Powering a Nation : A Look at India’s Electricity Sector and Recent Announcements

Regular self-scheduling model where discoms partake in self-scheduling within silos of gencos (Source: CERC)
MBED model (Source: CERC)
  • Discoms can lower their power procurement costs due to the resulting price transparency, can hedge risks and manage their portfolio better
  • Power generating companies would benefit from the certainty of payment in spot markets and can sell their surpluses despite being in PPAs. This would, however, be difficult for discoms currently given their financial situation
  • A level of flexibility would ensue and overall power generation and utilization would be more efficient
  • With multiple products available under short-term, medium-term and long-term durations, market participants can better manage their portfolios and risks
  • The Indian power market can leapfrog to the next level and achieve growth
  • The above moves would increase market participation on exchanges
  • In addition, there would be better renewable energy integration into the power market and this can help in speeding up the transition to greener power

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store