Coexistence of Day Ahead Market and Real Time Market in Indian power sector

Abstract

In India, Short term open access (STOA) in transmission and distribution provides a range of opportunities to the market players. Sellers and buyers can transact power bilaterally through over the counter contracts or bid collectively through the power exchanges in Day Ahead Market (DAM). Real Time Market (RTM) was introduced in India from 01.06.2020. This has created a new opportunity for the electricity market players for trading in real time with a lead-time of 1.5 hours. RTM provides 48 bidding windows over a day. This provides additional flexibility for last mile portfolio optimization. This paper attempts to analyze the impact of coexistence of DAM and RTM to derive further inferences. It provides an insight to the relationship of the Market Clearing Price (MCP) of DAM and RTM. Trend of MCP of DAM and RTM is analyzed with respect to variation in demand.