PTC Crosses One Billion Units of Power Trading while Entering Year 2002
1 December 2001
Power Trading Corporation of India Ltd. (PTC) has crossed one Billion units of power trading, a major milestone, while entering the year 2002. Power trading started with limited transactions during 1999-2000 (28.35 MUs) and 2000-01 (43.77 MUs) but trading on sustainable basis commenced from June 2001. PTC set the target of trading 1500 MUs for this financial year, out of which 946 MUs has already been traded from June 2001 to December 2001. It is worthwhile to note that PTC traded this energy by targeting the surplus power of State Power Utilities and IPP. Major transactions of PTC include trading of about 160 MW power from West Bengal to Delhi and Haryana, 70 MW Malana Hydro power from Himachal to Delhi, 50 MW power from Goa to Gujarat, 50 MW from Goa to Karnataka and 100 MW power from Chhattishgarh to Karnataka. Presently, PTC transactions are covering four out of five electricity regions of the country.
PTC has many offers from States having surplus power and captive power Plants and there is scope for substantial increase in quantum of trading. However, many of the transactions are hindered by the transmission constraints and paying capacities of the State Power Utilities.
Identification of probable sellers and buyers (for short term and long term), coordination with various agencies for dispatch, metering and billing, revenue realisation and finding alternative buyer(s) in default situation etc. are the major value addition by PTC. On the strength of PTC's ability to find alternate buyers, Payment Security Mechanism being asked for by the Sellers is reasonable and simple but effective; no State Government guarantee or escrow cover is being asked for.
Despite an encouraging performance in such a short time, PTC is not complacent about its achievements as it believes this is just the beginning and it has to continuously look out for opportunities to further enhance trading. PTC has approached regulatory authorities for creation of enabling environment and is also working out 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 power plants 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 this, PTC is involved in catalysing development of Mega Power Projects and several other projects and making available its technical and commercial expertise to the project developers/utilities. PTC has also been identified by Government of India as a Nodal Agency to deal with matters relating to exchange of power between India and Nepal and has initiated discussions with Nepal for enhancing power exchange between the two countries.
Bhutan is presently supplying 270 MW from its Chukha Project (336 MW) and 40-45 MW from Kurichhu Hydro Project (60 MW) to the Eastern Region States of India. Tala Hydro Electric Project (1020 MW) is under construction in Bhutan (to be Commissioned in 2005). MOP has proposed to assign the trading of power from above projects to PTC.
PTC is making efforts to establish a power market in the country. This is a difficult and challenging task in the given environment due to lack of transmission facility for unconstrained flow of power from the surplus locations to the deficit locations and poor paying capacity of SEBs. However, with a strong belief that formation of Power Market has become a necessity in India, PTC has taken several steps in this direction and hopes that with investment towards strengthening the grid at state/national level, open access to the grid and suitable institutional mechanism, there would be more conducive infrastructure for a power market.
Moving with confidence towards the future, PTC is expecting to reach a turnover of over Rs. 350 Crores in the current financial year (2001-02), with just a handful of professionals, thus meeting its goal of steering India towards a commercially efficient electricity sector. |
