The evolution of power market structures: Strategic approaches for the Indian electricity market

Authors

  • Anusree Thattiyot Department of Electrical and Electronics Engineering, Amrita School of Engineering, Amrita Vishwa Vidyapeetham, Bengaluru 560035, India https://orcid.org/0000-0001-8124-5795
  • Rashmi Mogenahalli Ranganath Department of Electrical and Electronics Engineering, Amrita School of Engineering, Amrita Vishwa Vidyapeetham, Bengaluru 560035, India
  • Ila Rai Department of Electrical and Electronics Engineering, Alliance School of Applied Engineering, Alliance University, Bengaluru 562106, India
  • Hoong Pin Lee Faculty of Engineering and QS, INTI International University, Nilai 71800, Malaysia
Article ID: 474
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DOI:

https://doi.org/10.18686/cest474

Keywords:

Electricity Act 2023; power market evolution; portfolio optimization; regulatory framework; electricity market trends; portfolio management; energy market forecasting

Abstract

This paper explores strategies for India’s evolving power market, focusing on the renewable energy integration and competitive dynamics introduced by the Electricity Act 2023. With India targeting 450 GW of renewable energy by 2030, it identifies a critical gap in short-term power market models vital for optimizing portfolios and managing fluctuations. The study evaluates five major investment strategies: conventional flexible Power Purchase Agreement (PPA), tariff pass-through approach, contract for difference, physical hedge, and renewable energy generator flexible PPA, using mean and standard deviation for present value and net present value. Findings reveal significant variability in flexible PPAs, underscoring the importance of short-term trading models to enhance adaptability. To address market power, the study evaluates the Herfindahl-Hirschman Index and implements improvement strategies, including adding distributed generation, regulatory oversight, and regional expansion. These approaches aim to enhance competition and diversification in the energy market. The paper proposes a hybrid approach combining long-term PPAs for base loads with short-term markets, leveraging transactive energy facilitated by blockchain-enabled smart contracts for efficient procurement and management. By reviewing policies, power exchanges, and literature, the study provides actionable insights into regulatory reforms, advanced trading mechanisms, and decentralized market architectures, emphasizing short-term markets as crucial for India’s sustainable power transition and enhanced competition.

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Published

2026-04-29

How to Cite

Thattiyot, A., Mogenahalli Ranganath, R., Rai, I., & Lee, H. P. (2026). The evolution of power market structures: Strategic approaches for the Indian electricity market. Clean Energy Science and Technology, 4(3). https://doi.org/10.18686/cest474

Issue

Vol. 4 No. 3 (2026): In progress

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Article

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Copyright (c) 2026 Anusree Thattiyot, Rashmi Mogenahalli Ranganath, Ila Rai, Hoong Pin Lee

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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