In a significant shift towards market-based power procurement strategies, the Telangana Discoms have efficiently capitalized on competitive prices to optimize their energy expenses. This transition is part of a broader structural change in India’s electricity procurement landscape, as state utilities are increasingly incorporating power exchanges into their routine operations.
Power exchanges, which were previously used as a temporary solution for managing shortages or unexpected demand, are now emerging as a deliberate source of power supply due to the influence of data-driven strategies, price signals, generation economics, and time-of-day demand patterns. This evolution is positively impacting three critical aspects of Discoms’ decision-making: the timing of power procurement, the scheduling mechanism for state-allocated generation, and daily supply-demand balance optimization.
Recent trends in power procurement adopted by Telangana Discoms demonstrate how market-based dynamic procurement is becoming an integral part of their operational strategy. The improved liquidity of energy supplies from renewable sources such as solar, hydro, wind, and steady coal generation has led to a substantial decrease in DAM and RTM prices during the first eleven months of the current financial year on India’s electricity exchange, the Indian Energy Exchange (IEX).
During this period, the average daily Market Clearing Price in the DAM stood at INR 3.83 per unit—a 14.4 percent decrease compared to the same period last year. Similarly, the RTM price averaged INR 3.58 per unit during the same period, marking a 16.5 percent drop year-on-year. These competitive prices presented an opportunity for Discoms and Commercial and Industrial consumers alike to source power at reduced costs and replace costlier power by procuring through exchanges.
Telangana power companies used the low electricity prices very smartly and reduced their costs with a clear, data-based plan. In the first 11 months of FY2026, the state bought about 13 billion units of power from exchanges at an average price of ₹3.04 per unit. Because of this better planning and buying strategy, the state was able to save around ₹700 crore during this period.
Telangana Discoms have taken full advantage of the favorable market conditions, optimizing their energy procurement costs via a clear, data-driven strategy. The state has successfully procured substantial amounts of energy during the first eleven months of FY2026, leveraging the power exchanges to meet its growing demand at competitive prices.
