TATA Power Company (TPC) has decided to pick up a stake in the spot power exchange being planned by the leading commodity exchange NCDEX and National Thermal Power Corporation (NTPC). The board has given an in-principle approval to become one of the promoters of the exchange. TPC may pick 15% stake in the exchange.
Power Grid Corporation of India (PGCIL) and Power Finance Corporation (PFC) have decided to become strategic promoters of the exchange. Both the companies have given their in-principle approval letters to become part of the consortium, which also includes National Hydroelectric Power Corporation (NHPC), said sources.
“We have got the board approval to become one of the promoters in the spot power exchange being planned by NCDEX and NTPC. We understand that initial promoters will take equal shares and the exact percentage is under finalisation,” said a senior TPC official. The NTPC and NCDEX-led power exchange has filed its application before central electricity regulatory commission (CERC) and the hearing is likely to take place by September-end.
Through the power exchange, TPC could sell the additional power it generates at market price and buy electricity to bridge the deficit in its licensed distribution areas such as Delhi and Mumbai. TPC has a generation capacity of 2,323MW. Tata Power Trading Company, a power trading arm of TPC, has traded 1,205 million units (MUs) in the last fiscal. CERC had recently given clearance to MCX-Financial Technologies-led power exchange, to be called as Indian Energy Exchange.
Power Trading Corporation has shown interest to take a stake in this exchange. In 2003-04, the inter-state power trading volumes were 11,028.96 MUs. The exchange will enable participants to trade electricity the subsequent day through standard hourly contracts and block contracts that permits them to draw power from the grid at a given hour. The price will be fixed through trading. All settled trades shall be compulsorily advised to the concerned regional load despatch centre for being scheduled, subject to transmission capacity availability.
Source: Economic Times