Authors: Sonal Gupta; Deepankar Chakrabarti; Hiranmoy Roy
Addresses: Department of Energy Management, School of Business, University of Petroleum and Energy Studies, India ' School of Business, University of Petroleum and Energy Studies, India ' Department of Economics and International Business, School of Business, University of Petroleum and Energy Studies, India
Abstract: A robust trading system is vital to promote competition in the Indian electricity market. In India, the exchange trading market is still at an incipient stage, despite being the best option for innovation, due to the presence of high volatility huge losses are incurred by the power market participants such as power generators and distribution companies. Hence, a descriptive research was conducted to identify the major factors leading to the periods of spikes and jumps in the Indian energy exchange's day-ahead market (DAM) prices of all the regions (north, south, east, west and north east) from August 2008 until June 2017. It was found that the major factors affecting DAMs prices are regulatory, weather, fuel supply, transmission congestion; power plant outages/new plants operational, frequency and reservoir levels. This study will encourage the stakeholders to further model and forecast prices devising profit maximisation techniques thereon.
Keywords: electricity price; volatility; determinants; day-ahead market; DAM; Indian Energy Exchange; IEX; India.
International Journal of Business Excellence, 2020 Vol.20 No.4, pp.549 - 560
Received: 09 Apr 2018
Accepted: 02 Dec 2018
Published online: 07 Apr 2020 *