CERC Targets 25-Minute Compression of Real-Time Market Timelines to Bolster Grid Responsiveness

To combat the growing challenge of renewable energy (RE) curtailment and mitigate the financial risks of forecasting volatility, the Central Electricity Regulatory Commission (CERC) is pivoting toward a significantly faster Real-Time Market (RTM). In a discussion paper issued in May 2026, the Commission proposed slashing the RTM scheduling timeline from 75 minutes to 50 minutes before delivery. This 25-minute overall compression is designed to minimize forecasting errors for intermittent solar and wind assets and improve the national grid’s ability to respond to rapid demand-supply fluctuations.

Technical Breakdown: Squeezing the Operational Window

The directive targets the “Gate Closure” mechanism—the final deadline after which market participants are barred from submitting bids or revising schedules for a specific 15-minute delivery time block. By moving the scheduling process closer to the actual point of delivery, the CERC aims to align market outcomes with physical grid conditions more effectively.

The following table details the proposed transition from the current framework to the accelerated timeline:

This reduction is technically demanding due to the sequential interdependency of system operator activities. After the RTM window closes, the Grid Controller of India Limited (Grid-India) must execute a precise chain of events: Price discovery for Ancillary Services (AS) -> Security Constrained Unit Commitment (SCUC) -> Security Constrained Economic Dispatch (SCED) -> Web-Based Energy Scheduling (WBES) updates -> Dispatch execution.

Previously, these interdependent steps required a 45-minute cushion. However, the Commission notes that increased automation now allows these processes to be merged or accelerated, making a 30-minute operational window feasible.

Regulatory Context and Technical Enablers

The shift toward a 50-minute timeline is not merely a policy preference but a reflection of India’s modernized digital infrastructure. Key technical enablers identified by the Commission and industry experts include:

• National Open Access Registry (NOAR): The successful integration of NOAR has streamlined the processing of collective transactions across power exchanges.
• Advanced Control Systems: The implementation of Automatic Generation Control (AGC) alongside Secondary and Primary controls provides the necessary technical floor for faster grid balancing.
• The “Right to Recall” Evolution: Currently, many Distribution Companies (Discoms) rely on the manual “right to recall” unrequisitioned power from thermal stations. The compressed RTM is intended as a more efficient, market-based alternative to this legacy tool, offering better price discovery and transparency.

These changes will eventually be codified through amendments to the Indian Electricity Grid Code (IEGC) and the Power Market Regulations.

Stakeholder Feedback: Quantifying the Lag

The CERC’s proposal incorporates diverse feedback from developers and industry bodies who have long argued that the existing “8-time-block” window—effectively a 120-minute lag—is incompatible with weather-sensitive generation. RE developers such as Tata Power, Ayana, SAEL, MRPL, and the National Solar Energy Federation of India (NSEFI) noted that without high-resolution ground-based radar, responding to sudden cloud cover or wind shifts within a two-hour window is nearly impossible.

Specific industry proposals include:

• Phased Gate Closure Reductions: Juniper suggested reducing gate closure to no more than three time blocks (45 minutes) ahead of delivery. Meanwhile, Evren and NSEFI advocated for a more aggressive phased reduction to two blocks (30 minutes) or less to align with international best practices.
• Weather-Responsive Revisions: The Indian Wind Energy Association (InWEA) recommended allowing wind generators to revise schedules within 15 minutes of a weather event, provided the shift is validated by telemetry or satellite data.
• Market Flexibility: Entities like Greenko and Juniper suggested allowing RE generators to “buy back” power in the RTM to manage deviations, moving away from a punitive model toward a more liquid, balancing-market approach.

Grid Security and the DSM Link

The Commission has emphasized that any change to gate-closure timelines must remain subservient to system security and reserve deployment. However, the move is expected to have a transformative impact on the Deviation Settlement Mechanism (DSM).

By allowing generators to update their schedules based on current weather conditions rather than a forecast made over an hour prior, the shorter timeline directly reduces the volume of inadvertent deviations. This synthesis of market and meteorology is expected to save RE players millions in punitive DSM penalties, which are currently triggered by the inherent intermittency of wind and solar power.

Market Coupling and Future Outlook

The proposal arrives as the CERC explores “Market Coupling”—a mechanism that would force power exchanges like IEX and PXIL to pool liquidity. Compressing RTM timelines prepares the market for this more integrated environment, ensuring that price discovery remains sharp and responsive even as trading volumes increase.

As of the May 2026 update, the proposal remains in the consultation phase. The Commission is actively engaging with Grid-India for a final technical evaluation of how the 5-minute bidding window and 30-minute operator window will impact real-time reserves. Final implementation will require a formal amendment to the IEGC and a coordinated rollout across state grid codes to ensure national uniformity.