India requires a new market design: FICCI
Industry chamber Federation of Indiana Chambers of Commerce and Industry (FICCI) yesterday pitched for creation of a completely new market design in the power sector apart from linking the upcoming natural gas trading hub with spot power market as a solution for resolving the stressed assets in the electricity sector. Stressed coal-based power generating assets, especially those of Independent Power Producers (IPPs), will need a differentiated resolution path primarily because the crisis is caused more by externalities beyond the control of sponsors, according to the industry body. “Holistic solutions to address the systemic issues will involve creating a new market design that will allow capacities, including the stranded ones, to be matched with demand projections via tradable instruments and risk management tools,” FICCI President Rashesh Shah said.
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