Does market concentration affect wholesale electricity prices? An analysis of the Indian electricity sector in the COVID-19 pandemic context

Abstract This study explores whether the market concentration affects the wholesale prices of electricity generation among Indian companies by drawing 15-min frequency data related to electricity production, wholesale prices, and electricity demand in August 2020 during the COVID-19 pandemic. The ARDL model estimates show a positive relationship between market concentration and wholesale energy prices. The study recommends the adoption of policies to reduce market concentration and enhance clean energy development.