Merchant Solar Market Scenario in India?

Twinkle Manglani
Deputy Manager – Business Development, Team Altilium

Merchant Solar Market or in general Merchant Electricity market in India is picking up its pace like never before but is yet to achieve its full potential. A recent report published by IEEFA (Institute for Energy Economics & Financial Analysis), suggested that India should transition its electricity market to RTM (Real-time Market) and optimize the huge investment in the overall electricity generation. The country is further trying to deepen its short-term power market to encounter more liquidity and efficient price discovery by both the generators and C&I consumers.

In context of Merchant Solar Power market, the competitive pricing is encouraging large consumers to shift consumption from peak to off-peak and Normal TOD slots and to use low-cost RE when available. Such short and medium-term contracts can let generators and consumers hedge risk without entering into long-term PPAs to get monetary closure of their Solar Power Projects.

Over the years, Indian electricity sector has been dominated by Long-term Power Contracts between DISCOMs and coal-based (Thermal) power generators. The ongoing decreasing trend seen in Solar Power cost has made regulatory bodies realize the need of getting these DISCOMs out of shackles of expensive PPAs and old & inefficient Thermal power plants.

This has resulted in CERC (Central Electricity Regulatory Commission) favoring the paradigm shift and paving the way for short-term power market in India via different policy guidelines and regulations.

During FY 2009/10 to FY 2019/20, the short-term electricity market has seen the transacted volume increasing at a CAGR (Compound Annual Growth Rate) of 8%, contributing around 10.4% to the total electricity generated.

Altilium being the CERC approved power trading company, can serve generators/ IPPs (Individual Power Producers) to transact and sell their RE (Renewable Energy)/ Solar Power under Merchant Solar Market in India. We can also serve C&I consumers to procure Solar Power under the same mechanism.

Altilium can be the one-stop solution for the companies having the intent to go green, reduce their carbon footprint while wanting to reduce their power cost of operations. Being the integrated power player in the industry, Altilium believes in proposing customisable, well-researched, insightful, implementable energy cost optimisation solutions rather than “one-size fits all” advisory.

With an overall team experience of 45 years in the Indian power sector, our array of services includes bespoke Electricity Regulatory Advisory, Energy Portfolio Management, Renewable Energy offtake & trade, open access services, Renewable Energy Projects management, to name a few. Being one of the leading CERC (Central Electricity Regulatory Commission) approved power trading companies in India, Altilium is managing a trade volume of over 15 MUs (million units) of Renewable Energy every month for its clients PAN India, as on date.

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