{"id":57928,"date":"2025-08-03T13:09:01","date_gmt":"2025-08-03T07:39:01","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=57928"},"modified":"2025-08-05T16:33:50","modified_gmt":"2025-08-05T11:03:50","slug":"market-coupling","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/market-coupling\/","title":{"rendered":"Market Coupling"},"content":{"rendered":"<h2><b>Market Coupling Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Central Electricity Regulatory Commission\u2019s (CERC) proposed implementation of market coupling in the Day Ahead Market (DAM) segment of power exchanges from January 2026 may have little benefit for the power sector, according to industry officials and analysts.<\/span><\/p>\n<h2><b>About Market Coupling<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Market coupling is an <\/span><b>economic model used in energy markets<\/b> <b>to create a<\/b><span style=\"font-weight: 400;\"> single, <\/span><b>uniform price for electricity across different trading platforms<\/b><span style=\"font-weight: 400;\"> or exchanges.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>India has three power exchanges<\/b><span style=\"font-weight: 400;\">\u2014Indian Energy Exchange <\/span><b>(IEX), <\/b><span style=\"font-weight: 400;\">Power Exchange India Limited (<\/span><b>PXIL<\/b><span style=\"font-weight: 400;\">), and Hindustan Power Exchange Limited (<\/span><b>HPX<\/b><span style=\"font-weight: 400;\">).\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These are <\/span><b>voluntary markets,<\/b><span style=\"font-weight: 400;\"> and each of them collects buy and sell bids on their own and, thus, comes up <\/span><b>with their own market clearing prices (MCPs).\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In simple terms, currently, <\/span><b>each power exchange has a different cost of electricity,<\/b><span style=\"font-weight: 400;\"> even though they usually differ from each other only by a few paisa.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Market coupling is a model <\/b><span style=\"font-weight: 400;\">where buy bids and sell<\/span><b> bids from all power exchanges<\/b><span style=\"font-weight: 400;\"> in the country will be <\/span><b>aggregated and matched to discover a uniform MCP.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It means there will be<\/span><b> only one price for the electricity<\/b><span style=\"font-weight: 400;\"> that is <\/span><b>to be traded at any point of time<\/b><span style=\"font-weight: 400;\"> through these exchanges.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If implemented, <\/span><b>power exchanges will be rendered as a platform where only buy and sell bids will be received<\/b><span style=\"font-weight: 400;\"> and <\/span><b>power dispatched to the buyer.<\/b><\/li>\n<\/ul>\n<h2><b>Market Coupling <\/b><b>Advantages<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It can be used to<\/span><b> improve the efficiency and integration of multiple interconnected markets <\/b><span style=\"font-weight: 400;\">in the electricity sector.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This could <\/span><b>potentially enable higher utilisation and reduce energy loss.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It can help enhance market liquidity by <\/span><b>allowing participants to trade electricity across borders.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This also helps<\/span><b> boost the number of participants and the overall trading volumes<\/b><span style=\"font-weight: 400;\"> in the power market.<\/span><\/li>\n<\/ul>\n<p><b>Source<\/b><span style=\"font-weight: 400;\">: <\/span><a href=\"https:\/\/www.thehindu.com\/business\/market-coupling-in-dam-segment-of-power-exchanges-may-have-little-benefit\/article69886643.ece\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">TH<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges.<\/p>\n","protected":false},"author":23,"featured_media":58313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1982,21,22,23],"class_list":{"0":"post-57928","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-market-coupling","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/57928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=57928"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/57928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/58313"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=57928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=57928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=57928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}