Spot market share could more than quadruple
According to India’s main electricity exchange, the country’s growth in renewable energy use will result in a considerable increase in electricity spot trading.
“Instead of typical long-term deals, buyers are increasingly opting for affordable sustainable power.” “In a few years, over a fourth of power may get bought by market sales,” said Rohit, the India Power Retailer’s chief commercial officer.
Reforms should increase the volume of transactions on exchanges
In India, coal still leads to electricity production, although this is changing. According to Bloomberg, renewables accounted for nearly 80% of the additional infrastructure installed last year.
A quick exchange will become more essential as alternative energy sources become more variable, providing purchasers the flexibility to switch towards the most economical sources and countries that have less renewable power access to fresh power.
As shown in the country’s Federal Energy Regulatory Agency, by the middle of the decade, the share of electricity under long-term contracts is likely to drop to 50-60 percent.
Reduced power production under long-term deals allows manufacturers and buyers to bypass utilities, reducing producers’ capacity to be paid and increasing consumer supply less stable.
The stock went up by 243 percent this year, outperforming the benchmark BSE India Power Index, which has risen by 69 percent.