1、WORKING PAPER|Version 1.0|January 2024|1EXECUTIVE SUMMARYHighlights This working paper helps understand how electricity market mecha-nisms have the potential to integrate renewable energy(RE)into the grid at the state level.Market participation in Indian power exchanges is currently thin.This paper

2、offers state-level stakeholder views on the barriers that deter greater participation in real-time and day-ahead markets,such as the long duration of power purchase agreements(PPAs)that locks in older and less efficient resources,the perception of seller bias,and inaccurate forecasts of short-term R

3、E demand and market prices.Market reforms such as re-evaluating existing PPA structures,exploring new PPA designs,adding more generation and demand-side resources to the competitive pool for accurate market price signals,and encourag-ing coordinated resource adequacy(RA)planning at the national and

4、state levels can help reduce costs in the longer term and complement short-term markets.This paper recommends establishing robust frameworks at the state level that will encourage greater collaboration between state utilities to foster the regional resource sharing,effective resource utiliza-tion,an

5、d efficient power procurement that are needed to ensure a clean energy future.CONTENTSExecutive summary.11.Motivation for the study.32.Methods.53.Status of electricity markets in India.54.Analysis and findings.95.The way forward.19Appendices.23Abbreviations.29Glossary.30Endnotes.32References.33Ackno

6、wledgments.36Authors.36About WRI.36Working Papers contain preliminary research,analysis,findings,and recommendations.They are circulated to stimulate timely discussion and critical feedback,and to influence ongoing debate on emerging issues.Suggested Citation:Sundararagavan,S.,S.Anirudh,J.Chen,G.Gup