Open access norms in power sector by January
The Central Electricity Regulatory Commission (CERC) is expected to come out with more specific guidelines for open access by January, according to sources.
By Deepa Krishnan, TNN |
MUMBAI: The Central Electricity Regulatory Commission (CERC) is expected to come out with more specific guidelines for open access by January, according to sources.
This would show the way to the proposed power exchanges NTPC-NCDEX led consortium, and the Indian Energy Exchange, which is promoted by MCX and FTIL.
Currently a number of issues that will facilitate the smooth functioning of spot trading in power are unclear. For example, transmission charges are defined by the contract path given by the bilateral trading parties. “With the power exchange being an anonymous platform, the contract path system would not work. Therefore a uniform charge in Rs/mwh would have to be defined for all the exchange participants. The procedure for payment of these charges would also need to be defined,” says NCDEX products AVP Arvind Pal Singh.
Transmission losses are also defined by the contract path which have to be changed. To prevent congestion of networks, the transmission capacities would need to be allocated to the exchanges. CERC would look at addressing these issues. Two exchanges are being proposed to flag off trading in power once there is clarity on these points.
The Indian Energy Exchange, (IEX) co-promoted by Power Trading Corp (PTC) and Financial Technologies Group (FTIL), with 25% being held by Tata Power, Reliance Energy, Lanco, Adani Enterprise and Rural Electrification (REC) got approved in September. It has currently undertaken a membership drive. Trading is expected to commence once the issues related to transmission charges, losses and availability of capacity are sorted.
NTPC-NCDEX led consortium comprising of NTPC, NCDEX, NSE, Power Finance Corp (PFC) and National Hydroelectric Power Corp (NHPC) have firmed up plans to seek CERC’s approval for setting up a pan-India power exchange. To begin with, the proposed exchange will have an authorised capital of around Rs 50 crore.
Both exchanges are being set up in the national capital region. Intraday trading will take place round the clock, through the year. Value chain players — producers (including captive generators), transmission companies, distribution companies and large consumers can bid for or quote for hourly electricity contracts.
The total capacity in India is 1,26,000 MW of power, and it is estimated that almost 40,000 MW of power is produced by captive generators. Open access is expected to help tap this energy as well.
This would show the way to the proposed power exchanges NTPC-NCDEX led consortium, and the Indian Energy Exchange, which is promoted by MCX and FTIL.
Currently a number of issues that will facilitate the smooth functioning of spot trading in power are unclear. For example, transmission charges are defined by the contract path given by the bilateral trading parties. “With the power exchange being an anonymous platform, the contract path system would not work. Therefore a uniform charge in Rs/mwh would have to be defined for all the exchange participants. The procedure for payment of these charges would also need to be defined,” says NCDEX products AVP Arvind Pal Singh.
Transmission losses are also defined by the contract path which have to be changed. To prevent congestion of networks, the transmission capacities would need to be allocated to the exchanges. CERC would look at addressing these issues. Two exchanges are being proposed to flag off trading in power once there is clarity on these points.
The Indian Energy Exchange, (IEX) co-promoted by Power Trading Corp (PTC) and Financial Technologies Group (FTIL), with 25% being held by Tata Power, Reliance Energy, Lanco, Adani Enterprise and Rural Electrification (REC) got approved in September. It has currently undertaken a membership drive. Trading is expected to commence once the issues related to transmission charges, losses and availability of capacity are sorted.
NTPC-NCDEX led consortium comprising of NTPC, NCDEX, NSE, Power Finance Corp (PFC) and National Hydroelectric Power Corp (NHPC) have firmed up plans to seek CERC’s approval for setting up a pan-India power exchange. To begin with, the proposed exchange will have an authorised capital of around Rs 50 crore.
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Both exchanges are being set up in the national capital region. Intraday trading will take place round the clock, through the year. Value chain players — producers (including captive generators), transmission companies, distribution companies and large consumers can bid for or quote for hourly electricity contracts.
The total capacity in India is 1,26,000 MW of power, and it is estimated that almost 40,000 MW of power is produced by captive generators. Open access is expected to help tap this energy as well.
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