and non-solar, with 4 (four) sub-classifications providing additional granularity.

• G-TAM (other than Hydro): For renewable energy sources other than hydro, the Commission intends to allow RE generators to create their profiles based on various technologies within the pre-specified time slots approved for TAM. However, Grid India has been directed to examine the need for continuation of such profile-based bidding, while ensuring that this flexibility is not misused to customise bidding strategies for reasons other than operational needs of RE technologies, and to submit a report within 2 (two) months from the date of the Order.
• Directions to Grid India: Grid India has been directed to issue a detailed procedure for separately notifying solar and non-solar hours on a national basis, factoring in regional variation as far as possible. Upon Grid India’s notification, the solar and non-solar contracts will stand modified as per the time slots stipulated by Grid India. Power exchanges are required to align their TAM contracts accordingly and notify market participants in advance of any changes.
• Compliance and transition: The Order provides the following compliance framework:
  all directions come into effect within 1 (one) week from the date of the Order;

• • contracts traded or entered into before the date of the Order will continue to be valid;
  • power exchanges are directed to amend their business rules, rules, and bye-laws and submit compliance reports on affidavit within stipulated timelines; and
  • any discrepancy or non-conformity with the Regulations or the Order will attract necessary action for non-compliance.

Conclusion

The Order consolidates the Commission’s approach of standardising contract structures on power exchanges to prevent market manipulation, enhance liquidity, and ensure transparent price discovery. The adoption of solar, and non-solar hours as the organising framework represents a pragmatic resolution balancing national market efficiency against regional demand variations. Market participants, generators, distribution licensees, and power exchanges will need to align their trading operations and contractual arrangements with the newly approved slot structure within the stipulated 1 (one) week compliance window. The practical effectiveness and impact of the pre-determined time slots remains to be seen as the exchange and the industry adapt to this framework.

This Prism has been prepared by:

M. Arun Kumar Partner

Ahona Pal Senior Associate

Arsh Dhammi Associate

For more details, please contact km@jsalaw.com.