Developing Power Market Derivatives for the Indian Power Market

Objective:

The project aims to develop and assess the feasibility of introducing power market derivatives in the Indian power market to help market participants manage risks associated with price volatility, supply-demand fluctuations, and regulatory changes. The project focusses on creating effective derivative instruments such as futures, options, and swaps tailored to India's unique power market dynamics.


Key Components:

1. Understanding the Indian Power Market Structure:


2. Analyzing Price Volatility and Risk Exposure:


3. Designing Power Derivatives:


4. Game Theory-Based Pricing Models:


5. Regulatory Framework and Legal Considerations:


6. Simulating Power Market Scenarios:


8. Implementation Strategy and Roadmap:


Expected Outcomes: