Power Scenario In India

Power Scenario in India

Peculiarities 

India is the third largest producer of electricity in Asia with an installed capacity to 134000 MW.

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Existence of shortages in meeting peak as well as overall demand.

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In spite of the overall shortage, the inherent diversity in demand of various States and Regions in the country results in periods of seasonal surplus in one State or Region coinciding with periods of deficit in another.

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This coexistence of overall shortages with complementary geographical and temporal surplus-deficits provides substantial opportunities to improve the economic efficiency and security of supply through trading of power both within as well as across Regions.

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Realizing the full benefits of trading requires the availability of adequate transmission capacity and inter-regional links for transfer of power from a surplus to a deficit entity and support

National Grid - Present

FREQUENCY PROFILE 2002, 2003 & 2004

National Grid by 2012

THE POWER ‘HIGHWAY’

Inter Regional Exchange 35000 30000 25000 20000 15000 10000 5000 0

31000 22000 8145

200001

10850

200102

13000

200203

200304

200405

Trading Practices Long Term 

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POWER TRADERS, is operating as catalyst for the development of the Mega and other large Power Projects by acting as a single entity to enter into Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) / Power Utilities, in India or abroad, on the one hand and multipartite Power Sale Agreements (PSAs) with users / State Electricity Boards under long term arrangement. The PPAs and PSAs range from 10 to 35 years, and provide for tieup of long term capacity at competitive tariffs. Towards facilitation of Power Projects, POWER TRADERS is also open to the idea of equity participation in some select projects. POWER TRADERS have already signed various agreements / MoUs for purchase of power from various power projects and is in the process of signing agreements / MoUs for sale of power from these projects to various state utilities. The Long Term Solutions, as a part of POWER TRADERS’ portfolio would provide stable and long term business, mitigating the risk of volatility in volume of business inherent in short term trading.

Short - term Trading 

The second part of POWER TRADERS' area of operation is to develop a full fledged, efficient and competitive market mechanism for trading in power results in optimal utilization of the existing resources in the country as also promoting exchange of power with neighboring countries.

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In this area, POWER TRADERS has been an instrumental force in the creation of a commercially vibrant power market in the country.

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Identify patterns of regional power surpluses in the country and the complementary patterns of power deficits.

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The power demand-supply planning process has conventionally been undertaken in regional silos.

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While now it may seem like a simple idea to transfer power from a surplus region to a deficit one, actual implementation of the idea at that time turned out to be much more difficult, with major problems in inter-regional connectivity and in co-ordination between different agencies dealing with the five electricity regions of the country.

Trading Performance 

POWER TRADERS traded 1617 Million Units (MUs) of electricity worth Rs. 364 Crores.

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POWER TRADERS has thereon climbed a steep growth path, going on to trade about 11 Billion Units in FY 2003-04 worth about Rs. 2378 Crores.

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The first transactions carried out on a sustainable basis involved power being transferred from a surplus power utility to a deficit utility on a 24 hour a day basis.

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POWER TRADERS have since constantly endeavored to understand the customers' needs and has made efforts to structure solutions with minimum time-to-market.

Power Exchange  The supply-demand mismatches occurring during any part of the day, power sale solutions have been provided for part of the day.  Power bought during different times of the day has also been priced differentially to create drivers for demand side management.  POWER TRADER is able to trade power now even on a day ahead basis.