Assessment of power exchange based electricity market in India

The effectiveness and liquidity of the Power Exchange (PX) has improved since their commencement in 2008. Under the impact of Indian electricity Act 2003, it introduces the open access provision to end up the monopolies that have been adopted by various state electricity boards. The presented work comprises of two parts. The first part includes the current scenario of Indian energy infrastructure. Second part deals with the assessment of the total transacted energy at various contracts of PXs. The various contracts include the day ahead market, term ahead market, renewable energy certificates, and energy saving certificates. The assessment reveals that the total renewable energy source contribution through PXs under the renewable purchase obligation (RPO). Further, the assessment presents the analysis of unmet target of RPOs. Furthermore, we discuss the new norm set by the GoI in order to fulfill the targeted goal of 8% solar based and 11% non-solar RPOs. Moreover, the structure and achievements of energy saving certificates are investigated. The total uncleared transacted electricity volume due to congestion has been shown. Moreover, the detailed steps taken by PXs to handle the risk management is discussed. Keywords: Day-ahead market, Term ahead market, Renewable energy certificates, Energy saving certificates, Short-term power market, Power exchange, Congestion management, Risk management