 Demand response in Indian electricity marketMd Zakaria Siddiqui, Gauthier de Maere d'Aertrycke and Yves Smeers Energy Policy, 2012, vol. 50, issue C, 207-216 Abstract: This paper outlines a methodology for implementing cost of service regulation in retail market for electricity in India when wholesale market is liberalised and operates through an hourly spot market. As in a developing country context political considerations make tariff levels more important than supply security, satisfying the earmarked level of demand takes a back seat. Retail market regulators are often forced by politicians to keep the retail tariff at suboptimal level. This imposes budget constraint on distribution companies to procure electricity that it requires to meet the earmarked level of demand. This is the way demand response is introduced in the system and has its impact on spot market prices. We model such a situation of not being able to serve the earmarked demand as disutility to the regulator which has to be minimised and we compute associated equilibrium. This results in systematic mechanism for cutting loads. We find that even a small cut in ability of the distribution companies to procure electricity from the spot market has profound impact on the prices in the spot market. Keywords: Electricity; Regulation; Demand response (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:50:y:2012:i:c:p:207-216 DOI: 10.1016/j.enpol.2012.06.030 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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