Power News We love to talk!

SEP 01 2016

Power trading helps companies cut costs

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 01st SEP 2016


 To produce electricity or buy it? Industrial houses with captive power plants constantly ask themselves this as power on exchange can be bought for as low as 2.80, while producing electricity can cost as much as 3.50- 4.

Large-scale manufacturing units in the South are currently making use of the cheap excess electricity available on the exchanges, while running their power generation units at half-capacity. "Currently there's cheap power available on the exchange, but that's not to say the same situation will continue. Sometime ago I bought electricity for as much as Rs 10-11," says a top executive at a South Indian cement major.

With many states like Tamil Nadu, Maharashtra, Gujarat, Chattisgarh producing power in excess, experts say cheap electricity maybe available for a few more months going forward. With wind season strong in South now, power buyers are sitting on a problem of plenty. While power exchanges are a big help, they still cannot cope with the actual demand and supply chain, say experts.

"Only 10% of power consumed in India is being bought off the exchange. More than 90% of power is still being bought from state distributors like Tangedco or utility companies like Tata Power," says James Rajan, director- service unit, South Asia, Wartsila India.


Gujarat Maharashtra Chattisgarh Tamil Nadu Tamil Nadu Generation and Distribution Corporation Ltd Captive Wind Power Generation Asia Power exchanges Power Tata Power Electricity India CAPTIVE

Related News

  • Power Grid evinces interest to invest in Telengana  Read more
  • Adani Power bags 3 transmission projects  Read more
  • Gas for power plants: govt will have to rework strategy as imports turn cheaper  Read more
  • India loses 3.1 billion units of electricity to transmission congestion in 2014-15  Read more
  • Essar Power plans Rs.5,000 cr bond sale to repay old debt  Read more
  • Petition for enabling cross border transaction at IEX  Read more
  • PM calls for 2nd Green Revolution without any delay  Read more
  • Tariff order effect: NTPC stock bleeds most since 2008  Read more
  • Bangladesh citizens' forum holds protest against power plant in Sundarbans  Read more
  • Solar beats wind, powers new high in renewable energy investment  Read more