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This report examines the proposed Market-Based Economic Dispatch (MBED) mechanism in India, intended to optimize day-ahead scheduling of power generators to alleviate financial distress in the distribution sector and support the integration of renewable energy.

This executive summary discusses the need for wholesale electricity market reform to accommodate the transition from large, fossil-fuel-burning power plants to cheaper, smaller, carbon-free resources. It introduces two proposed pathways for market evolution: a decentralized approach emphasizing bilateral contracting and a hybrid approach combining long-term markets with short-term spot markets.

This report by Energy Innovation examines the need to modernize wholesale electricity market designs to accommodate the transition from large, fuel-burning power plants to decarbonized resources like wind, solar, and energy storage. It identifies the limitations of the current 'marginal cost dispatch' paradigm and proposes ten principles for future markets, while outlining two primary pathways for evolution: a 'Robust Spot Market' approach and a 'Long-Term Plus Short-Term Markets' approach.