Transmission Rights for Indian Power Market

1
Transmission Rights for Indian Power Market

• By Ravinder, Chief (Engg.)
• Central Electricity Regulatory Commission
• New Delhi

2

• Electricity market size 550 BU per annum
• Traded power 2-3 (mostly tied up)
• Regulative tarrifs are front loaded and become
  very cheap when the plant is old, such supplies
  cannot be deregulated in a shortage scenario
• Power market can cater to seasonal and short term
  surpluses
• Open access regulations implemented by CERC in
  2004 to facilitate power trading

3

• Transmission service products
• Long term
• Short term
• Different prices, criteria, procedure, priority
  for the two products
• Transmission reservation requires MOU for trade
• In case of congestion, transmission has to be bid
• Transmission reservation is not transferable and
  there is no secondary market for TR

4

• Transmission reservation has upfront firm postage
  stamp price at discounted rates
• Separate transmission product makes trading
  cumbersome
• It would be better to integrate transmission and
  energy products
• The challenge is to organize power market for
  short term supplies in a shortage scenario where
  the demand may never be equal to the supply at
  any price