CERC norms: ‘Market coupling’ mechanism for spot power market gets a leg-up
The Central Electricity Regulatory Commission (CERC) has introduced the ‘market coupling’ mechanism for spot power trading, a move which could align spot prices within same geographical areas and time slots, and encourage exchanges to attract consumers via improved quality of supply, payment flexibility, etc.
The move is seen to dent the market dominance of the Indian Energy Exchange (IEX), where currently around 94% of the spot market transactions take place and catalyse formation of new exchanges.
A competitive market might also increase the options of discoms and other consumers when it comes to purchasing spot power according to their requirements. Effectively, they might be able to cut costs.
