Changing Scenario of Indian Electricity Supply Industry: Study of Short-Term Power Market in India

Abstract

An interesting area of research is to evaluate the Indian power exchange market, which has changed its structure from monopoly to a competitive market. The open access inter-state transmission regulation has changed the pattern of power trading. Subsequently, the power market can be classified into long-term (which has yielded efficient and consistent methods of power cost determination) and short-term power purchases. However, short-term power exchange has resulted in unviable and discretionary methods of power procurement by distribution companies and is proving to be a burden on the financial status of the distribution utilities in many states. The present chapter envisages to: (a) study the development of short-term power market in India and in the state of Rajasthan; and (b) explore the weaknesses and challenges in the procurement strategy of the Rajasthan power distribution utility. To fulfill these objectives, the short-term power purchases made during the period of 2008–2011 have been studied at the national level and then at the state level, Rajasthan.