Electricity market in India
Electricity market in India
.
Anant Ashok Lohar Anant.lohar@hotmail.com
Abstract-- A robust trading system is very important for free and fair competitive electricity market operation. Trading system should be capable of risk hedging associated with price volatility and other unexpected changes. Operating behavior of a competitive power market is significantly affected by the trading arrangements, strategic bidding, market model and rule. Trading arrangement is properly designed in every country to take care of other abuse of market. These arrangements are kept on changing from time to time depending on the requirement for transparent and non-discriminatory electricity market. In this paper, various trading arrangements of Indian and some developed markets are discussed. Current happening in Indian electricity markets are also reported in the paper. The important key issues and challenges in this field are also critically analyzed.
Index Terms--Electric Utilities; Electricity Market; Power exchange, electricity trading, etc.
I. INTRODUCTION
P
ower is a critical infrastructure for economic development and for improving the quality of life. In recent years, the Indian electricity industry has undergone drastic changes due to introduction of Indian Electricity Act 2003(hereafter IE Act) & privatization process, which has significantly affected power system management and energy markets. The achievement of increasing installed power capacity from 1362 MW to over 100,000 MW since independence and electrification of more than 500,000 villages is impressive in absolute terms. However, it is a matter of concern that the annual per capita consumption of India, at about 350 kWh is among the lowest in the world. Further, people in a large number of villages have no access to electricity. The end users of electricity like households, farmers, commercial establishments, industries are confronted with frequent power cuts, both scheduled and
.
Anant Ashok Lohar Anant.lohar@hotmail.com
Abstract-- A robust trading system is very important for free and fair competitive electricity market operation. Trading system should be capable of risk hedging associated with price volatility and other unexpected changes. Operating behavior of a competitive power market is significantly affected by the trading arrangements, strategic bidding, market model and rule. Trading arrangement is properly designed in every country to take care of other abuse of market. These arrangements are kept on changing from time to time depending on the requirement for transparent and non-discriminatory electricity market. In this paper, various trading arrangements of Indian and some developed markets are discussed. Current happening in Indian electricity markets are also reported in the paper. The important key issues and challenges in this field are also critically analyzed.
Index Terms--Electric Utilities; Electricity Market; Power exchange, electricity trading, etc.
I. INTRODUCTION
P
ower is a critical infrastructure for economic development and for improving the quality of life. In recent years, the Indian electricity industry has undergone drastic changes due to introduction of Indian Electricity Act 2003(hereafter IE Act) & privatization process, which has significantly affected power system management and energy markets. The achievement of increasing installed power capacity from 1362 MW to over 100,000 MW since independence and electrification of more than 500,000 villages is impressive in absolute terms. However, it is a matter of concern that the annual per capita consumption of India, at about 350 kWh is among the lowest in the world. Further, people in a large number of villages have no access to electricity. The end users of electricity like households, farmers, commercial establishments, industries are confronted with frequent power cuts, both scheduled and