Transforming India’s Electricity Markets

The report examines the transition to a Market-Based Economic Dispatch (MBED) mechanism in India to address financial distress in the distribution sector and support the target of 50 percent non-fossil fuel power generation capacity by 2030.

• India aims to derive 50 percent of its power generation capacity from non-fossil fuel-based sources by 2030, a goal that requires a paradigm shift in the electricity market alongside anticipated high electricity demand growth.
• The Ministry of Power has proposed the Market-Based Economic Dispatch (MBED) mechanism to optimize day-ahead scheduling of generators, aiming to alleviate economic strain on distribution companies caused by suboptimal scheduling and dispatch.
• The distribution sector in India is currently characterized by financial distress and large cumulative debt, which threatens the growth of the renewable sector and the ability to meet electricity demand growth.

APA

RMI (2023). Transforming India’s Electricity Markets. https://rmi.org/resources/transforming-indias-electricity-markets/

Chicago

RMI. Transforming India’s Electricity Markets. 2023. https://rmi.org/resources/transforming-indias-electricity-markets/.

Wikipedia

{{cite report |author=RMI |title=Transforming India’s Electricity Markets |date=15 February 2023 |url=https://rmi.org/resources/transforming-indias-electricity-markets/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023transforming, author = {{RMI}}, title = {{Transforming India’s Electricity Markets}}, institution = {RMI}, year = {2023}, month = feb, url = {https://rmi.org/resources/transforming-indias-electricity-markets/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }