Three-tier market model for restructuring Indian power sector

Electricity sector in the countries all over the world have undergone deregulation and restructuring in order to have efficient operation and introduce privatization. Indian power industry is also undergoing reformation at a rapid rate. In this transition phase, it is now essential to design the most appropriate market suitable for the country. In this article a restructured electricity market model particularly suitable for Indian power market is proposed which is based on the institutional frame work the Indian Electricity Act 2003 (EA2003). The key issues related to the EA 2003 are discussed and the structure of country's power grid is described. This article explains the activities of proposed three-tier market model and the entities involved in the trading.