Real-time power trading to reduce input costs for discoms, tariffs for consumers
NEW DELHI: India joined the ranks of developed markets such as the US and Europe with power minister R K Singh formally launching real-time electricity trading, a move that will reduce input costs for financially-stressed distribution companies (discoms) by allowing them more flexibility in managing demand and supply.
Developing a responsive and transparent power market by 2030 is a key component of Singh’s reforms roadmap for introducing intense competition to achieve the Narendra Modi government’s objective of providing 24X7 affordable power to all, as was first reported by TOI on September 5 last year.
In the present format, the country’s two main power exchanges – Indian Energy Exchange and Power Exchange India – will conduct auctions every 30 minutes and deliveries will begin within the hour of each session. Buyers/sellers will have the option of placing buy/sell bids for 15-minute time blocks. This will give discoms access to a larger market at competitive rates. Generators will benefit by offering their idling capacity.
