New Delhi, July 7 -- India's power system is no longer struggling to generate enough electricity. It is struggling to generate it at the right time, as per a new paper by the Economic Advisory Council to the Prime Minister.

The paper said the defining problem for the Indian grid has shifted from capacity to flexibility, and three market signals show just how acute the mismatch between solar and non-solar hours has become.

The first signal is playing out in prices. According to the EAC-PM, the intraday spread between solar hours and non-solar hours has widened to a peak-to-trough ratio approaching nine. The gap would be even wider, the report notes, but for the market's price ceiling. In practical terms, power is plentiful and cheap in t...