India’s rush towards renewables is projected to boost trading on the energy spot market to more than quadruple in two years, according to Bloomberg.
Buyers are anticipated to drift away from conventional long-term contracts and shift to low-priced renewable energy.
A quarter of the country’s electricity could be purchased through spot deals, Bloomberg stated citing Rohit Bajaj, head of business development at Indian Energy Exchange Ltd.
Despite coal being the most dominant form of power generation in India, renewables accounted for over 80 percent capacity in the previous year.
“Utilities are realizing the value of flexibility and competitive price discovery on the exchanges, so why go for long-term contracts?” Bajaj said.
Accordingly, the share of power under long term contracts is expected to drop between 50 to 60 percent in the next few years.
Renewables will provide 95% of power capacity growth in next five years: IEA