The Hindu Business Line : CERC paper on power exchange soon

The Central Electricity Regulatory Commission (CERC) will release a draft discussion paper this month on the proposed power exchange, kicking off a process that could result in establishing the exchange soon.

The exchange, when set up, would be run by a board of independent members.

"The idea is to get surplus power out of the system and distribute it to address power shortages," Mr Ashok Basu, Chairman of CERC, told Business Line.

Mr Basu was here to take part in a session on `Sustainable Energy Development' in the 39th annual meeting of ADB's board of governors.

The exchange markets would leave the floor open for sellers of surplus power and buyers to trade it.

"The draft will be put on the Web site. We will seek views from all the interested sections before finalising the proposal."

However, he added, the exchange could not be left open for free operations.

"Unlike in the West, which has self-sufficiency, we need to have a board to oversee the power market. Members of the exchange who have surplus power outside the PPA arrangements are free to sell at the exchange. It is a place where all people selling and buying power will bid."

Members who have surpluses in the off-peak period could also trade at the exchange.

Earlier, presenting a paper at the session, Mr Basu called for co-operation in South Asia in order to utilise the energy resources in the region.

This, however, requires reforms in distribution mechanisms and energy efficiency programmes.

He said that the region was beset with problems like high transmission and distribution losses, uneven quality of power, power shortages, and poor health of power utilities.

Mr Basu also said that it was very important to address legal, administrative, and regulatory frameworks.

Issues like tariff, licensing, and grid management are also to be discussed to pave way for sharing energy strengths.

More Stories on : Power | Regulatory Bodies & Rulings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page