Energy & Science

India Seeks Power Market Overhaul to Absorb More Renewables

  • Power ministry seeks stakeholders’ feedback on draft policy
  • New system expected to bring cost benefits for power users

A solar plant in Surajpur, Uttar Pradesh, India.

Photographer: Prashanth Vishwanathan
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India is considering changing the way electricity is bought and sold in the country, proposing a mechanism that makes it easier to absorb more renewable energy into the national grid and brings down power costs for buyers and users.

The so-called market-based economic dispatch will replace the current system of bilateral power purchase arrangements between buyers and power producers, giving retailers access to a nationwide pool of generators, the power ministry said in a draft note on its website. The proposal aims to ensure a smooth flow of renewable energy into the grid.