Untitled - Ministry of Power

for the financial year 2001-02 and 4178 MUs for the FY 2002-03. In FY 2003-04 PTC has been
able to trade a total of 11016 MUs (provisional), surpassing all targets that had been set.
Energy in MUs
12000
10000
8000
6000
4000
2000
568
179
0
0
Month
April
1345
424
0
May
2224
688
49
June
2973
July
3772
1362
Trading of Energy
4788
1751
PTC’s major trading partners include West
Bengal, DTL, DVC, Haryana, Malana, Goa,
UPCL, Andhra Pradesh etc. PTC is also entering
into deals with timeframes varying from as low
as 1 day to 3 years. PTC has also introduced
‘differential pricing’ concept for ‘round the clock’
and ‘off-peak power’. Due to this, customers can
sell and buy power in the same time frame i.e.
one can buy power in peaking period when it is
power deficit and can sell power during off-peak
hours when it is surplus in power and thus the
vision of developing a dynamic power market is
progressively taking shape.
PTC has approached regulatory authorities for
creation of enabling environment and is also
working on framework agreements to catalyse
electricity trading and development of projects.
To increase its trading activities in future, PTC
has set its eye on the surplus power available
with captive power plants (CPPs) and also pooling
power from distributed generation viz., wind and
small hydro power plants. With new captive
power policy announced by GOI wherein it would
be easy for CPPs to trade their power freely,
PTC hopes to get a major share of captive surplus
capacity for trading.
In addition to inter-state exchange of power within
the country, there is scope for trade of electricity
with neighbouring countries for which PTC has
been identified as the nodal agency. PTC has
successfully traded surplus power from 336 MW
of Chukha and 60 MW of Kurichhu Hydro Power
Projects from Bhutan for over a year now and
future trading opportunities include purchase of
power from Tala Hydro Power Project (1020 MW)
in Bhutan and some power projects in Nepal.
988
169
312
411
5800
2306
556
6940
2668
730
8125
3052
938
August
September
October
November
December
9305
1149
3426
10188
3663
1405
January
February
11016
4178
1617
March
FY 2001-02
FY 2002-03
FY 2003-04
Opportunities and Constraints
The present level of inter-state exchange is still
quite limited and the constraints for enhancing
the same is inadequate transmission capacity,
lack of proper market mechanism (absence of
tariff structure to promote merit order operation
and encourage trading of power), Grid Indiscipline
and continuing concerns about financial unviability
of some SEBs.
With the implementation of the Availability Based
Tariff (ABT), the prospects and volume of trade
have increased greatly. ABT, which has already
been implemented for the inter-state Generating
Stations in all electricity regions of the country,
has encouraged the trading of electricity by
providing the right commercial signals. The
greatest benefit which may be derived from
such trading is that it will help not only in
achieving better economic efficiency and
improved reliability but also in converting
unscheduled interchanges to scheduled
interchanges of power between the States,
thereby improving the quality of power supply.
The Electricity Act 2003 has provided for
establishment of a bulk electricity market, setting
up of generating stations without license, nondiscriminatory
access to the transmission
system and gradual introduction of open access
for the distribution system. Along with this, the
promotion of competition from multiple suppliers
has also been envisaged, as also the recognition
of Power Trading as a distinct commercial
activity. This comprehensive legislation is
expected to pave the way for encouraging power
trading in the country and also to provide for a
vibrant power market in the country.
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