India is abundantyl gifted with a variety of renewable energy sources; however not all states are endowed with same level of renewable energy sources. The enactment of the Electricity Act 2003 (EA 2003) stimulated the development of RE-based power generation by mandating State Electricity Regulatory Commissions (SERC) with the responsibility to promote RE generation within the state.

A robust transmission network is essential for power market operations. Experts have recommended that the market reforms should start with transmission and not generation. Transmission system issues need to be accorded the highest priority in the market development initiative.