Date:28/05/2008 URL: http://www.thehindu.com/2008/05/28/stories/2008052858850300.htm

New Delhi

‘Power exchange will help Delhi meet peak demand’

Smriti Kak Ramachandran

Capital’s “peculiar” peak demand depends on the weather

NEW DELHI: The proposed power exchange that will be set up in the near future to allow sale and purchase of electricity from a common platform would spell relief for stakeholders in Delhi’s power generation, procurement and distribution system by allowing them to make day-ahead purchases to meet the peak demand.

According to officials of the Delhi Government’s Power Department, the city has a “peculiar” peak demand that makes it difficult for the utility to procure power on a day-ahead basis. “The peak demand in Delhi is dependant on the weather. Any variation in temperature has an immediate effect on the power consumption and its demand. Once the exchange is functional, we will be in a better position to make arrangements,” said a senior official.

He said a power exchange would afford the stakeholders a chance to identify power availability from different parts of the country and at different times to help them plan ahead.

No wastage of time

“The Electricity Act, 2003, has a provision for setting up a power exchange that will allow development of the power market. It will make the process of buying and selling electricity more transparent and less cumbersome. There will be no time wasted in filing tenders and making bids, both the buyers and the sellers will notify the power exchange, which in turn will work out the rates of the power on an hourly basis and help in ironing out problems related to sale-purchase of electricity,” the official said.

While members of the power exchange will be eligible to make use of its service, even non-members can avail themselves of the benefits by approaching the members. “All inter-State generating stations (ISGS), distribution licensees, State generating stations, open access customers and even electricity traders and brokers can become members of the power exchange,” the official said.

According to senior officials, the exchange will be set up in the next couple of months.

Work on

“The details are being worked out; the Power Grid this past Monday conducted a meeting of all the State Load Dispatch Centres to brief them about the role they will play in the power exchange. Once all the key players are sensitised, there will be trial runs and then the exchange will be formally opened,” a Power Department official said.