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India’s Electricity Markets Development - A TLG Roundtable Event
On 21 June 2024 TLG hosted a Roundtable Event in Delhi India aimed to facilitate discussion on India's Electricity Markets Development.
The Roundtable was addressed in the inaugural session by Chairperson CERC, Chairperson CEA and Additional Secretary, Ministry of Power. The speakers emphasised on the need to ensure Resource Adequacy, modify the design of long-term contracts, introduce new types of short-term contracts, and redesign policy instruments to address the implications of integrating the projected huge quantities of VRE with the grid, with the objectives of mobilising necessary investments for meeting the ever increasing demand and decarbonisation targets, and improving reliability and cost efficiency.
Three presentations were made by the experts from TLG. The presentation on Capacity Remuneration Mechanisms (CRM) by Rajat Sarawat explained the need for CRMs and the key aspects for designing the capacity markets. The presentation on Contract for Difference (CFD) by Akhilesh Awasthy touched upon the evolution of these instruments, key design aspects, regulatory and policy areas to be addressed for introducing CFDs in India, and the various options to handle the financial burden of counterparties. The presentation by Mike Thomas explained the evolution of electricity sector markets globally over last several decades, noting how an important evolution in market design involves shifting away from physical contracts to financial contracts.
The panel discussion, convened by Alok Kumar, Director TLG and Former Union Power Secretary of India, elicited the view points from the perspective of utilities in states, lending institutions, national/state power sector regulation, RE developers, global best practices, central power sector planning, and electricity exchanges. Roundtable also had the benefit of interventions from CMD, Grid Controller of India, and from ReNew Group after the panel discussion.
Three and half hours long, the well participated deliberations threw up a number of concrete action points which can be seen in the summary linked below.
It was a pleasure to have such widespread and insightful participation from invited attendees. We look forward to an opportunity to follow up on similarly important issues in future Roundtable sessions.
To view the Roundtable Issues Note, TLG presentations and full Summary Note, please click the following links:
Brief Introduction to Capacity Mechanisms, presented by Rajat Sarawat
Brief Comments on Contracts for Differences for Renewable Integration, presented by Akhilesh Awasthy
From Effectiveness to Efficiency - The Value of Markets, presented by Mike Thomas
