Buy, Sell and Trade: India will soon have Electricity OTC market

The over-the-counter market allows buyers and sellers to directly transact conventional and renewable electricity, and negotiate the price and contract

The Indian electricity market will have a new platform that could let any one buy, sell or trade electricity – both conventional (coal, gas hydro) and renewable energy (solar, wind). The over-the-counter (OTC) market allows buyers and sellers to directly transact electricity, and negotiate the price and contract.

Apex regulator Central Electricity Regulatory Commission (CERC) last week issued the guidelines for setting up an OTC platform in India, which the sector executives said would be the world’s first regulated OTC platform. The CERC in a 2017 order identified the need of a regulatory framework in India to help electricity consumers