The Central Electricity Authority (CEA) has framed the draft procedural guidelines for firms to participate in cross-border electricity trade, a move that could open up an annual potential market of additional 5-6 billion units of electricity.
While the CEA proposes to allow Indian entities to import electricity from neighbouring countries only through bilateral agreements, export of power can now be done through spot power markets as well.
The ‘draft conduct of business rules of the designated authority for facilitating the cross border trade of electricity’ clarified that plants with Coal India fuel linkage or captive mines cannot sell power outside India. Only the power plants which generate electricity using coal sourced through import, spot e-auctions (at premium rates) or commercial mining can export electricity. The Cabinet has recently allowed the sale of 25% produce of captive coal mines to the open market on a commercial basis.
