A Market Monitoring Framework for the Indian Power Market 

As Senior Student Research Fellows, I worked on a project focused on the development of a Market Monitoring Framework for the Indian Power Market, covering the following aspects:

Objective:

To establish a framework ensuring transparency, fairness, and efficiency in the Indian power market by identifying and addressing price manipulation, anti-competitive behavior, and inefficiencies.

Key Components:

1. Market Structure:

   • Analyze market segments (day-ahead, real-time, long-term) and participants (generators, DISCOMs, traders).

   • Monitor transmission capacity and constraints.

2. Price and Supply-Demand Monitoring:

   • Track price trends in spot and bilateral markets.

   • Ensure demand-supply balance and monitor capacity utilization.

3. Anti-Competitive Behavior:

   • Detect market power abuse, collusion, and bid rigging.

   • Monitor for price manipulation and withholding supply.

4. Congestion and Transmission:

   • Assess transmission congestion and its impact on market efficiency.

   • Ensure congestion revenue is managed for grid upgrades.

5. Renewable Energy:

   • Track renewable energy integration and grid stability.

   • Monitor compliance with renewable purchase obligations (RPOs).

6. Market Liquidity:

   • Ensure diverse and sufficient participation in power markets.

   • Promote access to markets for smaller players like renewable generators.

7. Regulatory Compliance:

   • Enforce adherence to CERC and SERC rules.

   • Penalize non-compliance and ensure market transparency.

8. Reporting and Transparency:

   • Provide real-time market data and public reports on trends.

   • Ensure clarity in market rules and regulatory updates.

Implementation Tools:

• Automated Monitoring Systems: Real-time data surveillance for price spikes and market manipulation.

• Congestion Management: Tools for tracking transmission constraints and their impact on pricing.

Expected Outcomes:

• Fair Competition: Prevent anti-competitive behavior and promote market access.

• Price Stability: Reduce volatility and ensure price predictability.

• Efficient Grid Management: Improve transmission and renewable energy integration.