Strengthening Adoption of Electricity Markets to Enable the Clean Energy Transition in Indian States

This working paper examines how electricity market mechanisms can facilitate the integration of renewable energy into the grid at the state level in India, identifying barriers to adoption and proposing frameworks for improved resource sharing and procurement.

• Electricity markets in India are in an early stage of development. While day-ahead markets (DAMs) have been available since 2008, other segments like term-ahead markets (TAMs), real-time markets (RTMs), green day-ahead markets (G-DAMs), and ancillary services (ASs) are more recent additions.
• Several factors hinder the participation of Indian states in electricity markets, including the use of self-scheduling by state utilities for power procurement, long-term Power Purchase Agreements (PPAs), complex regulatory frameworks, and a deficiency in technical capacity for resource planning.
• Electricity markets can support the clean energy transition by enabling a shift toward renewable energy resources, which generally have lower marginal costs than older, inefficient plants. Additionally, markets can improve flexibility and reduce renewable curtailment by dispatching resources from a larger, more granular pool to balance variable renewables.

APA

World Resources Institute (n.d.). Strengthening Adoption of Electricity Markets to Enable the Clean Energy Transition in Indian States. https://www.wri.org/research/strengthening-adoption-electricity-markets-enable-clean-energy-transition-indian-states

Chicago

World Resources Institute. Strengthening Adoption of Electricity Markets to Enable the Clean Energy Transition in Indian States. n.d. https://www.wri.org/research/strengthening-adoption-electricity-markets-enable-clean-energy-transition-indian-states.

Wikipedia

{{cite report |author=World Resources Institute |title=Strengthening Adoption of Electricity Markets to Enable the Clean Energy Transition in Indian States |url=https://www.wri.org/research/strengthening-adoption-electricity-markets-enable-clean-energy-transition-indian-states |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendstrengthening, author = {{World Resources Institute}}, title = {{Strengthening Adoption of Electricity Markets to Enable the Clean Energy Transition in Indian States}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/strengthening-adoption-electricity-markets-enable-clean-energy-transition-indian-states}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }