Market Models and Operating Mechanism for Renewable Energy Enabled Indian Electricity Market

Abstract

The restructuring process of the electricity industry has driven the competitive environment to such an extent that a reliable supply of good quality and clean energy at a reasonable price as per the demand of the consumer has become a reality. However, such constraints lead to a very complex system with large scale integration of renewable energy (RE) generation throughout the grid in a distributed manner. This situation leads to search for new market models and improved operating mechanisms to run the electricity market. The aim of the work is to propose several market models and an improved operating mechanism for reliable operation of the RE enabled electricity market in India. The above said market models are developed and proposed after thorough understanding of various operations in present Indian electricity market, the status of renewable energy in India especially the growth of both solar and wind energies, various state government policies in the promotion of renewable energy, the demand of different consumers and renewable energy policies in developed countries. The proposed models are also compared in terms of their benefits and limitations to identify their suitability to RE enabled Indian electricity market.