The Central Electricity Regulatory Commission (CERC) has released a staff paper outlining a framework for introducing capacity markets in India to strengthen resource adequacy and system reliability.
The paper has proposed three market design models including capacity market for resource adequacy/capacity obligation, reserve capacity market and secondary short-term capacity market (for existing capacities). The paper has been drawn on global models and seek to address limitations of the current power purchase agreement-based system, where capacity availability is not always assured.