Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 1, 2019 erstellt
Beschreibung:
The Indian power market has largely been dominated by long-term power agreements which lock-in the quantum as well as the fixed and the variable cost of power procurement (with escalation factors). Post Electricity Act 2003 and subsequent setting up over of the power exchanges, development of the short-term power market has brought in a competitive spirit in the price discovery. The residual imbalances continue to be subjected to the Deviation Settlement Mechanism (DSM). Growing share of variable renewable energy i.e. wind and solar, has added to the uncertainty associated with availability of electricity as well as, the demand uncertainty of the consumers having behind-the-meter electricity generation based on such resources. Inability of the intraday electricity trading contracts to provide a liquid platform to manage short-term deviations in generation and demand, have necessitated development of an efficient mechanism for electricity trade closer to the real time. Development of Real-Time Market (RTM) for electricity is expected to fill this vacuum in the short-term electricity market. This will also provide for market-based discovery of price for unrequisitioned surplus available with DISCOMs and will help dynamic changes in the generation and demand profile across the day. RTM's vibrancy can be further enhanced by developing effectively designed demand response program across DISCOMs. The state electricity regulatory commissions and distribution entities should use the price signal from the RTM to design more effective TOD/TOU tariff. Recent efforts in the development of the market, including RTM and the SCED, are targeted towards efficient discovery of price signals on a short-term basis. However, this falls short of providing a price signal for creation of generation capacity over the long-run. Development of the capacity market alongside such initiatives would help to address the long-term capacity adequacy in the Indian power sector