Policies and short term power market in India

The Indian power sector has been grappling with several challenges for a long time now. Power shortage is the key issue at hand. The government has taken cognisance of the power shortage and come-up with several policy interventions over the last decade in addressing this gap. The “short-term transactions of electricity” means the contracts of less than one year period for electricity transacted through Trading Licensees, Power Exchanges, and Unscheduled Interchange (UI).¹ This paper focuses on the policies that have played key role in addressing the issue of power deficit. We also analyse one of the emerging areas which is gaining significance in the Indian energy sector-short-term power transactions.