The peak demand for electricity in India is expected to increase from 215.8 GW in 2022-23 to 335 GW by 2029-30. The Ministry of Power has taken initiatives to reform the electricity market, and a panel constituted by the ministry has suggested a roadmap for the development of the market.

The roadmap outlines interventions for the near, medium, and long term. In the near term, the focus will be on improving the operational efficiency of the market and increasing the participation of renewable energy sources. In the medium term, the focus will be on developing regional markets and integrating them with the national grid. In the long term, the focus will be on developing a competitive market and promoting cross-border trade.

The panel has also suggested measures to address the challenges faced by the electricity market. These include the lack of adequate transmission infrastructure, the high cost of power generation, and the low financial health of distribution companies.

The roadmap is a comprehensive and ambitious plan for the development of the electricity market in India. It will help the country meet its growing demand for electricity in a sustainable manner.

The following are some of the key interventions proposed by the panel:

• Improve the operational efficiency of the market by setting up a single national grid operator and a central clearing house.
• Increase the participation of renewable energy sources by providing financial incentives and creating a regulatory framework that is conducive to their development.
• Develop regional markets and integrate them with the national grid to improve the efficiency of the market and provide consumers with a wider choice of suppliers.
• Develop a competitive market by allowing all generators and consumers to participate in the market and by removing barriers to entry and exit.
• Promote cross-border trade by signing agreements with neighboring countries to exchange electricity.

The panel has also suggested measures to address the challenges faced by the electricity market. These include the following:

• Increase investment in transmission infrastructure to improve the reliability and efficiency of the grid.
• Reduce the cost of power generation by promoting competition and efficiency in the generation sector.
• Improve the financial health of distribution companies by providing them with financial assistance and by reducing their losses.
• The roadmap is a comprehensive and ambitious plan for the development of the electricity market in India. It will help the country meet its growing demand for electricity in a sustainable manner.