Setting aside the specific political charges being traded, here’s what I think may get legislated or corrected
Whether PPA or spot, states will have to pay upfront more to get power. On time payment may get discounts.
Much like F&O trading, larger the power needs, more money will be asked to be paid upfront if its state govs. this is not going to work as most states are budget negative
A default by a state and resulting massive disruption in power would cause more safeguards in terms of centralising power distribution and rate charging mechanism. if a state announces 100 units free, it will immediately trigger additional margin payments or collateral money to be provided upfront.
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