Explanation: India has three power exchanges – IEX, Power Exchange India Limited (PXIL) and Hindustan Power Exchange Limited (HPX).

• These are voluntary markets and each of them collect buy bids and sell bids on their own, and thus, come up with their own market clearing prices (MCP).
• In simple terms, currently, each power exchange has a different cost of electricity, even though it is usually higher or lower to each other only by a few paisa.
• Market coupling is a model where buy bids and sell bids from all power exchanges in the country will be aggregated and matched to discover a uniform MCP.
• It means there will be only one price for the electricity that is to be traded at any point of time through these exchanges.
• If implemented, power exchanges will be rendered as a platform where only buy and sell bids will be received and power dispatched to the buyer.

Source: FORUMIAS