Billateral

2.1 POWER TRADING ARRANGEMENTS
Power trading contracts exist in different types of formats such as
a) Bilateral trading   b) Power trading through intermediaries   c) Power exchanges

a) Bilateral Contracts:
Bilateral contracts refer to mutual contracts where buyers and sellers search and negotiate. These contracts could be long-term or short-term. The long-term power purchase agreements (PPA) in India between the C.G.S are a classic example of a bilateral contract. Such transactions are characterized by huge search costs, asymmetric information, and lack of transparency.





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