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Real Time Market (RTM) at Indian power exchanges: Need, short term assessment and opportunities

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  • Agrawal, Atul

Abstract

In India, short term electricity market realises on power exchanges to trade standard contracts on intraday and day ahead horizon. In the absence of contracts on real time horizon, market participants often used to exploit frequency based grid balancing mechanisms. This led to the concerns on grid safety and security. Therefore, to address this issue, the policy makers formulated ‘Real Time Market (RTM)’ to offer contracts on real time horizon. RTM was introduced in 2020 and in the short span of time, it has attracted significant liquidity to become second highest avenue in terms of number of transactions taken place. This paper elaborates on these developments and narrows down its scope gradually. First, the paper briefly provides an overview of short term electricity market in India inter alia describing power trading and power exchanges. The paper then elaborates on the erstwhile issues of real time power procurement and misappropriation of deviation settlement mechanism and ancillary services by the market participants. The paper while discussing these, derives the necessity of RTM and opportunities which it offers. In last, paper provides a short term assessment of RTM and concludes it with few policy recommendations.

Suggested Citation

  • Agrawal, Atul, 2022. "Real Time Market (RTM) at Indian power exchanges: Need, short term assessment and opportunities," Energy Policy, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:enepol:v:162:y:2022:i:c:s0301421522000350
    DOI: 10.1016/j.enpol.2022.112810
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    References listed on IDEAS

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    1. Agrawal, Atul & Kumar, Anil & Rao, T. Joji, 2017. "Future of Indian Power Sector Reforms: Electricity Amendment Bill 2014," Energy Policy, Elsevier, vol. 107(C), pages 491-497.
    2. Shukla, Umesh Kumar & Thampy, Ashok, 2011. "Analysis of competition and market power in the wholesale electricity market in India," Energy Policy, Elsevier, vol. 39(5), pages 2699-2710, May.
    3. Kumar, T. Bharath & Singh, Anoop, 2021. "Ancillary services in the Indian power sector – A look at recent developments and prospects," Energy Policy, Elsevier, vol. 149(C).
    4. Agrawal, Atul & Tripathi, Gireesh Chandra, 2019. "Amendments in Electricity Act 2003: Where the Gap Lies?," Energy Policy, Elsevier, vol. 132(C), pages 797-802.
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