Electricity trade at exchanges of the world : contextual analysis of Indian electricity exchanges

This study probes the relationship between price and traded volume in electricity exchanges worldwide. Deploying the generalised method of moments estimation on panel data from the day-ahead market of exchanges in 20 countries for the period 2015-2020, this study finds that an increase in the share of exchange-traded electricity in a country's total electricity consumption significantly reduces the price. A critical analysis of the Indian electricity exchanges in this study reveals that even after 13 years of operations, consumers do not derive surplus which is expected from commodity exchanges.