Renewable Energy

India’s Renewable Energy Boom Will Increase Spot Power Trading

Increased use of renewable energy in India will boost spot power trading, according to the Indian Energy Exchange (IEX).

Renewable Energy

Buyers will increasingly opt for cheaper renewable energy over typical long-term contracts. In a few years, spot sales might account for almost a quarter of the nation’s power, quadrupling the present amount.

Utilities are recognizing the importance of exchange flexibility and price discovery. “With no transmission limits due to national investment in electrical connections, why sign long-term contracts?”

Almost 90% of India’s power is exchanged bilaterally between producers and provincial utilities for over two decades. They can be costly for power retailers when cheaper renewable energy is available. The country’s Central Electricity Regulatory Commission expects long-term contracts to drop to between 50% and 60% by mid-decade.

Producers and buyers can avoid utilities by reducing long-term electricity contracts.

IEX is readying itself for the government’s aim to lower power rates by combining supply sources. In April, the new method will allow more efficient power plants to generate more, lowering buyer costs.

This is a PR Newswire Feed; edited by Clean-Future Team