Many project developers are increasingly keen to participate in the merchant power market because of attractive prices on the exchanges and intense competition for PPAs. New project structures like RTC and VPPAs are also leading to a rise in project capacities with untied power output. On the flip side, merchant projects face many challenges including uncertain long-term price outlook, lack of debt financing and strict DSM regulations.
Figure: Renewable power sales mix in FY 2023

Source: CEA, Grid Controller of India, BRIDGE TO INDIA research
Note: Renewable power output is shown only for solar and wind technologies. G-DAM trading volume accounted for 74% of total renewable power traded on the exchanges in FY 2023.
This report provides an overview of current status of merchant renewable power market, key drivers and challenges, business models and growth prospects.