Electricity is a part of 91 commodities notified by the Government and the annual size of India’s electricity market is approximately Rs 500,000 crores, on which India consumes about 1,300 billion units on an annual basis. The government clearly intends to deepen and evolve India’s power market. The short-term power market is about 11-12% of India’s power sector accounting for 140 billion units of the total. As per the recent power market statistics by the central regulator – CERC dated November’20, the Exchange now represents 50% share of India’s short-term market and represents an immense potential for further growth and development.
The Exchanges-led electricity markets which commenced in the year 2008, has now been playing a central role in the power procurement strategy of 60+ distribution utilities and about 5000+ 1MW and above industrial and commercial consumers, referred to as the open access consumers. India’s Exchange market has been a pretty simplistic delivery-based electricity market comprising of the round-the-clock real-time market, the day-ahead market, and various other term-ahead products for trade on the same day up to 11 days forward.
