Models of Competition in

India
Wholesale Competition
Presently, In India electricity trading has started with a limited scope in wholesale electricity
market across different regions / states, there is now enough scope to develop a full-fledged
power market in the country. Generators and distributors provide competition in a power market.

The wholesale price is normally dependent on competition in generation whereas distributors

(Retailers) competition is reflected in retail pricing. Since most of the supply cost constitutes
generation cost, India like many other countries are opening up the market at the wholesale level
and should progressively move towards retail level competition.
2 Distinct Market Concepts

• Single Market Concept

• Two Market Concept
Single Market Concept
• Single market concept is based on centralized dispatch contract. In centralized
dispatch, the system operator controls the entire power market and the
schedules are based on generator offers and demand bids.
• The single market concept has been adopted in PJM (Market system for
Pennsylvania, New Jersey and Maryland) market in USA.
 Two Market Concept
• In a two-market model, the market participants control their own schedule and the market operates
on a ;

Day-Ahead Spot Market

Real Time Market

• In the Day ahead spot market, the price is the electricity energy price, whereas in the Real time
market the price represents the capability of the system to balance supply (generation) and demand
(Load).