CERC Launches Pilot Study on Power Market Coupling

12 Feb 2024 CW Team

The pilot study seeks to assess the feasibility and potential benefits of implementing market coupling mechanisms, which aim to integrate and harmonize electricity markets to facilitate optimal resource allocation and price discovery. By aligning supply and demand across different regions, market coupling can help optimize utilization of generation resources, reduce congestion, and improve market efficiency.

Through this study, CERC aims to gather insights and data to inform future policy decisions and regulatory interventions aimed at promoting market coupling in India's electricity sector. The commission will collaborate with industry stakeholders, experts, and market participants to assess the technical, economic, and regulatory implications of implementing market coupling mechanisms.

Market coupling has been successfully implemented in various international electricity markets, leading to improved market outcomes, enhanced competition, and greater market integration. By exploring the potential applicability of market coupling in the Indian context, CERC aims to enhance market transparency, liquidity, and efficiency, ultimately benefitting consumers and stakeholders across the electricity value chain.

Overall, the pilot study on power market coupling initiated by CERC represents a proactive approach towards modernizing India's electricity markets and fostering greater efficiency and competitiveness in the sector. It reflects the commission's commitment to driving innovation and ensuring sustainable growth in the power sector to meet the evolving needs of the economy and society.

The Central Electricity Regulatory Commission (CERC) has initiated a pilot study on power market coupling, aiming to explore opportunities for enhancing the efficiency and effectiveness of electricity markets in India. This significant step underscores CERC's commitment to fostering innovation and modernization in the power sector. The pilot study seeks to assess the feasibility and potential benefits of implementing market coupling mechanisms, which aim to integrate and harmonize electricity markets to facilitate optimal resource allocation and price discovery. By aligning supply and demand across different regions, market coupling can help optimize utilization of generation resources, reduce congestion, and improve market efficiency. Through this study, CERC aims to gather insights and data to inform future policy decisions and regulatory interventions aimed at promoting market coupling in India's electricity sector. The commission will collaborate with industry stakeholders, experts, and market participants to assess the technical, economic, and regulatory implications of implementing market coupling mechanisms. Market coupling has been successfully implemented in various international electricity markets, leading to improved market outcomes, enhanced competition, and greater market integration. By exploring the potential applicability of market coupling in the Indian context, CERC aims to enhance market transparency, liquidity, and efficiency, ultimately benefitting consumers and stakeholders across the electricity value chain. Overall, the pilot study on power market coupling initiated by CERC represents a proactive approach towards modernizing India's electricity markets and fostering greater efficiency and competitiveness in the sector. It reflects the commission's commitment to driving innovation and ensuring sustainable growth in the power sector to meet the evolving needs of the economy and society.

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