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

The paper examines the role of electricity markets in India's clean energy transition, noting that while day-ahead markets have existed since 2008, newer segments like real-time and green day-ahead markets are still nascent. It identifies several subnational barriers to market participation, including complex regulations, long-term power purchase agreements (PPAs), and a lack of technical capacity for resource planning. The author argues that electricity markets can facilitate the transition to renewable energy by leveraging lower marginal costs and enhancing grid flexibility to reduce curtailment of variable renewables.

• Indian electricity markets are in a nascent stage; while day-ahead markets (DAMs) began in 2008, other segments like term-ahead markets (TAMs), real-time markets (RTMs), green day-ahead markets (G-DAMs), and ancillary services (ASs) are recent additions.
• State-level participation in electricity markets is hindered by several factors: complex regulatory frameworks, the existence of long-term PPAs, insufficient technical capacity for resource planning, and the use of self-scheduling practices by state utilities for power procurement optimization.
• Electricity markets can support the clean energy transition by enabling a shift toward renewable energy resources with lower marginal costs and improving flexibility through a larger resource pool, which helps balance variable renewables and reduce curtailment.

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} }