India needs hourly electricity tariffs: IEEFA

India needs hourly electricity tariffs: IEEFA

With $100 billion of existing and proposed thermal power plants in financial distress and low cost but variable renewable energy capacity best able to meet targets, India has an opportune moment to transform its electricity sector by introducing day-ahead market pricing, the Institute for Energy Economics and Financial Analysis (IEEFA) said on Tuesday.

A new IEEFA briefing note, “Flexing India’s energy system: Making the case for the right price signals through day-ahead market pricing”, finds the current pricing system in India is a largely flat tariff providing little incentive for network or consumer efficiency through load smoothing.

Tim Buckley, co-author of the briefing note and IEEFA’s Director of Energy Finance Studies in Australasia, told IANS that the pricing system also does not incentivise the ramping up of flexible, peaking power generation capacity to meet peaks in demand. Read More

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