How The Power Traders in India Are Revolutionizing Power Trading

How The Power Traders in India Are Revolutionizing Power Trading

26 Jun 2022

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The Indian power sector is one of the most dynamic and fast-changing industries in the country. Over the past few years, the power sector has seen a number of landmark reforms, including the launch of the world’s largest electricity market, the Electricity Exchange of India. The power sector is also one of the most important industries in terms of its impact on the economy. The sector is a key driver of economic growth, contributing around 8% to the country’s GDP.

From the employment lens, the power sector is also one of the most important employers in the country, with over 2.5 million people employed in the sector. The sector is also a major contributor to the government’s revenues, with the government collecting around Rs 1.5 trillion (US$22.5 billion) in taxes and duties from the sector. The power sector is a critical part of the Indian economy and plays a vital role in the country’s development.

With this context in place, it is evident that the power traders in India are going to revolutionize the power trading landscape. India is one of the world’s largest producers of electricity, with an installed capacity of over 350 gigawatts (GW) as of 2016. The majority of this electricity is generated by coal-fired power plants. However, in recent years, there has been a growing trend of power trading companies in India. These companies trade in both electricity and coal and provide a vital service to the power sector.

Power traders in India are now opting for short-term traders or spot trades instead of long-term contracts which were complex as well as cost a fortune for these traders. With a cheaper form of energy available in the form of renewable energy, it is expected that long-term contracts will fall between 50 to 60% of its existing volumes in the coming decade.

There are many benefits to short-term power trading. It helps to ensure that electricity is available when and where it is needed and can help to stabilize the grid. It can also provide a hedge against fluctuating fuel prices. There are a number of power trading companies in India. These companies have a pivotal role to play in the future of the Indian power sector. These power trading companies will promote renewable sources of energy and help states distribute and utilize the energy in the most efficient manner.

Utilities and distribution companies are realizing the benefits of spot trading and renewable forms of energy – especially solar and wind energy. Going forward, there would no longer be any constraints or dependencies in transmission ensuring free power flow across the nation. This would mean electricity would power more homes and strengthen the country. The government is taking steps to optimize prices, ensure that it is distributed effectively and that we reduce the dependencies on fossil fuels.

The power trading companies in India are going to revolutionize the industry. With the government and the electricity exchanges working in tandem with the goal to power up the country, nothing can stop India from benefitting from the exchange spot trading and renewables seem to be a big boon in this step.

Altilium is a leading power trading company in India. With an overall team experience of 45 years in the Indian power sector, our array of services includes bespoke Electricity Regulatory advisory, energy portfolio management, Renewable Energy offtake & trade, open access services, and Renewable Energy Projects management, to name a few. Being one of the leading CERC (Central Electricity Regulatory Commission) approved power trading companies in India, we are managing a trading volume of 5 Mus (million units) every quarter for our clients PAN India through spot market transactions and other open access modes (short-term/medium-term power supply). Let’s explore the future of renewable energy together! Do connect with us at

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