Power Exchange plans State-centric operations
V. Rishi Kumar
Business Line

Hyderabad, March 20

Power Exchange India Ltd (PXIL) is in the process of setting up State-centric operations aimed at partly decongesting heavily clogged power supply networks in the country beginning with Andhra Pradesh.

Facility in AP

“We expect to set up first embedded State-centric supply facility beginning with Andhra Pradesh by early April. This will play a vital role in helping in power trading with the State, particularly in the backdrop of severe power shortage in the summer months,” Mr Satyajit Ganguly, Vice-President and Head of Operations, PXIL, said.

Speaking to Business Line here, Mr Ganguly said that the Southern regional grid is extremely congested. It is now faced with a shortage of over 4,000 MW. Both the networks comprising S1 (Andhra Pradesh and Karnataka) and S2 (Tamil Nadu and Kerala) are faced with congestion that hampers transfer of power even when there is possibility.

“Therefore, by setting up local centre, we will be able to regulate the traffic and also to some extent decongest the system. The software we have deployed also helps streamline the flow at in the last mile,” Mr Ganguly explained.

The demand-supply gap has shot up significantly due to onset of summer months, buoyancy in the economy and higher consumption by the industrial segments. The peak demand-supply gap in the country is estimated to be about 15,000 MW (about 16 per cent short) and the energy demand shortage is about 12 per cent.

One of the major problems with the current situation is the extra cautious approach adopted by various distribution companies.

Most of them are treading cautiously due to students examinations and likelihood of spurt in demand. They do not want to trade any surplus power. “With the help of State centric approach, we would be able to help them. After AP, we will have more such exchanges,” Mr Ganguly said.

“Towards this, we have tied up with GMR Energy Trading Ltd., and we are in talks with other utilities and trading companies,” Mr Ganguly said.

In talks with utilities

The Head of Power Trading and Regulatory Business, GMR Power Trading Ltd, Mr Sunil Agarwal, said they are now engaged in talks with some of the utilities in the State and other parts of the country and exploring how to trade excess power through the open access system.

Most of the States in the country are faced with shortage and some of the States such as Chhattisgarh and Rajasthan, which have surplus power are willing to trade excess power.