Sun Sep 21 06:42:10 UTC 2025: Okay, here’s a news article based on the provided text, followed by a summary:
**Summary:**
A study by the Goa Institute of Management and Kingston University reveals that Indian consumers are paying a premium for electricity in the day-ahead market to avoid potential power outages due to factors like the Russia-Ukraine war, volatile coal prices, and policy uncertainty. This “risk premium” is highest during peak hours and on weekends, highlighting supply shortages. The researchers suggest diversifying India’s energy mix, investing in renewable energy with storage, and redesigning electricity markets to minimize inefficiencies and manage volatility. The study also emphasizes the need for strategic reserves and flexible generation capacity to enhance India’s energy resilience in the face of global shocks.
**News Article:**
**India Pays a High Price for Power Security Amid Global Turmoil, Study Finds**
**Panaji, September 21, 2025** – Indian consumers are paying a significant premium for electricity to ensure uninterrupted power supply amid global crises like the Russia-Ukraine war and volatile coal markets, a new study reveals. The research, conducted by the Goa Institute of Management and the UK’s Kingston University and published in *Energy Economics*, found that day-ahead electricity prices in India are consistently higher than real-time prices, indicating a positive “risk premium” as consumers are willing to pay extra to avoid potential outages.
The study identified coal price fluctuations, geopolitical risks, domestic demand patterns, and policy uncertainty as key factors driving this price difference. According to Prakash Singh, Associate Professor at the Goa Institute of Management, the Russia-Ukraine war significantly increased risk premiums and market volatility. “Our research underscores that without rapid diversification and smarter market design; Indian consumers and businesses will bear the brunt of volatility triggered by distant geopolitical and commodity shocks,” he said.
The “risk premium” is particularly pronounced during peak hours (6-11 p.m.) and rises by up to 13% on weekends, reflecting severe supply shortages, the study found. Researchers utilized high-frequency data from the Indian Energy Exchange between June 2020 and April 2024 to draw their conclusions.
Jalal Siddiki, senior lecturer at Kingston University and co-author of the paper, emphasized the need for India to diversify its energy mix away from coal and invest in renewable energy sources with storage capabilities. The study also calls for regulators to redesign electricity markets to minimize inefficiencies and better manage volatility.
The findings have implications for policymakers, regulators, utilities, and businesses, urging them to develop effective hedging strategies and enhance India’s energy resilience in the face of future global shocks. The research also exposed the vulnerability of India’s power sector to external shocks and emphasizes the need for strategic reserves and flexible generation capacity.
First Piper 