Two proposed reforms to the design of India’s electricity market – a national system of market-based economic dispatch (MBED) for procuring bulk power and new regulations for Frequency Control Ancillary Services (FCAS) – are positive developments that will help pave the way for the rollout of large-scale, ultra-low cost variable renewable energy.

A new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA) looks at the benefits and potential roadblocks to implementation of these key reforms and argues that they are important steps towards transforming India’s power sector into a low-emissions, low-cost and profitable part of the economy. The note also discusses the second progressive market development: the Central Electricity Regulatory Commission’s (CERC) draft regulations for procurement, deployment and payment of ancillary services to maintain the grid frequency at 50 Hertz.

Read the complete briefing here