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Market Coupling

Market Coupling:

The Central Electricity Regulatory Commission (CERC) has released a staff paper on implementing market coupling in India’s power sector.

  • Market coupling is a process in the energy sector where bids from various power exchanges are matched to determine a uniform market clearing price for electricity trading.
  • It aims to optimize transmission infrastructure use, maximize economic surplus, and create simultaneous benefits for both buyers and sellers.
  • This process helps in efficient price discovery and integration of different electricity markets or geographies, promoting transparency and competition in the energy trading sector.
  • The CERC (Central Electricity Regulatory Commission) has introduced provisions for market coupling among power exchanges in the country under its CERC Power Market Regulations (PRC) 2021.
  • However, these provisions are yet to be officially implemented.