Need to deepen short-term power market, pave way for national pool real-time market: IEEFA

A transition towards more national trading of electricity in real-time could help India’s power sector achieve competitive price discovery, reduce costs for consumers and accelerate the shift to a renewables-based system, according to IEEFA.

“While long-term contracts should remain the dominant procurement model in India, particularly with the growth in low-cost, deflationary 25-year solar power purchase agreements, India needs a national pool real-time market to improve the transparency and competitiveness of buying and selling electricity,” Vibhuti Garg, energy economist at the Institute for Energy Economics and Financial Analysis (IEEFA), says.

“A national pool would drive down the average cost of supply, forcing closure of end-of life, inefficient and polluting thermal power plants while addressing the issue of overcapacity in the thermal power sector.”

the hindu businessline
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