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.