Many developments have happened in the energy market in the recent past — introduction of Real Time Market (RTM), where one could buy or sell electricity just one hour from placing the bid. Indian Energy Exchange (IEX) one of the two power exchanges in the country with 95 per cent share in traded volumes, recently introduced a platform for trading in gas.

Meanwhile, the Central Electricity Regulatory Commission (CERC) is ready with a quiver full of measures to deepen the power markets. A ‘market-coupling mechanism’, under which all sell and buy bids through all the exchanges will be centrally matched to arrive at a uniform market-clearing price, is on the anvil. Also on the cards is ‘market-based economic dispatch of power’ (MBED), under which more generators and buyers are likely to be pushed into the markets for their transactions.

And, the decks are ready for introduction of derivatives — only

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